KPI number two

Key Performance Indicator: Development Method & Profitability

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Today we’ll look at the second key performance indicator revealed in the findings of the latest Global Study of Product Team Performance.

#2 Key Performance Indicator (KPI)

Respondents Unable to Associate a Product Development Methodology with Product Profitability are Unlikely to be on a High Performing Team.

Analysis of the latest data illustrates an important point: Product team members who cannot project which product development methodology would make their products more profitable are more likely to be in organizations that perform poorly.

We cannot say exactly why this is. However it suggests that lack of exposure to modern methodologies may be to blame. This includes teams that have been locked into Waterfall and have not yet tried Agile. It can also include teams that are basically in chaos and don’t have any coherent methodology.

“Bad Agile”

On the other hand, there’s a lot of “bad Agile” out there. These are methodologies that are Agile in name only, not in practice or in spirit. Such a situation could lead a team to believe that nothing will help.

Regardless of its root, the second key performance indicator is a remarkable conclusion. It is highly significant to be able to identify the connection between how team members do their work and product profitability.

Next Week: #3 Key Performance Indicator

Watch for next week’s blog post when we will discuss the third of six key performance indicators of high performing teams.

Recap of First Key Performance Indicators:

  1. High performing teams have a clear definition of “done”.
  2. Respondents unable to associate a product development methodology with product profitability are unlikely to be on a high performing team.

 

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