“Haim, you have to save us!”
These were the exact words I heard last month from Arik, the VP of R&D at a successful multinational company.
“It’s a catastrophe. The Berezina. The end of any agility we’ve put in place. Our main client, who accounts for 70% of our income, is renewing their agreement with us but is demanding we use team velocity metrics to measure productivity and progress.”
“So, what’s the problem?” I asked.
“The problem is critical. How can we ensure that our velocity keeps increasing?”
“I understand your concern, and I have a solution for you. But you need to trust me completely. Are you in?”
“Wow, Haim, that’s a big ask. If it works, you’ll be rewarded, but if it fails, both our heads will be on the chopping block!”
We closed the deal.The main use of metrics is often seen as measuring people’s productivity or quality. However, the most important use of metrics is to influence behavior
“Okay, my solution is simple: accept the agreement and go with velocity measurement.”
“But what if… are you sure?”
“Go with it. Trust me!”
. Metrics guide people to focus on specific skills or areas of need. Remember: you are what you measure. This is akin to the principle of autoregulation in biology—systems modify their behavior to meet the standards by which they are measured.
If you measure programmers by the number of lines of code they write, they’ll write a lot of code, regardless of its quality. If you measure construction workers by the solidity of a building, they may build the strongest walls but fewer buildings overall. Similarly, if you measure a physician by the number of patients seen, they may spend less time with each patient. And if you measure teams by velocity, you’ll always see an increase in velocity, but it won’t necessarily reflect real productivity or value.
On the other hand, metrics can be a powerful tool to drive improvement. Want teams to enhance their capabilities? Don’t try to convince them—just measure the capability you want them to develop, and they will find ways to improve. Metrics can be a transformative force for change, but they must be used thoughtfully, or you risk unintended consequences.
And what happened with Arik and his big client? My head is still firmly on my shoulders, and the client quickly discovered what you already know: you are what you measure.
Be smart.
