What is Performance Valuation?

Performance Valuation is the process by which you:

  1. measure the performance of the path (between starting point and resulting point) and
  2. quantify how much business value the path is creating from step to step.

Samuel has a distinct memory from early in their career β€” standing in the lobby of a theater, by a life-size movie poster of "The Lorax," and thinking, ”whoever designed this cardboard poster will never know if the design decisions they poured their expertise and hearts into actually worked towards getting more people to see the movie.”

Performance Valuation, to a large extent, is designed so product practitioners and user experience designers never have to wonder about the impact that their efforts have on the users they're designing for.

As software people, and particularly as subscription providers, we are at an advantage. User data is baked into our offerings; a value exchange loop is baked into our business models. We never have to wonder about the impact of our decisions as long as we have a finger on the pulse of:

  • how we're delivering beneficial outcomes week on week, and
  • whether those beneficial outcomes are strategically chosen.

Performance Valuation is a means of measurement designed to answer the following questions:

  1. Are we delivering outcomes that are
    1. Meaningful to users
    2. Correlated with revenue production
  2. How effectively are we generating those outcomes?
  3. How do we measure the performance of our outcome delivery system?
  4. Can we measure the impact of the system in terms of revenue?