More and more companies are choosing to streamline their business processes with robotic process automation (RPA). If you’re thinking about jumping on the robotic process automation bandwagon, one concern that you may have is how to effectively gauge the success of a robotic process automation project.
When undertaking a major project, it is important to clearly define how your results will be measured. Otherwise, you will have a hard time determining whether the project is successful. Fortunately, this project will help you get a good idea of what success looks like for an RPA project.
How to Measure RPA Return on Investment
The point of RPA is to replace repetitive and manual human work with software. Accordingly, one of the best ways to measure the return on investment is by doing an old-versus-new comparison. Determine the cost prior to the implementation of robotic process automation by considering the amount of effort put in and the salary of the employees performing the work. Calculate the cost after the implementation of RPA by taking into consideration the cost of the robotic process automation solution as well as the cost of the individuals hired to manage the robotic process automation.
If the RPA solution has reduced your costs over the same timeframe, you have evidence that the RPA project was a worthwhile endeavor. Savings suggest that a project is a worthwhile investment and should be continued.
How to Measure RPA Performance
Of course, there are more ways besides calculating cost savings to measure results. Different organizations with different organizational goals will choose different metrics. However, the principle of old-versus-new often comes up. For example, you may consider employee satisfaction before and after the implementation of the robotic process automation strategy.
Besides costs, one of the most efficient ways to think about measuring the effectiveness of your robotic process automation strategy is to brainstorm metrics that are related to what your RPA does best. Here are a few qualitative and quantitative measurement categories.
Productivity: One metric that you should consider is productivity. Consider whether processes are running more frequently or faster than prior to the implementation of the robotic process automation strategy.
Accuracy: Compare the number of errors made before and after undertaking the RPA project. Consider whether the accuracy of outcomes has improved significantly.
Employee Satisfaction: One measurement that people frequently overlook when measuring the effectiveness of a robotic process automation strategy is employee satisfaction. When work is meaningful, your employees will dedicate more of their time and effort. Consider metrics like turnover to gauge differences in job satisfaction. However, you also need to ask for feedback and talk to people.
Consistency: Consistency is another metric that you should consider using to gauge the success of your robotic process automation project. Your RPA project should make a business process more predictable and consistent. You should also consider whether downtime has decreased or output has increased.
Compliance: Your robotic process automation project should enable you to follow regulatory rules to a T. Most companies find it relatively easy to use robotic process automation to program regulatory compliance into a process.
Many companies are turning to RPA to improve their business processes. If you want to adopt RPA, it is important to come up with metrics relevant to your organization and organizational goals, so that you have a good idea of what success looks like. For more information about what success looks like for a robotic process automation project, don’t hesitate to contact us.