{"id":8675,"date":"2021-01-20T09:47:04","date_gmt":"2021-01-20T09:47:04","guid":{"rendered":"https:\/\/ee.yelkdev.site\/?p=8675"},"modified":"2023-09-22T15:34:44","modified_gmt":"2023-09-22T14:34:44","slug":"how-to-measure-product-delivery-success","status":"publish","type":"post","link":"https:\/\/www.equalexperts.com\/blog\/our-thinking\/how-to-measure-product-delivery-success\/","title":{"rendered":"How to measure product delivery success"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">At Equal Experts, we\u2019re frequently asked about success measures for product delivery. It can be hard to figure out what to measure &#8211; and what not to measure!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We often find ourselves working within multiple teams that share responsibility for one product. For example, an ecommerce organisation might have Equal Experts consultants embedded in a product team, a development team, and an operations team, all working on the same payments service.<\/span><\/p>\n<img decoding=\"async\" class=\"aligncenter wp-image-8668 size-full\" src=\"https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_1.jpg\" alt=\"\" width=\"1920\" height=\"560\" srcset=\"https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_1.jpg 1920w, https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_1-300x88.jpg 300w, https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_1-1200x350.jpg 1200w, https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_1-768x224.jpg 768w, https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_1-1536x448.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/>\n<p><span style=\"font-weight: 400;\">When we\u2019re asked to improve collaboration between interdependent teams, we look at long-term and short-term options. In the long-term, we advocate moving to cross-functional product delivery teams. In the short-term, we recommend establishing shared success measures for interdependent teams.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By default, we favour measuring these shared outcomes:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><i><span style=\"font-weight: 400;\">High profitability<\/span><\/i><span style=\"font-weight: 400;\">. A low <\/span><b>cost of customer acquisition<\/b><span style=\"font-weight: 400;\"> and a high <\/span><b>customer lifetime value<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li><i><span style=\"font-weight: 400;\">High throughput<\/span><\/i><span style=\"font-weight: 400;\">. A high <\/span><b>deployment frequency <\/b><span style=\"font-weight: 400;\">and a low <\/span><b>deployment lead time<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li><i><span style=\"font-weight: 400;\">High quality<\/span><\/i><span style=\"font-weight: 400;\">. A low <\/span><b>rework time percentage<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li><i><span style=\"font-weight: 400;\">High availability<\/span><\/i><span style=\"font-weight: 400;\">. A high <\/span><b>availability rate <\/b><span style=\"font-weight: 400;\">and a low <\/span><b>time to restore availability<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If your organisation is a not-for-profit or in the public sector, we\u2019d look at customer impact aside from profitability. Likewise, if you\u2019re building a desktop application, we\u2019d change the availability measures to be <\/span><b>user installer errors<\/b><span style=\"font-weight: 400;\"> and <\/span><b>user session errors<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These measures have caveats. Quantitative data is inherently shallow, and it\u2019s best used to pinpoint where the right conversations need to happen between and within teams. What \u201chigh\u201d and \u201clow\u201d mean is specific to the context of your organisation. And it\u2019s harder to implement these measures than something like story points or incident count &#8211; and it\u2019s still the right thing to do.<\/span><\/p>\n<h3>Beware per-team incentives<\/h3>\n<p><i><span style=\"font-weight: 400;\">\u2018Tell me how you measure me and I will tell you how I will behave\u2019 &#8211; Eli Goldratt<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">People behave according to how they\u2019re measured. When interdependent teams have their own measures of success, people are incentivised to work at cross-purposes. Collaboration becomes a painful and time-consuming process, and there\u2019s a negative impact on the flow of product features to customers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At our ecommerce organisation, the product team wants an increase in customer page views. The delivery team wants more story points to be collected. The operations team wants a lower incident count.\u00a0<\/span><\/p>\n<img decoding=\"async\" class=\"aligncenter wp-image-8688 size-large\" src=\"https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod_del_success_infographic_2a-1200x406.jpg\" alt=\"\" width=\"1200\" height=\"406\" \/>\n<p><span style=\"font-weight: 400;\">This encourages the delivery team to maximise deployments thereby increasing its story points, and the operations team to minimise deployments to decrease its incident count. These conflicting behaviours don\u2019t happen because of bad intentions. They happen because there\u2019s no shared definition of success, so the teams have their own definitions.