Measurement Cost

Return on Measurement

Process Entropy

Process Efficiency

Group Inertia

Information Durability

Conversion Efficiency

 

Process Efficiency:
MMD™ uses the concept of Process Efficiency to measure the economic value of inputs necessary to operate a process. Application of the concept allows change agent cost-benefit analysis of competing process modalities prior to investing in process change. Follow-on benefits include a better understanding of existing business value generation. A key element is to identify a common denominator of cost, whether in terms of currency or hours of resource time, and apply it to a full diagnostic of both equivalent processes. Note that such a full diagnostic also accounts for the ongoing need to overcome Process Entropy, which is all too often not captured in a conventional cost-benefit analysis of alternative processes.

Every manager has had occasions to observe, "If the executive team knew what this process cost, they might not see it as a good return on investment.". Process Efficiency provides an empirical approach to better deliver that message with proof points.

Examples and Case Studies:

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Copyright © 2012 Arbitor Associates, LLC. All Rights Reserved. Last modified: 8/12/2012