Engineering ROI can be measured by tying initiatives to business outcomes, using leading indicators and attribution models instead of raw velocity or feature count.
Engineering ROI is often invisible because CTOs default to output metrics like DORA or bug rates that don't map to revenue. The article argues that true ROI requires a mindset shift: treat engineering work as a lever for specific business outcomes and measure the impact early with leading indicators.
It walks through three attribution philosophies-full, fractional, and causal-and shows why each falls short without clear, observable metrics. By embedding observability into every feature and tracking leading signals such as churn trigger fixes, leaders can predict success, attribute results, and avoid wasteful engineering effort. The piece also emphasizes the need for cross-functional collaboration to define outcomes, align initiatives, and report results.
The author presents a 3-stage process: Identify business outcomes, Commit to technology initiatives that drive them, and Deliver while tracking leading indicators. An example shows a CTO cutting churn from 20% to 10% and boosting ARR by $10 M, turning a modest engineering spend into high ROI. The article ends with an invitation to a free online workshop that teaches this framework in 60 minutes.
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