Saturday, October 5, 2013

What’s the Most Important Process Metrics for C-Suite?

The customer is the focus for Process Management. 

Organizations large or small are climbing their maturity ladder, from efficiency, to effectiveness, and then getting the optimal level of agility, therefore, as the C-suite turns their attention to business processes and starts measuring what matters, what matters most with business processes though?

Put the customer at the beginning, end and in the center of your processes: There are a lot of process related metrics that might be of value for the C-suite. They all add up to one metric: How much value does the process add to customer satisfaction

The metrics about process shall help executives to make effective decisions: Lots of decisions are made with insufficient information. People regularly regret these kinds of decisions. Metrics can help executives understand if you need to take further action. You can set thresholds of your own and implement some kind of statistical process control on your business processes if you have the right metrics.

The metrics of the process should reflect the business outcome executives care about: Like most other aspects of business, business processes must integrate with and support the final outcome to produce a product or service and generate revenue. To fully optimize these processes, a business must establish KPIs and use business intelligence tools like balanced scorecards and forecasting, predictive analysis, 'what if' analysis and sensitivity analysis to determine how changes to a process might negatively or positively affect the business.

The metrics of process shall reflect the business improvement in the following areas:

Statistically, there are top 5 reasons for businesses to invest BPM (1) Business Agility 46%, (2) Process Effectiveness 42% (3) Process Efficiencies 37% (4) Productivity Enhancements 32% (5) Operational Excellence 27%. 

Either selecting KPIs or doing BPM, follow “Keep it Simple” principle:. Many organizations dwell and spend considerable amount of time in the name of process [not to mention, the plethora of manual documentation involved, at the least] making things very complex and cumbersome, thereby losing focus of the result that needs to be achieved in the estimated amount of time, cost, quality, customer satisfaction. Or perhaps they get to achieve something mediocre in the estimated time or cost undermining the quality of the deliverables

Put the customer at the center of all you do and if it is not aligned, STOP doing it. It’s very often the metrics you weren't thinking about initially that turn out to be the most interesting. BPM customers with open minds and sharp eyes will discover these hidden gems and use them to maximize the return on their BPM investment.


Post a Comment

Twitter Delicious Facebook Digg Stumbleupon Favorites More