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The Engineering Team Design for AI Report.

A single number carries most AI tooling decisions, and it is usually the 39% first-year return from DORA's value model. The same model assumes change failure rate climbs from 5% to 6% and books $344,000 of downtime against the organisation.

Those are not a benefit case and a risk case drafted by different teams. They are two outputs of one arithmetic, driven by the same thing: more change, produced faster, arriving at production.

Both figures are illustrative rather than observed, which is precisely why they can be argued with.

In depth

One Arithmetic Produces Both The Return And The Failures.

01

The return and the rise in failures are one event.

DORA's illustrative 500-person organisation returns about $11.6M in year one against $8.4M invested, a 39% ROI and roughly an eight-month payback, and inside the same model change failure rate moves from 5% to 6% carrying a $344,000 downtime cost. Nobody is offered the choice of taking the first and declining the second, since the organisation that captures the throughput is the organisation that generates the extra failures. What sits between a change and a customer is the only variable under your control, and that is review capacity, release gating, rollback and the authority to stop.

In shortrollback and the authority to stop
02

A value model is an argument, not a result.

DORA says so plainly: the inputs are assumed rather than observed, and no population was measured arriving at a 39% return. That distinction carries a different obligation than a measurement does, since a measurement invites you to ask who was in the sample while a model invites you to replace its inputs with your own. Take the structure, substitute your headcount, your loaded cost, your baseline failure rate and your work mix, and the figure that comes out is one you can defend in a meeting.

In shortTake the structure, substitute your headcount, your…
03

Your existing estate sets the gain rate before any tool is chosen.

Stanford research cited in the same DORA report finds 35% to 40% productivity gains on simple greenfield tasks and 10% or less on complex legacy code, close to a fourfold spread decided by the composition of the work rather than the quality of the tooling. Work mix is not a fixed property of a company either; it follows from how teams are allocated, which is a decision taken quarterly by people in a room. A business case applying the greenfield rate across the whole estate has not been optimistic about AI, it has been wrong about its own portfolio.

In shortit has been wrong about its own portfolio
04

Most organisations inherited their shape rather than choosing it.

DORA identifies seven team archetypes across nearly 5,000 technology professionals, and the research nominates none of them as best, which means the finding that matters is simply that a small number of stable patterns exists at all. Structures usually arrive by accretion: a reorganisation two years ago, an acquisition, a founder's preference, a headcount freeze that merged two groups, none of which asked which shape suits a function where code is now generated faster than it can be reviewed. An inherited structure can still be the right one, but nobody has checked.

In shortnobody has checked
The detail

What Separates Two Firms Running The Identical Model.

Give the same model to two organisations of the same size with the same tooling spend and the same engineers. What separates the outcomes is organisational, and all of it is visible to an executive without reading a line of code.

Zone · 01

Who owns the second number

One executive name against the instability the model predicts, reported wherever the throughput gain is reported. Organisations without that owner meet the modelled failure rate through incidents instead, which is a slower and more expensive way to learn it, and by then the discussion is about an outage rather than about a capacity nobody funded.

Zone · 02

Whether the work was counted

Greenfield and legacy effort separated in the plan, with the high gain rate applied to one and the low one to the other. A single blended percentage is where the greenfield assumption hides, and nobody can challenge a blend they were never shown. Counting the split takes a week and moves the answer further than any debate about which assistant to buy.

Zone · 03

Who may stop a release

A named individual able to halt a release without asking first, and backed afterwards rather than questioned. This is the cheapest item on the list and reliably the hardest to get signed, since it hands one person the ability to interrupt trading for a reason nobody has yet confirmed. Everything else here costs money or a week of counting; this one costs only political capital.

By the numbers

The figures that make it a board-level conversation.

39%
first-year return in an illustrative value model, not an observed result
$344,000
downtime cost the same model books against that return, as change failure rate moves from 5% to 6%
7
team archetypes identified across nearly 5,000 technology professionals and over a hundred hours of interviews
Inside the report

What you'll take away.

01

Step 1 - Rebuild the case on your own inputs

Take the published model's structure and substitute your headcount, loaded cost, current failure rate and work mix. Require the output to carry the instability line as well as the return.

02

Step 2 - Split the estate before applying any gain rate

Count the share of engineering capacity pointed at genuinely new systems against the share absorbed by code nobody wants to touch, then apply the two Stanford rates separately rather than one blend.

03

Step 3 - Give the failure numbers one executive owner

Put a person's name against the instability the model predicts, in whatever pack already carries the upside. The owner tends to become the person asking for review capacity, which is the point.

04

Step 4 - Name the archetype you are running today

DORA describes seven. Write down which one your organisation is, who decided it and when it was last examined. An afternoon of work, and most boards cannot currently answer it.

Questions

Frequently asked.

Is the 39% return something DORA measured?

No. The figure comes out of a value model whose inputs were assumed rather than measured, set at a notional 500-person scale where about $11.6M of first-year return sits against $8.4M of spend and the payback lands near month eight.

No population was surveyed arriving there, and DORA says as much. Treat it as a structure to re-run, not a result to quote.

Can we take the return without taking the extra failures?

That trade is not on offer. The throughput gain and the additional failures come from the same cause, which is more change produced faster and arriving at production. What you can change is what sits in between: review capacity, release gating, rollback and a standing authority to stop.

Those make one number smaller without dragging the other down with it.

Why does our estate matter more than our choice of assistant?

Stanford research cited by DORA puts the gain near four times higher on simple greenfield work than on long-lived code, at 35% to 40% against 10% or less. That spread is set by what your engineers spend their week on, not by which assistant they use.

Two firms with identical tooling budgets land at opposite ends of it.

Which of the seven archetypes should we move to?

The research does not nominate one, and neither do we. Seven stable patterns were identified across nearly 5,000 technology professionals, which tells you a shape exists whether or not anyone named yours.

The useful act is to write down which one you are running, who chose it and when it was last examined.

What happens to the gain if our engineers still have to wait?

It becomes queue rather than delivered change. DORA 2024 put developer independence, defined as completing a task without stopping for an enabling team, at a 5% productivity improvement for teams and individuals alike.

Code produced faster only reaches the business if it can then move, and the queue an engineer waits in is usually a reporting line before it is a piece of software.

Should we score ourselves before or after reading this?

After. This report tells you what the distribution looks like and which numbers are modelled rather than observed. Benchmarking Engineering Team Design for AI is the scoring instrument, and it reads better once you know that the seven archetypes carry no ranking and that the return figure comes with an instability assumption attached.

Who is this report written for?

Boards, CTOs and VPs of engineering who have to approve an AI tooling case and will be asked afterwards what it bought. It assumes you have seen the 39% figure on a slide and now want the rest of the model it came out of.

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Next step

Approve both halves of the model, then go and measure your own.

Give us the path a change takes from one of your teams to a customer, and we will walk two weeks of it with you to find what your own failure rate and waiting actually look like. SECTION 7 - FAQ - 5 to 8 questions

Book an engineering shape review