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"Protecting" devs from the business considered harmful

The Pragmatic Engineer β€’ 2025-05-05 β€’ 1:02 minutes β€’ YouTube

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Why Engineers Should Own the Business Metrics: Lessons from Big Tech

In many large tech companies, there's a common belief that engineers prefer to be shielded from the business realities and metrics that dictate the company's success. However, this assumption often underestimates engineers' natural curiosity and their desire to understand the bigger picture. In fact, if engineers were to leave their company tomorrow and join a startup, they would quickly realize the importance of being deeply involved in the business side of things.

The Startup Mindset: Knowing the Numbers

Startups operate with a high level of transparency and urgency. Everyone, especially engineers, needs to be aware of critical business metrics such as runway, growth rates, conversion rates, failed payments, cancellations, and cash flow percentages. This level of insight is not just about data; it’s about understanding the health and trajectory of the company.

When engineers have access to this information β€” often summarized in a clear, concise scorecard β€” they start thinking like founders. This scorecard typically highlights the most important priority-one (P0) metrics that the business is tracking daily. By treating these metrics as a shared responsibility rather than a product or business team’s problem, companies foster a culture of collective ownership.

Creating Collective Ownership and β€œSkin in the Game”

When engineers see that the team hasn’t hit its numbers, they don’t just view it as a failure of the product or sales team β€” they feel a shared responsibility. This sense of ownership encourages proactive problem-solving and innovation. For example, in one instance, two engineers proposed building a new web platform to unlock more bookings, inspired by industry comparisons like DoorDash versus Uber Eats. Their initiative came from understanding the business impact, not just the technical challenge.

The Importance of Transparency and Involvement

Making business metrics visible and part of the engineering workflow breaks down silos between departments and encourages engineers to think beyond code. It also aligns everyone towards common goals, driving motivation and creativity. When engineers have β€œskin in the game,” they are more likely to contribute ideas that directly impact growth and customer satisfaction.

Conclusion

The idea that engineers don’t want to engage with business realities is a misconception. By sharing key business metrics openly and fostering a sense of collective ownership, companies can empower engineers to become true partners in driving the company’s success. This approach not only enhances motivation but also sparks innovative ideas that might otherwise never surface.

If your company isn’t already sharing business dashboards and key metrics with your engineering teams, it might be time to start. You’ll likely be surprised by how invested and insightful your engineers become when given the opportunity to own the business outcomes alongside their technical work.


πŸ“ Transcript Chapters (5 chapters):

πŸ“ Transcript (34 entries):

## Intro [00:00] In big tech over time, this belief that engineers, some engineers want that, want to be shielded from the reality of what's going on. But actually, if those engineers quit, went to a startup tomorrow to build something, they would ## What if devs quit [00:10] want to look at the dashboards and see what was going on and how the numbers were going. They would want to know how much runway we have. They would want to know if we're hitting the growth numbers. They would want to know which route. You would be as involved. We had ## Scorecard [00:20] that scorecard, which was a table with our P 0 metrics, as we would if we were a startup. And we had the numbers that we cared about like the gross number, the conversion rate, the failed payments, the cancellations, the ## Business metrics [00:30] percentage that was cash, etc., etc. And so by making it feel more like a business, so it's not like product is showing these bad things. Actually, as a ## Collective ownership [00:40] collective, we have a perception. We have not hit our numbers. You create this sort of ownership. Going back to skin in the game. And now you have engineers even coming up with ideas like we actually should create a web platform because it will unlock bookings because if you look at like door dash compared to Uber Eats I mean that came purely from two engineers on the team [Music]