{"id":12545,"date":"2019-06-20T10:11:44","date_gmt":"2019-06-20T15:11:44","guid":{"rendered":"https:\/\/blog.planview.com\/?p=12545"},"modified":"2020-02-25T10:14:31","modified_gmt":"2020-02-25T16:14:31","slug":"creating-continuous-improvement-with-lean-metrics","status":"publish","type":"post","link":"https:\/\/blog.planview.com\/creating-continuous-improvement-with-lean-metrics\/","title":{"rendered":"Creating Continuous Improvement with Lean Metrics"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12546\" src=\"https:\/\/blog.planview.com\/wp-content\/uploads\/2020\/02\/creating-continuous-improvement-with-lean-metrics.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https:\/\/blog.planview.com\/wp-content\/uploads\/2020\/02\/creating-continuous-improvement-with-lean-metrics.jpg 800w, https:\/\/blog.planview.com\/wp-content\/uploads\/2020\/02\/creating-continuous-improvement-with-lean-metrics-300x200.jpg 300w, https:\/\/blog.planview.com\/wp-content\/uploads\/2020\/02\/creating-continuous-improvement-with-lean-metrics-768x512.jpg 768w, https:\/\/blog.planview.com\/wp-content\/uploads\/2020\/02\/creating-continuous-improvement-with-lean-metrics-750x500.jpg 750w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<div class=\"s-content\">\n<p>Organizations operating under the Lean approach should have the same primary goal in mind\u2014continuous improvement. Companies can use Lean to optimize operations, increase customer value, cut back on waste, and anything else that can be improved in the organization for driving innovation and adding value.<\/p>\n<p>But how do you know if your initiatives are working?<\/p>\n<p>Lean metrics are one of the best ways to measure your teams\u2019 performance. They give you a completely honest breakdown of your organization\u2019s ability to continuously improve\u2014showing the good, the bad, and the ugly. In this post, we\u2019re going to look at some Lean metrics that can help you measure and improve your flow of work. That way, you\u2019ll be able to get the most out of your Lean strategy, helping your organization continue to innovate and improve.<\/p>\n<\/div>\n<div class=\"s-content\">\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/blog.planview.com\/creating-continuous-improvement-with-lean-metrics\/#FOCUS_ON_THE_RIGHT_METRICS\" >FOCUS ON THE RIGHT METRICS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/blog.planview.com\/creating-continuous-improvement-with-lean-metrics\/#WHAT_ARE_FLOW_METRICS\" >WHAT ARE FLOW METRICS?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/blog.planview.com\/creating-continuous-improvement-with-lean-metrics\/#OTHER_IMPORTANT_LEAN_METRICS\" >OTHER IMPORTANT LEAN METRICS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/blog.planview.com\/creating-continuous-improvement-with-lean-metrics\/#FOCUS_ON_IMPROVEMENT_GOALS\" >FOCUS ON IMPROVEMENT GOALS<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"FOCUS_ON_THE_RIGHT_METRICS\"><\/span>FOCUS ON THE RIGHT METRICS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/div>\n<div class=\"s-content\">\n<p>One of the biggest mistakes that organizations take when they adopt a data-driven approach is focusing on too many key performance indicators (KPIs). Metrics aren\u2019t created equal. Some will help you gain more insight into what is and isn\u2019t working with your Lean approach, while others will either waste your time, or worse, leave you confused and misinformed.<\/p>\n<p>There are two types of metrics you want to steer clear of: proxy variables and vanity metrics.<\/p>\n<\/div>\n<div class=\"s-content\">\n<h3>PROXY VARIABLES<\/h3>\n<\/div>\n<div class=\"s-content\">\n<p>Proxy variables is a term defined by product development consultant, Don Reinersten, to describe a specific group of metrics that don\u2019t facilitate improvement. These metrics take the place of fundamental variables that are often difficult to measure. As such, proxy variables can make it easy to assess key elements of your Lean initiatives but can also be deceiving by offering a limited view of your overall performance. This, in turn, prevents you from understanding the real economic objective\u2014life-cycle profits.<\/p>\n<\/div>\n<div class=\"s-content\">\n<h3>VANITY METRICS<\/h3>\n<\/div>\n<div class=\"s-content\">\n<p>Vanity metrics, on the other hand, are metrics that make you look good but don\u2019t add any real value. They\u2019re hollow metrics that can\u2019t help you make an informed decision about your company\u2019s productivity. In other words, these are metrics that are big numbers, but aren\u2019t relevant in terms of growth.