How Software Engineering Leaders at Enterprises Can Drive Real Impact & Efficiency

Output is not the same as impact. Flow is not the same as effectiveness. Most of us would agree with these statements—so why does the software industry default to output and flow metrics when measuring success? It’s a complex issue with multiple factors, but the elephant in the room is this: mapping engineering insights to meaningful business impact is far more challenging than measuring developer output or workflow efficiency.

Ideally, data should inform decisions. The problem arises when the wrong data is used to diagnose a problem that isn’t the real issue. Using misaligned metrics leads to misguided decisions, and unfortunately, we see this happen across engineering organizations of all sizes. While many companies have adopted Software Engineering Intelligence (SEI) platforms—whether through homegrown solutions or by partnering with company that specializes in SEI like Code Climate—a clear divide has emerged. Successful and mature organizations leverage engineering insights to drive real improvements, while others collect data without extracting real value—or worse, make decisions aimed solely at improving a metric rather than solving a real business challenge.

From our experience partnering with large enterprises with complex structures and over 1,000 engineers, we’ve identified three key factors that set high-performing engineering organizations apart.

1. Treating Software Engineering Insights as a Product

When platform engineering first emerged, early innovators adopted the mantra of “platform as a product” to emphasize the key principles that drive successful platform teams. The same mindset applies to Software Engineering Intelligence (SEI). Enterprise organizations succeed when they treat engineering insights as a product rather than just a reporting tool.

Data shouldn’t be collected for the sake of having it—it should serve a clear purpose: helping specific users achieve specific outcomes. Whether for engineering leadership, product teams, or executive stakeholders, high-performing organizations ensure that engineering insights are:

• Relevant – Focused on what each audience actually needs to know.
• Actionable – Providing clear next steps, not just numbers.
• Timely – Delivered at the right moment to drive decisions.

Rather than relying on pre-built dashboards with generic engineering metrics, mature organizations customize reporting to align with team priorities and business objectives.

For example, one of our healthcare customers is evaluating how AI coding tools like GitHub Copilot and Cursor might impact their hiring plans for the year. They have specific questions to answer and are running highly tailored experiments, making a custom dashboard essential for generating meaningful, relevant insights. With many SEI solutions, they would have to externalize data into another system or piece together information from multiple pages, increasing overhead and slowing down decision-making.

High-performing enterprise organizations don’t treat their SEI solution as static. Team structures evolve, business priorities shift, and engineering workflows change. Instead of relying on one-size-fits-all reporting, they continuously refine their insights to keep them aligned with business and engineering goals. Frequent iteration isn’t a flaw—it’s a necessary feature, and the best organizations design their SEI operations with this in mind.

2. The Value of Code is Not the Code

Many software engineering organizations focus primarily on code-related metrics, but writing code is just one small piece of the larger business value stream—and rarely the area with the greatest opportunities for improvement. Optimizing code creation can create a false sense of progress at best and, at worst, introduce unintended bottlenecks that negatively impact the broader system.

High-performing engineering organizations recognize this risk and instead measure the effectiveness of the entire system when evaluating the impact of changes and decisions. Instead of focusing solely on PR cycle time or commit activity, top-performing teams assess the entire journey:

• Idea generation – How long does it take to move from concept to development?
• Development process – Are teams working efficiently? Are bottlenecks slowing down releases?
  
• Deployment & adoption – Once shipped, how quickly is the feature adopted by users?
  
• Business outcomes – Did the feature drive revenue, retention, or efficiency improvements?

For example, reducing code review time by a few hours may seem like an efficiency win, but if completed code sits for six weeks before deployment, that improvement has little real impact. While this may sound intuitive, in practice, it’s far more complicated—especially in matrixed or hierarchical organizations, where different teams own different parts of the system. In these environments, it’s often difficult, though not impossible, for one group to influence or improve a process owned by another.

One of our customers, a major media brand, had excellent coding metrics yet still struggled to meet sprint goals. While they were delivering work at the expected rate and prioritizing the right items, the perception of “failed sprints” persisted, creating tension for engineering leadership. After further analysis, we uncovered a critical misalignment: work was being added to team backlogs after sprints had already started, without removing any of the previously committed tasks. This shift in scope wasn’t due to engineering inefficiency—it stemmed from the business analysts' prioritization sessions occurring after sprint commitments were made. A simple rescheduling of prioritization ceremonies—ensuring that business decisions were finalized before engineering teams committed to sprint goals. This small yet system-wide adjustment significantly improved delivery consistency and alignment—something that wouldn’t have been possible without examining the entire end-to-end process.

3. Shifting from Tactical Metrics to Strategy

There are many frameworks, methodologies, and metrics often referenced as critical to the engineering insights conversation. While these can be useful, they are not inherently valuable on their own. Why? Because it all comes down to strategy. Focusing on managing a specific engineering metric or framework (i.e. DORA or SPACE) is missing the forest for the trees. Our most successful customers have a clear, defined, and well-communicated strategy for their software engineering insights program—one that doesn’t focus on metrics by name. Why? Because unless a metric is mapped to something meaningful to the business, it lacks the context to be impactful.

Strategic engineering leaders at large organizations focus on business-driven questions, such as:

• Is this engineering investment improving customer experience?
• Are we accelerating revenue growth?
  
• Is this new approach or tool improving cross-functional collaboration?

Tracking software engineering metrics like cycle time, PR size, or deployment frequency can be useful indicators, but they are output metrics—not impact metrics. Mature organizations go beyond reporting engineering speed and instead ask: "Did this speed up product releases in a way that drove revenue?"

While challenging to measure, this is where true business value lies. A 10% improvement in cycle time may indicate progress, but if sales remain flat, did it actually move the needle? Instead of optimizing isolated metrics, engineering leaders should align their focus with overarching business strategy. If an engineering metric doesn’t directly map to a key strategic imperative, it’s worth reevaluating whether it’s the right thing to measure.

One of our retail customers accelerated the release of a new digital capability, allowing them to capture additional revenue a full quarter earlier than anticipated. Not only did this directly increase revenue, but the extended timeline of revenue generation created a long-term financial impact—a result that finance teams, investors, and the board highly valued. The team was able to trace their decisions back to insights derived from their engineering data, proving the direct connection between software delivery and business success.

Understanding the broader business strategy isn’t optional for high-performing engineering organizations—it’s a fundamental requirement. Through our developer experience surveys, we’ve observed a significant difference between the highest-performing organizations and the rest as it relates to how well developers understand the business impact they are responsible for delivering. Organizations that treat engineers as task-takers, isolated from business impact, consistently underperform—even if their coding efficiency is exceptional. The engineering leaders at top-performing organizations prioritize alignment with strategy and avoid the distraction of tactical metrics that fail to connect to meaningful business outcomes.

Learn how to shift from micro engineering adjustments to strategic business impact. Request a Code Climate Diagnostic.