The Rugby Australia chief executive and 79-Test flanker drew on intangibles to explain why outgoing coach Joe Schmidt's tenure had been a success, despite winning two of his last 11 Tests to finish with a 12-19 record in charge.
"The fundamentals and depth from 1-15 is materially better than what it was," Waugh told AAP on Wednesday.
"Look at how we've competed with the best in the biggest arenas.
"We've been right in the game and it's matter of progressing at the speed they have been, to turn those narrow losses into victories.
"It's far bigger and broader than pure win-loss percentage and the progress made's been enormous."
A home Rugby World Cup next year leaves less wiggle room for Kiss though, who will name his first Wallabies squad in Sydney on Thursday ahead of a double-header against Japan.
"Without a doubt," Waugh said when asked if Schmidt's success would truly be measured by results under Kiss.
"The big focus is getting to the final weekend in 2027.
"So we need to work on those improvements Joe made and accelerate the performances as we run into the World Cup."
Kiss coached Waugh at the NSW Waratahs, where he was defence coach in the early 2000s.
"It was a surprise given he was a rugby league winger," Waugh said of Kiss's role
"But it was amazing how well he connected us and instilled belief.
"He's definitely got an edge and his connection was really powerful and his eye for detail was sharp."
Kiss's first assignment will come in Osaka against Eddie Jones's Japan on August 8 before they meet again a week later in Townsville.
It was Jones who fast-tracked Kiss's return home to the Waratahs, under Bob Dwyer and then Ewen McKenzie, from the Springboks after coaching against him with the Wallabies.
"He certainly had a lot to do with that and it was an introduction to coaching in Australia through some pretty big names," Kiss told AAP.
Japan's Nations Championship campaign has mirrored Australia's, with a victory against Italy followed by a tight loss to Ireland then comprehensive defeat to France in Tokyo last Saturday.
Rookie flyhalf Ryunosuke Ito, 21 and yet to play a professional club game, started all three games in the No.10.
"They've been very impressive and we'll need to be on point," Kiss said.
"There's no doubt they're a dangerous proposition and we have to get in front of everything."
Pledging to remain "open-minded" at the selection table, Kiss has the opportunity to recall overlooked Queensland Reds lock Lukhan Salakaia-Loto to face the Brave Blossoms.
Utility back Jordan Petaia, who Kiss coached at the Reds, has enjoyed a stint in France and signed to play in Japan since his short-lived NFL cameo and could also come back into the fray ahead of a potential third World Cup appearance.