If we can't measure it, does it matter?

tldr;  It has been suggested that I type... a lot.  To that end - if you find that reading the whole article is untenable - I'm adding in a "Typed Long, Didn't Read" section to surface the main points of the writing.  Hope you find this useful too.

Stop measuring activity and start measuring impact! True team success begins with a mindset that creates a great team, but it is proven by measuring the value delivered to the customer and the business. This alignment is the key to being effective, not just busy. Use Outcomes (the 'why,' the desired customer change) as your North Star. Use Key Results (KRs) to track your strategic progress toward that Outcome. Use Key Performance Indicators (KPIs) to monitor the operational health of your product and team, giving you the real-time feedback loop for continuous improvement. Mindset + Metrics = Value Delivered.

If you've been paying attention to my writing, you can probably tell that I'm a "mindset first" kind of coach.  I firmly believe that our success as leaders AND team members start with a solid grounding in the kinds of values that create opportunities for people to be their best, while doing their best!  I'm a believer in the fact that people make valuable things... tools and processes help people make great things, and that data interpreted through a customer-centric mindset can help a team continuously improve their effectiveness, efficiency and engagement!  So let's talk about being agile in a way that truly matters. 

As a team, we've championed psychological safety, embraced a customer-focused mindset, and built trust within our squad... But what does all that beautiful teamwork achieve for our customers (and for our business?) How do we prove we're not just busy, but effective?

This is where the magic of Outcomes, Key Results (KRs), and Key Performance Indicators (KPIs) comes into play. These aren't just words embedded in a Quarterly Business Review memo -  they're the compass and the scoreboard for customer-focused product teams.

Articulating the Reason: Outcomes

Results can be articulated in all kinds of ways.  Most often I see leaders ask for, and teams report on... things they are building... work they are doing.  

If you've ever had me sit in a showcase or team demo, you've probably heard me ask about the "so that..."  What is the "so that" of what you just built?  What changes in behaviors should we expect because of this thing we just built?  What business metric will improve because we built a thing, and someone used it?  What is the OUTCOME of all of this work we've done.  Not the thing we created, but the "why."  The reason we created it.  This is called the "outcome" and it really should play a large part in what we create, and how we create it.  

I can build the best, most innovative feather every thought of, but if it's not useful... if it doesn't create some kind of result that can be measured... then why in the world did it get built in the first place.  Outcomes matter, because it's the reason we build teams that build great things!

Outcomes should be qualitative, customer/user/business-centric, and aspirational.

Measuring the Journey: Key Results

How do we know if the things we're building are actually helping us move towards that desired Outcome? That's where Key Results step in. These are the measurable, time-bound indicators that tell us whether we're making progress on our Outcome. 

If our Outcome is "Our customers easily easily and quickly resolve any technical issue," then a KR might be:

• "Increase first-time, self-serve completion rate for modem resets from 70% to 90% by end of Q3."

• "Reduce customer escalation calls to call center agents related to modem resets by 25% within two months."

Notice these aren't about doing work. They are about the impact of our work on the customer experience. This is how we ensure our efforts aren't just about output, but instead about value delivered.

Key results are measurable, time bound, specific, ambitious, and most importantly, impact-focused.

Staying on Track: Key Performance Indicators (KPIs)

While KRs tell us if we're hitting our strategic targets, KPIs are the measures that help us know if we're on track. They are ongoing, often operational metrics that show the health and performance of our product, our team, or our process. They might not change dramatically sprint-to-sprint or even month over month, but they alert us to problems or celebrate consistent success.

Examples of KPIs might include:

• Average Daily Active Users 

• Customer Churn Rate

• System Uptime

• Team Health Metrics 

(NOTE:  Team Health Metrics might include predictability, churn rates, team velocity deviation, defect rates, cycle time and any number of other nerdy, geeky metrics that help a team understand if they are working together well, and where they may explore making improvements. Team Health Metrics are a whole different article for a different time, just know they are included in the idea of KPIs.)

KPIs help us understand our baseline, spot trends, and ensure we're not breaking something crucial while striving for our KRs. They give us the steady feedback loop that fuels continuous improvement, and drives ideas as to HOW we may achieve those Key Results.

KPIs should be measurable, regularly updated (real time if possible) and built into your product and way of working.

Bringing it All Together for Team Success

For truly customer-focused teams, linking Outcomes, KRs, and KPIs is non-negotiable.

• Start with the Outcome: What profound impact do you want to make for your customer? This is your North Star.

• Define Key Results: What measurable impacts will tell you you're getting closer to that Outcome? These are your strategic goals for a defined period (e.g., a quarter).

• Monitor with KPIs: What ongoing metrics will ensure the health of your product, way of working and team as you pursue those KRs?

This framework isn't about micromanagement; it's about empowerment. It allows teams to be truly self-organizing, knowing exactly what success looks like and how to measure their journey. It fosters transparency, sparks focused innovation, and ensures that every user story, release, iteration and interaction is aligned with delivering real, tangible value.

Because at the end of the day, being agile isn't just about speed; it's about delivering the right value, to the right customer, at the right time.

We all win together.

Coach Dan