Measurement Cost

Return on Measurement

Process Entropy

Process Efficiency

Group Inertia

Information Durability

Conversion Efficiency

 

Process Entropy:
Process Entropy is a concept MMD™ uses to describe the tendency of systems and processes to fall apart or become less effective over time. If enterprise resources are deployed to create a process, over time the process will lose coherence unless additional enterprise resources are deployed to maintain the process. Process maintenance is typically much less expensive than process creation, as Group Inertia already favors existing processes, i.e. the group is already engaged in most of the process vector, smaller inputs of change energy are needed for course correction. Another way to view the concept is that Process Entropy introduces competing behavioral vectors to the desired Group Inertial vector, in effect weakening the desired Group Inertial vector.

One classic example would be employee turnover, which introduces new resources that are unfamiliar with an existing process. Unless additional energy is introduced (training), the new resources will depart from the desired process. Another example would include ineffective resources introducing variability into the process due to lack of competence. If a process is no longer delivering the desired results, often Process Entropy can be a significant factor. Process Entropy is inversely correlated with Process Efficiency, i.e. as process efficiency increases, process entropy tends to decrease.

Examples and Case Studies:

Click here to be contacted in confidence.

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