<\/p>\n<\/div>\n<div class=\"s-content\">\n<h3>SO, WHAT METRICS SHOULD YOU BE TRACKING?<\/h3>\n<\/div>\n<div class=\"s-content\">\n<p>The things you want to improve. Naturally, these metrics vary depending on the organization and their current goals and objectives. But if you don\u2019t know where to start, try identifying a common pain point in your organization and look at ways you can remedy it quickly and effectively. And a good place to do that is by looking at flow metrics.<\/p>\n<\/div>\n<div class=\"s-content\">\n<h2><span class=\"ez-toc-section\" id=\"WHAT_ARE_FLOW_METRICS\"><\/span>WHAT ARE FLOW METRICS?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/div>\n<div class=\"s-content\">\n<p>The Lean approach focuses on continuous improvement, and part of that improvement is minimizing waste. For many Lean organizations, that waste comes in the form of time and money. As such, teams are often tasked with reducing production time in order to:<\/p>\n<ul>\n<li>Spend less time on a single task<\/li>\n<li>Receive feedback quicker<\/li>\n<\/ul>\n<p>Feedback is an important part of Lean, as it lets teams know what\u2019s good and bad about a product. They can then use that feedback to improve their processes, so they don\u2019t make the same mistakes, saving them more time and money in the future.<\/p>\n<p>Now that we\u2019ve got that out of the way, let\u2019s look at flow metrics. Like the name suggests, flow metrics are KPIs that have to do with the flow of your work. Popular flow metrics include:<\/p>\n<ul>\n<li>Work-in-Process<\/li>\n<li>Blockers<\/li>\n<li>Queues<\/li>\n<li>Lead time and cycle time<\/li>\n<li>Throughput<\/li>\n<li>Cumulative flow diagrams<\/li>\n<\/ul>\n<p>These are the\u00a0<a title=\"\" href=https:\/\/www.planview.com\/resources\/articles\/lkdc-lean-metrics-project-delivery\/ target=\"_blank\" rel=\"noreferrer noopener\" data-ol-has-click-handler=\"\">metrics that you want to look at<\/a>\u00a0when reducing the time it takes processes to move through the workflow\u2014<strong>not speed<\/strong>. Too many managers neglect these metrics, focusing exclusively on speed instead. Prioritizing speed without looking at flow metrics usually creates an unsustainable working environment where employees are expected to work longer hours, take fewer breaks, and cut corners to rush through assignments. And that\u2019s the opposite of continuous improvement. Let\u2019s dig a little deeper into each flow metric mentioned above.<\/p>\n<\/div>\n<div class=\"s-content\">\n<h3>WORK-IN-PROCESS (WIP)<\/h3>\n<\/div>\n<div class=\"s-content\">\n<p>Work-in-process is anything you or your team started and hasn\u2019t completed yet. It could be something currently being worked on, waiting to be tested, or even stuck. If it hasn\u2019t made it into the completed section on your Kanban board, it\u2019s a WIP.<\/p>\n<p>Under the Lean framework, having excessive WIPs is a bad thing. They\u2019re distracting and are notorious for preventing teams from completing their tasks. For this reason, you want to keep your WIP down as much as possible, and one way you can do that is through WIP limits. WIP limits enable you to restrict the number of cards on a Kanban board that teams can undertake at once. A task has to be marked as completed before a worker can begin a new one. This is important for ensuring that processes actually get done, rather than sit in the testing or validation queue while teams start a new process.<\/p>\n<\/div>\n<div class=\"s-content\">\n<h3>BLOCKERS<\/h3>\n<\/div>\n<div class=\"s-content\">\n<p>Blockers are flags that let teams and management know that you can\u2019t move forward on a process. This is usually due to an external dependency or a failure preventing the task from moving forward. As a flow metric, blockers let you see how many tasks are getting stalled and how long it\u2019s taking those tasks to be unblocked and completed. With that information, you can then look at ways to prevent future disruptions so that work moves through the processes with greater efficiency.<\/p>\n<\/div>\n<div class=\"s-content\">\n<h3>QUEUES<\/h3>\n<\/div>\n<div class=\"s-content\">\n<p>This metric lets you see how long work idles in its current position before moving to the next stage of production. Tracking queues help you see which stages of the workflow are negatively affecting your cycle time. From there, you can investigate problems inhibiting your progress and come up with improvements to keep the work flowing efficiently.