postheadericon How to Create Measurable Business Processes

Generally speaking, there are two ways to measure a process:

the output (or outcome) of the process or

(2) the internal activities of the process — ( for this purpose, measuring input from upstream processes and from suppliers can be considered part of internal activities.)
Focusing on the outcome of a process tells you if the process is producing the results you need to deliver your business goals.

Check out some basic steps to get you on your way to measuring the result of your business processes below.

How to Create Measurable Business Processes

1 Establish process improvement goal. What will success look like? How will the outcome be measured? Let’s call the outcome “y”

How to Create Measurable Business Processes

2 Measure the current state. What is “y’s” current performance level?

How to Create Measurable Business Processes

3 Develop (or apply) cause and effect theories that explain root cause – What’s potentially causing (or driving “y?” – We’ll call this “x”

How to Create Measurable Business Processes

4 Quantitatively validate the cause and effect relationship. Using good data analysis, show what’s really causing “x”

How to Create Measurable Business Processes

5 Take action. How can “x” be eliminated, exploited or mitigated?

How to Create Measurable Business Processes

6 Prove improvement has taken place. Did “y” really improve?

How to Create Measurable Business Processes

7 Take action to sustain the gains. How can the “x’s” be controlled so the gains in “y” remain?

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