Change, improve, innovate!
The desire to innovate usually stems from a need to increase efficiency or gain a competitive advantage.
Process innovation is an investment in the future. The bigger the return on that investment the better.
No two organizations are alike which makes it difficult if not impossible to calculate and compare Return on Investment (ROI) of process innovation across organizations.
ROI has, nevertheless, been calculated for some types of process innovation, for example Software Process Improvement which yields an ROI between 3 and 30 to every invested dollar, euro, yen, or kroner. For more information, see "ROI of Software Process Improvement: Metrics for Project Managers and Software Engineers" (Rico, 2004).
Despite the difficulty in calculating ROI, the value of process innovation should be measured. Management commitment to process innovation is based on the promise of bottom-line results. Documenting the value is a prerequisite for continued management support, especially during process innovation projects that run for years.
Measurements are not limited to cost reductions and productivity increases. Other examples of measurements include employee satisfaction (does process innovation increase employee satisfaction?), rework (does process innovation decrease the amount of rework?), requirements changes (does process innovation influence the number of requirements changes introduced at various points during product development?), and schedule variance (does process innovation improve the ability to meet deadlines?). The choice of measurements depends on the process innovation effort and the available data.
Please contact me if you want to know how I can help you define measurements that suit your needs.