How do you define and measure process efficiency?

Process efficiency signifies the ability of an organization to optimize its workflows, resources, and time to achieve desired outcomes with minimal waste. It's about doing more with less while maintaining or improving quality. ???? #ProcessEfficiency

What does that mean in the real world? Start by measuring what you think are good indicators of input and output. They may change. That's ok! Many metrics evolve as your processes and teams mature. Just start.

When creating a process I always ask myself, does this process facilitate and actually act as a job-aid in getting the work done? A Process should never be an extra thing added on to someone's plate. Our rule is it's not a task it is a tool to get to the desired outcome and should be viewed as a value add to the person. For a process to be truly efficient it has to make the job/task easier and more consistent to complete.

Process efficiency can also help to create greater employee satisfaction and loyalty. After tasks are identified, defined, and optimized, then employees can work smarter and not harder. This could mean less office time provided senior leadership can focus on work and its outcomes vs. managing to a time clock. It also could increase employee satisfaction by enabling time spent on low-rewarding tasks can be shifted to work that provides greater satisfaction

You also need to understand the suppliers that provide the inputs and the customers that get the outputs. You further need to define the process and within that you will have people, events, decisions, technology and more. You may also need to identify predecessor and successor tasks.

Consider asking your customers (internal or external) what's important to them, e.g. through surveys. Think about how to measure inputs and outputs as part of your current processes/systems for quicker feedback and improvement.

How Do You Measure Process Efficiency? Measuring process efficiency requires: Identifying relevant KPIs, such as cycle time, resource utilization, or error rates. Gathering data on process performance. Analyzing data to assess efficiency against benchmarks. Continuously monitoring and adjusting KPIs based on evolving needs.

One of the most important thing about this metric is the trend. Is it going in the right direction or no? Measure things that are both standard to your industry and specific to your team/company. Both will give you useful information.

Value Stream Maps are, in my experience, one of the best ways of identifying problem areas. They are also a great way of communicating the value of your team's work to the rest of the org. Best of all, the ROI is great! It doesn't take that long (I found that 2 or 3 1.5 hour sessions worked best) and you get team alignment, highlighted pain points, and a great way of communicating your results already done.

How Do You Improve Process Efficiency? Efficiency enhancement is an ongoing journey: Process Analysis: Identify bottlenecks, redundancies, or inefficiencies. Lean Principles: Eliminate waste and streamline workflows. Automation: Integrate technology to reduce manual tasks. Employee Training: Equip teams with skills to optimize processes. Continuous Improvement: Foster a culture of innovation and efficiency.

How Do You Sustain Process Efficiency? Sustaining efficiency involves embedding it within the organizational culture: Regular Audits: Conduct periodic process reviews. Feedback Loops: Encourage employees to provide insights. Metrics Alignment: Ensure KPIs align with strategic objectives. Adaptability: Embrace change and adjust processes as needed. Knowledge Sharing: Promote best practices among teams.

Use a control plan to develop a course of action if the process starts to perform poorly. Use a control chart to help determine if the process is performing poorly.