The continuous improvement process: key steps, methodologies & benefits

Continuous improvement is an ongoing process that involves analyzing performance, identifying opportunities, and making incremental changes to processes, products, and personnel. By analyzing and fine-tuning processes, your company can save time and deliver a better overall product.

Why continuous improvement matters for organizational growth

Organizations that embrace continuous improvement methodologies gain a significant competitive advantage. When teams regularly review their processes and make incremental adjustments, efficiency naturally improves. 

Tasks that once took hours can be completed in minutes, and bottlenecks that slowed down entire projects disappear. Quality improvements are another significant benefit. 

Consistently refining how work is done enables companies to deliver better products and services to customers, which often results in higher customer satisfaction levels, increased loyalty, and increased revenue. 

Employee engagement also gets a boost when workers participate in improvement initiatives. When team members have a voice in how their work gets done and see their suggestions implemented, they feel more invested in the company’s success. 

This creates a positive cycle where engaged employees contribute more ideas, leading to even better processes and higher organizational morale. 

Integrating continuous improvement into your everyday work life involves adopting tools and practices that help you think from an improvement mindset. The best tools for continuous improvement are those that live alongside your actual work.

1. The Plan-Do-Check-Act Principle (PDCA)

Plan-Do-Check-Act (PDCA) is one of the most widely used tools in the continuous improvement model.

• Plan is your opportunity to identify an opportunity and plan for change. “Do” is when you implement the change on a small scale.

• Check is the process of using data to analyze the results of the change and determine whether it made a difference.

• Act is when you implement the change more broadly and continue to assess the results. If one stage did not work, simply begin again.

Software teams execute PDCA loops when they launch new features via “feature flagging”. Feature flagging is the process of rolling out a new feature to a small subset of real customers in a limited test. 

The test is to determine if test customers were more successful than those without the new feature. After checking on user data, teams act by rolling out that feature to all

2. 5 Whys analysis

It turns out that toddlers are onto something when they continually ask their parents, “Why?” The 5 Whys is a popular root cause analysis technique where the continued asking of why tends to uncover the root cause in five whys or less. 

3. Kaizen and Kata

Those seeking the most flexibility can ground their process in the improvement methodologies Kata and Kaizen. Kata is a four-step process for creating solutions to dynamic problems, while Kaizen’s ten principles provide a framework for fostering a culture of small, ongoing improvements. Together, they encourage teams to experiment, learn, and refine their approach over time.

Using a Kanban board template to track your progress through those four steps will help your team stay on track.

4. Lean manufacturing

Lean manufacturing is based on lean principles, which eliminate wasted time and resources to ensure projects are completed and delivered on time. Lean revolves around five key principles:

1. Defining value

2. Mapping the value stream

3. Creating a flow

4. Establishing pull

5. Seeking perfection

Amazon is a prime example of lean process improvement. Workspaces are organized to maximize productivity, and products sold or shipped by Amazon are packed up and ready for shipment.

Another example of the lean methodology is how Adidas uses direct-to-store shipping to ensure customers can access a wide range of shoes while keeping a smaller inventory at each store. Then, if a customer wants a specific pair of shoes that aren’t in stock, they can be shipped directly to that Adidas store.

Take advantage of lean project management software to reap these benefits within your company. 

5. Total Quality Management (TQM)

Total Quality Management (TQM) is a continuous improvement approach that increases customer satisfaction and employee involvement.

By having everyone contribute to improving quality, companies can reduce errors and improve essential processes. This is the heart and soul of continuous improvement — minimizing errors and streamlining processes to improve quality.

6. Agile

The Agile methodology is a project management method that breaks larger projects down into smaller portions, known as sprints. After each sprint, the team conducts a sprint retrospective to make changes and improvements for the next sprint. 

Agile project management relies on collaboration and adaptability, changing based on the results and feedback you’re getting. Teams using Agile tools can track their progress more effectively and make data-driven decisions about what to improve next. 

By monitoring Agile metrics like velocity and burndown rates, organizations can identify patterns and optimize their workflow for better results.

7. Kanban method

The Kanban method helps teams visualize workflows, avoid overwhelming themselves, and improve efficiency. At its core, Kanban principles revolve around workflow visualization, including your sprint backlog, current work, and finished work. 

This helps you keep work flowing steadily without overwhelming yourself or falling behind on deadlines. There are four essential Kanban metrics to know:

1. Lead time

2. Cycle time

3. Work-in-progress

4. Throughput

As a business, a continuous improvement cycle can help you make changes that increase employee satisfaction, efficiency, and overall quality. Here are some of the main benefits of the continuous improvement process.

Streamlines operations to enhance efficiency

When you have a lot on your plate, saving a small amount of time makes a big difference. Continuous improvement allows you to streamline processes to increase productivity, which means you can get more done in the same amount of time.

Engages employees through active participation

Allowing employees to participate in the continuous improvement process can get your team more involved and increase employee engagement. Toyota launched the Creative Idea Suggestion System in 1951 to increase employee engagement through continuous improvement.

