Discover in this deck different output and outcome metrics, have an overview of popular impact metrics and get a link to an estimation exercise.
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Estimate and Measure Key Metrics for Agile Teams
1. Estimate and Measure
Jurgen Appelo
@jurgenappelo
Minimize work, maximize value
Thursday 3 September 2020, 9:00 CEST
Part 2
2. At the end of this session, you will…
Have an overview of popular output metrics
Have an overview of popular outcome metrics
Have an overview of popular impact metrics
Get a link to an estimation exercise
3. Work In Progress, Queue Size
Velocity, Throughput
NPS, Fit for Purpose
Conversion Rate, Revenue
Work
Output
Outcome
Impact
Leading vs Lagging Metrics
Warning!
Targets for leading
metrics may have
unintended
consequences for
lagging metrics.
Leading
Lagging
6. Lead Time
The time between the appearance of a new work item and its departure.
Lead time should be measured from the time of commitment.
7. Cycle Time
The time between the work item starting and the work item finishing.
Cycle time is a lagging indicator of work metrics such as queue size.
8. Cycle Time Scatter Plot
https://modernkanban.com/how-to-create-a-cycle-time-scatter-plot-in-excel/
18. Ratio of work items / releases
rejected by the customer
Prevents gaming of cycle time and throughput
Encourages customer / team partnership
Rejection Rate
19. Sean Ellis Test
(Product/Market Fit Test)
“Very disappointed”
“Somewhat disappointed”
“Not disappointed”
Great if > 40% “Very disappointed”
How would you feel if you could no longer use
the product/service?
20. Net Promoter Score (NPS)
How likely is it that you would recommend our
company/product/service to a friend or
colleague, on a scale of 0 to 10?
9-10: Promoters
7-8: Passives
0-6: Detractors
NPS = % Promoters - % Detractors
21. Perfection Game
What did you like specifically?
What could we do better to get closer
to a score of 10?
How valuable was this on a scale of 1 to 10?
22. What was your purpose with this product?
How fit for purpose was it, on a scale of 0 to 5?
Fitness for Purpose
What is the reason for the rating you gave?
NFS = % Satisfied - % Dissatisfied
5 - Extremely
4 - Highly
2 - Partially
1 - Slightly
0 - Not at all
3 - Mostly
Satisfied DissatisfiedNeutral
23. Customer Effort Score (CES)
Do you agree with this statement?
“Product X made it easy to do Y”
1 2 3 4 5 6 7
Strongly disagree Strongly agree
27. Must-have
metrics for
SaaS products
Common Product Metrics
Customer Acquisition Costs (CAC)
CAC = Total cost of new customers / Total new customers acquired
Churn
Number of users that dropped out or canceled / Total number of users
Retention
Number of users that stayed or returned / Total number of users
Customer Lifetime Value (CLV)
The total average profit per customer over average customer lifespan.
28. Common Product Metrics
Daily Active Users (DAU)
Number of users actively using the service
Monthly Active Users (MAU)
Number of users actively using the service
Monthly Recurring Revenue (MRR)
Total income from customers per month
Annual Recurring Revenue (ARR)
Total income from customers per year
Must-have
metrics for
SaaS products
29. North Star Metric
(One Metric That Matters)
Engagement Metrics
Minutes of Player Activity per Month per User
Total Order Size per Customer
Transfers or Rides per Customer per Month
The North Star Metric is the single
metric that best captures the core value
that your product delivers to customers.