Business process automation (BPA) is the use of technology to streamline and optimize repetitive, manual, or complex tasks. BPA can improve efficiency, accuracy, compliance, and customer satisfaction, among other things. But how do you measure the success of your BPA initiatives? What key performance indicators (KPIs) can help you evaluate and improve your BPA projects? In this article, we’ll discuss some of the most common and relevant KPIs for BPA and how you can use them to monitor and optimize your business processes.
Process Cycle Time
Process cycle time is the average time it takes to complete a particular process from start to finish. It is one of the most important KPIs for BPA because it reflects the speed and efficiency of the process. By automating the process, you can reduce the cycle time and increase your company’s throughput and productivity. To measure the cycle time of your process, you can use tools such as process mapping, time tracking, and workflow software. You can also compare cycle times before and after automation to calculate the percentage of improvement.
Process error rate
The process error rate is the percentage of errors or defects that occur during a process. Errors can occur due to human error, system error, data inaccuracy, or other factors. These can have a negative impact on the quality, reliability, and customer satisfaction of the process. Automating the process can minimize human intervention and standardize process steps, thereby reducing the error rate and improving the quality and consistency of the process. Tools such as quality control, error logs, and feedback surveys can be used to measure the process error rate. You can also compare error rates before and after automation to calculate the percentage reduction.
Process Costs
Process costs are the total amount spent on a process, including labor, materials, overhead, and other expenses. They are one of the most important KPIs for BPA, as they reflect the profitability and efficiency of the process. Automating a process can reduce labor costs, reduce waste and rework, and optimize resource utilization, which reduces process costs and increases the company’s profitability. To measure process costs, you can use tools such as cost accounting, budgeting, and financial reporting. You can also compare process costs before and after automation to calculate the percentage savings.
Process Compliance
Process compliance is the extent to which a process complies with applicable rules, regulations, standards, or guidelines. It is one of the most important KPIs for BPA because it reflects the company’s risk and reputation. By automating processes, you can enforce compliance requirements, track and document process activities, and report or escalate issues. This reduces compliance violations and penalties, and increases the reliability and credibility of your organization. To measure process compliance, you can use tools such as audits, reports, and dashboards. You can also compare compliance rates before and after automation to calculate the percentage of improvement.
Process Satisfaction
Process satisfaction is the level of satisfaction or dissatisfaction with a process by people involved in it, such as employees, customers, and partners. It is one of the most important KPIs for BPA because it reflects the value and impact of the process. Automating processes can improve user experience, reduce frustration and stress, and increase engagement and loyalty, which can lead to increased process satisfaction and stakeholder retention. To measure process satisfaction, you can use tools such as surveys, assessments, and ratings. You can also compare satisfaction scores before and after automation to calculate the percentage change.
