As the business process improvement (BPI) field has matured, so has the practice of measuring BPI performance. A wide variety of performance measurement frameworks and tools exist, each with its own advantages and disadvantages. The selection of an appropriate framework and tool depends on the specific organization and what it is trying to measure. This article will help organizational process improvement leaders to gain an understanding of the pros and cons associated with three (3) common BPI frameworks.
Balanced Scorecard
The Balanced Scorecard is a popular framework for measuring organizational performance. It includes four perspectives: financial, customer, internal business process, and learning and growth. Each perspective contains a set of measures that are used to track progress towards goals. The advantage of the Balanced Scorecard is that it provides a comprehensive view of organizational performance. The disadvantage is that it can be difficult to select the right measures for each perspective and to keep the number of measures manageable.
Capability Maturity Model (CMM)
The capability maturity model (CMM) is a framework for measuring the maturity of an organization's software development processes. It consists of five levels, each representing a higher level of maturity. The advantage of the CMM is that it provides a clear roadmap for process improvement. The disadvantage is that it can be time-consuming and expensive to assess an organization's maturity level.
Six Sigma
The Six Sigma framework is another popular option for measuring BPI performance. It focuses on reducing variation and improving quality. Six Sigma uses a set of quality management tools to achieve its goals. The advantage of Six Sigma is that it is a well-defined and structured approach. The disadvantage is that it can be difficult to implement and requires a high level of commitment from senior management.
The above are just a few of the many frameworks and tools available for measuring BPI performance. The key is to select the one that best fits the needs of the organization, or combine attributes from each framework to meet your specific business requirements. No business is equal and neither are its processes. The goal is to make sure the framework that is implemented doesn't create challenges which adversely impact business processes.