No feedback loops, no learnings – the iterative build-test-learn process fails to be effective
'You cannot manage what you cannot measure'. Without feedback loops, build-measure-learn becomes guesswork. It undermines the seriousness of continuous improvement.
How do you know if you're delivering business value for your hard-fought-for funds? How do you decide on the next build iteration, when to stop investing or when to scale?
It wouldn't be surprising that the C-suite's enthusiasm for digital transformation has stalled due to a lack of validation of business benefits.
Today, capital is harder to access, with funding for technology initiatives increasingly contingent on demonstrating performance and business benefits.
Many established organisations believe the initial business case or strategic rationale is enough to justify the investment. Or, they lack the means to track, measure and analyse outcomes,
The challenges
Understanding the impact on financial and business metrics requires robust feedback loops.
Product performance feedback, typically various measurements of 'usage', are easier to establish than business benefits (relating to key business objectives) and financial performance. Why?
Product performance can often be measured using packaged web and product analysis tools. Business benefits and financial performance are more dependent on internal systems and reporting.
Validating a product's specific contribution, amongst many initiatives, to business and financial goals can be puzzling.
The business case and the ROI feedback loops get overlooked as the responsibility for capturing and processing the data is often vague.
There can be resistance to open and transparent sharing of data due to silo thinking, power-plays and fear of sharing disappointing results.
Investing in measurement infrastructure and capabilities
This typically involves data pipelines, processing the data for reporting and making it easily accessible via a dashboard or API. It also requires the skills of dedicated data analysts.
It can be part of an initiative’s execution, using the discovery process to identify measurement capability holes to validate benefits. Sometimes, the effort required may need separate funding or may form part of an initiative in its own right with executive sponsorship.
This should be seen as a critical investment to reap the cost efficiency and value benefits of the build-measure-learn delivery model and establish a sustainable competitive advantage in continuous improvement.
Responsibility
Feedback loops work across an organisation and serve the needs of the C-suite, Business Leaders, Portfolio Managers, Product Owners, and the PMO. Those accountable for each loop's measurements should be responsible for their existence.
'You cannot manage what you cannot measure'. Without feedback loops, build-measure-learn becomes guesswork. It undermines the seriousness of continuous improvement.
