Skip to main content

KPI anti-patterns hinder business outcomes

When it comes to data-driven decision-making, quality control, goal alignment, and accountability, establishing and adhering to key performance indicators (KPIs) is the industry standard for creating and maintaining exceptional engineering teams. 

Unfortunately, there are a few engineering KPI anti-patterns that reduce the organizations’ ability to understand how their performance relates to business outcomes.

When teams start measuring for the first time, they tend to use those metrics to drive accountability and predictability. But according to Jeremy Freeman, co-founder of value stream intelligence platform provider Allstacks, failing to trace those metrics back into business outcomes is the first of three KPI anti-patterns he discussed in a recent call with SD Times.

The message from executives is that organizations need to be more data-driven, and there are countless metrics that can offer some visibility into the activities and performance of the product development team. “If you’ve not done engineering KPIs before, you might grab the first six or seven that pop up,” Freeman explained. He highlighted metrics like average downtime, churn, and on-time delivery, then warned that engineering leaders often neglect to do the next step: “You don’t actually ever really go back and connect those back to the business value.” And that’s where things get dicey with the business side of the house. Freeman elaborated, “Would the CEO go to the company board and say, ‘we improved our Scrum velocity by 50%?’ Because the board would say, ‘Why do we care? Does that move the needle on our revenue? Does it somehow reduce our costs?’” Engineering leaders often don’t know how to use their data to answer these questions. 

Keep in mind that the engineering team in a lot of organizations is responsible for multiple different outcomes. The team could be responsible for working against a roadmap developed in another part of the business, but also responsible for delivering that software to the user, and ensuring that it’s running and users have a good experience, which impacts the business. “What ends up happening is leaders tend to search for one key metric for engineering performance, and tend to forget that there are multiple outcomes the org is responsible for,” he added. “It’s not just to be the most efficient development organization possible.”

The second anti-pattern Freeman discussed has to do with the term “cargo culting.” He said he has heard the term used to describe people adopting Agile practices for the sake of adopting Agile. “A team will read a bunch of information or hear talks at a conference and say that ‘Agile seems great. And all we’ve got to do is have a standup once a day.’ But they don’t see any of the benefits. They’re pulling in these practices, hoping that they’ll get the benefits, but don’t really understand the connection between actions and outcomes. That ends up actually being a big anti-pattern.” 

In this scenario, engineering KPIs become checkboxes like “What’s our PR cycle time” instead of “Will improving the our PR cycle time improve our organization’s delivery ability?” Without seeking to answer the second question, any measure gets clunky, hindering instead of helping teams achieve efficiency. 

The third anti-pattern? Freeman readily identified “using metrics for evil.” 

The Allstacks CTO explained that as the misuse of data and losing sight of the overarching goal it’s trying to track. “If you are so focused on the metric, it can lead to some really toxic behaviors,” he said. Freeman used the example of an organization’s SLA that requires all bugs to be finished within two weeks. The team might be tempted to put in hasty fixes, or try to skirt the metric by creating a new ticket that resets the clock. “For junior leaders, it can be tempting to tie metrics like that to performance reviews and potentially even compensation or bonuses. If that happens, people are going to get real focused on hitting the metric at the expense of the business objectives and the job that they’re supposed to be doing.”

If people are incentivized to game a metric, Freeman concluded, you’re using metrics incorrectly. “You should be using your KPIs and metrics to point people in the right direction and drive the right behaviors, not punish people for getting off-track.”

Content provided by SD Times and Allstacks

The post KPI anti-patterns hinder business outcomes appeared first on SD Times.



from SD Times https://ift.tt/smECXry

Comments

Popular posts from this blog

Difference between Web Designer and Web Developer Neeraj Mishra The Crazy Programmer

Have you ever wondered about the distinctions between web developers’ and web designers’ duties and obligations? You’re not alone! Many people have trouble distinguishing between these two. Although they collaborate to publish new websites on the internet, web developers and web designers play very different roles. To put these job possibilities into perspective, consider the construction of a house. To create a vision for the house, including the visual components, the space planning and layout, the materials, and the overall appearance and sense of the space, you need an architect. That said, to translate an idea into a building, you need construction professionals to take those architectural drawings and put them into practice. Image Source In a similar vein, web development and design work together to create websites. Let’s examine the major responsibilities and distinctions between web developers and web designers. Let’s get going, shall we? What Does a Web Designer Do?

A guide to data integration tools

CData Software is a leader in data access and connectivity solutions. It specializes in the development of data drivers and data access technologies for real-time access to online or on-premise applications, databases and web APIs. The company is focused on bringing data connectivity capabilities natively into tools organizations already use. It also features ETL/ELT solutions, enterprise connectors, and data visualization. Matillion ’s data transformation software empowers customers to extract data from a wide number of sources, load it into their chosen cloud data warehouse (CDW) and transform that data from its siloed source state, into analytics-ready insights – prepared for advanced analytics, machine learning, and artificial intelligence use cases. Only Matillion is purpose-built for Snowflake, Amazon Redshift, Google BigQuery, and Microsoft Azure, enabling businesses to achieve new levels of simplicity, speed, scale, and savings. Trusted by companies of all sizes to meet

2022: The year of hybrid work

Remote work was once considered a luxury to many, but in 2020, it became a necessity for a large portion of the workforce, as the scary and unknown COVID-19 virus sickened and even took the lives of so many people around the world.  Some workers were able to thrive in a remote setting, while others felt isolated and struggled to keep up a balance between their work and home lives. Last year saw the availability of life-saving vaccines, so companies were able to start having the conversation about what to do next. Should they keep everyone remote? Should they go back to working in the office full time? Or should they do something in between? Enter hybrid work, which offers a mix of the two. A Fall 2021 study conducted by Google revealed that over 75% of survey respondents expect hybrid work to become a standard practice within their organization within the next three years.  Thus, two years after the world abruptly shifted to widespread adoption of remote work, we are declaring 20