VSD - Adding business value metrics panel

Problem to solve

Every organization need to measure and manage the business value from their DevSecOps lifecycle.

From Exec perspective, these metrics offer a view into how and when development teams can meet customer needs. For engineering leaders, these metrics can help prove that DevOps implementation has a clear business value.

Proposal

To complete the "Value Cycle" adding business value metrics widget into the Value Streams Dashboard.

Business results to measure with VSM:

  • Value (e.g., revenue, renewals, new sales, visitors, conversions, session time or bounce rate)
  • Cost (e.g., staff, overheads, customer acquisition, tools and services) - CI cost / Day (cost, Job Count, Cost average)
  • Quality (e.g., escaped defect ratio, average defects per release, change fail rate, rework)
  • Happiness (e.g., NPS/eNPS, referrals, reviews, turnover rate, attrition)

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Link to VSM Mural.

Related analysis information

State of Value Stream Management Report 2022:

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Screenshot_2023-03-16_at_13.04.23

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Optional Metrics

  1. Adoption
  2. correlating with traffic
  3. Speed: Total Lead Time improvement - for example, Total lead time went from 27.4 days to 15.0 days. (45% improvement)
  4. Efficiency: Total process time reduced from 5 hrs to 3½ hrs
  5. Savings: Activity Ratio improved by 27% - Reduction in “wait time”. Information flows through the value stream with less interruption
  6. Complete & accurate - 6% of work starting the value stream reached the end
  7. Time to deploy changes : Went from 1 week to 2 days
  8. Total Sprint Velocity increased 40%
  9. Manual -> Automated Testing : 172 hours saved
  10. Costs
  11. Revenue
  12. Add inbound API to display KPI results from external tools.

More optional objectives / type for the value stream:

  • Efficiency
  • Time to Market
  • Quality
  • Stability
  • Satisfactions
  • CI
  • Compliance
  • Security

Value Realization Metrics

Metrics (top 8)

  1. Lagging/Leading indicator
  2. Revenue/sales (14.7%)
  3. Profit Margin (12.8%)
  4. NPS (10.8%)
  5. Churn/Adoption (9.9%)
  6. Customer Journey Time (9.6%)
  7. Visitors (8.5%)
  8. Conversion rates (7.7%)
  9. Reviews (6.5%)
Click to expand

This table shows Value Realization metrics which are a measure of WHAT you have delivered. The ones shown here are the top 8 measures as identified by the Value Stream Management Consortium, State of Value Stream Management Report 2022. Some of these are not surprising, such as revenue & sales, and profit margin, but not all measures are based on currency, such as Net Promoter Score and Customer Journey Time.

What is interesting is that all of the top 4 are lagging metrics, meaning they are measures of how we have performed in the past. Leading metrics, however, are a better indicator of future performance. For example, reviews are more likely to provide an indication of future pipeline.

Poor reviews and we won’t get many visits from our target prospects. Great reviews and we rise to the top of the search list.

You’ve seen how this works with any online store and this provides us with any interesting perspective on measurement…

Approach:

  1. Track the current value stream.
  2. Map the future value stream.

Competitive examples:

Edited by Haim Snir