Analytics and Measurement Overview
Metrics create alignment, provide focus, and allow us to track progress toward our goals.
There are numerous ways to go about developing and communicating measurements. Many high-performing organizations, including Google, The Gates Foundation, and CarMax, utilize the Objectives and Key Results (OKR) approach to developing and communicating measurement. OKRs contain an objective (clearly defined goal) and one or more key results (specific measures to track performance against the objective); these are different at the tactical, operational, and strategic altitudes. A collaborative approach to developing OKRs creates a repeatable framework, buy-in, and understanding across the organization. Hard Yards applies human-centered design techniques and an iterative approach to measurement and analytics.
We recommended assessing performance across multiple altitudes and the facets of people, process, and product.
Strategic — How you Lead
Are you consistently achieving your target?
Is it clear when to authorize new work?
What is the system level of work in process?
Operational — How you Scale
Is there incremental delivery of value?
Do you know when to react to change?
Tactical — How you Deliver
Is team cycle time reasonably low?
Can teams predictably plan and execute work within sprints?
Is throughout stable/going up/going/down?
Decision Making
There are organizational trades (e.g. control vs. speed). Optimize for performance in context. Modern product development requires you to measure against the outcomes.
Traditional Organizations
Highest level, consensus-driven with long cycle times
Most critical decisions are made up-front or very early on
Measure progress against the plan
Agile Organizations
Push decisions down to where the information is, empower the team, short cycle times
Make decisions daily, throughout the product lifecycle
Communicate intent and desired outcomes, respond to change. Measure against the outcomes.
Measurement Benefits
Other Considerations
Metrics are one piece of the puzzle. Organizational governance must include clearly defined standards and methods to periodically audit to ensure best practices sustain.
Define your governance structure (metrics, standards, assessments), keeping incentives aligned with desired outcomes and behaviors.
Begin developing product-based metrics. There is more variability in product metrics than process-based metrics because they are tied directly to desired outcomes.
Design team-based metrics. Given your team dynamics and incentives, in conjunction with HR, develop metrics to ensure you can sustain performance.