quantification-metrics-step-1-establish-baseline

# Step 1: Establish Baseline (+4)

## Step 1: Establish Baseline


**Actions:**
1. Identify current state metrics
2. Measure actual time/cost/effort
3. Document pain points with frequency
4. Quantify error rates or issues

**Questions to Answer:**
- How long does the current process take?
- How often is it performed?
- What is the current cost?

*See sub-skills for full details.*

## Step 2: Define Target State


**Actions:**
1. Specify desired improvement
2. Set realistic targets
3. Identify automation opportunities
4. Define success criteria

**Questions to Answer:**
- What is the ideal state?
- What level of improvement is realistic?
- What can be automated vs. optimized?

*See sub-skills for full details.*

## Step 3: Calculate Metrics


**Actions:**
1. Apply time savings formula
2. Calculate cost savings
3. Determine efficiency gains percentage
4. Aggregate across use cases

**Validation:**
- Are calculations accurate?
- Are assumptions documented?
- Are ranges provided where uncertain?

*See sub-skills for full details.*

## Step 4: Validate and Document


**Actions:**
1. Verify calculations
2. Check for reasonableness
3. Document assumptions
4. Provide evidence or benchmarks

**Validation Criteria:**
- Math is correct
- Assumptions are explicit
- Comparisons are valid
- Evidence supports claims

**Example:**
```markdown

## Validation


**Assumptions:**
- Hourly rate: $75/hour (blended rate for administrative work)
- Current invoice time: 15 minutes (observed average)
- Target invoice time: 2 minutes (based on similar automation)
- Frequency: 10 invoices/month (12-month average)

**Evidence:**
- Industry benchmark: 80-90% time reduction from invoice automation
- Internal pilot: 85% reduction achieved in test period
- Comparable systems: $10K-30K annual savings typical
```