In the world of process improvement and project management, knowing when to advance from one phase to the next can mean the difference between project success and costly setbacks. The Define phase, particularly in methodologies like Lean Six Sigma, serves as the foundation for everything that follows. Without clear success metrics and proper validation, organizations risk building their improvement efforts on shaky ground. This comprehensive guide will walk you through the essential success metrics that indicate readiness to progress beyond the Define phase and into the subsequent stages of your improvement initiative.
Understanding the Critical Importance of the Define Phase
The Define phase represents the starting point of any structured improvement project. During this phase, teams establish project goals, identify customer requirements, document current processes, and create a clear project charter. The quality of work completed during this phase directly impacts the efficiency and effectiveness of all subsequent phases. You might also enjoy reading about How to Define Project Scope: Setting Boundaries That Prevent Scope Creep.
Consider a real-world example: A regional hospital network identified patient wait times as a critical issue affecting satisfaction scores. Without properly defining which wait times mattered most, which patient populations to prioritize, or what constituted acceptable performance, the team could easily waste months analyzing irrelevant data or implementing solutions that fail to address core problems. Proper Define phase success metrics would ensure the team thoroughly understood the problem scope before investing resources in measurement and analysis. You might also enjoy reading about RACI Matrix in Six Sigma: Defining Roles and Responsibilities Clearly for Project Success.
Key Success Metrics for the Define Phase
1. Problem Statement Clarity and Validation
The first and most fundamental success metric involves the problem statement itself. A well-crafted problem statement should be specific, measurable, and validated by data. It should clearly articulate what is wrong, where the problem occurs, when it happens, and the magnitude of its impact. You might also enjoy reading about Define Phase Deliverables: What You Need to Complete Before Moving to Measure.
To measure problem statement quality, evaluate it against these criteria:
- Does it avoid proposing solutions or assigning blame?
- Is it supported by preliminary data showing the gap between current and desired performance?
- Have at least three stakeholders reviewed and agreed that it accurately represents the issue?
- Does it specify the process or area affected rather than making vague generalizations?
Example with Sample Data: A telecommunications company initially stated their problem as “customer service is terrible.” Through Define phase work, they refined this to: “Customer service call resolution time averages 18.5 minutes compared to industry standard of 12 minutes, resulting in a customer satisfaction score of 6.2 out of 10 and an estimated annual revenue impact of $2.3 million in lost contracts.”
The refined statement includes specific metrics (18.5 minutes versus 12 minutes), quantifiable impact (satisfaction score of 6.2), and business consequences ($2.3 million). This level of specificity indicates readiness to proceed.
2. Stakeholder Identification and Engagement Level
A complete stakeholder analysis demonstrates that the team understands who will be affected by the project, who controls necessary resources, and who must approve changes. Success in this area can be measured through specific checkpoints:
- All key stakeholders have been identified and categorized by influence and interest level
- At least 80% of primary stakeholders have been personally contacted and briefed on the project
- A communication plan exists with defined touchpoints for each stakeholder group
- Executive sponsor has formally committed resources and time
- Initial concerns and objections have been documented with response strategies
Sample Stakeholder Engagement Scorecard:
For a manufacturing process improvement project at a mid-sized automotive parts supplier, the team created this tracking system:
- Plant Manager: Engagement score 9/10 (weekly meetings scheduled, budget approved)
- Production Supervisors (4 people): Engagement score 7/10 (attended kickoff, some concerns about workload)
- Quality Director: Engagement score 10/10 (serving as project sponsor)
- Line Workers (25 people): Engagement score 5/10 (aware of project, uncertain about participation level)
- Maintenance Team: Engagement score 6/10 (concerned about additional requests)
The team identified that line workers and maintenance staff needed additional engagement before proceeding. They implemented targeted communications and incorporated frontline input sessions, raising engagement scores to acceptable levels above 7/10 before moving forward.
3. Project Scope Definition and Boundaries
Scope creep destroys more projects than almost any other factor. Therefore, clearly defined project boundaries serve as a critical success metric. Your Define phase work should result in explicit statements about what falls inside and outside the project scope.
