I just read this (so you don't have to): https://justoffbyone.com/posts/measuring-engineering-productivity/

Some in the product world seem obsessed with maximizing productivity. Frankly, they overthink it. These people measure way too much, and usually measure the wrong stuff.

They focus too much on the downstream “how” vs. the upstream “why bother”?

This much simpler approach works for me.



First, measure what matters. Why even measure “productivity”?

What do you lose if you don’t measure productivity? Why measure output instead of outcome?

And even if you "lose" something … can you still make good business decisions without productivity data?

I want you to seriously pause here and think. What business metrics better reflect the health of your business or team, and are more valuable than measuring "productivity"?

Wait, you're still reading?

I had hoped you found more important things to measure than productivity.

Sigh. Well, maybe you work at some bean-counting company that covets beans.

On to step two. Again, simple is better.

Answer one question:

What would you expect to see if [Insert role(s) here] are productive?

List everything you’d observe concretely.

Now, the most important step: Cross off everything except for two measures. One most leading (in terms of time) as your early warning signal, and one that's your most accurate/insightful* lagging as your historical performance signal.

If you can't find a single leading indicator, don't finish this list until you do.

(Side note: I often argue that your lagging measure is worthless for predictive business decisions, so if you can survive with only measuring the leading signal, just use that one.)

These lead + lag measurements vary by team, so there's no magic formula. Pick the one or two that work best for you. (And don't be afraid to change/remove them if they don't add value to your team.)

That’s it! Any project manager who says you need to measure productivity with anything more is full of crap. Any other metric they ask for, beyond your one leading and one lagging, is a waste of your time.

You may not be in a position to say that to their face, so share this article with them anonymously.

To all PMs, let me know your push back. I'm happy to jump on a Zoom or Teams call and objectively show you how misguided your "formulas" are for measuring worker productivity.

*Footnote: If the most insightful lagging indicator is very difficult to measure, pick an easier-to-measure one that still provides reasonable insight value.