Before we dive into Output Vs Outcome-Based Agile Metrics, allow us to perceive what is supposed by output-based and outcome-based metrics. Output-Based metrics measure the quantity of labor accomplished whereas Outcome-Based metrics measure the worth delivered by the finished work.

Output-Based Agile Metrics

Metrics that measure how a lot work was accomplished in a given period are stated to be output-based. For instance, the variety of person tales accomplished in a Program Increment (PI) or an iteration measures the variety of tickets accomplished in a specified period. Other examples are:

  • Number of options accomplished in a Program Increment
  • Number of story factors accomplished in a Program Increment
  • Number of story factors accomplished in a dash or an iteration

Such metrics might be simply gamed and don’t present any value-add. For instance, Team A delivers 6 person tales whereas Team B delivers 12 person tales. This metric doesn’t signify that Team B has higher productiveness than Team A.

Let’s assume Team A delivers 40 story factors and Team B delivers 20 story factors. Do you suppose Team A is a greater performing workforce than Team B? Well, a workforce’s velocity doesn’t present perception right into a workforce’s efficiency. Team A might need inflated their story level estimates or they may be engaged on person tales that don’t ship a probably shippable product increment or convey any enterprise worth. 

Measuring the quantity of labor completed is an Agile anti-pattern and ought to be prevented. It doesn’t present any worth and should encourage Agile anti-patterns such that groups write duties as person tales, create pointless person tales that don’t convey any enterprise worth, and inflate story level estimates.

Outcome-Based Agile Metrics

Metrics that measure the result or the end-value delivered by the finished work are stated to be outcome-based. For instance, the enterprise worth delivered is an outcome-based metric that measures the quantity of enterprise worth delivered by a unit of labor throughout a particular period. Let’s talk about the best way to measure the enterprise worth for an EPIC, Feature, or User Story. 

How to Measure the Business Value

Measure the delivered enterprise worth at an EPIC or a Feature stage, reasonably than at a User Story stage. Think when it comes to:

  • Will this EPIC or Feature allow you to promote extra items?
  • Will this EPIC or Feature permit you or your group to make extra revenue?
  • Will this EPIC or Feature allow diminished working prices for your small business?
  • Will this EPIC or Feature allow a brand new functionality to your end-users?
  • Will this EPIC or Feature cut back the guide effort to your workforce or end-users?
  • Does this EPIC or Feature allow your group to compete out there?
  • Does this EPIC or Feature permit to refine hypotheses in regards to the market? 
  • Is this EPIC or Feature required to remain compliant with laws?

Many EPICs or Features present little to no worth or aren’t truly desired by end-users. It’s essential to prioritize the work successfully to ship extra enterprise worth. There are many methods to measure the enterprise worth like evaluating the price of delay, calculating Return On Investment (ROI), calculating revenues and bills every month (Cash-Flow evaluation), calculating Net Present Value (NPV), Planning Poker, and extra. I recommend working with your small business sponsors and:

  • Find Key Value Indicators (KVIs) to your product that you may measure at every Product Increment (PI) boundary.
  • Think about each qualitative and quantitative worth indicators.
  • Review your KVIs commonly and revise as wanted.

One of the less complicated strategies is to leverage the Planning Poker recreation and comparatively estimate the enterprise worth for an EPIC or a Feature together with your product stakeholders.

If you have an interest to study different Outcome-Based Agile Metrics, enroll in my Udemy Course, Agile Metrics: Elevate Team Agility with Scrum Reporting.

You could also be thinking about my revealed programs and books as outlined under: 

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