Roi for engineers
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This document discusses return on investment (ROI) for engineers. It defines ROI as benefits minus costs and lists revenue drivers and sinks that engineering can impact. The key to success is expanding revenue through these drivers while squeezing costs, especially development and support costs. Engineers should focus on quality, managing risks, and avoiding technical debt to reduce support needs and customer issues. Rather than focusing only on numbers, engineers should aim to increase sales, support, and goodwill while decreasing costs, upset customers, escalations, and technical debt. This helps maximize financial returns over the long run.
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Roi for engineers
- 2. ROI = Benefits - Costs
- 3. ROI = Benefits - Costs Revenue Drivers
- 4. ROI = Benefits - Costs Revenue Sinks
- 5. ROI = Benefits - Costs Incremental Gain (or Loss)
- 6. Recipe for Success Expanded Revenue + Squeezed Costs = More Incremental Income
- 7. Responsibilities Product Management, Sales & Marketing have greatest impact on Revenue Drivers
- 8. Responsibilities Engineering, Program Management & QA have greatest impact on Revenue Sinks
- 9. Responsibilities The greatest product idea in the world can be a financial failure due to sloppy engineering
- 10. Usual ROI Failure Lower than expected Revenue Higher than expected Support Cost Late project, deferred debt
- 11. Squeezing Costs Dev Cost Estimate well, manage risks, deliver cleanly, be done, Done, DONE. Support Costs Don’t release crap code, customers will call, that costs money. Upset Customers Annoy a customer, they buy from someone else next time. Escalations If the front line support can’t solve it, the engineers get pulled in. Tech Debt Deferred engineering always efforts come back to haunt.
- 13. Engineers != Business People
- 14. Engineers != Business People
- 15. Hint: Don’t Focus on Numbers Increase Decrease Sales Support Good Will Dev Cost Support Upset Cust Escalations Tech Debt Decrease Increase
- 16. Hint: Don’t Focus on Numbers ✓ ✓ ✓ ✓ Increase Decrease Sales Support Good Will Dev Cost Support Upset Cust Escalations Tech Debt Decrease Increase ✘ ✘ ✘ ✘ ✓ = Good ✘ = Bad Consciously look to maximise ✓ and minimize ✘ More above than below
- 17. Some Common Bad Patterns ✓ Increase Decrease Sales Support Good Will Dev Cost Support Upset Cust Escalatio ns Tech Debt Decrease Increase ✘ ✘ ✘ ✘ ✘ ✓ Increase Decrease Sales Support Good Will Dev Cost Support Upset Cust Escalatio ns Tech Debt Decrease Increase ✘ ✘ ✘ ✘ ✘ ✘ ✘ Poor quality delivery with bugs visible to customer and lots of support issues being escalated to engineering. Late project, lower quality output, deferring work that should be done to later.
- 18. Some Patterns to Strive for ✓ ✓ ✓ ✓ Increase Decrease Sales Support Good Will Dev Cost Support Upset Cust Escalatio ns Tech Debt Decrease Increase ✘ ✓ ✓ ✓ Increase Decrease Sales Support Good Will Dev Cost Support Upset Cust Escalatio ns Tech Debt Decrease Increase ✘ Reduce support churn and escalations into engineering. Retiring tech debt, increase in quality, less engineering churn.
- 19. Application Timebox: Seconds to consider Consider & Discuss
- 20. Why Use It? Creates a Common Language and Gets People Thinking Will this feature increase support calls? Does this make the customer happy? What can I do to allow the customer or support team to self serve?
- 21. Obscure Images References Hydrogen and Maths, the common language giving Directions To Earth on the Voyager Spacecraft Swiss Railway Clock, used by Apple without permission for iOS 7. Gnome Business Plan with a health dose of separation from reality. From South Park. The cast from Silicon Valley. Frighteningly accurate.
- 22. http://use-cases.org/ Short form & long form articles on this and other engineering topics.