Improve Operational Efficiency (5 Tips & Tricks)

June 28, 2021

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Do you know how to improve operational efficiency in your organization?

As we emerge from the COVID-19 pandemic, you should aim to hit the ground running with an organization-wide productivity drive. A decline in productivity has been a key concern for many operating remotely during the pandemic. With employees entering back into the workplace, it is time to start examining ways to improve operational efficiency.

How much time is being wasted through operational inefficiencies? Is your organizational workflow as smooth and seamless as it should be? When it comes to providing exceptional customer service, these things matter. It’s easy to forget about the clear link between the operations of an organization and the overall satisfaction of customers.

A poor workflow could be costing you thousands of dollars - and you wouldn’t realize it. This is the frustrating reality of how large organizations and enterprises function. It’s important to be able to take a step back and assess the effectiveness of your operations. What is standing in the way of you achieving greater levels of customer satisfaction and retention?

This is just an example of a question that you should ask yourself. To assess and improve the operational efficiency of your organization, you need to be objective. This is a challenge you need to confront with a growth mindset. Every organization has areas for improvement. The sooner these can be identified and addressed by senior management, the better.

In this guide, we will be answering the following questions:

  • How do you measure operational efficiency?
  • Why is operational efficiency important?
  • How do you improve operational efficiency?
  • Can automation improve operational efficiency?

After reading this article, if you have any further questions about how to improve operational efficiency, please do not hesitate to contact us. At StartingPoint, we are committed to working with enterprises and organizations on simplifying workflow management. We are able to achieve this through the implementation of our custom-built software-as-a-service solution.

business automation and efficiency
Business Automation and Efficiency

How do you measure operational efficiency?

If you want to do this the technical way, you need to calculate the ratio of output gained to the input expended. When you calculate the ratio, you will need to take a range of different factors into account. These factors may include operational expenditure, customer satisfaction, capital expenditure, human resources, and revenue. There’s plenty of variables to consider.

When you measure operational efficiency using a few metrics, issues with your workflow will rise to the surface. Ultimately, operational efficiency all boils down to resource allocation. This is about how organization and enterprise are allocating human resources and capital resources to meet customer demands. With this in mind, there are many moving parts to this puzzle.

Data is the key driver and proponent of operational efficiency. Without solid data for decision making, the necessary changes needed to make your workflow more efficient won’t be made. You should be utilizing data analytics to measure the overall effectiveness of your workflow. This should take a full range of variables into account, measuring output gained to the input extended.

Why is operational efficiency important?

Operational efficiency could be the only issue standing between you and business growth. While an operation may appear to be running smoothly and delivering for customers, it could also be failing to live up to its potential. At StartingPoint, we believe there is untapped potential in every workflow. If you’re seeking maximum efficiency, you should consider using our platform.

Optimizing your workflow isn’t a nicety, it’s a necessity. To facilitate future business growth, you need to get serious about the importance of operational efficiency. You need to create a culture where team members feel prepared to speak openly and honestly about the systems they use. If an area of your business could be optimized, wouldn’t you want to know about it?

How do you improve operational efficiency?

To get this right, you need to bring everyone together for open conversations about the strengths and weaknesses of your operations. While it’s important to consult with employees on general improvements to the workflow, it should be noted that workforces can carry their own biases. For instance, structural staffing changes for optimization may go against their interests.

With this in mind, you should carry out an independent review of your workflow. This will be free from any biases and enable you to objectively evaluate the situation. Making improvements to your workflow is not always easy. However, with the right systems and tools in place, you will be well equipped to overcome any potential challenges along the way.

Here are 5 ways to improve operational efficiency:

  1. Invest in digital workflow management applications and solutions.
  2. Provide a centralized location for service management.
  3. Improve your customer services and sales responsiveness.
  4. Promote cross-team communication in the workplace.
  5. Improve employee engagement across all departments.

If you can make progress in these 5 areas, your operation will certainly become more efficient. It all comes down to implementation. At StartingPoint, we have worked hard to develop a tool that can confidently address these 5 areas and bring everyone onto the same page. For many of the organizations we work with, this has proven to be the missing piece of their operational puzzle.

Process Efficiency
Process Efficiency

Can automation improve operational efficiency?

Workflow automation can play a vital role in improving operational efficiency. To streamline processes and speed up the customer experience, you need to get the right systems in place. At StartingPoint, our team has worked hard to develop a comprehensive software-as-a-service solution that fires on all cylinders. This has become a go-to platform for many organizations.

From customer onboarding to project management, our platform offers a centralized location for all major operations. Every feature and functionality has been designed to streamline customer experiences. We want you to be at your very best for them. This can only be achieved when you have the right systems in place to execute your ambitions.

Are you ready to utilize the right customer service tools for your firm? You should consider using StartingPoint to enhance customer experiences. Request a 14-day free trial today.