This blog post is inspired by another Quora question; “What metrics do you use to track Agile Efficiency?”
To begin with, I want to state that if I had to choose between efficient and effective, I’d choose effective. Efficiency is often about output (how many widgets per hour), whereas Effectiveness is often about outcome (was the purpose consistently met).
Agility is about responding to change. Efficiency is achieved by driving out variation. An over-focus on efficiency will lead down a path of standardization and control, making for a less agile system.
That said, given the question was specifically about agile efficiency, I’d look at a few things - Throughput, Cycle Time, Deployment Frequency, and Mean Time to Recovery.