Question
A business can measure the success of their process improvement projects by tracking the efficiency gains and improvements over time. They can also monitor the percentage of projects that fail to yield any improvements and the percentage of projects that continue to show improvements over time. Additionally, they can assess the number of projects that are still producing results above baseline after a certain period.
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Over the first four years, the bank launched 33 to 51 projects every six months, each involving 1,600 employees. Initial improvements in efficiency averaged 10%; the gains rose to 20% after a year and 31% after two years. However, despite the impressive gains, 21% of projects failed to yield any improvements. Among the 79% that showed initial improvements, many regressed: only 73% were still producing results above baseline after a year and after two years the number fell to 44%. The researchers examined whether projects that were initially successful could preserve the gains and show continuous improvement, but only 51% of them were continuing to improve a year after launch and after two years the figure dropped to 36%.
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