iSixSigma

Measures of Success

As is well known by all, the Army exists as a non-profit organization. Our motives and measures of success are not around EPS or net profit. We measure mission accomplishment and effectiveness. Our motto is always, “make it happen” or as the cable guys says, “get ’er done.”

However we do measure project success in terms of money:

Type 1- direct expenses or costs not paid or reduced

Type 2- cost avoidance

Type 3- increased capability

As a capital intensive business, I am contemplating a new measure of economic efficiency: capital intensity ratio. Because we do not show profit, the numerator-net profit is irrelevant. So I am struggling to calculate a new output measure of mission success. I am currently evaluating the Value Measurement Methodology used by the Government in the evaluation of IT investments.

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Comments 3

  1. Sue Kozlowski

    Thanks very much for posting this link. I’ve forwarded it to our MBB to see if we can glean any insights from it. We have struggled with evaluating the "worth" of projects, both financially and otherwise. This is a good resource to review.

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  2. CPT Harris

    It is a very comprehensive work. It helps get away from the top line/ bottom line approach to improvements. That way we can focus on what is of value to our customers-mission accomplishment.

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  3. Chad Miller

    CPT Harris,
    Congratulations on being able to quantify your returns on implementing LSS. I have noticed that many Army PdMs are unable to decifer this translation because they assume that productivity rates or increase deployment of quality requirements do not translate to income or direct dollars saved in terms of production. I wish we could discuss further your metrics for improvement for your program and develop a standard for use across other DOD – Branches.
    Chad Miller, BB

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