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"The ROI Dilemma" with Ria Delamere, CTO at ASG | Engineering Leadership

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In this interview, Tracy Lee, the host of the Engineering Leadership Series, speaks with Ria Delamere, a CTO in residence for ASG (a private equity firm). Ria explains her role as a CTO in residence, where she helps determine whether founders and leaders should continue with their business or pursue other opportunities. She emphasizes her unique background in both product and engineering, which allows her to provide a comprehensive perspective as a technology and product leader.

The main topic of discussion in the interview is how to justify engineering organizations, particularly in the context of economic uncertainty and the need to demonstrate return on investment (ROI). Ria shares her experiences during past recessions and how the landscape has changed. Previously, companies had ample funding and were focused on growth, resulting in significant engineering team expansions. However, with the current economic climate, leaders are now questioning the ROI of large engineering organizations.

Ria distinguishes between sales-led and product-led organizations. Sales-led companies prioritize revenue generation and often push engineering teams to fulfill custom features for specific sales deals, which can lead to costly and difficult-to-maintain customizations. In contrast, product-led organizations focus on enhancing the product and understanding user personas and journeys. Ria emphasizes the importance of engineering leaders pushing back and aligning features with the product roadmap to avoid excessive customization.

To justify engineering organizations, Ria introduces three metrics: run, grow, and transform. "Run" costs refer to the essential expenses for maintaining the application and include engineering salaries and licensing. "Grow" and "transform" represent different types of projects. "Grow" focuses on expanding market share and improving existing features, while "transform" involves tech rewrites or changes to improve efficiency and reduce costs. By categorizing work into these metrics using tools like JIRA, engineering leaders can better estimate costs and track how time and resources are allocated.

Ria discusses the value of using these metrics to justify engineering work and make informed decisions. By analyzing the percentage of time spent on different types of projects, engineering leaders can identify areas of improvement, such as reducing time spent on maintenance and increasing focus on growth and transformation. The metrics also provide insights into resource allocation and help leaders advocate for investment and raises based on real numbers and trends.

The interview concludes by highlighting how these metrics can be useful at different levels within an organization. As a CTO, Ria utilizes the metrics to identify hotspots, justify investments, and engage in data-driven discussions about prioritization. At the engineering management level, the metrics can be used to motivate teams, demonstrate the distribution of work, and inform resource allocation decisions.

Overall, the interview provides valuable insights into justifying engineering organizations through metrics and aligning engineering efforts with product goals while considering economic factors and ROI.

To watch the full conversation, check it out here.

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