Measure scope definition completeness by confirming:
- Specific processes, departments, or functions included are listed by name
- Geographic or organizational boundaries are clearly stated
- Explicit exclusions are documented with reasoning
- Interfaces with adjacent processes or projects are identified
- Scope has been formally reviewed and approved by the project sponsor
Example from Healthcare Services: A hospital system launching a medication administration improvement project defined their scope as follows:
In Scope: Medication ordering, pharmacy processing, nurse administration, and patient monitoring for all inpatient medical-surgical units on the main campus (Units 3A, 3B, 4A, 4B), covering approximately 120 beds and 2,400 medication administrations daily.
Out of Scope: Emergency department medications, operating room medications, outpatient pharmacy operations, satellite clinic locations, controlled substance storage protocols (separate project already underway), and physician prescribing practices (addressed through different governance channel).
This level of specificity, with quantifiable parameters like bed counts and daily transactions, indicates proper scope definition and readiness to advance.
4. Baseline Performance Data Collection
You cannot improve what you do not measure, and you cannot measure improvement without a baseline. The Define phase should produce preliminary performance data that establishes current state metrics. While comprehensive data collection occurs in the Measure phase, the Define phase should demonstrate that relevant metrics exist or can be collected.
Evaluate baseline data readiness through these indicators:
- At least 2-3 key performance indicators have been identified and validated with stakeholders
- Sample data covering a minimum of 2-4 weeks has been collected or data collection systems have been established
- Data shows variation and patterns that warrant investigation
- Data collection methods are documented and repeatable
- Any data quality issues have been identified along with remediation plans
Sample Baseline Data Set: A logistics company working to reduce order fulfillment errors collected this preliminary data during their Define phase:
Week 1: 847 orders processed, 23 errors detected (2.7% error rate)
Week 2: 912 orders processed, 31 errors detected (3.4% error rate)
Week 3: 798 orders processed, 19 errors detected (2.4% error rate)
Week 4: 883 orders processed, 28 errors detected (3.2% error rate)
Average baseline error rate: 2.9% (101 errors out of 3,440 orders)
Average cost per error: $47 in labor and shipping
Estimated monthly impact: $19,364
This preliminary data demonstrates that meaningful metrics can be tracked, shows variation worth investigating, establishes a baseline for future comparison, and quantifies business impact. These elements indicate readiness to proceed with detailed measurement and analysis.
5. Goal Setting and Target Definition
Clear, quantifiable goals provide the destination for your improvement journey. During the Define phase, goals should be established using the SMART framework: Specific, Measurable, Achievable, Relevant, and Time-bound. The presence of properly structured goals serves as a key readiness indicator.
Assess goal quality by verifying:
- Goals include specific numerical targets rather than vague aspirations
- Timeframes for achievement are clearly stated
- Goals align with broader organizational objectives
- Expected benefits are quantified in business terms (cost savings, revenue increase, customer satisfaction improvement)
- Stretch goals are ambitious yet realistic based on industry benchmarks or organizational capability
Example from Retail Operations: A specialty retail chain defined goals for their inventory management improvement project:
Primary Goal: Reduce inventory carrying costs from current $4.2 million annually to $3.1 million within 12 months (26% reduction)
Supporting Goals:
1. Decrease average inventory days on hand from 68 days to 45 days within 9 months
2. Improve inventory accuracy from 87% to 96% within 6 months
3. Reduce stockout incidents from 340 per month to fewer than 120 per month within 9 months
4. Increase inventory turnover ratio from 4.2 to 6.5 within 12 months
Expected Business Impact: $1.1 million annual savings, 15% reduction in lost sales due to stockouts (estimated $420,000 additional revenue), improved customer satisfaction scores from 7.8 to 8.5 out of 10.
These goals provide clear targets, specific timeframes, and quantified benefits. They also demonstrate how the project contributes to broader business objectives like profitability and customer satisfaction.
6. Resource Allocation and Project Charter Approval
Even the best-defined projects fail without adequate resources and formal authorization. A completed and approved project charter represents a critical milestone indicating Define phase completion.
Confirm resource readiness through these checkpoints:
- Project charter document has been created including problem statement, goals, scope, team members, and timeline
- Team members have been assigned with time allocations confirmed by their managers
- Budget for project activities has been approved and allocated
- Executive sponsor has signed the charter providing formal authorization
- Kickoff meeting has been conducted with all core team members
- Project has been entered into organizational project tracking systems
Sample Resource Allocation: For a financial services process improvement initiative, the approved charter included:
Project Team:
– Project Leader (Black Belt): 80% time allocation for 6 months
– Process Owner (Operations Manager): 20% time allocation
– Subject Matter Experts (3 analysts): 15% time allocation each
– Quality Specialist: 10% time allocation
– IT Representative: 10% time allocation as needed
Budget Allocation:
– Personnel time: $85,000
– Software tools and licenses: $8,500
– Training and development: $4,200
– External consulting (if needed): $15,000 contingency
– Total approved budget: $112,700
Timeline: 6-month project with defined phase gates at 6 weeks (Define complete), 12 weeks (Measure complete), 18 weeks (Analyze complete), 22 weeks (Improve complete), and 26 weeks (Control implemented).
