Measuring developer productivity has long been a Holy Grail of business. And like the Holy Grail, it has been elusive. But based on our work with companies from a range of industries, we think we may have figured out a way to do it that could work.
In 2020, McKinsey surveyed 440 large companies about their “developer velocity” — meaning the practices that best tap the full potential of development talent. The results were striking. Companies in the top quarter delivered four to five times faster revenue growth than those in the bottom quarter. The high performers also saw 60% higher shareholder returns and 20% higher operating margins. Their customers were more satisfied, and their business colleagues had a better employee experience.
