Process Gains and Losses are two groups of parameters that determine a range of positive and negative results reached throughout implementation or upon completion of a process. The Gains group includes all process achievements that have reached success; the Losses group consists of process efforts and actions that have been failed and not achieved for some reason.
Balancing both groups is the art of managing a process. A well managed process appears to produce more positive and successful achievements rather than negative and failed results. Process management is a fundamental activity that aims to define, design and implement a process in the way that ensures success rather than failure.
The balance between process losses and gains can be mathematically presented as a ratio which is called "Gain-to-Loss ratio":
Process Balance = Gains Received / Losses Happened
Process management uses various methods and techniques intended to minimize process losses and maximize process gains. For example:
- Historical analysis
- Nominal groups
- Focus groups
- Devil’s advocate.