How to Communicate Metrics That Matter: Going Beyond Numbers for Meaningful Impact
In the fast-paced world of product engineering, metrics are crucial. But just as important as the data itself is the context behind the numbers. Too often, we see reports like, “Infra cost was recorded at Rp 5 million,” or even, “Infra cost dropped from Rp 7 million to Rp 5 million.” While these statements provide some information, they lack the depth needed to truly convey the impact or reasoning behind the change. In a team setting, this type of communication can lead to frustration and misunderstanding, especially among stakeholders who may not be familiar with the day-to-day details. Here’s a guide to reporting metrics with meaning—and some additional considerations that can make all the difference.
1. Always Start with the Why
Merely presenting metrics without any explanation can leave your team or stakeholders wondering why the change happened in the first place. If costs dropped, was it because of a proactive decision, or was it coincidental? Did it involve a trade-off, like reduced performance or availability?
For instance, compare the following examples:
- ❌ “In October, infra cost was recorded at Rp 5 million.”
- 🤷 “In October, infra cost dropped from Rp 7 million to Rp 5 million.”
- ✅ “In October, infra cost dropped from Rp 7 million to Rp 5 million due to reducing unnecessary instances, with no impact on system availability.”
Notice how the last example provides insight into the reason behind the cost reduction and addresses potential concerns (e.g., did this impact availability?). It’s no longer just a number—it's a decision backed by strategy, making it clear to anyone reading why this change occurred.
2. Highlight the Implications of the Change
Whether positive or negative, every metric change has implications. Highlighting these consequences demonstrates an understanding of the bigger picture and builds trust within the team. For example:
- Positive impacts: Reduced costs or increased efficiency, without compromising user experience.
- Negative impacts: Reduced costs that might lead to slight latency increases, or adjustments in budget allocations that affect future scalability.
Being transparent about the implications shows that you’ve thought through the outcome, which can be reassuring for team members and stakeholders alike.
3. Quantify the Benefits or Trade-offs
If a decision leads to measurable gains, communicate them! If the cost reduction saves enough funds to reinvest in another area, note that as well. If there was a trade-off (such as using fewer instances at the expense of slightly slower response times), quantify that too. For instance:
- “By reducing redundant instances, we saved Rp 2 million, which can be allocated to infrastructure improvements next quarter.”
Providing specific benefits or trade-offs paints a fuller picture of the decision's impact and can help stakeholders see the strategy in action.
4. Frame Metrics with Goals or Benchmarks
People often care less about a single metric in isolation and more about how it aligns with a larger goal or benchmark. Tying metrics back to targets or KPIs provides context that is far more relevant to strategic decision-making. For example:
- “Our infra cost is now 15% below our quarterly budget target, aligning us with our goal of reducing costs by 20% this year.”
This approach helps others understand why these metrics matter and can serve as a reminder of the larger objectives.
5. Add Visual Aids to Enhance Understanding
For more complex metrics, consider using graphs or charts to illustrate the change over time or to compare current metrics to historical data. Visual aids can make it easier for non-technical stakeholders to grasp trends and assess whether the current state is moving in the right direction.
6. Use Actionable Language
Using active language can help emphasize the proactive steps taken. Phrasing like “We reduced,” “We optimized,” or “We improved” highlights the engineering team’s actions rather than implying that the change just happened.
- “We optimized our server allocation, bringing infra costs down by Rp 2 million with zero impact on availability.”
This gives credit to the effort involved and reinforces the intentional, thoughtful decisions made by the team.
7. Encourage Questions and Feedback
Effective communication isn’t one-way. Invite questions or feedback to open up a conversation about the metric’s context. This can be particularly valuable if stakeholders have unique insights or concerns that might inform future decisions.
For example, ending with something like, “Please let us know if you have any questions about this decision or any further details you’d like to see in future updates.” This opens the door to deeper understanding and collaboration.
Finally: Focus on Context, Not Just Numbers
Metrics are not just numbers—they are a snapshot of how your team’s decisions and strategies impact the product and organization. By consistently adding context, explaining reasoning, and addressing implications, you transform raw data into actionable insights. Not only does this help build trust, but it also encourages a more collaborative, informed, and goal-oriented environment.
So next time you’re writing up a report, remember: metrics should tell a story. Make sure it’s one that clearly explains the why, what, and how behind each change, creating value for everyone reading.