Tags: business | efficiency | waste

5 Ways to Sharpen Your Business Efficiency

5 Ways to Sharpen Your Business Efficiency
 © Jacek Dudzinski | Dreamstime.com

By    |   Monday, 04 June 2018 06:16 AM

Efficiency is one of the leading management concepts in the private sector. It’s different from effectiveness and refers to “the ability to avoid wasting materials, energy, efforts, money, and time in doing something or in producing a desired result. In a more general sense, it is the ability to do things well, successfully, and without waste” according to Wikipedia.

Minimizing waste of resources amid high cost of goods and materials is very important since using resources efficiently makes good financial sense and enhances the chance of business survival.

Here are five strategies to reduce waste and improve business efficiency:

  1. Strict Monitoring of Business Processes

Business processes and tasks involve the utilization of materials, energy, efforts, money and time in producing a desired result. Failure to adequately monitor how these aforementioned variables are utilized and compare to the desired output can hinder business profitability.

Business owners shouldn’t be satisfied with achieving set goals at the expense of huge business resources. Emphasis should be placed on how to cut costs and achieve set goals in an efficient manner. Organization members should take responsibility for every mistake to instill a sense of consciousness and curb incessant business waste.

  1. Have an Effective Assets Tracking System

Digital asset tracking is gaining prominence in the business world and serves as a critical tool for monitoring the physical location of every asset in the field and in your inventory, especially for companies that depend on large fleets of vehicles and equipment.

With digital asset tracking, accounting errors arising from the use of spreadsheets and manual counts when totaling inventories, asset values and customer billings are minimized. Also, it enhances better auditing which reduces internal fraud, theft, and financial mismanagement that can occur with inaccurate financial reporting. By keeping tabs on business inputs, outputs, inventories, and assets, you can effectively manage business waste.

  1. Create a Conducive Business Environment

Creating a positive and productive work environment is critical to the overall success of every organization. This is why, today, there is more emphasis on the needs of the workforce than the needs of the organization. A poor business environment is dangerous and wasteful.

Studies show that healthcare expenditures are nearly 50% higher at high-pressure companies than other organizations. More than $500 billion are attributed to healthcare cost relating to workplace stress while 550 million workdays are lost to each year to stress in the United States. This is massive.

Apart from medical expenditure, some employees could be seeking for legal rights as victims of the effect of toxic business environment. Your business could be losing precious time and opportunities as well as wasting financial resources.

  1. Outsource When it’s Necessary

There are lots of business tasks, functions and activities. Hence it’ll be somewhat difficult for your company to carry out all of them efficiently. Truth is, there are business tasks your organization can efficiently carry out and those it can’t.

The best approach in this situation is to outsource such tasks to experts in that area in order to reduce cost and minimize wastage. You can outsource manpower recruitment to a reputable recruitment firm. There are also haulage companies, search optimization agency, SEO outsource team, cyber security firms, purchase and supplies companies, IT support team etc. that can provide cheaper and efficient services to your company. Outsourcing saves business resources.

  1. Adopt Performance Management

One of the best approaches to evaluating the effort and work performance of your workers is through performance management. Truth is, the success and failure of an organization is highly dependent on the performance of its workforce.

The big questions are; do you have a strong corporate culture? Are your employees carrying out their assigned tasks efficiently? Is their work improving over time? Are they mindful of waste minimization? Understanding your employees’ strengths and weaknesses is a vital step to detecting deviations from set goals and putting corrective measures to achieve organizational objectives.

By implementing performance management technique, you can effectively monitor employees’ progress and easily detect errors and deviations that can cause your company huge financial burden. Waste costs money, hence finding ways to reduce waste could make your business become more profitable.

Richard Agu is a researcher, entrepreneur and freelancer, passionate about entrepreneurship and self-development. Currently, Richard writes for Entrepreneur.com, Goodmenproject.com, among others. Follow him on Linkedin.com by clicking here now.

© 2020 Newsmax Finance. All rights reserved.

1Like our page
Here are 5 strategies to reduce waste and improve business efficiency:
business, efficiency, waste
Monday, 04 June 2018 06:16 AM
Newsmax Media, Inc.
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved