Metrics

To ensure the health and profitability of your projects and the agency as a whole, it is crucial to religiously track a set of key metrics. These metrics provide valuable insights into your operational efficiency, financial performance, and client relationships.

Metric	Description	How to Track -
Planned vs. Actual Hours	This metric is crucial for improving estimation accuracy over time. It reveals how realistic your estimates are and helps you identify patterns of over or underestimation.	Use Clockify software to log all hours worked on a project, including non-coding activities. Compare the actual hours against the estimates from the Discovery Phase, fixed-price costs, and the hours allocated in retainers. -
Revenue per Developer	This metric helps you understand the financial productivity of your team and the overall profitability of the agency.	Calculate this by dividing the total monthly retainer revenue by the number of developers working on those projects. This can be tracked on a per-project and agency-wide basis. -
Margin per Project	This is the ultimate measure of a project’s financial success. It tells you how much profit you are making after accounting for all costs.	Calculate this by subtracting all project-related costs (developer salaries, tools, overhead) from the total project revenue. This should be tracked for both the Discovery Phase and Delivery Phases. -
Client Change Frequency	This metric helps you understand how volatile a project’s scope is and how effectively the agile process is managing client expectations.	Track the number of times the client asks for changes or introduces new feature requests.

By consistently tracking these metrics, you can make data-driven decisions to optimise your processes, improve profitability, and build a more sustainable and scalable agency.