Measuring the value proposition
It’s difficult to apply an objective measurement to a subjective quality such as value. What we can do is measure actions taken by our customer or feedback that our customer has given in terms of survey responses or thoughts during specific events such as reviews.
When looking at the measurements for value, some metrics may be collected too late to allow a value stream to know when to pivot. Examples of this include Profit & Loss (P&L) or Return on Investment (RoI). So, other metrics that can act as leading indicators are needed. The practice of collecting leading indicators to allow pivots or continued development is called innovation accounting by Eric Ries in his book, The Lean Startup.
The Innovation Accounting framework
Ries describes the method of hypothesizing and learning as the Innovation Accounting framework. In this framework, teams work to establish hypotheses of what the customer wants, develop those hypotheses, and...
