In a post at Extreme Uncertainty, Leon Tranter dismisses a lot of the misguided notions surrounding the application of metrics to agile. Particularly, he thinks the wrong people are doing the measuring, and the wrong things are being measured.
Any time a manager tries to apply KPIs to an agile team, the point of agile is being missed. The team itself should be doing the measuring, and the measuring should inform how they self-develop as a team. Meanwhile, Tranter says management should just try the team to deliver on its obligations. He goes on to add this:
People do not build software for its own sake; they build it for the purposes of achieving some business value. Selling something, converting leads, reducing calls, delighting customers, reducing friction, enabling integration between platforms. Or any of a hundred other things. If you are going to measure anything – and again, this should ideally be the team doing the measuring – then measure your outcomes, not your outputs.
Check out his full post for further details, and to hear his thoughts on how to measure customer outcomes: https://www.extremeuncertainty.com/agile-metrics-youre-doing-it-wrong/