Software Development KPIs: Measuring Success or Missing the Point?
Nima Habibkhoda
Technical lead | Software engineer | Emerging AI Engineer | Mentor in Tech | Devoted Student of AI | Nature lover
Key Performance Indicators (KPIs) are measurements that track how well a business is doing in relation to its objectives. Although they are useful tools for many businesses, there are particular difficulties when using them in software development, an area where abstract ideas frequently predominate. Software engineers use code to turn concepts into reality, and it's not always easy to define relevant, quantifiable KPIs for this creative process.
Every year, development teams—also known as "Dev teams"—are faced with the challenge of defining KPIs as departments and organizations define their targets. The abstract nature of software development makes it a challenging endeavor, in contrast to sales or marketing, where results are frequently observable. I want to discuss my findings on certain popular KPIs and their applicability after doing some study on the subject.
Diving into Popular Software Development KPIs
DORA Metrics
DORA (DevOps Research and Assessment) metrics are considered foundational for assessing software delivery performance. These include:
These metrics aim to enhance efficiency and reliability in software delivery. But do they truly reflect the quality of the work?
Development Velocity
Development velocity gauges how quickly a team delivers value, typically measured by tasks completed, features delivered, or story points achieved in a given sprint. While it provides insights into productivity, focusing too heavily on velocity can sometimes incentivize speed over sustainability or quality.
Change Failure Rate
A measure of deployment stability, this tracks the percentage of code changes that cause failures in production. Lower failure rates indicate stronger processes, but this metric alone doesn’t account for complex user behaviors or edge cases that may only surface in live environments.
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Deployment Frequency
Frequent deployments are often equated with agility, reflecting the team's ability to iterate quickly. However, this can sometimes push teams to prioritize frequent updates over thoughtful, well-tested releases.
Metrics vs. Quality: What’s the Real Priority?
While these KPIs are widely adopted, there’s a critical question to address: Do they genuinely measure quality?
Quality itself is highly subjective and context-dependent. For some projects, it may mean seamless e-commerce transactions; for others, it’s about a simple mobile app running glitch-free. The nuances of each project can’t always be captured by generic metrics.
Metrics like development velocity or deployment frequency, in my experience, can divert teams from their main goal, which is to provide high-caliber, user-focused features. Because quality needs accuracy, developers sometimes dedicate hours or even days to seemingly insignificant activities. Because no test environment can accurately simulate real-world user behaviour, it is not unusual to find errors in production even after thorough testing.
As a leader, I’ve learned not to let metrics define success. Instead of asking my team to chase numbers, I focus on building an environment where talented individuals can create exceptional products. Metrics should support, not dictate, the development process.
To me, success isn’t measured by deployment frequency or a low failure rate. It’s about delivering a product that delights customers and meets their needs. Happy clients and a motivated team—that’s my ultimate KPI.
Now, over to you. How does your team measure success? Are KPIs a helpful guide or just another distraction? Share your approach—I’d love to hear about the metrics you value and how they shape your development process.