Success in scrum can be difficult to measure because it tends to be a soft metric. There are many different ways to approach building your team's success scorecard, but there are six key KPIs that teams should endeavor to keep track of.
1. Team Velocity
Team velocity is the much-discussed number that measures how much work your team can get done in a sprint. Everyone knows that this number is important, but does it really tell you how successful your Scrum implementation is?
Scrum teams should always be working toward increasing their velocity. A system without growth shows signs of impending issues. The best way to measure the health of your Scrum implementation is to track your velocity over time to make sure that it's constantly increasing. If you notice a decline in this number (or any other), investigate the cause and take steps to fix what's broken.
2. Quality of Work
No matter how many times you remind them, team members will neglect quality work because they're busy or tired. This can be a silent killer for your Scrum implementation and cause big problems later on.
Your team should always strive to release high-quality products. This means they need to work together, plan their sprints well, and unblock each other when issues arise. A great way to measure the quality of your work is through peer reviews . Periodically, you should ask your team members to review each other's work and provide feedback. If they notice any issues during their reviews, bring them up with the rest of the team. This will strengthen the bonds of communication and ensure that everyone is working toward a common goal throughout the sprint cycle.
3. Team Morale
Scrum teams work closely together, so their morale is a good measure of how successful your scrum implementation actually is. Low morale can lead to low quality work and high turnover rates.
Team members need to have a certain level of mood stability in order to be productive and efficient during their sprint cycles. Make sure that your team is constantly communicating with each other, helping out when needed, and working toward a common goal. You should also regularly check in with your team about how they're feeling throughout the day . If you notice any significant changes in behavior or communication , take steps to fix them before they become problems.
4. Business Value Metrics
Products that are developed by Agile teams tend to generate more business value those built using traditional V-model methodologies. This is mainly due to the fast-paced, iterative nature of Agile development that allows teams to build and validate their products much faster than other methods.
Business value metrics are a great way to measure the successes of your Scrum implementation because they can highlight problems with your process. If any business value metrics have steadily decreased or stopped, this could be an indicator that you should take steps to fix your process. For instance, if revenue wasn't affected by a new product release , it was probably due to a lack of testing.
5. Productivity Metrics
Productivity metrics help define how successful your sprint cycles have been from a broader organizational standpoint. You can also use these numbers as part of business value KPIs by showing how much work was accomplished in relation to your business objectives.
When measuring productivity, many teams focus on hours spent working versus actual work completed. This is because the number of hours worked has little to no effect on the quality of a product released by Agile teams. Make sure to measure productivity using methods that are more in line with your team's goals and can show you which areas need improvement.
6. Return on Investment (ROI) Metrics
Products developed by Agile methodologies should have higher ROIs than those built by other kinds of systems . By focusing on rapid iterative development, products are able to get into customers' hands faster, resulting in increased revenue for your organization down the road.
This is why measuring the return on investment (ROI) for your team is important. ROI metrics become especially useful when used as part of business value KPIs because teams can see which areas need improvement during their sprints. If the ROI has any negative values, this could be an indicator that there isn't enough demand for your product, or that it doesn't solve a problem that people actually care about.
Businesses that fail to understand which metrics are most important for their team tend to lose sight of what is truly happening during the development process. While it's easy to set goals, it can be difficult to judge whether those goals have been met until you have solid data. By using the information above, you'll be able to understand how your team's activities are influencing targets and adjust accordingly if needed.