<\/span><\/p>\n<h3>Measure shared outcomes, not team outputs<\/h3>\n<p><span style=\"font-weight: 400;\">All too often, teams are measured on their own outputs. Examples include story points, test coverage, defect count, incident count, and person-hours. Team outputs are poor measurement choices. They\u2019re unrelated to customer value-add, and offer limited information. They\u2019re vulnerable to inaccurate reporting, because they\u2019re localised to one team. Their advantage is their ease of implementation, which contributes to their popularity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We want to measure shared outcomes of product delivery success. Shared outcomes are tied to customers receiving value-add. They encode rich information about different activities in different teams. They have some protection against bias and inaccuracies, as they\u2019re spread across multiple teams.\u00a0\u00a0\u00a0<\/span><\/p>\n<img decoding=\"async\" class=\"aligncenter wp-image-8677 size-full\" src=\"https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-table.jpg\" alt=\"\" width=\"629\" height=\"213\" srcset=\"https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-table.jpg 629w, https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-table-300x102.jpg 300w\" sizes=\"(max-width: 629px) 100vw, 629px\" \/>\n<p><span style=\"font-weight: 400;\">When working within multiple teams responsible for the same product, we recommend removing any per-team measures, and measuring shared outcomes instead. This aligns incentives across teams, and removes collaboration pain points. It starts with a shared definition of product delivery success.<\/span><\/p>\n<h3>Define what success means<\/h3>\n<p><span style=\"font-weight: 400;\">When we\u2019re looking at inter-team collaboration, we start by jointly designing with our client what delivery success looks like for the product. We consider if we\u2019re <\/span><a href=\"https:\/\/www.stevesmith.tech\/blog\/build-the-right-thing-and-build-the-thing-right\/\"><span style=\"font-weight: 400;\">building the right product as well as building the product right<\/span><\/a><span style=\"font-weight: 400;\">, as both are vital. We immerse ourselves in the organisational context. A for-profit ecommerce business will have a very different measure of success than a not-for-profit charity in the education sector.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We measure an intangible like \u201cproduct delivery success\u201d with a clarification chain. In <\/span><a href=\"https:\/\/www.amazon.co.uk\/How-Measure-Anything-Intangibles-Business\/dp\/1118539273\"><i><span style=\"font-weight: 400;\">How To Measure Anything<\/span><\/i><\/a><span style=\"font-weight: 400;\">, Douglas Hubbard defines a clarification chain as a short series of connected measures representing a single concept. The default we recommend to clients is:<\/span><\/p>\n<blockquote><p><i><span style=\"font-weight: 400;\">product delivery success includes high profitability, high throughput, high quality, and high availability<\/span><\/i><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">In our ecommerce organisation, this means the product team, delivery team, and operations would all share the same measures tied to one definition of product delivery success.<\/span><\/p>\n<img decoding=\"async\" class=\"aligncenter wp-image-8670 size-full\" src=\"https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_3.jpg\" alt=\"\" width=\"1920\" height=\"800\" srcset=\"https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_3.jpg 1920w, https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_3-300x125.jpg 300w, https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_3-1200x500.jpg 1200w, https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_3-768x320.jpg 768w, https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_3-1536x640.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/>\n<p><span style=\"font-weight: 400;\">These are intangibles as well, so we break them down into their constituent measures.<\/span><\/p>\n<h3>Pick the right success measures<\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s important to track the right success measures for your product. Don\u2019t pick too many, don\u2019t pick too few, and don\u2019t set impossible targets. Incrementally build towards product delivery success, and periodically reflect on your progress.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Profitability can be measured with <\/span><b>cost of customer acquisition<\/b><span style=\"font-weight: 400;\"> and <\/span><b>customer lifetime value<\/b><span style=\"font-weight: 400;\">. Cost of customer acquisition is your sales and marketing expenses divided by your number of new customers. Customer lifetime value is the total worth of a customer while they use your products.