The pursuit of productivity is a common goal for many individuals and organizations. It involves finding ways to work more efficiently and effectively in order to achieve desired outcomes. Some strategies for increasing productivity include setting clear goals, prioritizing tasks, using time management techniques, and minimizing distractions. Additionally, utilizing technology and tools such as task management apps and productivity software can help streamline processes and increase overall productivity.
Having spoken to hundreds of CXOs and engineering leaders, we can confidently say that in 2023, software teams must adopt a business-focused approach in order to remain competitive and successful. This is because the industry is becoming increasingly complex, with new technologies and trends emerging rapidly. By being more business-focused, teams will be better able to understand the needs of their customers and stakeholders and align their efforts with the overall goals of the organization. This approach allows teams to understand the broader context in which their work is being done and make more informed decisions. It also helps teams to understand the impact of their work on the bottom line and the overall performance of the company.
Furthermore, a business-focused approach is supported by data. A survey by Deloitte found that organizations that align technology strategy with business strategy are more likely to experience revenue growth and improved operational efficiencies. Gartner's report forecasts that by 2023, 75% of CEOs Will be Personally Liable for Cyber-Physical Security Incidents by 2024. Accenture's survey reveals that executives ranked "aligning technology with business strategy" as the top priority for their IT departments. Forrester's report states that in 2023, organizations that don't align technology initiatives with business objectives will fall behind in the race for digital transformation.
It's imperative that software engineering teams must prioritize the needs of the business and ensure that their work is directly contributing to the success of the organization. By adopting a business-focused approach, teams can stay relevant in the ever-evolving technology landscape and achieve desired business outcomes.
Now let's quickly examine what leaders are choosing to measure in 2023.
Here are the top 21 KPIs we see becoming areas of keen focus in 2023. You’ll find that the expectation of ownership of business metrics is more than ever before.
1. Code quality: Measured by the code review process and automated tools such as SonarQube. Achieved by following best coding practices and implementing code reviews, automated testing, and code quality checks.
2. Deployment frequency: Measured by the number of times the code is deployed to production. Achieved by implementing continuous integration and delivery practices.
3. Lead time for changes: Measured by the time it takes for code changes to be deployed to production. Achieved by implementing agile development methodologies and reducing bottlenecks in the development process.
4. Mean Time to Recovery (MTTR): Measured by the time it takes to recover from a production incident. Achieved by implementing incident management processes and having clear rollback procedures in place.
5. Error rate: Measured by the number of errors encountered in production. Achieved by implementing Monitoring and Logging to identify and fix errors quickly.
6. The number of customer-reported bugs: Measured by the number of bugs reported by customers. Achieved by implementing a customer feedback loop and addressing customer-reported issues promptly.
7. Feature adoption: Measured by the percentage of users that adopt a new feature. Achieved by conducting user research and testing to ensure the feature addresses a real need.
8. Performance: Measured by the system's response time and throughput. Achieved by implementing performance testing and monitoring, and optimizing the code and infrastructure.
9. Scalability: Measured by the system's ability to handle an increased load. Achieved by implementing load testing and identifying and addressing bottlenecks in the system.
10. Security: Measured by the number of security incidents. Achieved by implementing security best practices and regular security testing.
11. Codebase Technical Debt: Measured by the amount of technical debt in the codebase. Achieved by implementing regular code reviews, refactoring, and improving maintainability.
12. The number of customer complaints: Measured by the number of complaints received from customers. Achieved by implementing customer satisfaction surveys and addressing customer complaints promptly.
13. The number of new features released: Measured by the number of new features released. Achieved by implementing agile development methodologies and regularly releasing new features.
14. The number of customer churn: Measured by the number of customers that cancel their subscription. Achieved by implementing customer retention strategies and addressing customer complaints promptly.
15. The number of incidents: Measured by the number of incidents that occur in production. Achieved by implementing incident management processes and having clear rollback procedures in place.
16. Uptime: Measured by the percentage of time the system is available. Achieved by implementing monitoring and having clear incident management procedures in place.
17. The number of customer support tickets: Measured by the number of customer support tickets received. Achieved by implementing a customer feedback loop and addressing customer-reported issues promptly.
18. The number of customer feature requests: Measured by the number of new feature requests received from customers. Achieved by implementing a customer feedback loop and regularly releasing new features.
19. The number of customer escalations: Measured by the number of customer escalations to upper management. Achieved by implementing customer satisfaction surveys and addressing customer complaints promptly.
20. The number of customer referrals: Measured by the number of customers that refer others to the product. Achieved by implementing customer retention strategies and regularly releasing new features.
21. The number of customer renewals: Measured by the number of customers that renew their subscriptions. Achieved by implementing customer retention strategies and regularly releasing new features.
At Fitbots, we are intrigued by OKRs, KPIs, and strategy execution. While helping you figure out what to measure, we strongly believe actions drive progress. Fitbots software is specially tuned to help you drive actions with both OKRs and KPIs no matter how you choose to run your business.
