Unlock your
next chapter

Book a free session

and let’s make it happen!

Personal Coaching

Productivity Measurement – 3 metric types you need right now!

 If your team implemented some ways of measuring productivity, you are more informed than most teams are  as it is. But when looking at productivity from the lens of effectiveness, this is still not enough to give you the full context. One might argue that productivity, quality and value measurement are two separate topics – which might be a good theoretical classification. When it comes to practical use, it does not matter as much though. 

This article gives you a basic set of metrics to choose from that will inform your team’s performance and effectiveness while providing a fuller context. 

 3 metric areas for comprehensive team effectiveness assessment

The way a complete, but still lean and concise team effectiveness metric collections are built should refer to three areas: 

  1. Outputs and Flow Efficiency: generally measuring how efficient your delivery is
  2. Quality: measures pertaining to how well the work is done
  3. Customer Recognised Value: measuring what value does the work your team does generates

All 3 of the measure areas are a subset of a bigger picture of how your team is performing, looking at your work more holistically. All 3 are detailed below with practical guidance on when to use each of the measures.

Output and Flow Efficiency measurement

Measuring the outputs and flow efficiency feels the most intuitive to most leaders when trying to assess team effectiveness.  It is necessary to start managing effectiveness, so the intuition is right. These measures usually come from traditional project management, lean and agile frameworks like Scrum. 

To build understanding of how swiftly you can produce outputs, tackle the tasks at hand and how efficient your process is, you might want to pick some of the measures below.

One comment worth making here is that you definitely should not limit your choices to measures characteristic of the specific framework your team is currently using to manage their work. Measures characteristic to Lean and Kanban work fantastically to inform the inspection and adaptation in Scrum. Think of the metrics as a way to describe your specific reality.
 

Quality measurement

To provide further context for the productivity of the team, we need to add understanding the quality of the deliverables on top of it. Work done in any team, produces in any kind of the process should strive to be done at a quality level that is just right meaning not too high and not too low. It is a major part of optimisation to understand the quality that is needed. If you do not nail it, you might end up either ramping production cost up by doing thing too well or by having to rework. Worse yet, you might need to reimburse for poor service or even lose customers.
 

 

Customer Recognised Value measurement

 The last, but surely not least of the 3 areas you should measure (and manage!) is Customer Recognised Value. This metric group is all about knowing if the work your team is doing yields results. Implementing proper measures here will require definition of your team’s goals, strategy, customer group. Only then you will truly be able to choose which aspects of your deliveries are relevant to the outcomes you generate.
 

 
You might not be able to define the right things to measure in this area from the get go. A good idea would be to consult your customers, managers or customer facing parts of your organisation.

The list of metrics in each of the types is not exhaustive. When thinking about what to measure, always think about the problem or phenomenon you want to understand, monitor, influence or fix.

Designing a sensible metric framework right for your team

The trap many leaders fall into is one of wanting to measure everything. It is rare however to see teams that actually need all of the measures I have listed above. To the contrary – the best performing teams measure several things that truly matter. The North Star metric concept provides a useful parallel. In the end, the success of a team, product and company usually depends on the one goal everyone contributes to. 
 
To design a metric framework that is not overloaded with redundant information, keep these things in mind: 
 
  1. The less, the merrier: keeping your dashboards compact makes them more usable, avoiding cognitive overload
  2. Only measure what you plan to work on: while keeping a small set of basic metrics, anything that lands on your dashboards should have an actionable purpose
  3. Add and remove metrics when it makes sense to: if you are measuring to diagnose or solve a problem, stop measuring when the solution stabilises the metric level
  4. Know exactly what you want to do with the newly found knowledge: be cognizant while choosing what to measure and what will be done when you see certain metric levels

Leave a Reply

Your email address will not be published. Required fields are marked *