What is the Change Failure Rate in DORA metrics?

Are you familiar with the term Change Failure Rate (CFR)? It’s one of the four DORA metrics in DevOps, alongside Deployment Frequency, Lead Time for Changes, and Mean Time to Restore. The four DORA metrics are: Deployment Frequency (how often new code is released), Lead Time for Changes (the time it takes for a commit to reach production), Mean Time to Restore (how quickly teams recover from failures), and Change Failure Rate (the percentage of deployments causing failures). These DORA metrics are essential for assessing software change management processes and overall DevOps effectiveness. CFR measures the percentage of changes to production that result in degraded service or require remediation, identifying the percentage of workflows that fail to enter production and the overall risk this poses to development. This metric is pivotal for development teams in assessing the reliability and stability of the deployment process.

What is the Change Failure Rate?

CFR, or Change Failure Rate, measures the frequency at which newly deployed changes lead to failures, defects after production, glitches, or unexpected outcomes in the IT environment. It reflects the quality, stability, and reliability of the entire software development and deployment lifecycle. By tracking CFR, teams can identify bottlenecks, flaws, or vulnerabilities in their processes, tools, or infrastructure that can negatively impact the quality, speed, and cost of software delivery. Monitoring CFR over time helps organizations make informed decisions about when it’s safe to release more often or when to hold back, and provides concrete data on deployment quality, motivating teams to improve testing and code robustness. Organizations can gain valuable insights by monitoring and analyzing their team’s change failure rate, supporting both immediate projects and long-term value stream management. Continuous delivery practices play a key role in reducing change failure rates and improving deployment confidence, aligning with Agile principles to deliver valuable software early and frequently.

Lowering CFR is a crucial goal for any organization that wants to maintain a dependable and efficient deployment pipeline. A high change failure rate often correlates with longer lead times and Mean Time to Restore (MTTR), and can result in increased operational costs, financial losses, and damage to customer trust and satisfaction. High CFR leads to downtime, lost revenue, damaged customer trust, and resource drain from fixing issues. High CFR can also negatively impact the overall reliability of software services, leading to user dissatisfaction and longer recovery times. To reduce CFR, teams need to implement a comprehensive strategy involving continuous testing, monitoring, feedback loops, automation, collaboration, and culture change. It is important to regularly review and adjust the definition of failure to keep the metric relevant and accurate, as a more lax definition can artificially lower the observed failure rate. Failures caused by external factors, such as third-party outages or network problems, should not be included in the CFR calculation. Excluding ‘fix-only’ deployments from the calculation provides a clearer picture of system stability. For accurate measurement, organizations should connect incident data (often stored in a separate system, such as a dedicated incident management tool like PagerDuty) with deployment data to avoid misinterpreting deployment failures as change failures. By optimizing their workflows and enhancing their capabilities, teams can increase agility, resilience, and innovation while delivering high-quality software at scale. Quality improvements in development processes reduce developer toil and can boost morale and productivity. Measuring change failure rate and analyzing other DORA metrics together gives team leaders truthful insights, allowing them to analyze metrics to assess team performance and improve development processes, supporting both immediate projects and the health of the organization’s Value Stream Management. A ‘good’ Change Failure Rate is generally considered to be below 5%, but this can vary based on organizational goals and system complexity. A CFR below 15% indicates elite performance, while a CFR above 45% is considered low performance.

Screenshot 2024-03-16 at 1.16.22 AM.png

How to Calculate Change Failure Rate?

Change failure rate measures software development reliability and efficiency. It’s related to team capacity, code complexity, and process efficiency, impacting speed and quality. Change Failure Rate calculation is done by following these steps:

Identify Failed Changes: Keep track of the number of changes that resulted in failures during a specific timeframe.

Determine Total Changes Implemented: Count the total changes or deployments made during the same period.

Apply the formula:

Use the formula CFR = (Number of Failed Changes / Total Number of Changes) * 100 to calculate the Change Failure Rate as a percentage.

Note: Only production deployments that are not ‘fix-only’ should be included in the calculation. Excluding ‘fix-only’ deployments provides a clearer picture of system stability. Additionally, failures caused by external factors, such as third-party outages or network problems, should not be counted in the CFR calculation, as these do not reflect the quality of code changes. Accurate CFR measurement requires connecting incident data (from tools like PagerDuty) and deployment data, which may be stored in separate systems, to ensure that only relevant failures are included.

Here is an example: Suppose during a month:

Failed Changes = 5

Total Changes = 100

Using the formula: (5/100)*100 = 5

Therefore, the Change Failure Rate for that period is 5%.

After calculating CFR, it's important to note that the deployment frequency metric—another key DORA metric—is closely related to CFR and helps teams track how often new code is released. Monitoring both metrics together provides better insight into deployment quality and team efficiency.

 

Change failure rate

Elite performers

0% – 15%

High performers

0% – 15%

Medium performers

15% – 45%

Low performers

45% – 60%

It only considers what happens after deployment and not anything before it. 0% - 15% CFR is considered to be a good indicator of your code quality.

