Every company wishes to increase operational efficiency, This term is often a foundational pillar within an organization’s business strategy. We are going to offer more tips to increase operational efficiency for organizations of any size – because we all know we can be more efficient.
First of all, what is operational efficiency? In its most basic form, operational efficiency is the generation of revenue with the least possible use of resources. The standard calculation to measure an organization’s operational efficiency is to take the organization’s operating expenses and divide it by the organization’s revenue. This results in a calculation. The lower the calculated score, the greater the operational efficiency.
But what if you are not responsible for the revenue and expenses for the organization? What if you only lead or contribute to operations? Can you still increase operational efficiency?
I am so glad you asked…
In this blog, we are going to give you operational efficiency improvement tips that are applicable to any department as well. No matter what area you are operating in, these proven tips will help you and your team achieve maximum efficiency!
1. Identify bottlenecks and optimize your processes!
Before implementing any process optimizations or automations, it is important to first identify areas where inefficiencies are slowing down your processes. Whether it is delayed decision-making, repetitive tasks, or poor communication, a major part of improving processes is knowing what to focus on. Without clear priorities, you risk wasting time on less critical tasks. Prioritization tools help you focus on tasks that matter most and align your efforts with your long-term goals.
Review and digitally document your processes, department-by-department. Look for opportunities to simplify your steps, reduce your costs, and identify at least five automation opportunities per department. The average company has a minimum of five major departments: Finance, Marketing, Operations, Human Resources, and Information Technology. If you automate five activities in five departments, that is 25 automations.
Don’t know what to automate? Think this way:
- Repetitive tasks: human or application-based and repeatable.
- Structured criteria: the more consistent the information the better (standardized information, same field locations, same format).
- Low variation: minimal to no variations in the process due to exceptions or complex decisions.
Repetitive tasks consume time and mental energy that could be better spent on strategic activities. Automation, integrated with time management tools, can streamline these processes by eliminating manual intervention, thus improving overall efficiency.
Tools to Use:
- Zapier: Automates workflows by connecting apps and transferring information between them automatically. This is especially useful for routine tasks like data entry, updating records, or sending notifications.
- IFTTT (If This, Then That): Another automation tool that integrates with various platforms to automate processes like sharing social media posts, sending reminder emails, or updating spreadsheets.
- Automator and Shortcuts (Apple users): If you are tied in to the Apple Ecosystem, look no further than these two apps for fresh automation opportunities. Note: Shortcuts can be executed and shared across your Macbooks, iPads, and iPhones.
Considering Microsoft Power Automate in your organization? Look no further than this blog article to get you started quickly:
2. Ditch paper!
The cost of paper to your organization includes paper, paper clips, staples, staplers, pens, pencils, erasers, printers, printer toner, file folders, storage cabinets, off-site storage, shredding services, recycling services, and so on. Have a look at your office expenses related to paper and see how much this could save your organization. You might be surprised.
Also note, the human time spent on things like pushing paper, refilling paper/toner, and waiting for things to print is actually the greater cost to being overly paper-dependent.
Have a look at this article which breaks down the true cost of your organization’s paper-addiction:
3. Invest in time and task management tools
In today’s fast-paced world, effective time and task management is essential for both individuals and businesses. With the increasing complexity of modern life, investing in the right time and task management tools can be a game-changer, leading to greater productivity, reduced stress, and improved work-life balance.
Time is a finite resource, and how it is managed can significantly impact performance. Time management tools, such as digital calendars, scheduling apps, and time-tracking software, help users prioritize tasks, set deadlines, and stay organized. By keeping projects on track and preventing last-minute scrambles, these tools enhance productivity and ensure that critical tasks are not overlooked.
Task management tools, on the other hand, are designed to break down projects into manageable steps, assign tasks to team members, and track progress. Applications like Trello, Asana, or Todoist allow users to create task lists, set priorities, and monitor workflow. By visually mapping out responsibilities, these tools provide clarity, helping teams collaborate more efficiently and individuals stay focused on what needs to be done next.
Well, what are you waiting for? Increased efficiency, better decision-making, accountability, and reduced stress are just around the corner for you!
Tools to Use:
- Toggl – A simple time-tracking tool that allows users to track how much time they spend on different tasks and projects, helping with time audits and productivity analysis.
