Measurement

These practices measure an operating model to decide if it's worthy of further investment. The cost effectiveness of business outcome protection is an informative, actionable measure of an operating model.

Leading and trailing measures can be used to gauge progress in deployment throughput, service reliability, and learning culture. It's important to select measures that are holistic, actionable, and do not create the wrong incentives. See Measuring Continuous Delivery by Steve Smith.

These practices are linked to our principles of operating models are insurance for business outcomes and operating models are powered by feedback.

Measure deployment throughput

Measure the deployment throughput of digital services as:

MeasureTypeDescriptionSuggested Implementation

Loose Coupling

Leading

Is a product team able to change a digital service without orchestrating simultaneous changes with other digital services

Inspect deployment history. Calculate how many deployments of different digital services occurred in lockstep

Pre-Approved Changes

Leading

Does a product team have permission to pre-approve its own change requests for low risk, repeatable changes

Inspect ticketing system. Calculate how many digital services have pre-approved change request templates

Deployment Lead Time

Trailing

How long does a release candidate for a digital service take to reach deployment

Instrument deployment pipeline. Calculate days from production deployment back to build date

Deployment Frequency

Trailing

How often are digital services deployed to customers

Instrument deployment pipeline. Calculate rate of production deployments

Measure service reliability

Measure the reliability of digital services as:

MeasureTypeDescriptionSuggested Implementation

Failure Design

Leading

Does a digital service include bulkheads, caches, circuit breakers

Survey product teams. Are they confident they can cope with downstream failures

Service Telemetry

Leading

Does a digital service have custom logging, monitoring, and alerts

Survey product teams. Are they confident they can quickly diagnose abnormal operating conditions

Availability

Trailing

What is the availability rate of a digital service, as a Nines Of Availability e.g. 99.9%

Instrument digital services. Calculate percentage of requests that are fully or partially successful

Time To Restore Availability

Trailing

How long does it take to re-attain an availability target once it has been lost

Instrument digital services. Calculate minutes from loss of availability target to re-attainment of availability target

Financial Loss Protection Effectiveness

Trailing

What amount of expected financial loss per incident is protected by a faster than expected Time To Restore Availability

Instrument digital services and incident financial losses. Calculate maximum incident financial loss, up to time to restore allotted by availability target. Calculate percentage of maximum incident financial loss protected by a time to restore faster than allotted by availability target

Financial loss protection effectiveness is a measure we've used with customers to gauge the cost effectiveness of You Build It You Run It at scale. It's a check of projected financial loss per incident that is unrealised, because the actual time to restore is faster than the projected time to restore. It's a comparison that can be made between digital services, product teams, and even operating models.

In the earlier furniture retailer example, there was a furniture retailer example with a bedroom digital service. It had a maximum financial exposure of $200K per hour, and a 99.0% availability target.

Software ServiceMaximum Financial Exposure In An HourAvailability TargetTolerable Unavailability In A Week

bedroom

$200K

99.0%

1:40:48

Assume the bedroom service is unavailable for 30 mins, and the incident financial loss is calculated as $100K. The tolerable unavailability per week for 99.0% is 1 hour 41 mins, which would have produced a $336K incident financial loss. Financial loss protection can therefore be calculated as 70% of a projected incident financial loss was unrealised, as $236K of a theoretical $336K was protected by a faster than expected time to restore.

Software ServiceIncident DurationIncident Financial LossIncident Financial Loss At Tolerable Unavailability Per WeekIncident Financial Loss ProtectionIncident Financial Loss Protection Effectiveness %

bedroom

0:30:00

$100K

$336K

$236K

70%

For more on measuring financial loss protection effectiveness, see our case study on How to do digital transformation at John Lewis & Partners.

Measure learning culture

Measure the progress of a learning culture as:

MeasureTypeDescriptionSuggested Implementation

Post-Incident Review Readers

Leading

How many readers does a post-incident review for a digital service have

Instrument post-incident reviews. Calculate how many unique visitors each review receives

Chaos Days Frequency

Leading

How often are Chaos Days run for a digital service

Instrument Chaos Day reviews. Calculate rate of review publication

Improvement Action Lead Time

Trailing

How long does an improvement action from a post-incident review for a digital service take to be implemented

Instrument post-incident reviews. Calculate days from improvement action definition to completion

Improvement Action Frequency

Trailing

How often are improvement actions implemented for a digital service

Instrument post-incident reviews. Calculate days between implementation of improvement actions

Trends in post-incident reviews are of particular interest. Usage in training materials and citations in internal company documents could also be included. See Markers of progress in incident analysis by John Allspaw.

You Build It You Run It on the Xinja banking platform

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