How do I measure the effectiveness of business processes?

Measure process effectiveness by defining key metrics (time, cost, quality, customer satisfaction), tracking metrics over time, comparing to benchmarks or targets, identifying trends, and using data to drive improvements. Common metrics include cycle time (how long process takes), error rate, cost per transaction, and customer satisfaction. Use dashboards for visibility. Review metrics regularly. Many consultants help establish process metrics and measurement systems. Good measurement enables continuous improvement. The key is measuring what matters—metrics that impact business outcomes. Process measurement should lead to action, not just reporting.