Scrum Metrics and their importance to the scrum team

[#1]

Improve scrum team effectiveness with these scrum metrics

Team effectiveness is the capability a team has to achieve its goals and objectives over time. Highly effective teams result from leaders who create work environments and team cultures that foster and balance performance with wellbeing. 

The effectiveness of Scrum teams is determined firstly by support from management.

The main metrics that play a role in assessing scrum team effectiveness can be summarized primarily by:

• the ability of a team to release sprints frequently

• closely collaborate while maintaining autonomy,

• operate in working environments that encourage continuous improvement. 

The below metrics can serve as a benchmark to better understand the effectiveness of scrum teams. 

1. Time to Market

When measuring effectiveness in scrum teams, it is essential to consider the actual time a project needs to be released to production and to start generating revenue. This can be estimated by calculating the length of the number of sprints required to develop the project for scrum teams. 

2. ROI

As the term indicates, Return on Investment (ROI) is the revenue generated from an investment or product. In this case, we refer to the total revenue generated for developing and launching a product using scrum. Therefore, understanding ROI calculates the total revenue generated from a product vs. the cost of the sprints required to develop it. With each sprint, scrum teams create more features that can convert into growth in revenue.

3. Resource Reassignment 

Resources Reassignment measures the worth of a scrum project and whether it’s meaningful to continue with this specific project. 

To understand resource reassignment, you need to know if the monetary value of the project exceeds its costs. If you find that this is the case, your team should be reassigned to other more profitable projects for effectiveness. 

Here is an operation that can help you determine the revenue value: 

When V< AC+OC, the project ends, and resources are reassigned. 

(V) being the backlog of the remaining items, (AC) the actual cost of sprints needed to complete those items, (OC) for alternative product work the team could do. 

4. Customer Satisfaction

There are around seven essential customer satisfaction metrics considered reliable in measuring customer satisfaction. Most probably, you have heard of the Net Promoter Score (NPS), Customer Service Satisfaction Score (CSAT), Customer Health Score (CHS) … which all measure if users would endorse the software to others, do nothing, or endorse against it. Using a customer satisfaction metric and measuring it for every release indicates whether the scrum team is meeting its end goal – to provide value to customers.

Following these scrum effectiveness metrics allows scrum teams to deliver value to the customer effectively.  

[Taranjeet Singh]

@Andreas Springer _Actonic_ Thanks for sharing these scrum metrics for measuring the scrum team effectiveness!

But I found the below statement in the article ambiguous:

"To understand resource reassignment, you need to know if the monetary value of the project exceeds its costs. If you find that this is the case, your team should be reassigned to other more profitable projects for effectiveness. "

I am assuming you wanted to say that if the monetary value (or ROI) of the project is less than its costs, then the team should be assigned to other more profitable projects.

Correct me if I am wrong!