Agile Coach Camp - Measuring ROI
Here are some hard metrics to measure your success.
Customer Satisfaction
- Conduct customer satisfaction surveys to gauge how receptive your customers are. This is a tremendously under-utilized and under sold benefit. Customers love interacting directly with the development team and relish the higher degree of control they have along with the flexibility to adjust the product as they see it evolving.
- Analysis gaps - Rework related to missing or mis-understood requirements typically decreases since the product is demoed often and gaps are caught sooner. You need to be able to articulate the savings from this.
- Predictability of release - The cadence of XP/SCRUM projects typically allows for monthly releases. This could be more or less frequent based on your situation but the benefit is decreased anxiety from knowing that a feature or a set of features hasn't "missed the boat". This leads to lower churn and better prioritization.
Product Quality
- Defect count - Given the tighter feedback loop & the XP engineering practices, the defect count should trend lower over a period of time.
- Passing Builds - The percentage of passing builds to failing builds should increase as the team becomes more disciplined.
- Test coverage - The test coverage is the percentage of code covered by tests. There are many caveats to this measure but its always better to have more coverage than less. You can measure this easily and gauge the impact of adopting agile practices in your organization.
Gains in Productivity
- Cost of Ownership - The cost of ownership of the software produced in the organization should reduce over a period of time with smaller defects, better test coverage and hopefully better design principles that support iterative development.
- Pre-release stabilization period - The amount of time needed for stabilization before a release should reduce.
- Release faster - The team should be able to produce releases in shorter durations and the frequency of releasing software should also go up.
- Lower ramp up time - With practices like pairing, collaborative design and tests to highlight the usage of the code, the time to ramp up new people on the team should decrease including reduction of the negative velocity of experienced people on the team who need to spend time to ramp up newer members.
Employee satisfaction
- Lower Attrition - If all parts of the development ecosystem are performing well, it should provide people better job satisfaction and lead to lower attrition rates.
- Survey - Surveys measuring employee satisfaction should show evidence from both a qualitative and quantitative perspective that the morale (related to delivery) is better and the comments are moving to more complex issues from the baseline measurements.
Labels: agile