<\/p>\n<\/div>\n<div class=\"s-content\">\n<h3>LEAD AND CYCLE TIME<\/h3>\n<\/div>\n<div class=\"s-content\">\n<p>Lead and cycle time are two separate metrics that help you understand how long work takes to move through your Kanban system.<\/p>\n<ul>\n<li><strong>Lead time\u00a0<\/strong>looks at how long it takes for tasks to move through your value stream, from the creation of that task to the moment it\u2019s completed.<\/li>\n<li><strong>Cycle time<\/strong>\u00a0looks at how long an item takes to get from one point to another. Lead time can be used to measure the performance of a team, while cycle time is for measuring the performance of a section within your process. When combined, these two metrics can be used to assess the overall efficiency of your performance as a whole.<\/li>\n<\/ul>\n<\/div>\n<div class=\"s-content\">\n<h3>THROUGHPUT<\/h3>\n<\/div>\n<div class=\"s-content\">\n<p>Throughput shows you the average number of tasks processed over a period of time. Common measurements include:<\/p>\n<ul>\n<li>Cards per day<\/li>\n<li>Cards per week<\/li>\n<li>Story points per sprint<\/li>\n<\/ul>\n<p>While throughput isn\u2019t the best metric for making predictions about future performance, it is helpful for measuring your team\u2019s productivity\u2014especially when looking at how ongoing improvements have enhanced the way teams work.<\/p>\n<\/div>\n<div class=\"s-content\">\n<h3>CUMULATIVE FLOW DIAGRAMS (CFD)<\/h3>\n<\/div>\n<div class=\"s-content\">\n<p>The CFD provides you with a visual representation of your WIP, showing how they flow through the Kanban board. This is valuable for helping you identify bottlenecks, as well as coming up with solutions to improve the pace of your team\u2019s delivery. You can even make predictions of future work by calculating burn-up trajectories using the CFD.<\/p>\n<\/div>\n<div class=\"s-content\">\n<h2><span class=\"ez-toc-section\" id=\"OTHER_IMPORTANT_LEAN_METRICS\"><\/span>OTHER IMPORTANT LEAN METRICS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/div>\n<div class=\"s-content\">\n<p>Along with flow metrics, there are a handful of other KPIs you can track to assess performance under the Lean framework. Let\u2019s take a look at a few of them.<\/p>\n<\/div>\n<div class=\"s-content\">\n<h3>QUALITY<\/h3>\n<\/div>\n<div class=\"s-content\">\n<p>Quality isn\u2019t a single metric, but rather a collection of metrics you can use to measure continuous improvement. Some of the KPIs related to quality include:<\/p>\n<ul>\n<li>Production defects<\/li>\n<li>Regressed cards<\/li>\n<li>Blocked cards<\/li>\n<li>Lanes over the WIP limit<\/li>\n<li>Stale cards<\/li>\n<\/ul>\n<p>When combined, these metrics let you map out your team\u2019s improvement over a period of time. This is important for determining whether your current initiatives have been effective, or if teams need to explore new ways to complete tasks and deliver innovation.<\/p>\n<\/div>\n<div class=\"s-content\">\n<h3>PREDICTABILITY<\/h3>\n<\/div>\n<div class=\"s-content\">\n<p><a href=\"https:\/\/blog.planview.com\/lean-metrics-measure-predictability-with-facts-over-estimates\/\" target=\"_blank\" rel=\"noreferrer noopener\" data-ol-has-click-handler=\"\">Predictability metrics<\/a>\u00a0help with making informed decisions regarding the completion of work items. It\u2019s used to measure consistency with regards to speed and quality. As such, predictability is helpful for mapping out a project\u2019s lifecycle.<\/p>\n<\/div>\n<div class=\"s-content\">\n<h3>COST OF DELAY<\/h3>\n<\/div>\n<div class=\"s-content\">\n<p><a title=\"\" href=https:\/\/www.planview.com\/resources\/articles\/lkdc-cost-delay\/ target=\"_blank\" rel=\"noreferrer noopener\" data-ol-has-click-handler=\"\">Cost of Delay<\/a>\u00a0is a calculation used to determine how much money delayed tasks will cost your organization. It helps you better understand and measure the impact time has on your outcome by looking at both value and urgency. The Cost of Delay is a useful metric to use when meeting with stakeholders. It shows the expenses associated with changes in the prioritization, which is important for making informed, data-driven decisions.