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Throughput can be measured with <\/span><b>deployment frequency<\/b><span style=\"font-weight: 400;\"> and <\/span><b>deployment lead time<\/b><span style=\"font-weight: 400;\">. Deployment frequency is the rate of production deployments. Deployment lead time is the days between a code commit and its consequent production deployment. These measures are based on the work of Dr. Nicole Forsgren <\/span><i><span style=\"font-weight: 400;\">et al<\/span><\/i><span style=\"font-weight: 400;\"> in <\/span><a href=\"https:\/\/www.amazon.com\/Accelerate-Software-Performing-Technology-Organizations\/dp\/1942788339#ace-9859629705\"><i><span style=\"font-weight: 400;\">Accelerate<\/span><\/i><\/a><span style=\"font-weight: 400;\">, and a multi-year study of Continuous Delivery adoption in thousands of organisations. They can be automated.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Quality can be measured with <\/span><b>rework time percentage<\/b><span style=\"font-weight: 400;\">. It\u2019s the percentage of developer time spent fixing code review feedback, broken builds, test failures, live issues, etc. Quality is hard to define, yet we can link higher quality to lower levels of unplanned fix work. In <\/span><i><span style=\"font-weight: 400;\">Accelerate<\/span><\/i><span style=\"font-weight: 400;\">, Dr. Forsgren et al found a statistically significant relationship between Continuous Delivery and lower levels of unplanned fix work. Rework time percentage is not easily automated, and a monthly survey of developer effort estimates is a pragmatic approach.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Availability can be measured using <\/span><b>availability rate <\/b><span style=\"font-weight: 400;\">and <\/span><b>time to restore availability<\/b><span style=\"font-weight: 400;\">. The availability rate is the percentage of requests successfully completed by the service, and linked to an availability target such as 99.0% or 99.9%. The time to restore availability is the minutes between a lost availability target and its subsequent restoration.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In our experience, these measures give you an accurate picture of product delivery success. They align incentives for interdependent teams, and encourage people to all work in the same direction.\u00a0<\/span><\/p>\n<img decoding=\"async\" class=\"aligncenter wp-image-8671 size-full\" src=\"https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_4.jpg\" alt=\"\" width=\"1920\" height=\"800\" srcset=\"https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_4.jpg 1920w, https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_4-300x125.jpg 300w, https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_4-1200x500.jpg 1200w, https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_4-768x320.jpg 768w, https:\/\/www.equalexperts.com\/wp-content\/uploads\/2021\/01\/Prod-Del-Success-Infographic_4-1536x640.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/>\n<p><span style=\"font-weight: 400;\">If your organisation is a not-for-profit or in the public sector, we\u2019d look at customer impact aside from profitability. Likewise, if you\u2019re building a desktop application, we\u2019d change the availability measures to be <\/span><b>user installer errors<\/b><span style=\"font-weight: 400;\"> and <\/span><b>user session errors<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Measuring shared outcomes rather than team outputs makes collaboration much easier for interdependent teams, and increases the chances of product delivery success. It&#8217;s also an effective way of <a href=\"https:\/\/www.equalexperts.com\/blog\/our-thinking\/how-to-win-at-delivery-assurance-with-dora-metrics\/\">managing delivery assurance<\/a>. If you\u2019d like some advice on how to accomplish this in your own organisation, <strong>get in touch using the form below<\/strong> and we\u2019ll be delighted to help you.<\/span><\/p>\n<p>&nbsp;<\/p>\n\n\t\t\t\t\t\t<script>\n\t\t\t\t\t\t\twindow.hsFormsOnReady = window.hsFormsOnReady || [];\n\t\t\t\t\t\t\twindow.hsFormsOnReady.push(()=>{\n\t\t\t\t\t\t\t\thbspt.forms.create({\n\t\t\t\t\t\t\t\t\tportalId: 7208712,\n\t\t\t\t\t\t\t\t\tformId: \"83acdf22-cf43-47ba-b91f-0428264b824a\",\n\t\t\t\t\t\t\t\t\ttarget: \"#hbspt-form-1758975501000-8737506034\",\n\t\t\t\t\t\t\t\t\tregion: \"eu1\",\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t})});\n\t\t\t\t\t\t<\/script>\n\t\t\t\t\t\t<div class=\"hbspt-form\" id=\"hbspt-form-1758975501000-8737506034\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>We are frequently asked about success measures for product delivery. Here we look at what to measure &#8211; and what not to measure<\/p>\n","protected":false},"author":157,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[5],"tags":[110,73,33,175,176,146],"location":[397],"class_list":["post-8675","post","type-post","status-publish","format-standard","hentry","category-our-thinking","tag-continuous-delivery","tag-delivery","tag-operability","tag-product","tag-product-delivery","tag-product-owner"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.9 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to measure product delivery success | Equal Experts<\/title>\n<meta name=\"description\" content=\"We are frequently asked about success measures for product delivery. 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