How can you measure the impact of problem solving on the bottom line?

1 Define the problem

The first step to measure the impact of problem solving is to clearly define the problem you are trying to solve. This will help you set the scope, goals, and criteria for your solution. You can use various techniques to define the problem, such as asking the 5 whys, using a problem statement, or creating a fishbone diagram. A well-defined problem will help you identify the root causes, the stakeholders, and the expected results of your problem solving process.

2 Choose the metrics

The next step is to choose the metrics that will help you measure the impact of your problem solving on the bottom line. Metrics are quantitative indicators that show how well you are achieving your goals and objectives. You can use different types of metrics, such as input, output, outcome, and impact metrics, depending on the level and nature of your problem solving. For example, input metrics measure the resources and efforts you invest in problem solving, output metrics measure the products or services you deliver as a result of problem solving, outcome metrics measure the changes or benefits you create for your customers or users, and impact metrics measure the long-term effects or value you generate for your organization or society.

3 Collect the data

The third step is to collect the data that will help you calculate and analyze your metrics. Data is the raw information that you need to measure the impact of your problem solving on the bottom line. You can collect data from various sources, such as surveys, interviews, observations, experiments, or records. You should ensure that your data is reliable, valid, and relevant to your problem and metrics. You should also use appropriate methods and tools to store, organize, and manage your data, such as spreadsheets, databases, or software.

4 Analyze the data

The fourth step is to analyze the data that will help you understand and interpret your metrics. Data analysis is the process of transforming, manipulating, and visualizing your data to extract meaningful insights and patterns. You can use different methods and tools to analyze your data, such as descriptive statistics, inferential statistics, regression analysis, or data visualization. You should use data analysis to answer your problem solving questions, test your hypotheses, and evaluate your assumptions.

5 Report the results

The fifth step is to report the results that will help you communicate and demonstrate the impact of your problem solving on the bottom line. Reporting is the process of presenting and explaining your data analysis findings and conclusions to your audience. You can use different formats and tools to report your results, such as reports, dashboards, charts, or slides. You should use reporting to tell a clear and compelling story about your problem solving process, outcomes, and benefits, and to provide recommendations and actions for improvement or scaling.

6 Monitor and improve

The final step is to monitor and improve the impact of your problem solving on the bottom line. Monitoring is the process of tracking and measuring your metrics over time to assess the performance and sustainability of your problem solving solution. Improving is the process of identifying and implementing changes and enhancements to your problem solving solution based on your monitoring feedback and learning. You can use different methods and tools to monitor and improve your impact, such as feedback loops, key performance indicators, or experiments. You should use monitoring and improving to ensure that your problem solving solution is effective, efficient, and adaptable to changing needs and conditions.