Company
Date Published
Author
James Walker
Word count
2091
Language
English
Hacker News points
None

Summary

Software development teams face challenges in measuring performance due to the complex and iterative nature of their work. McKinsey suggests focusing on "opportunities" as a benchmark for performance measurement, which represents the possibility of effecting an improvement in product quality or efficiency. This approach complements established frameworks like DORA and SPACE by providing a holistic view of team performance. Opportunity-driven metrics include time spent in inner/outer loops, developer velocity index benchmark, analysis of backlog contributions, and talent capability score. However, these metrics have challenges, such as being difficult to collect and utilize, and not necessarily telling the whole story. The goal is not to focus on opportunities but to use them to drive improvements across the development lifecycle. It's essential to analyze these metrics in the context of an organization's working methods and business aims. Opportunity analysis can help build a more complete picture of long-term performance, but it may also add obfuscation if used in isolation. A combination of opportunity analysis with established metrics like DORA and SPACE is recommended to get a comprehensive view of software development performance.