In recent years, agile methodology has become the best management methodology on the market. Many companies have seen tremendous success after switching to the agile methodology. Agile helps them shorten delivery times, optimize costs, and deliver faster and better results to their customers.
However, to take advantage of the full benefits of the agile methodology, companies need to focus on the agile execution metrics. Agile execution metrics help the company monitor its productivity across the stages of the software development life cycle as well as the project management process. By implementing the right agile execution metrics, the companies can assess and monitor performance, optimize resources, and deliver better results to their clients.
In this article, we will explore ten of the most used agile execution metrics in project portfolio management.
What Is Agile?
Before we discuss the most used agile execution metrics, let’s define what is agile. In short, agile is a methodology that focuses on an iterative approach to project management and software development. It is a methodology that promotes step-by-step, gradual value delivery rather than delivering all at once. Agile methods or processes in project management refer to the process of continuous inspection, analysis, and adaptation. Agile implements teamwork as well as self-accountability to create a smooth process to deliver high-quality results to the company’s customers. This allows the teams involved in the company’s projects to react quickly and adapt to any changes in the execution of the projects.
10 Most Used Agile Execution Metrics
Several agile execution metrics measure different aspects of project development. Here are the ten most used agile execution metrics in project management.
Sprint Burndown
As part of the agile methodology, the development processes are divided into so-called “sprints”. These sprints are groups of tasks that need to be completed in a specific timeframe. To make sure that all of the tasks are completed by the end of the sprint, it is necessary to continuously monitor the process of each task. A sprint burndown report is a report that tracks the completion of these tasks during the sprint.
Velocity
Velocity is a metric that measures the average work that a team does during a sprint. It is one of the most important agile execution metrics in project management. Velocity predicts the time required to complete a project and helps to predict how much work needs to be done. It is also helpful in planning for future sprints. It is usually measured in hours or story points. This is an important metric to track as it shows the team how well it is performing. If the velocity decreases, it means that something needs to be improved.
Epic and Release Burndown
Epic and release burndown is another one of the most used agile execution metrics. It is similar to sprint burndown, but it focuses on the bigger picture. This metric helps teams deliver the end products in a specific timeframe or identify if any changes in the delivery time need to be made. The epic and release burndown metric is usually represented by a chart that shows the amount of work remaining over a specific period.
Lead Time
Another useful agile execution metric is lead time. Lead time is a simple metric that measures the time from the start till the completion of the project. This metric allows the team to identify possible obstacles in the process of the completion of the project as well as analyze how much time it takes to complete it. Naturally, a longer lead time indicates that the team needs to improve its efficiency.
Cycle Time
Cycle time is another agile execution metric that tracks the efficiency of a team, together with velocity and lead time. Cycle time differs slightly from lead time. Lead time measures the time it takes to complete the project from start to finish. Cycle time measures how much time it takes for a task to move from “started” to “in progress”. Typically, the cycle time would be half the length of a sprint. If it is longer than the sprint, it means that the team is not efficient enough and it is not completing the task as fast as it should.
Cumulative Flow Diagram
The next most used agile execution metric is a cumulative flow diagram (CFD). This metric ensures that quality results are being delivered consistently. The cumulative flow diagram is a diagram that shows the status of different tasks. It shows which phase the task is currently in. This means that thanks to the cumulative flow diagram, the teams can see how each task is progressing and monitor the progress of the whole project. This visual representation of the status of each task helps the team prevent any delays in the delivery of the results.
Control Chart
Control chart is another agile execution metric used to measure the time duration of specific tasks. It is very similar to cycle time. Cycle time measures how much time it takes the task to move from “started” to “in progress”. A control chart focuses on measuring how much time it takes the task to move from “in progress” to “complete”. Just like cycle time, the shorter the control chart, the more effective the execution, and delivery of the project. The control chart helps to identify what works and what doesn’t and to improve the overall team productivity and performance.
Value Delivered
Value delivered is an agile execution metric which measures the quality of the work delivered to the client. Measuring the results delivered to the client is done in dollars. Sometimes, this metric also uses a points system. To measure the value delivered to the client, the expected revenue from the project is divided by the value points assigned to each of the stories or features of the project. The implementation of high-value features creates an upward trend in this metric. This indicates that the value delivered to the client, as well as the expected revenue, are beneficial to the company.
Escaped Defects
Another important agile execution metric is escaped defects. As the name indicates, this metric measures the number of defects or bugs discovered after the release of the product. Ideally, the number of escaped defects should be equal to zero, which would mean that the product does not have any bugs that can decrease its quality. This metric can help the company to measure the quality of its product.
Net Promoter Score
Net Promoter Score is a very important agile execution metric that helps the company to identify the loyalty of their customers as well as customer satisfaction. Net Promoter Score measures how likely the company’s customers are to recommend its product to other people. This metric can help the company to identify how successful the product is on the market.
Conclusion
Agile execution metrics are an excellent way to measure the efficiency of a team, the success of a product, and the overall performance of the projects. To ensure that the project development process goes smoothly, companies that chose to implement the agile methodology should choose just a few metrics that are the most relevant to them. Choosing the right metrics to track will ensure the company is accumulating the right data to improve the performance of the company’s teams as well as the delivery of the final product to the client.
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