BPI process measures

Developing high value performance measures is an important focus point in BPI- measures that provide a high insight-to-effort ratio are desired, rather than things that are easy to measure but offer limited value. A useful primer on selection of Performance Measures is set out in this University of California Developing Performance Metrics page. It's also useful to browse this simple value based performance metrics vs traditional metrics comparison. Quality of a performance metric is assessed in UC's approach using the SMART mnemonic:

• S=Specific: clear and focused to avoid misinterpretation. Should include measure assumptions and definitions and be easily interpreted.
• M=Measurable: can be quantified and compared to other data. It should allow for meaningful statistical analysis. Avoid "yes/no" measures except in limited cases, such as start-up or systems-in-place situations.
• A=Attainable: achievable, reasonable, and credible under conditions expected.
• R=Realistic: fits into the organization's constraints and is cost-effective.
• T=Timely: doable within the time frame given.

Each initiative considered in BPI needs to have a demonstrable outcome which allows for meaningful measurement. Value Stream Mapping (a Fujitsu technique) uses the MEDIC mnemonic to ensure outcomes are measurable in the following ways:

• M=Maintain: (e.g. a level of service is maintained)
• E=Eliminate: (e.g. a function or task is eliminated)
• D=Decrease: (e.g. turnaround time decreased)
• I=Increase: (e.g. customer satisfaction measures increase)
• C=Create: (e.g. a certain capability is created)