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Business Process Management Metrics to Measure Success

Posted By Administration, Wednesday, August 14, 2019

Conducting a review of the processes that happen within your business that transform raw materials into products and then into sales is vital to ensuring processes are optimized, sustainable and continually improved. This article looks at three different business functions and discusses how and what to review and the metrics that can be used to measure their success.

Manufacture and Production

Within every business there will be an element of manufacture or production. This could be turning raw materials into products such as turning cotton into t-shirts, or it could be a more digital process creating websites or graphic design. Whatever it is, the aim is to add value to turn a profit.

It may be relatively easy to review the processes for simple product production that only involve one person or a small number of steps. However, for more complex product processes, it’s important to break down each part of the process into the different tasks that make it up. This will help you to identify one or two parts of the process that are causing problems rather than seeing the whole process as the problem. You can then model a new process to see if any changes have led to optimizations before implementing the new process.

Key Metrics for Manufacture and Production

Marketing and Sales

After production, the next step is getting your product in the market place. Most businesses will already have a number of different sales channels which might include sales reps on the road, selling online and selling in retail stores through branded stores or independent retailers.

As part of the business process management review process you should identify which sales channels are the strongest in terms of volume and which are delivering the highest profit. You will then be able to model different scenarios, such as selling into specific online retailers or employing more sales reps. A detailed analysis of the market will need to be undertaken along with process reviews to understand where cost savings and process improvements can be made to maximize sales and profit.

Key Metrics for Marketing and Sales

  • Return on ad spend (ROAS)
  • Customer churn
  • Cost per acquisition (CPA)
  • Total sales volume
  • Sales volume per region or channel

Employee Engagement and Retention

Where the two points above focus on departments as a whole and the processes within them, narrowing in on employee engagement and retention will help to understand where improvements can be made to help the workforce stay motivated and sustain high levels of productivity. Inpulse.com suggests that managers are key to changing employee behavior and that facilitating open and honest communication channels is key to driving successful change management.

The outcomes of successful management of employee engagement for organizations include enhanced commitment, loyalty and performance, higher levels of discretionary effort and fresh and innovative ideas and suggestions. The CMI has more details on the benefits of engaged employees.

Key Metrics for Employee Engagement and Retention

  • Employee churn rate
  • Employee net promoter score
  • Employee absenteeism

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