OKRs and KPIs create a powerful combination of the right metrics when used together. In our experience, some best practices stand out in terms of efficiency and relevance to today’s business climate. The themes that stood out to us while measuring OKRs and KPIs have been discussed below.
This is the #1 ask to Engineering teams in 2023!
Objective:
To increase the team's velocity and ability to deliver new features and functionality to customers.
Key Results:
KR1: Reduce the time to deliver new features by the end of Q2
Action: Implement startup-like agile methodologies, establish a clear prioritization process, and work on reducing blockers and roadblocks.
KR 2: Increase the number of user stories completed per sprint by 30% by the end of Q3
Action: Improve estimation accuracy, optimize the workflow, and focus on continuous improvement.
KR 3: Achieve a 90% on-time delivery rate for new releases by the end of Q4
Action: Implement a release management process, set up a release calendar, and ensure that all stakeholders are aware of upcoming releases.
Objective:
To increase revenue by launching new features that drive product upsell and cross-sell.
Key Results:
KR 1: Increase product upsell revenue by 25% by the end of Q2
Action: Identify opportunities to upsell existing products, conduct customer research to understand their needs, and launch new features that meet those needs.
KR 2: Increase cross-sell revenue by 30% by the end of Q3
Action: Identify opportunities to cross-sell complementary products, conduct customer research to understand their needs, and launch new features that meet those needs.
KR 3: Achieve a 10% increase in customer lifetime value by the end of Q4
Action: Conduct customer research to understand their needs, launch new features that meet those needs and establish processes to measure customer lifetime value.
Objective:
To improve the team's ability to meet the needs of customers and increase overall satisfaction.
Key Results:
KR 1: Increase the number of positive customer feedback by 50% by the end of Q2
Action: Conduct regular customer engagement, establish a customer feedback process, and act on customer feedback in a timely manner.
KR 2: Achieve a satisfaction rate of at least 90% as measured by customer surveys by the end of Q3
Action: Regularly survey customers, establish a process for handling customer complaints, and provide training on customer service best practices to the team.
KR 3: Reduce the number of customer complaints by 30% by the end of Q4
Action: Monitor customer complaints, conduct root cause analysis, and implement preventive measures.
Objective:
To automate repetitive and manual processes in order to increase efficiency and reduce errors.
Key Results:
KR 1: Automate at least 50% of the manual processes by the end of Q2
Action: Identify manual processes that can be automated, prioritize them, and provide training on automation tools to the team.
KR 2: Reduce the number of errors caused by manual processes by 30% by the end of Q3
Action: Implement automated testing and monitoring, document processes, and provide training on best practices.
KR 3: Achieve 80% productivity improvement by automating repetitive tasks by the end of Q4
Action: Measure the time spent on repetitive tasks and continuously improve the automation process.
This is the #1 concern for Engineering leaders internally, causing strategic friction with business, as the business seems not to care.
Objective:
To improve the overall quality of the codebase by reducing technical debt and increasing maintainability.
Key Results:
KR 1: Reduce the number of code smells by 50% by the end of Q2
Action: Conduct regular code reviews, implement automated code quality checks, and provide training on best practices to the team.
KR 2: Increase the test coverage to 80% by the end of Q3
Action: Implement test-driven development, provide training on test automation, and ensure that all new code is covered by tests.
KR 3: Implement a code review process and have at least 80% of the code reviewed by the end of Q4
Action: Implement a code review process, set up a code review checklist, and establish a culture of code review within the team.
Having spoken to hundreds of entrepreneurs, CXOs, and technology experts, it is clear to us that in 2023, the ability to innovate quickly will be the defining factor in a company's success. The technology landscape is constantly evolving, and new players are entering the market at a rapid pace. In this environment, companies must be able to continuously improve and launch new products and features in order to stay competitive.
This is supported by data, as companies that invest in R&D and innovation tend to have higher growth rates. According to a study by the Boston Consulting Group, companies in the top quartile for R&D investment as a percentage of revenue had a compound annual growth rate that was 2.6 times higher than the average for all companies in the sample.
Furthermore, companies that are able to quickly adapt to market changes are more likely to survive. A study by the Harvard Business Review found that companies that are able to respond quickly to market changes have a higher chance of survival than those that are slower to adapt.
In conclusion, for companies to succeed in 2023 and beyond, they must prioritize the speed of innovation. This requires a culture of experimentation, continuous learning, and the ability to pivot quickly in response to market changes. Those companies that can consistently innovate at a fast pace will be the ones that establish a sustainable competitive advantage in the market.
Try our software and align your teams to make meaningful contributions towards business outcomes, save time on generating metrics and progress reports, and execute strategy with a sharp focus. Created by global strategy management experts, Fitbots aims to drive innovation by simplifying the future of work.
Kashi is the Co-founder and CTO of Fitbots. Kashi has coached over 700+ teams on OKRs with the focus on helping founders and teams achieve more with OKRs. His niche focuses on the future of work by bringing technology to life.
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