James McGovern asks what most people think is a complicated question: how to measure developer productivity:

I have blogged on the need for metrics here and here and have even received wonderful insights from Todd Biske on other aspects that EAs should noodle. Awhile back, James Robertson commented without providing an answer. May I be so bold as to ask him what metrics would he use to measure developer productivity?

There's really only one metric that matters: are you getting software delivered to you that works well enough to accomplish the actual business that your company does? If the answer is yes, then you can stop gathering statistics right there. If the answer is no, then you have a problem. Too many people get bogged down in spreadsheets and bogus numbers - this really isn't that hard. Either the software you use gets in your way, or it doesn't.

Where Smalltalk helps is in the simplicity of the language - it stays out of the way of working on business problems. However: if your development process sucks, using Smalltalk won't help you - and from what McGovern writes, it sounds like process is a huge problem where he works.