Key KPIs Across Agile Methodologies

In respect to software development, Key Performance Indicators, or KPIs, integrally

guide each iteration of the Agile process.

In contrast to more traditional Waterfall methods, Agile processes appear to be

free form in managing software development. Derived from the Agile manifesto, which
highlights individuals and interactions over processes, Agile projects trend toward
collaborative incremental development, unlike waterfall upfront planning and
standardize development stages. Agile has high adaptability through an emphasis on
individuals, interactions, software over documentation, customer-facing
collaboration, and response to change over following upfront plans. To traditional
project planners, Agile may sometimes appear loose in structure.

But with Agile, flexibility in structure does now mean lack of consolidated
development. In respect to software development, Key Performance Indicators, or
KPIs, integrally guide each iteration of the Agile process. KPIs are process
directional instruments which evaluate the planning, strategic, operational, and
customer engagement achievements of Agile projects and project relations to
organizational prerogatives and strategic goals. Formulating KPIs which effectively
measure progress and performance requires a proficient understanding of what is
important to the organization.

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What is considered important has traditionally been a function of departmental

priorities. But with teams being a concerted composite of multiple professional
disciplines, KPIs defined within Agile projects comprehensively trend towards
organizational interests. There is an encompassing imperative to formulate KPIs
which analyze and assess the present state of production, the key activities which
contribute to advancing production, potentials for improvement, and adherence to
the management framework. The KPI scorecard must be balanced.

The accelerated timeframes of Agile sprints dictate that KPIs guide processes
towards remaining on course with project goals and objectives. KPIs guide Agile
teams in essential software features and primary functionalities. Sprint planning
meetings must include key indicators of performance goals and achievements which
tie into business needs. KPIs standardize code development and simultaneous
automated testing to ensure that shippable releases remain in compliance with
planned objectives. To better adhere to KPIs, cross-functional Agile teams, in
which developers, QA, and IT contribute to all three disciplines, provide expertise
that best ensures quality functionality from each perspective.

KPIs can be directional, pointing to progress in production, or quantifiable for a

more in depth analysis of processes. Directional KPIs point to the flow of
activities towards performance goals and objectives. Quantifiable KPIs reduce the
flow to specifics, such as rendering a customer rating of Excellent, Good, Fair, or
Poor into numerical values or assessing the extent to which project performance
actually meets performance goals.

Sprints can use quantifiable indicators to analyze directional performance relative

to planning, design, development, and integrated testing. Targeted areas of
achievement can be discussed and assessed as to actual accomplishment. Discussions
can drill down into the effectiveness of various functions and processes in meeting
the KPI strategic initiatives laid down by business management.

KPIs are a prime consideration in software planning and design sprints in respect
to how well the release will offer quality metrics and efficiencies, attract new
revenue, engage new customers, satisfy customer needs and desires, and retain
customer interest. Managers and stakeholders monitor sprints for achievements that
adhere to Key Performance Indicators.

Leading and Lagging Indicators

The design and knowledge domain of effectively created KPIs targets meaningful
achievement of key goals. Leading indicators guide anticipated performance towards
strategic goals. Desired outcomes in customer satisfaction, innovation, market
share, and extended consumer engagement are the goals to which leading indicators
point.

Some assessments are lagging indicators that speak to the results of past
performance. Positive and negative lagging indicators can illustrate whether
performance improved or declined in respect to KPIs and the likelihood for
conditions to further improve or decline. Lagging indicators, therefore, contribute
to strengthening leading indicators for improved future results.

The strategy towards evaluating KPIs is to balance both leading and lagging
indicators. You want to both project productive strategies and analyze outcomes.
The in-depth metrics of business and developmental performance in respect to both
goals and results make identifying leading indicators a difficult process.
Revisiting and refining KPIs consistently involves managers and contributors to the
release process.

KPIs in Agile Decision Making

In addition to being analytical performance metrics, KPIs are decision-making
tools. Managers and stakeholders, as well as Agile teams, need the dimensional
measures of performance contributed by KPIs to make informed strategic and process
decisions. Using Key Performance Indicators, management and development teams can
primarily focus on the crucial functions which reflect strategic goals. Effective
KPIs, therefore, must be preceded by strongly expressed fundamentals and enterprise
strategies.

KPIs in Agile Phases

Sprints are fundamental to Agile iterations. KPIs, therefore, become fundamental to
sprints. The design phase of sprints is initial to the development process and,
while tweaked as needed to remain focused on objectives, is to remain in place
unless proved to be unreliable in achieving objectives. Initial design essentials
consequently rely heavily on KPIs to define patterns, formats, and program
requirements in respect to the direction each sprint will take. The basics of
Sprint design are standard across Agile methodologies

Estimating Sprint velocity, the next phase of the Agile development process, uses
KPIs in determining the capacity for achievement within the sprint one to two-week
timeline.