Low change failures mean that the code review and deployment process needs attention. To reduce it, the team should focus on reducing deployment failures and time wasted due to delays, ensuring a smoother and more efficient software delivery performance. Implementing Pull Request (PR) reviews can help catch errors before production, reducing change failure rates. Using feature flags allows for controlled rollouts, which helps mitigate risks associated with deployments. Adopting continuous integration and continuous delivery (CI/CD) practices is fundamental to reducing change failure rates. To improve CFR, organizations should enhance automated testing, optimize code reviews, and implement phased rollouts using feature flags.

With Typo, you can improve dev efficiency and team performance with an inbuilt DORA metrics dashboard.

  • With pre-built integrations in your dev tool stack, get all the relevant data flowing in within minutes and see it configured as per your processes.
  • Gain visibility beyond DORA by diving deep and correlating different metrics to identify real-time bottlenecks, sprint delays, blocked PRs, deployment efficiency, and much more from a single dashboard.
  • Set custom improvement goals for each team and track their success in real time. Also, stay updated with nudges and alerts in Slack.

The Change Failure Rate (CFR) is one of the four key metrics used in DORA, and analyzing CFR alongside other DORA metrics—such as deployment frequency and lead time for changes—provides a comprehensive view of software delivery performance.

Use Cases

Stability is pivotal in software deployment. The Change Failure Rate measures the percentage of changes that fail, and is used to assess the effectiveness of change management processes and identify areas for improvement. The practices of the software development team and the stability of software systems directly impact the change failure rate. A robust software delivery process and optimized delivery processes are essential for minimizing change failure rates and ensuring efficient, reliable releases. Well-structured Jira tickets and continuous process improvements can significantly enhance engineering performance by improving software development efficiency and overall engineering effectiveness. A high failure rate could signify inadequate testing, poor code quality, or insufficient quality control. High CFR also signifies weak testing and CI/CD processes, impacting both software quality and process stability. Organizations should regularly review and adjust their definition of failure to keep the Change Failure Rate metric relevant and accurate. Enhancing testing protocols, refining the code review process, and ensuring thorough documentation can reduce the failure rate, enhancing overall stability and team performance.

Code Review Excellence

Metrics: Comments per PR and Change Failure Rate

Few Comments per PR, Low Change Failure Rate

Low comments and minimal deployment failures signify high-quality initial code submissions. The use of automated tools can help maintain high-quality code submissions and reduce the likelihood of deployment failures by streamlining quality assurance and error detection. This scenario highlights exceptional collaboration and communication within the team, resulting in stable deployments and satisfied end-users.

Abundant Comments per PR, Minimal Change Failure Rate

Teams with meticulous review processes and a few deployment issues showcase meticulous review processes. A well-defined development process supports thorough code reviews and contributes to lower change failure rates by embedding quality checks and clear acceptance criteria throughout development. Investigating these instances ensures review comments align with deployment stability concerns, ensuring constructive feedback leads to refined code.

The Essence of Change Failure Rate

Change Failure Rate (CFR) is more than just a metric and is an essential indicator of an organization’s software development health. It encapsulates the core aspects of resilience and efficiency within the software development life cycle. A high CFR can lead to unintended consequences, such as service degradation and service impairment, which negatively affect customer trust and satisfaction.

Reflecting Organizational Resilience

The CFR (Change Failure Rate) reflects how well an organization’s software development practices can handle changes. A low CFR indicates the organization can make changes with minimal disruptions and failures. This level of resilience is a testament to the strength of their processes, showing their ability to adapt to changing requirements without difficulty.

Organizational resilience is further strengthened when all the teams have a unified understanding and response to failures, ensuring consistency in how failures are identified and managed across the organization.

Efficiency in Deployment Processes

Efficiency lies at the core of CFR. A low CFR indicates that the organization has streamlined its deployment processes. Efficient deployment processes ensure that deploying code and production deployments are reliable and less prone to failure. It suggests that changes are rigorously tested, validated, and integrated into the production environment with minimal disruptions. This efficiency is not just a numerical value, but it reflects the organization’s dedication to delivering dependable software.

Early Detection of Potential Issues

A high change failure rate, on the other hand, indicates potential issues in the deployment pipeline. It serves as an early warning system, highlighting areas that might affect system reliability. Effective incident management and the use of incident management tools help teams detect and respond to issues early, reducing the impact of deployment failures. Implementing effective testing and CI/CD practices enables teams to catch issues earlier in the deployment process, which reduces failure rates and improves overall deployment success. Identifying and addressing these issues becomes critical in maintaining a reliable software infrastructure.

Impact on Overall System Reliability

The essence of CFR (Change Failure Rate) lies in its direct correlation with the overall reliability of a system. A high CFR indicates that changes made to the system are more likely to result in failures, which could lead to service disruptions and user dissatisfaction. Tracking failed deployment recovery time and using remediation actions such as hotfix, rollback, and fix forward are essential for maintaining system reliability after failures. Therefore, it is crucial to understand that the essence of CFR is closely linked to the end-user experience and the trustworthiness of the deployed software.

