What are the three ways to quantify performance improvement?

The selection is based on a clear understanding of performance improvement metrics that are quantitative and aligned with operational effectiveness. Cost reduction, improving output, and ensuring compliance focus on critical aspects of performance measurement.

Cost reduction signifies the efficiency gained by lowering expenses while maintaining or enhancing productivity. This is a tangible metric that can be tracked through financial statements, ultimately reflecting improved profitability or reduced operational costs.

Improving output refers to the enhancement of productivity and throughput within a system, which can be quantified through metrics such as units produced or services delivered over a given time frame. This metric directly reflects the capability and performance of a team or company, showing how effectively resources are being utilized.

Ensuring compliance involves adhering to regulations, standards, and quality control measures. This is vital for risk management and maintaining operational integrity, and compliance can be measured through audits and adherence rates.

The other options provide a mix of qualitative metrics and less measurable aspects. They may contribute to overall business success but do not emphasize clear, quantifiable performance improvement metrics in the same way that cost reduction, output improvement, and compliance do.