Successful companies provide a good work environment for their software developers.
View a high-level report from management consulting firm McKinsey & Company. The report shows, among other things, that companies with developmental efficiency have a 60 percent higher return.
Companies that invest in developers get better results, says Tepe Kovaci, head of the Azure developer audience at Microsoft Sweden.
Technology forms the basis of many companies, regardless of the industry in which they operate. The products and services you develop and sell are based on the technology platform they originate from.
I the report McKinsey & Company’s “Developer Speed: How Software Franchising Enhances Business Performance” states that the commercial value or commercial performance of a company depends on the software. In turn, it reaches its full potential when software developers are allowed to operate in the right environment and under the right conditions.
Through an in-depth study of 440 companies and their results over a period of several years, McKinsey & Company was able to conclude that the highly-qualified enterprises in development that made up the top quarter of the companies studied, achieved faster revenue growth four to five times, higher by 10 percent. 60 percent of total return to shareholders and an operating margin that’s 20 percent higher than those who ended up in the bottom quarter. Additionally, they achieved 55% higher performance in terms of innovation.
The speed of the developer depends on several parts
To achieve efficiency in development, a number of components play a critical role. These are developer tools, product management functions, a culture and especially a sense of security and collaboration and finally employee and hiring management
Private recruitment is a bottleneck.
Today there is a shortage of software developers. This means you have to get more done with the people you have. Tibi Covaci says that’s a lot Developer Velocity revolves around, giving them the right conditions so they can perform better.
According to the report, developer tools are the main driving force for achieving a good business result.
Organizations with powerful tools are 65 percent more innovative and developer satisfaction and retention is 47 percent higher, compared to companies in the bottom quarter.
Developer speed distinguishes companies from one another
Magnus Juvas is the CEO of software company Solidify and has worked for Tibi Covaci for a long time. For him, Developer Velocity is what separates successful companies and poorly performing companies.
This is where you now see the spread of the starting field in the ongoing digitization journey. What happens in different organizations varies incredibly much and some may actually be left behind. Magnus Juvas says if you want it to belong on the lead, you have to get better.