| There is a familiar quote that says, "If you can't | | | | how long the process takes from beginning to end |
| measure it, you can't manage it." So, how do you | | | | (step 4), validated your information (step 5), and applied |
| know what to measure for a business process? It is | | | | a series of techniques to improve the process (step 6), |
| different than what you would do in a manufacturing | | | | so you are well positioned to tackle the metrics |
| environment where you have specific defect metrics. | | | | challenge. |
| For a business process, the metrics should relate to | | | | The sales manager's measurement of success may |
| customer needs. | | | | initially seem like an efficiency metric, because it seems |
| In step 2 (creating the foundation) of the 10 steps to | | | | to focus on volume, but if the sales manager also |
| business process improvement, you develop basic | | | | cares about the quality of new customers it might |
| information about the business process. One key area | | | | actually fall under effectiveness and read something |
| included in the foundation is the measurements of | | | | like, "30 percent increase in the number of qualified |
| success. After you identify your customer (or client) | | | | new customers over the next six months." Notice how |
| and what they need from the process, you should also | | | | much more specific the metric is, from what appeared |
| describe how you will know if you deliver against what | | | | in step 2. However, if you had spent the time in step 2 |
| they need. At this point, simply write a sentence that | | | | to get at this level of detail, you would have found |
| outlines what you want to measure. Do not worry in | | | | yourself buried in too much unnecessary information |
| this step how you will measure something - just | | | | too early in the process. |
| identify what you want to measure. For example, a | | | | In step 7 you also have to determine how you will |
| sales manager may describe a measurement of | | | | deliver the metric. You may have to create a new |
| success as an "increased number of new customers." | | | | tracking method, establish baseline information, or |
| Since you, or the project team, are simply describing | | | | develop a new report. In step 8 (testing), make certain |
| general information about the process in step 2, you | | | | that any new reports meet the needs of the |
| will find it fairly easy to define the what. If you have | | | | interested parties by showcasing a boilerplate version. |
| trouble writing the statements, ask questions like, | | | | In step 10 (continuous improvement) decide how often |
| "What does success look like?" "How will you know | | | | you plan to review the measurement data. Will you do |
| when you achieve success?" As you create the | | | | this weekly, monthly, quarterly, or annually? |
| measurements, think about effectiveness, efficiency, | | | | Finally, remember that you cannot measure everything! |
| and adaptability and attempt to write measurements | | | | Albert Einstein says, "Everything that can be counted |
| that fall into each of these three areas. | | | | does not necessarily count; everything that counts |
| Step 7 is where you spend some time thinking about | | | | cannot necessarily be counted." So, use your |
| how to turn your general measurements of success | | | | customer needs as the source for what you measure. |
| into specific metrics. By the time you get to this step, | | | | Include the most important effectiveness, efficiency, |
| you have drawn the process map (step 3), identified | | | | and adaptability metrics to start. |