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January 15, 2025 · 4 min read

Engineering Productivity Metrics That Actually Matter

“How’s the engineering team doing?”

It seems like a simple question, but I’m willing to bet that you quickly clocked who was asking, and started to contextualize what information would be valuable to the person on the other end of the keyboard. Now, think about how many times a day you’re confronted with some version of this question. Isn’t it funny that in a world obsessed with measuring everything, we’ve somehow made it harder, not easier, to understand what truly matters in engineering productivity?

Beyond Vanity Metrics

Leadership teams love metrics. And engineering teams, being engineers, are particularly good at measuring things. Walk into any engineering organization, and you’ll find dashboards tracking commit counts, lines of code, PR velocity, and time-to-merge stats – endless graphs and charts that look meaningful at first glance. But these metrics rarely translate to business value or team effectiveness.

In a previous life, I ran fine-dining restaurants in NYC. I was trained by two of the nation’s top restaurant groups, Hillstone/Houston’s and Union Square Hospitality Group, am a former chef, and I am a sommelier. After spending a decade deep in the trenches, I can walk into any dining room and, within moments, know how their service is going that night. This intuitive understanding of operational health isn’t unique to restaurants – engineers develop the same kind of sixth sense through their daily deep engagement with code and product.

Just as an experienced restaurateur can feel the pulse of their dining room, engineers develop an intimate knowledge of their product’s health. They feel the friction points customers experience, see the patterns in support tickets, and understand when systems are straining under load. This deep connection gives them early warning of business challenges or opportunities long before they surface in traditional metrics.

Engineers might notice increasing complexity in feature implementations, growing technical debt in critical paths, or subtle patterns in error rates – all early indicators of business challenges that haven’t yet appeared in conventional business metrics. While they track technical metrics like deployment pipeline efficiency and error rates, these need to be translated into terms executives understand: customer satisfaction, revenue impact, and market competitiveness.

Your challenge as a leader isn’t getting engineers to understand their business impact – they live it every day. Rather, it’s translating their deep technical insights into narratives that resonate with executives and investors. When done right, this translation bridges the gap between technical execution and business success.

Making Metrics Work For You

The key to effective engineering productivity metrics isn’t collecting more data – it’s understanding the story behind the numbers. Every metric needs three crucial elements:

Context

What circumstances influence this number? What constraints or opportunities shaped it?

Actionability

Given the context, what meaningful changes can we make?

Value Alignment

How does this metric, in our specific context, relate to business and team success?

Understanding What Really Matters

Value Stream

Time from commit to customer value

Reveals true delivery efficiency and business impact

Team Health

Knowledge distribution & collaboration patterns

Early warning system for team sustainability

Quality Impact

Customer-affecting incident rate

Direct measure of engineering effectiveness

These core metrics tell the complete story of engineering effectiveness. Value stream metrics show how efficiently we deliver customer value. Team health indicators reveal the sustainability of our delivery capability. Quality metrics demonstrate our ability to maintain high standards while moving quickly.

The key is focusing on these fundamental areas rather than tracking every possible data point. Each core metric should be examined within your specific context and adapted to your team’s unique circumstances.

The Path Forward

The most effective engineering leaders understand that metrics are context-dependent tools for insight, not universal measures of success. They know that a metric that perfectly captures team health in one environment might be meaningless – or even misleading – in another.

When evaluating engineering productivity metrics, always ask:

  • What unique factors influence these numbers in our environment?
  • How do our team structure and processes affect these measurements?
  • What phase are our projects in, and how should that impact our interpretation?
  • Are we measuring what matters in our specific context, or just what’s easy to track?

Making It Work

Start with context. Before implementing any new metrics, document your team’s unique circumstances, constraints, and goals. Choose measurements that make sense for your specific situation, not just industry standard metrics.

Remember: Numbers without context are just noise. The real insights come from understanding the story behind the metrics.

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