Abstract. As the adoption of agile and lean methods continues to grow, measuring the effects of such a transformation can be valuable but challenging due to the many variables influencing the outcome of a software project. In this paper we present a metrics model developed for measuring the effects of an agile and lean transformation on software development organizations. The model was developed iteratively in cooperation with industry partners within the Cloud Software Finland research project. The resulting metrics model is applicable to projects of any size, complexity and scope, using metrics that support agile and lean values. The model can be used to measure both past and ongoing projects, regardless of whether the process model used is plan driven or agile. In order to evaluate the metrics model, the proposed model has been piloted in an industry setting.