“I never knew anybody . . . who found life simple. I think a life or a time looks simple when you leave out the details.” – Ursula K. Le Guin, The Birthday of the World and Other Stories
The act of measurement either reflects how work was done, how it is being done and what is possible in the future. A measurement framework that supports all of these goals is going to have to reflect some of the details and complexity that are found in the development (broad sense) environment. The simple Agile measurement framework uses the relationships between the areas of productivity, quality, predictability and value to account and reflect real world complexity and to help generate some balance. Each quadrant of the model interacts with the other to a greater or lesser extent. The following matrix maps the nuances between the quadrants.
The labor productivity quadrant most directly influences the value quadrant. Lower productivity (output per unit of effort) equates to higher costs and less value that can be delivered. Pressure to increase productivity and lower cost can cause higher levels of technical debt, therefore lower levels of quality. Erratic levels of productivity can be translated into time-to-market variability.
Predictability, typically expressed as velocity or time-to-market, most directly interacts with quality at two levels. The first is terms of customer satisfaction. Delivering functionality at a rate or date that is at odds with what is anticipated will typically have a negative impact on customer satisfaction (quality). Crashing the schedule to meet a date (and be perceived as predictable) will generally cause the team to cut corners, which yields technical debt and higher levels of defects. Lower quality is generally thought to reduce the perceived value of the functionality delivered.
Quality, measured as technical debit or delivered defects, has direct links to predictability (noted earlier) and value. The linkage from quality to value is direct. Software (or any other deliverable) that has lower quality than anticipated will be held in lower regard and be perceived as being less useful. We have noted a moderate relationship between labor productivity and quality through technical debt. This relationship can also be seen through the mechanism of fixing defects. Every hour spent fixing defects is an hour that would normally be spent developing or enhancing functionality.
Value, measure as business value or return on investment, is very strongly related to productivity and value (as noted earlier).
Based on the relationships we can see that a focus on a single area of the model could cause a negative impact on performance in a different quadrant. For example, a single minded focus on efficiency can lead to reduced value quality and more strongly less value to stakeholders. The model would suggest the need to measure and set performance level agreements for value if labor productivity is going to be stressed.
The simple Agile measurement framework provides a means to understand the relationships between the four macro categories of measurement that have been organized into quadrant. Knowledge of those relationships can help an organization or team to structure how they measure to ensure approach taken is balanced.