Four top ways to improve business efficiency
Looking for ways to improve business efficiency has always been the goal of every organization. This is one milestone that every profit or non-profit organization strives to achieve. Application of efficient processes varies from situation to situation depending upon various factors which will be discussed in this article.
Business efficiency deals with achieving the best state of business operations within the organization where fewer inputs are utilized in best manner to generate maximum outputs. This requires presence of certain ideal conditions which when implied well in the organization, generate the best desired results.
Efficiency is achieved when all departments of the organization work in close liaison with each other.
Here are the top four ways to improve business efficiency within your organization:
1) Business processes
Business processes are the option that the companies always go for to achieve efficiency. Efficient business processes demand using state-of-the -art technology, or employing those processes in which there is minimum waste of resources. Efficiency requires use of those processes which utilize less energy, less money, less man power and less job stress. Purchasing machinery that saves cost, producing more units with less cost per unit is an example of efficiency process decision making. This is called “Economies of scale production” in which a company goes for mass production to reduce per unit cost of items, thus achieving its goal of efficiency. But this is important to note that not every organization has capacity to go for economies of scale production and it depends upon various factors such as industry in which business is operating, financial condition of the company and the workforce competence.
It is also essential to analyze the business processes and doing the audit as an on-going activity in order to keep updating them and incorporating the fastest and most efficient ways to achieve efficiency.
2) Financial networking with other departments
The finance department plays a vital role in creating efficient organizations. Financing of all departments needs a close networking with finance department. Company’s financial condition, financial statements and finance policies direct the operations of other departments. With a proper finance strategy in place, this department assesses the financing needs of other departments to improve the business efficiency e.g. to improve efficiency, we need to train the people of production department so finance department has to fund this training process.
In this regard, finance strategies must be in line with organizational strategies and finance managers need to sit with other departmental managers to plan this process.
3) Competent workforce & incentives
The basis to every organizational achievement is tied to its employees. It is essential to hire the competent workforce, possessing the skills to continue the operations of business, if the goal of efficiency is to be achieved. In this regard, reputation of organization matters a lot as reputed organizations tend to be employer of choice and thus, attract competent pool of candidates.
Incentives and profit sharing are one of the best ways to improve business efficiency. Employees when aware of the rewards that they can get as a result of organization’s goals achievement, put in more effort, indulge more in cost and time efficient ways to perform their jobs. Incentive is indeed the top source to generate employee motivation.
Good work environment is a must when it comes to the best ways to improve business efficiency. Growing and thriving employees can contribute better to the development of organization.
4) Relationship with suppliers
Suppliers form the major block of company resources supply chain. They provide raw materials and other resources like office supplies, tools and tackles, heavy machinery and transport vehicles to the company for continuing its everyday operations. Company’s ability to bargain with suppliers for low costs of inputs can be greatly beneficial for achieving efficiency of the business. This results in generation of more profits for the company.
The purpose of achieving business efficiency is to maximize the profits of organization by using fewer inputs to generate more outputs. So, this is indeed one of the most desirable states that a company wants to achieve and achieving business efficiency is its competitive advantage which ensures long-term survival and success of the company.