To manage a process, you need to measure it!

To manage a process, you need to measure it!

November 2, 2014 10:41 pm 0 comments

Organisations have all kinds of metrics and measures they use on an ongoing basis. Here are some examples:
• Departments report on their actual spending against their budget
• Sales is measured based on sale targets
• Management has ROI, Net income and EPS targets they track
• IT is measured based on all kinds of metrics that only they understand.
Where do we track how we are doing in providing products and services to our customers?

Some organisations track customer satisfaction (based on surveys and other approaches). Measuring Customer Satisfaction is important, but not nearly enough! That measure is after the fact: it is a lagging indicator of what has already taken place.

Organisations need to measure and monitor how they provide products and services to their customers, which is through their cross functional processes. These processes need measurements in place to track in real time how they are performing. The result of a well-designed (and customer focused) process will lead to customer satisfaction.

Here are some examples of process measures:
• Order fulfilment i.e. percentage of orders filled completely and on time
• Schedule to Produce i.e. percentage of orders produced accurately and on-time
• Billing i.e. percentage that are accurate and on-time
With these measures in place, reward the employees who work in the process by tying their performance plans to the performance of the process. Most organisations do not do this very well.

Our regular blogs offer simple tips on how to become a process based organisation which will help your business deliver superior results and performance. If you like what you’ve read, why not sign up today.

At Ascent Management, we offer a number of value-adding solutions to secure the future of your business. Or alternatively try our free quick assessments on Process Improvement or Process Based Management .

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