This level of resource commitment and planning detail demonstrates organizational seriousness and readiness to execute.
Creating a Define Phase Completion Checklist
To systematically evaluate readiness to advance, create a comprehensive checklist incorporating all success metrics. Each item should have clear pass/fail criteria, and the team should achieve at minimum 85-90% completion before proceeding.
Sample Completion Checklist:
Problem Definition (20 points possible):
– Problem statement includes specific metrics (5 points)
– Business impact quantified (5 points)
– Problem validated by at least three stakeholders (5 points)
– Root causes not assumed in problem statement (5 points)
Stakeholder Management (15 points possible):
– All key stakeholders identified (5 points)
– Engagement plan created and initiated (5 points)
– Executive sponsor actively involved (5 points)
Scope Definition (15 points possible):
– Inclusions explicitly listed (5 points)
– Exclusions explicitly documented (5 points)
– Boundaries reviewed with stakeholders (5 points)
Baseline Metrics (20 points possible):
– Key metrics identified and defined (5 points)
– Sample data collected (10 points)
– Data collection method documented (5 points)
Goal Setting (15 points possible):
– SMART goals established (10 points)
– Goals aligned with business objectives (5 points)
Project Charter (15 points possible):
– Charter completed (5 points)
– Resources allocated (5 points)
– Formal approval obtained (5 points)
Total Possible: 100 points
Minimum Score to Proceed: 85 points
A manufacturing company using this checklist scored 82 points on their first assessment. They identified gaps in stakeholder engagement (scored only 8 of 15 points) and baseline data collection (scored only 12 of 20 points). Rather than proceeding prematurely, they invested an additional two weeks addressing these gaps, ultimately scoring 91 points before advancing to the Measure phase. This diligence prevented later rework and kept the project on track.
Common Pitfalls That Indicate Unreadiness to Proceed
Recognizing warning signs is equally important as identifying success metrics. Several red flags indicate that advancing would be premature and risky:
Vague Problem Descriptions
If your team cannot explain the problem in specific, measurable terms to someone unfamiliar with the situation, the Define phase remains incomplete. Statements like “things are inefficient” or “customers are unhappy” lack the precision needed for effective improvement work.
Stakeholder Resistance or Confusion
When key stakeholders express confusion about project goals or demonstrate resistance to participation, these signals indicate inadequate definition and communication. Proceeding despite stakeholder concerns typically results in resource conflicts and implementation obstacles later.
Scope Disagreements
If team members or stakeholders hold different understandings of what the project will address, scope has not been adequately defined. This misalignment will cause friction and inefficiency in later phases.
Missing or Unreliable Baseline Data
Without credible baseline measurements, teams cannot identify improvement opportunities or validate solution effectiveness. If data systems do not exist or produce questionable results, additional Define phase work is required.
Unrealistic Goals
Goals that lack connection to organizational capability or industry benchmarks indicate insufficient groundwork. If achieving the stated goals would require capabilities or resources far beyond what is available, the Define phase needs revision.
The Business Case for Thorough Define Phase Work
Organizations sometimes feel pressure to rush through the Define phase and begin implementing solutions. However, research consistently demonstrates that thorough definition work produces better outcomes with less overall project time.
A study of 250 process improvement projects found that projects spending adequate time in the Define phase (typically 15-20% of total project duration) achieved their goals 78% of the time. Projects that rushed through definition, spending less than 10% of project time defining the problem, succeeded only 41% of the time. Moreover, the projects with thorough Define phases completed an average of 23% faster overall than those that skipped steps, because they avoided costly backtracking and rework.
Consider the financial implications: A six-month improvement project with a loaded cost of $120,000 that fails to achieve objectives represents not only the lost investment but also the opportunity cost of problems that remain unresolved. Investing an additional two weeks in Define phase activities (approximately $8,000) to ensure proper foundation provides enormous return when it prevents project failure.