- RescueTime – A time-tracking and productivity app that monitors how you spend your time on digital devices and provides reports to help you optimize your work habits.
- Todoist – A task management tool that helps users create to-do lists, set deadlines, and prioritize tasks, keeping track of what needs to be done throughout the day.
- Trello – A project management tool that organizes tasks on boards, making it easy to visualize workflows, prioritize tasks, and manage time effectively.
4. Establish and maintain efficient team collaboration
Poor communication and collaboration between individuals and teams tend to cause organizational turbulence. Smooth out that ride by identifying effective collaboration practices and tools that work for your organizational culture. Establish guidelines, train your team on proper communication tools usage and etiquette, and make team collaboration a rewarding experience.
Reduce silos by creating communication and collaboration opportunities between teams. Identify your team members’ unique skills and areas of expertise and assign them a role in a project that allows them to excel in ways that make other team members successful. I guarantee you those successful team members will want to continue collaboration with that person!
But remember, collaboration is not throwing a bunch of people on to a team and encouraging them to talk and work together. Strong organizational leaders, like good coaches of professional sports teams, will not just throw a bunch of people on the field and hope for the best. No, they are way more crafty and strategic than that! They will identify their star players and put other players into spots where they excel and everyone gets to succeed together.
How do you know who your star players are? They are the ones that help you turn your mediocre team into superstars. They are not only the ones that perform well in their own right, but you will notice that they find a way for everyone around them to perform better somehow.
Think Tom Brady. Is it dumb luck that he throws as many touchdowns as he does? Did he win six Super bowl rings on his own? Do you think all of his wide receivers were exceptional talent who were paid tons of money because they were already so good, and conveniently placed around him to make him to make him a superstar? No way! Most of them were a Mr. Nobody until Mr. Brady made them great! That’s why they were a great team too, not because Tom Brady was an amazing quarterback – certainly, he was – but because he made superstars out of his team members.
Create efficient and consistent team communication channels/methods.
Tools to Use:
- Slack: A messaging app for teams that streamlines communication by organizing conversations into channels, making it easier to stay on top of tasks and requests.
- Microsoft Teams or Zoom: For virtual meetings and quick decision-making, these tools improve collaboration and reduce the time spent on unnecessary in-person meetings.
- Google Chat – Integrated with Google Workspace, it allows teams to communicate via chat and offers seamless integration with other Google apps like Google Drive, Docs, and Calendar.
- Discord – Originally designed for gaming communities, Discord has gained popularity in professional environments, offering text, voice, and video communication with various integrations.
5. Prioritize Employee Training and Development
Employee training and development have emerged as crucial components for organizational success. Companies that invest in the continuous learning and skill enhancement of their workforce tend to see improved productivity, higher employee morale, and greater retention rates.
Of course, this concern is the common, “I cannot afford to train employees and have them leave.” And, on the other hand, “can I afford not to train employees and have them leave?”
In this article, I am not suggesting you send your employees to three-day conferences, or super technical skills training. I am going to suggest very specific training that directly relates to your organization’s efficiency as well as your bottom line.
Employees do not all know how to manage their time or their tasks, so set them on a course that trains them on learning skills that increase efficiency. They get the use/keep these skills in their own personal lives and your organization gets to benefit from this too!
Consider training (online or in-person) your employees in any of the following:
- Process Optimization: Teach employees how to identify inefficiencies in current processes and suggest improvements. Implement Lean and Six Sigma methodologies to eliminate waste and enhance productivity.
- Time Management: Provide training on prioritizing tasks, setting realistic goals, and using time management tools. Encourage techniques like the Pomodoro Technique or time-blocking.
- Technology Utilization: Train employees on software and tools that streamline operations (e.g., project management tools, communication platforms). Promote the use of automation tools for repetitive tasks.
- Cross-Functional Collaboration: Foster training that encourages teamwork and communication across departments to improve workflow. Conduct team-building exercises to enhance collaboration skills.
- Problem-Solving Skills: Equip employees with critical thinking and analytical skills to identify and resolve operational issues effectively. Encourage a proactive approach to problem-solving.
Implement these tips and you will have more time to enjoy the benefits of operational efficiency!
Should you need more comprehensive support on process improvement, operational efficiency, training, and/or documentation, use the “Contact Us” link to reach out anytime!
Comprehend. Reimagine. Outperform.