Organizations are ultimately accountable to produce tangible results, so stating process improvement project benefits in this way better connects the project to the goals executives are responsible for. Conversely, not all Six Sigma projects must have tangible benefits calculated, and may even be championed by senior leaders without these benefits. While continuous improvement projects focusing on intangible benefits like safety improvement or customer satisfaction are valuable, there are some important reasons to strive for tangible benefits. 3 ways tangible benefits can improve your business This is in contrast to intangible benefits, often referred to as “soft” benefits, that are real results but cannot be quantified financially. Tangible benefits are those that are quantifiable and measurable, sometimes called “hard savings.” In other words, they are improvement project benefits that have some specific dollar value, number of labor hours, or other specific metric that can be determined to have been achieved through the project. But not all financial benefits are the same, and understanding the difference between tangible and intangible benefits is critical to gaining leadership alignment and communicating expected project benefits. While many Six Sigma projects target opportunities that are not directly financial - such as safety or customer satisfaction - the majority are intended to deliver financial benefits. Definition of Tangible Benefits: « Back to Glossary Index
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