Continuous Improvement

Continuous Improvement

Continuous Improvement Jonathan Poland

Continuous improvement is a systematic approach to improving products, services, and processes over time. It involves a cycle of planning, implementing, measuring, and adjusting in order to achieve ongoing improvements. This process typically involves identifying areas for improvement, implementing changes or improvements, evaluating the results of these changes, and making any necessary adjustments to further improve performance. Continuous improvement is an ongoing process that seeks to identify and eliminate waste and inefficiencies in order to create value for customers and the organization. The following are illustrative examples of continuous improvement.


An engineering team that continually finds ways to improve a figure of merit such as the energy conversion rate of solar panels.


A retail banking website continually improves its infrastructure and service management processes to decrease its downtime and increase availability.


Improving the intangible elements of a service such as the taste of food on a flight. Typically measured with a process of quantification of customer surveys.


Improving physical environments such as buildings, interior design and landscapes. For example, a large restaurant chain that is continually experimenting with new interior concepts.


Improving processes by eliminating wasted effort or resources. For example, a farmer who bags fruit as opposed to spraying it with chemicals once a month.


Asset improvements such as upgrading a machine that is a bottleneck. For example, a rail line does an analysis and finds that a particular legacy model of signal equipment has caused an usual number of delays due to their high maintenance requirements. The signals are replaced with more reliable models.

Policy & Procedure

Identifying counterproductive or inefficient policies and replacing them. For example, a airline that chooses a passenger to be removed from an overbooked flight using a complex algorithm that can’t be explained to the passenger resulting in dissatisfied customers and potential public relations issues. A more efficient policy might be to incrementally increase compensation offers until a passenger volunteers.


Improving communication and information. For example, if a customer service team gets the same question 200 times a day, they might contact a marketing team about updating product packaging to make things more clear.

Information Technology

Improving software and related machines such as robots. For example, a robot that sorts recycling has its error rate improved on a regular basis with tweaks to its machine learning algorithm.


Seeking ways to further reduce managed risks. For example, a farmer reduces risks related to the price fluctuations of commodities with incremental strategies to diversity and differentiate their crop.


Improving quality such as a manufacturer that investigates quality control defects to determine root cause and identify improvements to designs, parts, processes, materials, methods and controls.


Efforts to improve organizational culture on an ongoing basis using techniques such as sharing corporate stories to build a sense of team identity.

Learn More…

Value Added Reseller Jonathan Poland

Value Added Reseller

A value added reseller (VAR) is a company that buys products from…

Corporate Identity Jonathan Poland

Corporate Identity

Corporate identity is the visual representation of a company’s brand and values.…

Management Decisions Jonathan Poland

Management Decisions

Management decisions are decisions that pertain to the direction and control of…

Systematic Risk Jonathan Poland

Systematic Risk

Systemic risk is the risk that a problem in one part of…

Austrian Economics 101 Jonathan Poland

Austrian Economics 101

Austrian economics is a school of economic thought that originated in Austria…

Curiosity Drive Jonathan Poland

Curiosity Drive

Curiosity drive, or the desire to obtain new information, is a fundamental…

Digital Channels Jonathan Poland

Digital Channels

A digital channel is a means of distributing or selling products or…

What is a Product Line? Jonathan Poland

What is a Product Line?

A product line refers to a group of related products that are…

Algorithmic Accountability Jonathan Poland

Algorithmic Accountability

Algorithmic accountability is the concept of holding algorithms and the organizations that…

Jonathan Poland © 2023

Search the Database

Over 1,000 posts on topics ranging from strategy to operations, innovation to finance, technology to risk and much more…

Time To Market Jonathan Poland

Time To Market

Time to market is an important metric for businesses because it can…

Overhead Costs Jonathan Poland

Overhead Costs

Overhead costs, also known as “indirect costs” or “indirect expenses,” are the…

Corporate Culture Jonathan Poland

Corporate Culture

Corporate culture refers to the values, beliefs, and behaviors that shape an…

Exchange Rate Risk Jonathan Poland

Exchange Rate Risk

Exchange rate risk, also known as currency risk, is the risk that…

Joint Ventures Jonathan Poland

Joint Ventures

A joint venture is a business venture or partnership between two or…

Generic Brand Jonathan Poland

Generic Brand

A generic brand is a type of brand that does not have…

Risk Contingency Jonathan Poland

Risk Contingency

A risk contingency plan is a course of action that is put…

Segregation of Duties Jonathan Poland

Segregation of Duties

Segregation of duties is a principle in internal control that aims to…

Over-positioning Jonathan Poland


Over-positioning refers to the practice of positioning a brand in a way…