Team members are then each assigned a sprint, per member expertise and positioning
within the project.

Different KPIs for Different Sprints

Several process methodologies compose the overall Agile principle. Each of them has
similarities, but their differences rely on different KPIs. From XP to Scrum
testing, ASD to Crystal, and DSDM to FDD, distinct KPIs guide the development
process.

While the broad Agile principle reduces documentation in favor of essential

development, to meet differing KPI criteria, the extent of documentation differs
among Agile methodologies. Scrum, ASD (Agile software development), Crystal, and XP
(Xtreme Programming) normally decrease documentation. While DSDM (Dynamic Systems
Development) requires further documentation, FDD (Feature-Driven Development)
emphasizes documentation of development processes. Differences in documentation
requirements are based on the different Key Performance Indicators which guide
distinct processes.

Scrum
The key rationale of Scrum is that customers can change their minds during the
development process. Scrum, therefore, codes in iterative increments to accommodate
fluctuating probabilities. Product Owners develop the priorities to which teams
adhere and thereby often represent end users.

The KPIs that consequentially guide Scrum emphasize flexibility in the process with
adherence to strategic outcomes. While flexibility in means is encouraged in Scrum,
KPIs strictly measure adherence to enterprise strategic goals.

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ASD: Agile Software Development

Agile software development integrates a set of principles in which collaboration is
the decision maker for requirements and solutions. Cross-functional Agile teams
self-organize to apply adaptive planning and evolve development for quick delivery
and continuous improvements in software deployments. Rapid response to change is an
overriding ASD precept. End-user participation is also encouraged.

Key KPIs for ASD stress decision-making that arises out of collaboration, and
strategic objectives that employ cross-functionality, to ensure software quality
and agility. Key performance indicators in addition guide teams towards
efficiencies which accommodate rapid pivots and quickly executed competence towards
devising innovative initiatives.

XP: Xtreme Programming

The focus of Xtreme Programming, or XP, is on improving software quality, as well
as sensibility to changing customer requirements. XP encourages frequent releases
and short release cycles which target improved productivity. Xtreme Programming
introduces checkpoints, or phases in which changing customer requirements can be
adopted. To discourage programming of features before they are needed, coding is
done in pairs with extensive code review and integrated unit testing. Acceptance
testing and end user involvement are in addition key precepts of Xtreme
Programming.

XP KPIs emphasize unit testing and strict coding enforcement. Setting up

checkpoints which facilitate both coding and customer engagement is also key.
Discipline with little room for collaboration is, in addition, a prime indicator of
efficient performance. Accentuating end user feedback in coordination with
strategic goals is another KPI measure.

Crystal
Crystal is actually a group of methodologies ascribed to Agile in which distinct
views on processes apply diverse tools, techniques, standards, and roles in
development. Crystal methods focus on people, interaction, community, skills,
talents, and communication. The indistinct definitions of Crystal methodologies
allow teams to conduct similar activities using different approaches. The talent of
team members is normally stressed over processes of development. End-user
participation is encouraged within processes.

KPIs within Crystal methodologies consequentially focus on outcomes rather than

means. Quality outcomes which generate customer satisfaction within a timeline that
retains customer engagement are key to quality performance within Crystal patterns
of development.

DSDM: Dynamic Systems Development

The DSDM methodology originated to provide rapid application development, or RAD,
and has progressed into a project management discipline and a solution delivery
process. DSDM assumes the values of Agile development with an emphasis on
continuous customer involvement. End-user participation is encouraged.

Project management strategies are the focus of DSDM KPIs, along with keen insight
in determining solutions. KPIs, in addition. stress steady customer input and
coordinated customer feedback.

FDD: Feature-Driven Development

While iterative and incremental, FDD cohesively combines several traditionally
recognized best practices. Best practices within FDD drive functionality towards
regular and quick delivery of client-valued software with end users participating
through reports. Modeled after industry best practices, FDD develops software in
short iterations which consist of five basic activities. FDD activities include:

Developing an overall model.

Building a feature list.
Planning by feature.
Designing by feature.
Building by feature.
FDD KPIs emphasize adopting industry best practices, accentuate the importance of
overall models adhering to predefined strategic goals, and the integration of
feature development to produce coordinated software functionalities.

KPIs are vital to business� strategic goals, and through this association assist
managers in evaluating the preferred course of enterprise initiatives, as well as
whether the direction of production is on course. Software development teams
integrate enterprise initiatives into development objectives with the goal of
software deployments that meet strategic enterprise goals. Enterprise test
management is essential to supporting the software development process and overall
corporate goals. Corporate revenue targets are deeply embedded in the
functionality, customer satisfaction, and retention of customer engagement in
respect to software releases. Consequentially KPIs are deeply embedded in software
development projects.

Monitored over time and adjusted per shifts in strategic initiatives, well-
engineered KPIs best assure efficiency of processes through quality performance
metrics.