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.

Steps

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    Establish process improvement goal. What will success look like? How will the outcome be measured? Let's call the outcome "y"
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    Measure the current state. What is "y's" current performance level?
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    Develop (or apply) cause and effect theories that explain root cause - What's potentially causing (or driving "y?" - We'll call this "x"
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    Quantitatively validate the cause and effect relationship. Using good data analysis, show what's really causing "x"
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    Take action. How can "x" be eliminated, exploited or mitigated?
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    Prove improvement has taken place. Did "y" really improve?
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    Take action to sustain the gains. How can the "x's" be controlled so the gains in "y" remain?

Tips

  • Dig Deeper Into Your Processes Outcomes.
  • Further Y and X insights can be gained by asking the following:
  • Define: Which (y) is under-performing? Is it a simple fix?
  • Measure: What is (y’s) current performance? Are the outcomes measurable?
  • Analyze: What are the perceived (x’s)? What are the real (x’s)?
  • Improve: How can the real (x's) be controlled, eliminated or improved?
  • Control: How can the (x's) continue to be controlled to sustain the gains in (y)?

Article Info

Categories: Business | Buying & Forming a Business