Henry Ford said, “Every industrial organization should aspire to deliver the best products at the lowest cost possible, paying the highest wage possible.”
Whether you have a manufacturing firm or a service organization, this statement holds its importance even today.
Today, the business world is proliferating; thus, enforcing companies to maintain and enhance operational efficiency. If they fail, they are at risk of being left behind in this fierce competition. According to a survey of 1300 global CEOs by PwC, 77% say that their primary focus to drive revenue growth is to create operational efficiencies.
Operational efficiencies, if created and managed appropriately, can have a tangible impact on your business. It can help reduce costs, improve productivity, enhance customer satisfaction, and enable you to stay ahead of the competition. However, the advancement in technology and automation has empowered companies to run more efficiently than ever.
In this article, we will explore the most effective strategies to improve the operational efficiency of your company.
Strategies To Increase Operational Efficiency
1. Standardize Business Processes
Let’s suppose; you tell your team to draw a house. It might be possible that everyone has their perspective and so the result would be far from what you expected. Now, let’s imagine a scenario where you have a step-to-step guide given to the team to draw a house. Well, the output this time would be near to the standard you set. Why? That’s because all had a step-by-step guide!
Similar is the case with your business operations. When you have a predefined business process, the outcome will be a domino effect. Moreover, when you standardize this process, you will observe an increase in overall operational efficiency.
So, what is this standardization of processes we are talking about? Well, it’s merely setting some ground rules that teams will require to follow. It is more popularly known as Standard Operating Procedure, i.e., SOP. If employees follow the SOP, it can minimize the deviation from standards and maintain consistency. Besides, it keeps transparency throughout the process and accelerates the output.
2. Boost Employee Engagement
Behind a successful business, employee engagement is the key. According to a study, companies with high employee engagement are 21% more profitable. But driving employee engagement isn’t a piece of cake!
It requires you to keep track of your employees’ experiences and thoughts in the workplace. The key employee engagement metrics to consider include – happiness, wellness, personal growth, satisfaction, relationship with peers, feedback, recognition, alignment, relationship with managers, and ambassadorship. With this information, leaders can create action plans and improve employee engagement.
Providing feedback regularly and incentivizing employees after a certain period gives them a good reason to perform well. Further, team building activities and group chats make communication more effective. So, increasing employee efficiency is a worthy target that most companies are after in current times.
3. Enhance Collaboration and Communication
Effective communication and collaboration are the two major pillars of businesses. When your business is spread wide apart in different countries of the world, communication and cooperation between employees become a matter of concern.
Lack of communication leads to confusion; thus, causing disruptions in the execution of the tasks. It even drops the work quality and degrades customer experience.
In such a distributed environment, it is crucial to make it easier for your employees to communicate and collaborate. Not only does it improve your customer service, but also it keeps your employees well-informed so that they can serve your clients or customers better. What you can do is leverage the benefits of advanced tools like video conferencing, screen sharing, document sharing, and more. Moreover, you can also get an efficient business phone system like CallHippo deployed, which lets you communicate as well as collaborate seamlessly irrespective of your geographic location.
4. Get The Right Stack of Tools
To perform well and improve operational efficiency, you need the right tools to assure and assist the staff.
Well, it is not essential to purchase industry-leading technology. All you can do is move to cloud-based solutions. It helps you –
- Reduce costs as you do not require investing in any hardware or infrastructure
- Scale up your system along with the business with no long-term contracts and upfront fees
- Avail security with compliance, GDPR, encryption, and more
- Get access to IT services on-demand
- Ensure business continuity at any time no matter where you are
Let’s take an example of your phone system. Suppose that you use traditional phone lines for sales and support. After a certain period, you plan to shift your office premises. It will take about a week to get your phone system in place. But, it’s not the case with cloud telephony. Being hosted on the cloud, you can access it from anywhere. Moreover, its advanced features like call routing and more ensure that your business stays on top even though your agents are working remotely, or they are a few in numbers.
5. Measure Performance
An old saying goes as “you can’t manage what you don’t measure.” So, it is crucial to measure the performance of your employees and thus streamline operational efficiency.
Continuous feedback can help guide your company’s planning efforts. Moreover, it gives you a basis for determining the improvements that you can make. But the gamut of measurement tactics varies widely.
So, to measure performance, you must first decide the metrics to evaluate your organization’s success. Accordingly, set ambitious targets, but at the same time achievable. You can then employ tools that help you make informed business decisions. If you have properly integrated team efforts and their data, it helps maximize your company’s operational efficiency.
Operational efficiency is one of the most vital metrics that leads to improved productivity, profitability, and increased sustainability. However, it cannot be improved overnight. You need to eliminate redundancies in the current processes and establish an integrated way of improving operational efficiency.
So, get started with the five strategies mentioned above and see your business flourish like never before.