Considerations

Value is hard to measure directly. There may be many influences on the total value realised by a feature. Influences may include other changes going on in parallel and contextual changes that affect the overall operational or business environment. We need to think carefully about how we measure value realisation, including the use of indirect measures of value. Where we see trends in our direct value metrics, the indirect measures will help confirm the contribution of new or enhanced features to that overall value.

Direct and Indirect Measures

Direct measures are those that are immediately related to the effect we are striving to achieve. If our new feature seeks to increase visits to our site we can use visitor numbers as a direct measure. But visitor numbers may be altered by many different changes both within the site and external to the site (business conditions for example).

To confirm a positive impact of our specific change we may seek to compare bounce rates from our new or changed page against bounce rates on the rest of the site. We are using relative bounce rate as an indirect measure to separate the value of our change from other changes. Indirect measures are correlated (or anti-correlated) with the impact we seek to achieve.

Levels

Green

Measured Value Is Used To Prioritise Work

The solution has consistent, well-defined direct and indirect measures of value that it uses consistently, sharing results with stakeholders.

Major new features or enhancements are regularly proven through the use of indirect measures that help to demonstrate contribution to overall changes in direct value measures.

Measurement data is used to make decisions over the priority of future work as well as the continued enhancement of existing features.

Amber

Measured Value Is Not Used To Prioritise Work

There are measures of value that are used consistently for the solution, sharing results with stakeholders. Supporting indirect measures are used inconsistently or not at all.

It is not possible to clearly demonstrate the value of a feature through the use of indirect measures.

It is not possible to use measurement data to make decisions about continuation of work and future priorities.

Red

Value Is Not Measured Effectively

The solution has no consistent measures of value. The results of any value measurement are not shared with stakeholders.

Prioritisation of work is not supported by measurement of value.