Engineering ROI isn't a simple number; you must connect engineering work to concrete business outcomes, use leading indicators, and apply thoughtful attribution models to prove value.
Engineering leaders often hear the same vague answer: without engineering there would be nothing to sell. The real problem is that engineering's impact on revenue is hidden behind delayed results and unclear cause-and-effect. The article argues that measuring ROI starts with identifying the business outcomes you need-ARR growth, churn reduction, acquisition targets-and then designing initiatives that directly aim at those outcomes.
It stresses that leading indicators are essential. Instead of waiting for lagging revenue numbers, track early signals such as feature adoption rates, activation metrics, or performance improvements. Observability becomes a non-negotiable part of feature delivery; a feature isn't complete until you can see how it's being used and whether it moves the needle.
The author presents a three-stage process: Identify outcomes, commit to technology initiatives that support them, and deliver while rigorously reporting results. The example of cutting churn from 20% to 10% shows how a focused engineering effort on top churn triggers can translate into a $10M revenue boost, demonstrating high ROI even with modest spending.
Finally, the piece evaluates three attribution philosophies-full, fractional, and causal-and explains their trade-offs. It recommends blending outcome-based metrics with cross-functional accountability so engineering isn't stuck in a feature-factory mindset but becomes a driver of measurable business value.
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