5 Key Software Development KPIs You Should Know

Software Development

We all know that today’s modern software development management is laser-focused on reaching the correct set of KPIs to help the team achieve its objectives and improve its performance. In technical work environments, key performance indicators are frequently employed to hold yourself accountable to the objectives you’ve set. They are highly beneficial for software development teams since they can be sophisticated and extensive.

What Is a KPI Or Key Performance Indicator?

In simple words, Key performance indicators (KPIs) are numbers that represent a company’s overall performance. They’re also used to connect software development with corporate goals. The number of lines of code commits, and deployments are usually measured using key performance indicators.

However, they aren’t particularly precise and don’t provide real goals. The quality of the targets is one of the most important criteria in determining software development KPIs.

Why are KPIs Important?

Defining software development KPIs that are linked with the goals and the team members’ commitment to achieving them will aid in the production of high-quality software. When a problem arises, having a set of metrics on hand can assist in identifying the problem and highlighting the most critical aspects.

Having a set of measures in place also boosts team output. It assists the developers in identifying and correcting areas of concern by recognizing the team’s combined efforts. Having a set of software development KPIs can help you track your team’s success and increase your return on investment.

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Best KPIs For Software Development

Cumulative Flow

Cumulative flow can be seen as a graph of tasks vs time. To create such a chart, you’ll need to keep track of the number of tasks and their life cycles throughout time. The chart accumulates three to four (depending on the task variables assessed) lines over time, with color-coded sections beneath them for easier understanding. The resulting map should assist observers in determining how much work is currently being done in the ecosystem, as well as their states.

Using the figure above, we can observe that the first (top) line represents active tasks, while the bottom line represents cumulatively finished jobs. The tasks that the team is currently working on are shown in the middle line.

Cycle Time

Cycle time is a software development KPI that measures how long it takes to complete projects. Take the averaged cycle time as a predictor of the overall performance of the team working on the tasks if your project has multiple activities.

Lead Time

Lead time is a key performance indicator that is strongly tied to cycle time. While cycle time is measured from the moment work begins, lead time includes the time it takes from the moment the task is generated until it is completed.

Defect Rate

When evaluating time-based KPIs, it’s easy to lose track of issues. The defect escape rate is a key performance indicator that measures how many bugs make it past testing and into production. As a rate, you’d need to include a date range in the report. Depending on the size of your projects, you may measure these regularly and allocate effort to ensure that fewer problems make it into production.


Monitoring the number of deployments that go live each day is an excellent approach to determining how productive your team is. Every task that introduces new features as code or even content must be deployed before new tasks may be prioritized. Some teams deploy thousands of new changes per day.

In case you are interested to learn more and keep yourself updated, here are some of the popular software development trends for you to watch out.

Bottom Line

Overall, the fact is that to achieve your business objectives, you must ensure that your software meets all of the standards. To accomplish this, you must incorporate KPI engineering metrics into the project development.

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