What is an example of a measurement that can help drive Value Stream innovation and improvements?

The percentage of customers activating the product is an actionable outcome metric that directly measures customer engagement and the initial value delivered. A low activation rate is a leading indicator that the product's onboarding experience or core value proposition is failing to connect with new users. This data provides a clear signal for where to focus improvement and innovation efforts within the value stream. It helps teams test hypotheses about value and pivot based on real customer behavior, which is a core tenet of Innovation Accounting.

B. Iteration velocity is an output metric for a single team's capacity. It does not measure the value delivered or provide insight into product innovation needs.
C. The number of new customers can be a vanity metric. It doesn't indicate if those customers are finding value, are being retained, or are profitable.
D. Average Customer acquisition cost is a business metric focused on sales and marketing efficiency, not on the intrinsic value or usability of the product itself.

1. Scaled Agile, Inc. (2023). Innovation Accounting. Scaled Agile Framework. Retrieved from https://www.scaledagileframework.com/innovation-accounting/. (This article describes the use of actionable metrics and leading indicators, such as customer usage data, to evaluate MVPs and guide investment).

2. Scaled Agile, Inc. (2023). Measure and Grow. Scaled Agile Framework. Retrieved from https://www.scaledagileframework.com/measure-and-grow/. (This article emphasizes measuring outcomes to understand if the solution is meeting customer needs, and activation rate is a key outcome metric).