Reduces waste by simplifying processes

Continuous improvement methodologies like the Lean methodology help reduce waste by trimming the fat off individual processes. If you can whittle a process down to a few simple steps, you can save time and get more done.

Reduces costs by eliminating inefficiencies

Eliminating and streamlining inefficient processes can lead to cost savings. Applying lean principles to manufacturing means saving time and resources throughout the manufacturing process. Improving supply chain management can lower storage and shipping costs, increasing your bottom line.

Enhances product and service quality through refinement

Continuous improvement means consistently refining small processes that, over time, strengthen your overall product or service. By streamlining processes and doing more with fewer resources, you can deliver better products and services to each customer or client.

Implementing continuous improvement doesn't require a complete overhaul of your existing processes. Ultimately, you want to build an approach that builds momentum over time and creates lasting change throughout your organization. 

Step 1: Identify improvement opportunities through data and feedback

The first step in any continuous improvement process is determining where to make changes. Gather data from key sources, such as your operations, customers, and employees. 

Operational data might show that certain tasks consistently take longer than expected, while customer feedback could reveal pain points in your service delivery. Don't overlook your team's insights, either. 

The people doing the work often spot problems that management overlooks. Look for patterns in this information. 

Are customers complaining about the same issue repeatedly? Do certain processes consistently create bottlenecks? These recurring problems are your best targets for improvement because fixing them will significantly impact your overall performance. 

Step 2: Set clear, measurable goals for accountability and motivation

Once you know what needs fixing, you must decide exactly what success looks like. Vague project goals like "improve customer service" don't give anyone a clear target to aim for. 

Instead, specific objectives should be set, such as "reducing customer response time from 24 hours to 8 hours" or "decreasing product defects by 20% over the next quarter."

Make sure your goals are actually achievable with the resources you have available. Setting impossible targets just demotivates your team and sets everyone up for failure. 

Tie your improvement goals directly to business priorities so everyone understands why this work matters and how it connects to the company's bigger picture.

Step 3: Design actionable improvement initiatives aligned with goals

Now comes the planning phase, where you figure out exactly how you will reach those goals. This might involve running small experiments, changing existing processes, or implementing new tools and systems. 

Be specific about what you will do, who's responsible for each piece, and when things need to get done. Don't try to fix everything at once. 

Pick a few high-impact initiatives directly addressing the problems you identified in step one. Assign clear ownership for each initiative and make sure you have the necessary resources lined up before you start.

Step 4: Implement improvement plans and refine strategies based on insights

This is where the rubber meets the road. Start executing your plans, but don't just set them and forget them. 

Keep a close eye on how things are progressing and compare your actual results to the goals you set earlier. If something isn't working as expected, don't be afraid to adjust your approach.

The whole point of continuous improvement is that it's iterative. You try something, see how it works, then make adjustments based on what you learned. Sometimes your first attempt won't hit the mark, and that's perfectly normal.

Step 5: Standardize improvements to set definitive SOPs and ensure consistency

Once you've proven that an improvement actually works, you need to make it stick. This means documenting the new process clearly so everyone knows exactly how to do things the right way. 

Create standard operating procedures and make sure your team has access to them when they need guidance. The goal here is to prevent backsliding into old habits. 

When improvements aren't properly documented and standardized, teams often drift back to doing things the way they always have. Make your successful changes part of the normal routine, then start the whole cycle over again to find the next opportunity for improvement.

Continuous improvement is a core tenet of Agile methodology, and Jira is designed for Agile teams. Backlogs and sprints allow you to break large projects down into smaller chunks. With Scrum or Kanban boards, you can organize those projects into even more manageable segments. 

There are various issue types within Jira, like Bugs, Tasks, and Sub-tasks, which cater to diverse project needs. Customizable workflows allow you to map Jira to your unique workflow, while real-time insights give you a better understanding of velocity, productivity, and other metrics.

You can even import data from 3rd party platforms right into Jira, so you have a complete view of relevant data and info from other systems your team depends on. 

Want to learn more about how Jira can help you focus on continuous improvement and make the necessary changes to remain agile? Try Jira Scrum Boards today.

What are some best practices for continuous improvement?

There are several ways to make continuous improvement work in your company. Some best practices include:

• Communicate constantly

• Capture and validate benefits

• Focus on metrics that impact your business

• Capture ideas for improvement

• Use an idea funnel

• Perform weekly reviews for projects

Getting everyone involved is an excellent way to maintain continuous improvement over time. You can train new employees on continuous improvement and use a continuous improvement program to allow employees to further their careers.

What is an example of continuous improvement?

Amazon is one of the best continuous improvement examples in the industry. Amazon has used Lean methodology to optimize warehouses and streamline the shipping process. The company also has a unique approach that focuses on long-term customer satisfaction over short-term gains.

Apple conducts extensive user research to learn what people do and don’t like about Apple products. This research helps to continuously improve Apple products, adding new features that ensure Apple remains a top name in tech.

What is the main goal of continuous improvement?

The main goal of continuous improvement is to transform your company through small incremental changes. This improves employee engagement, boosts productivity and efficiency, and increases customer satisfaction. When you believe you always have room to grow, you can discover new growth opportunities and improve your business.