Which metrics are most effective for evaluating process improvement?

Metrics must reflect the goals of the initiative, whether operational, financial, or customer-facing.

• Cycle Time: Measures how long it takes to complete a process.

• Throughput: Number of units processed in a given time frame.

• Error/Defect Rate: Evaluates process accuracy or quality.

• Cost per Transaction/Unit: Tracks cost efficiency improvements.

• Customer Satisfaction (CSAT): Measures improvement in customer experience.

• Employee Productivity: Captures efficiency gains after improvement.

• First Pass Yield (FPY): Measures quality on first attempt without rework.

Setting baselines and tracking improvements over time allows for clear validation of impact and helps fine-tune further changes.

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