Know these Rules to Rule SaaS

I’ve been a fan of Joe York since first getting introduced to his SaaS Rules of Thumb mathematics a few years ago. Start with SaaS Metrics Rule-of-Thumb #1 and read all 10 rules. It gets a little deep, but be sure to at least come away with the concepts and relationships. These are must knows around which to build successful software strategies and profitable businesses. If you are familiar with his work, start anywhere in his chaotic-flow blog to continue to reap knowledge from his experience and insight.


Different Metric Types Meet Different Needs

Enterprises should differentiate between different types of metrics and how they are used. Lagging, Leading and Diagnostic measures should be combined to ensure they are supporting long-term objectives while focusing on intermediate and daily activities that make a difference. As a quick reference consider the following table for getting the right mix: Type Definition Review Freq Examples Baseball analogy Lagging Show results and attainment of goals. Typically take time to get outcome. Quarterly, Yearly to Multi- Year • Revenue • Profit • Final Game Score • Win/Loss Record Leading Give … Continue Reading >


How Long Does it Take?

This post continues a series of  blog posts on Measures by exploring Cycle Time. Cycle Time is one of my favorite measures. It is at the heart of Lean and forms a basis for improvement that is typically at the center of good customer experience and process agility. In my opinion, any process not tracking this measure cannot be meaningfully improved. Cycle Time is defined as the total duration for a process to complete. This includes all time from a customer’s perspective to transform inputs to outputs including wait, process, … Continue Reading >


How Many?

When setting process measures, there are four key areas where I start: Volume Cycle Time Efficiency Quality I’ll be exploring these over a series of blog posts on Measures starting with this post on Volume. Volume seems like a simple measure. At its root, it is concerned with how many. Lets consider a simple a simple loan process and dig in a little deeper. First, should I measure the number of loans, or the $ value of the loans processed? Is there another weighting factor that affects the process that … Continue Reading >


Measuring Outputs Expanded

I talked at a high level in my Measure Outputs post about the types of measures that are useful. That post stated broadly that input measures do little to help improve, control or predict performance. In this post, I will expand on that concept to cover in more depth what types of measures focus on output and help drive process improvement. Perhaps the best known framework for creating measures is the balanced score card. This sets up categories of metrics that support an organizations strategies and vision. From the Balanced … Continue Reading >


Cycle Time as a Primary Measure

Mishkin Berteig has a great post up at his blog titled Measuring Process Improvements – Cycle Time. In it, he eloquently details why development teams should care about and manage cycle time. It complements nicely my First Law of Development and I encourage giving it a deep read.


Measure Outputs for Success

If you want to ensure success, forget input measures and focus on measuring outputs. Track deliverables completed. Measure quality. Track burn down. Ensure risks are being mitigated. Measure tangible impacts to ensure value is being delivered. Measure customer and stakeholder confidence and user satisfaction. Continue Reading >