Process metrics are key measures used to monitor, analyze, and evaluate business processes. In theory, they form the foundation for process control and serve as a starting point for targeted improvements.
In practice, however, we often see process metrics that are disconnected from actual process execution. Improvement initiatives may also encounter resistance due to a lack of acceptance of the chosen metrics. This is unfortunate, because process improvements can play a crucial role in achieving business goals and maintaining long-term competitiveness.
To get started with process metrics, it's important to understand what makes a metric truly useful. Here are some tips to help you define strong process metrics:
How to Recognize Good Process Metrics
1. Measurability is a Must
Though often dismissed as obvious, measurability is critical in real-world settings. Metrics should be based on data that is available and reliable. Metrics built on poor data quality or inconsistent measurement methods often lead to resistance and mistrust. Only measurable metrics can support systematic process control.
2. Relevance Over Availability
Just because a metric can be measured doesn’t mean it should be. A meaningful metric needs to be relevant to your business strategy and goals. Ask yourself: Is there a clear link between the metric, your strategic objectives, and your process goals? Our advice: Focus on a small number of key metrics tied to critical success factors, rather than tracking numerous metrics with little actionable insight.
3. Comparability and Reproducibility
For a metric to be meaningful, it must be both reproducible and comparable over time. This enables you to track the effectiveness of improvement efforts. Reproducibility also enhances traceability and builds trust in the metric. Numeric values are typically the easiest to compare and track.
4. Keep It Simple
Metrics should be easy to understand. Complex metrics can obscure what’s driving changes in performance, making it harder to act on them. The more variables (or "drivers") a metric depends on, the harder it becomes to interpret and manage.
5. Time Sensitivity Matters
A good metric should reflect process changes as closely as possible in time. The earlier a metric signals a deviation from target, the easier it is to intervene effectively. In e-commerce, for example, monitoring "monthly website visitors" often gives earlier insights than tracking "monthly invoice volume."
6. Value Must Outweigh the Effort
If the effort to collect and manage a metric outweighs the benefit it provides, it's probably not worth tracking. Good metrics support decision-making without consuming disproportionate resources.
Final Thought: Avoid the Metrics Jungle
Nobody wants to get lost in a jungle of KPIs. Focus on essential metrics—those that actually help you run the business. If a metric doesn't add value, drop it. To lead your business proactively rather than reactively, capture metrics where they can still make a difference.
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