A few years ago, I started working as a Scrum Master in a large bank. The bank had about 50 Scrum Masters and 100 agile teams, and the leadership invested heavily in training and development. But by the time I arrived, the excitement around Agile had faded, and the executive responsible for the transformation asked a critical question:

“How do we measure the real value of Agile?”

And that's when the fun of metrics began. The teams came up with several ways to measure impact:

• Velocity: Teams were working faster, but this didn't always reflect true business value.
• Process optimization: Improvements looked great on paper, but their real impact on the business was unclear.
• Revenue Generation: It was difficult to separate the revenue attributable specifically to Agile from the business as a whole.

In the end, there was never a clear answer. Years later, I still see this question unresolved in many large organizations.

Why is this happening?

After years of experience, I've concluded that the main barrier to effective Agile is not the teams themselves; it's how we evaluate their performance. Here are some hypotheses I've developed:

1️⃣ Inertia in large organizations.

Many processes continue “as usual”. Even if a good solution is found, it may be forgotten or not systematically implemented. In large organizations, change happens slowly, and old ways of doing things can hinder progress.

2️⃣ Misalignment with metrics

Organizations often rely on operational metrics such as speed or number of tasks completed. These are useful for internal teams, but don't always align with key business outcomes such as revenue or customer acquisition cost (CAC). Operational metrics can help predict delivery schedules (impacting time to market), but they should never be viewed in isolation from the company's overall strategy.

3️⃣ Lack of connection between team actions and business results.

Executives often don't see a clear link between the work of agile teams and strategic business outcomes. This gap creates a disconnect between operational efficiency and overall business goals. Tools such as OKRs (Objectives and Key Results) or KPIs can bridge this gap by aligning daily operations with business metrics such as market share or customer retention rate.

4️⃣ Mismanagement of change during Agile adoption

When organizations implement Agile, they typically expect immediate results—faster delivery, and higher customer satisfaction. However, Agile requires much more: cultural change and process improvement. Leaders must take a strategic approach to managing these changes, including training employees, increasing transparency, and fostering a culture of experimentation and continuous improvement.

How can we improve this?

1. A metrics system that covers the entire value stream. Agile shouldn't be measured by internal processes alone. It's necessary to track the entire value chain, from product development to its impact on customers and revenue. For example:

• Development: cycle time, lead time.
• Product launch: Market share, customer acquisition cost (CAC).
• Business results: revenue, customer retention rate.

2. Link team efforts to strategic goals via OKRs or KPIs. Product teams need a clear understanding of how their work impacts key business outcomes. When success is measured by metrics such as total revenue, cross-sell revenue, or customer satisfaction index (CSI), teams become more motivated and productive. This closes the gap between operational tasks and strategic goals.

3. Managing Cultural Change. Agile requires deep cultural change. Leaders must actively manage these changes, supporting flexibility, transparency, and a focus on results. This includes continuous learning, encouraging experimentation, and promoting initiatives aimed at process improvement and business growth.

Final Thoughts 🔑

Agile success depends on how well organizations can link operational activities to business outcomes. Agile isn't just about speed; it's about adding value to the business through continuous improvement and adaptation.

How do you measure the value of Agile in your organization? What metrics and approaches are you using? Let's discuss it in the comments! 🔍

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