Change Failure Rate and its Importance with Organization Performance

The Change Failure Rate (CFR) is a crucial metric that evaluates how effective an organization’s IT practices are. It’s not just a number - it affects different aspects of organizational performance, including customer satisfaction, system availability, and overall business success. Therefore, it is important to monitor and improve it. Regularly reviewing the team's change failure rate helps organizations assess deployment and operational risks, identify flaws, and manage product quality and reliability.

Assessing IT Health

Key Performance Indicator

Efficient IT processes result in a low CFR, indicating a reliable software deployment pipeline with fewer failed deployments.

Identifying Weaknesses

Organizations can identify IT weaknesses by monitoring CFR. High CFR patterns highlight areas that require attention, enabling proactive measures for software development.

Correlation with Organizational Performance

Customer Satisfaction

CFR directly influences customer satisfaction. High CFR can cause service issues, impacting end-users. Low CFR results in smooth deployments, enhancing user experience.

System Availability

The reliability of IT systems is critical for business operations. A lower CFR implies higher system availability, reducing the chances of downtime and ensuring that critical systems are consistently accessible.

Influence on Overall Business Success

Operational Efficiency

Efficient IT processes are reflected in a low CFR, which contributes to operational efficiency. This, in turn, positively affects overall business success by streamlining development workflows and reducing the time to market for new features or products.

Cost Savings

A lower CFR means fewer post-deployment issues and lower costs for resolving problems, resulting in potential revenue gains. This financial aspect is crucial to the overall success and sustainability of the organization.

Proactive Issue Resolution

Continuous Improvement

Organizations can improve software development by proactively addressing issues highlighted by CFR.

Maintaining a Robust IT Environment

Building Resilience

Organizations can enhance IT resilience by identifying and mitigating factors contributing to high CFR.

Enhancing Security

CFR indirectly contributes to security by promoting stable and reliable deployment practices. A well-maintained CFR reflects a disciplined approach to changes, reducing the likelihood of introducing vulnerabilities into the system. Automated security scanning and other security checks help identify security issues early in the development process, reducing the risk of vulnerabilities leading to failures.

Strategies for Optimizing Change Failure Rate

Implementing strategic practices can optimize the Change Failure Rate (CFR) by enhancing software development and deployment reliability and efficiency. Optimizing delivery processes and avoiding common mistakes when measuring change failure rate—such as misclassifying failures or relying on manual processes—are essential for accurate assessment and improvement. Teams should conduct thorough post-mortem analyses after failures to learn from incidents and prevent recurrence. Adopting a blameless culture and conducting post-mortems helps organizations learn from failures and improve their processes. Removing structural barriers that impede communication and collaboration can further improve CFR. Additionally, improving team accountability and feedback loops enhances deployment quality and reduces change failure rates. When deployments fail, they often subsequently require remediation, such as a hotfix, rollback, fix forward, or patch, to restore service. Implementing automated rollback mechanisms can significantly reduce the impact of deployment failures, supporting more resilient delivery processes. Analyzing successful deployments is also important to identify what went right and replicate those practices in future deployments.

Automation

Automated Testing and Deployment

Implementing automated testing and deployment processes is crucial for minimizing human error and ensuring the consistency of deployments. Automated testing catches potential issues early in the development cycle, reducing the likelihood of failures in production.

Continuous Integration (CI) and Continuous Deployment (CD)

Leverage CI/CD pipelines for automated integration and deployment of code changes, streamlining the delivery process for more frequent and reliable software updates.

Continuous monitoring

Real-Time Monitoring

Establishing a robust monitoring system that detects issues in real time during the deployment lifecycle is crucial. Continuous monitoring provides immediate feedback on the performance and stability of applications, enabling teams to promptly identify and address potential problems.

Alerting Mechanisms

Implement mechanisms to proactively alert relevant teams of anomalies or failures in the deployment pipeline. Swift response to such notifications can help minimize the potential impact on end-users.

Collaboration

DevOps Practices

Foster collaboration between development and operations teams through DevOps practices. Encourage cross-functional communication and shared responsibilities to create a unified software development and deployment approach.

Communication Channels

Efficient communication channels & tools facilitate seamless collaboration, ensuring alignment & addressing challenges.

Iterative Improvements

Feedback Loops

Create feedback loops in development. Collect feedback from the team, and users, and monitor tools for improvement.

Retrospectives

It's important to have regular retrospectives to reflect on past deployments, gather insights, and refine deployment processes based on feedback. Strive for continuous improvement.

Improve Change Failure Rate for Your Engineering Teams

Empower the software development team with tools, training, and a culture of continuous improvement. Encourage a blame-free environment that promotes learning from failures. By enabling the team to actively monitor and improve the team's change failure rate, organizations can better assess deployment flaws, operational risks, and financial impacts. CFR is one of the key metrics and critical performance metrics of DevOps maturity. Understanding its implications and implementing strategic optimizations is a great way to enhance deployment processes, ensuring system reliability and contributing to business success.

Typo provides an all-inclusive solution if you’re looking for ways to enhance your team’s productivity, streamline their work processes, and build high-quality software for end-users. For a modern LinearB alternative, consider Typo.