The
Value
Delivery
Metrics
Loop

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The Value Delivery Metrics Loop is a tool for helping software teams ideate, rationalize, and prioritize which metrics to use at different times so that they can demonstrate their proficiency to sustain value delivery.

Metrics that Matter.

Meaningful metrics help teams and their investors to align on desired outcomes, to get feedback and track progress towards those outcomes, to tell a story, to create a business case, to make decisions, and to know when it's time to move on to the next priority.

Measure the Right Things…

The metrics that teams select should be useful indicators of value delivery at various levels and should be coherent with each other. Those metrics may relate to the business, to their software product, to their delivery processes and tools, or to the team itself.

And Only the Right Things…

There are so many things teams could measure, but with aditional metrics comes increased overhead to gather and analyze data. Teams must prioritize only the specific metrics relevant to their desired outcomes.

…At the Right Time.

The metrics that matter may change as a team grows or is reconfigured, or as the software product expands with more features for new user segments.

Business Metrics

Data that indicate positive impact on the overall business that is investing in people and tools to produce software. For example:

  • Incremental revenue
  • Operating margin
  • Brand image
  • Market share
  • Customer lifetime value
  • Customer acquisition cost

Product Metrics

Data relating to user behavior within our product that serve as leading indicators for positive impact on business metrics. For example:

  • Converstion rates
  • Retention
  • Effort scores
  • Transaction volumes
  • User feedback
  • Referrals

People Metrics

Data relating to the performance of a team that indicate the team's ability to sustain activities to deliver product outcomes. For example:

  • Team health score
  • Employee satisfaction
  • Overtime
  • Employee retention
  • Training time
  • Diversity scores

Process & Tech Metrics

Data relating to the activities being undertaken to deliver product outcomes that may serve as indicators of proficiency to deliver those outcomes. For example:

  • Lead time / time to value
  • Error / Defect rates
  • Latency / loading speeds
  • Delivery velocity and volatility
  • Downtime / uptime
  • Rejection rate
The Value Delivery Metrics Loop

With Time Horizons

Suitable for smaller teams working on new or growth-stage products where meaningful metrics are likely to change as the team and product grows.
The Value Delivery Metrics Loop

Without Time Horizons

Suitable for larger teams working on mature products where meaningful metrics are unlikely to change.

© Copyright 2024 Justin Farrell, Ali Ahmed, Wal Gedeon, Darryl Snow. The Value Delivery Metrics Loop is released under the Creative Commons Attribution ShareAlike 4.0 International license. This license enables reusers to distribute, remix, adapt, and build upon the material in any medium or format, so long as attribution is given to the creators. The license allows for commercial use. If you remix, adapt, or build upon the material, you must license the modified material under identical terms.