Why Performance Matters in Technology

In his book “How to Measure Anything”, Douglas Hubbard introduces a method called Applied Information Economics(AIE) to measure performance.

His approach to measuring performance involves the following:

• Identify what needs to be measured
• Define the decision-making context
• Measure the right things
• Use appropriate methods
• Interpret and use the results

Hubbard emphasizes the need to constantly update performance measurements based on new information and changes in context.

The Nuance of Context

Appropriate methods for each use case change alongside the context. By plotting a graph for performance and observing the variation, one can identify the decline or increase in performance. However, if you ignore the context or the reason behind it, you can’t present factual evidence for the performance. Although subjective judgments are valid, they can't be solely relied upon. Therefore, anything can be measured.

Understanding Performance in Different Contexts

As mentioned earlier, while measuring performance, it's important to identify what needs to be measured. Is it the success of your idea? The reach it has amongst an audience? Or the quality you provided?

Well, it is different for everyone. The performance of your product or service becomes your measure of happiness. In his book "The Secret to Selling Anything", Harry Browne revealed the secret of product demand. If your product or service enhances people's happiness overall, they will buy it. Happiness could mean alleviating stress or providing some form of assistance in exchange for money. Similarly, if your product is selling well, you derive pleasure from its success. Your happiness is associated with the performance of the product in the market.

The Market Performance of Products

In order to achieve that pleasure, your product should have what others didn't offer. Whether it involves the quality of it or how easily accessible it is for people to reach your product, everything depends on the performance of the various teams involved. For example, you could come up with an idea to introduce a cosmetic product into the market. You take all the right steps in identifying the need and gaps in the market, and hire an effective marketing firm to handle the product's advertisements.

Though the marketing team may pass the performance index, the product's performance in the market will also depend on its quality. Will it have an actual impact on its users? This will be an equally important factor in the product's success in the market. As a result, every stage requires high performance, whether it's the development of your service/product company or the outreach you want to get from it.

Personal Performance and Its Impacts

As an individual, your performance defines your value, and your value in turn defines your income. The team leader or any higher authority at your company has a formula by which your performance is measured. You are expected to continually update your personal performance metrics and enhance your skills in accordance with 'what people expect from you'. Failure to do so may unfortunately cost you your job due to a decline in your performance.

Performance in Technology

It’s expensive

We often hear that AI will replace humans. While there is much truth in this statement, making that transition is neither easy nor affordable for most people. Yes, it's a necessity of the times, but the cost of integrating AI into business processes is enormous. As such, if a business owner isn't exploring possible ways to introduce AI, they risk harming their business's future potential.

Similarly, high performance doesn't come cheap. You could employ a lower-cost resource to get the job done and bide your time. But when performance issues crop up, the consequences can be far more painful than anticipated.

Teams or partners you collaborate with should be the ones you conduct due diligence on. You'd examine their past accomplishments and trust them with your idea. You expect them to go beyond the “just enough” notion and bring the best to the table. If they fall short, you also pay the price.

Owners in industries of all sizes have been known to fire entire teams after suffering from their performance shortfalls. If they continued with underperforming teams, their business ended up failing.

Ideal case scenario?

When it comes to the price of performance, you can pay up front, ensuring a safe bet on the development of what you desire. Alternatively, you could pay in the form of failure. That doesn't mean a lack of initial investment guarantees failure every time, but the results will likely vary and the difference will be visible.

In today's fast-paced times, swift decisions often turn out to be more significant than long-term plans. Depending on the judgment you make in that short span, you may be able to revamp something that previously delivered low performance.

Talking about time, even something as minor as missing a deadline can cause significant damage. Many fail to recognize the importance of adhering to timelines and deadlines.

Ultimately, these factors prevail:

1. You have to deliver the best.
2. You may not have enough time to execute what you originally thought or what might have been an optimum solution.
3. Nevertheless, you have to ensure top quality delivery.

Conclusion

Finally, what matters most is whether your users are satisfied with what they are using. User experience is the deciding factor in the success or failure of a product. It's simpler than most people believe. If a solution to their problem is delivered smoothly, without adding new complications, they're happy.

For example, if a mobile application that they're using doesn't crash every time they try to log in, they're content. If they can use your app to lighten their load, they'll also be happy. That's how they, too, bear the cost.

Do what matters more

The performance of development often turns out to be more critical than advertising or marketing. The cost of failure always exceeds the price of mediocre success.

The key lies in committing to deliver the best, making you irreplaceable. As this mindset permeates your teams and company, the success rate increases accordingly. You can always argue about having cheaper alternatives for something, but everything comes at a cost, including performance. Even the most revolutionary idea won't yield expected results if performance falters. Performance is as vital to you as your product is to your audience.

Keep pumping your performance!