<\/p>\n<\/div>\n<div class=\"s-content\">\n<h2><span class=\"ez-toc-section\" id=\"FOCUS_ON_IMPROVEMENT_GOALS\"><\/span>FOCUS ON IMPROVEMENT GOALS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/div>\n<div class=\"s-content\">\n<p>The Lean metrics mentioned in this post are instrumental in helping teams deliver continuous improvement. You can use them to identify bottlenecks, improve efficiency, and stop setbacks before they happen.<\/p>\n<p>If you\u2019re just adopting the Lean approach, check out our article on\u00a0<a title=\"\" href=\"\/the-major-tenets-to-designing-a-basic-kanban-system\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-ol-has-click-handler=\"\">designing a basic Kanban system<\/a> for optimizing your workflow to achieve Lean production.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Organizations operating under the Lean approach should have the same primary goal in mind\u2014continuous improvement. Companies can use Lean to optimize operations, increase customer value, cut back on waste, and anything else that can be improved in the organization for driving innovation and adding value. But how do you know if your initiatives are working?&#8230;<\/p>\n","protected":false},"author":31,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","footnotes":""},"categories":[38],"tags":[511],"class_list":["post-12545","post","type-post","status-publish","format-standard","hentry","category-work-collaboration","tag-leankit"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.8 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Creating Continuous Improvement with Lean Metrics - Blog | Planview<\/title>\n<meta name=\"description\" content=\"Organizations operating under the Lean approach should have the same primary goal in mind\u2014continuous improvement.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blog.planview.com\/creating-continuous-improvement-with-lean-metrics\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Creating Continuous Improvement with Lean Metrics\" \/>\n<meta property=\"og:description\" content=\"Organizations operating under the Lean approach should have the same primary goal in mind\u2014continuous improvement.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/blog.planview.com\/creating-continuous-improvement-with-lean-metrics\/\" \/>\n<meta property=\"og:site_name\" content=\"Planview Blog\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/www.facebook.com\/pages\/Planview-Inc\/89422974772\" \/>\n<meta property=\"article:author\" content=\"loquinn\" \/>\n<meta property=\"article:published_time\" content=\"2019-06-20T15:11:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-02-25T16:14:31+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/blog.planview.com\/wp-content\/uploads\/2020\/02\/creating-continuous-improvement-with-lean-metrics.jpg\" \/>\n<meta name=\"author\" content=\"Leyna O\u2019Quinn\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@LeynaO\" \/>\n<meta name=\"twitter:site\" content=\"@Planview\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Leyna O\u2019Quinn\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/blog.planview.com\/creating-continuous-improvement-with-lean-metrics\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/blog.planview.com\/creating-continuous-improvement-with-lean-metrics\/\"},\"author\":{\"name\":\"Leyna O\u2019Quinn\",\"@id\":\"https:\/\/blog.planview.com\/#\/schema\/person\/290f443261715e577ce2e24971c86387\"},\"headline\":\"Creating Continuous Improvement with Lean Metrics\",\"datePublished\":\"2019-06-20T15:11:44+00:00\",\"dateModified\":\"2020-02-25T16:14:31+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/blog.planview.com\/creating-continuous-improvement-with-lean-metrics\/\"},\"wordCount\":1508,\"publisher\":{\"@id\":\"https:\/\/blog.planview.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/blog.planview.com\/creating-continuous-improvement-with-lean-metrics\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/blog.planview.com\/wp-content\/uploads\/2020\/02\/creating-continuous-improvement-with-lean-metrics.jpg\",\"keywords\":[\"LeanKit\"],\"articleSection\":[\"Work Management for Teams\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/blog.planview.com\/creating-continuous-improvement-with-lean-metrics\/\",\"url\":\"https:\/\/blog.planview.com\/creating-continuous-improvement-with-lean-metrics\/\",\"name\":\"Creating Continuous Improvement with Lean Metrics - 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