Ways to Improve Operational Efficiency

 

With an MBA from the Carlson School of Management at the University of Minnesota, Aaron Eichler is the founder and managing director of firm Strategic Consulting. In this role, Aaron Eichler helps organizations develop strategies to improve their operational efficiency.

Operational efficiency is the measure of a company's ability to deliver products or services by using the least amount of capital and time. Here are three ways to boost operational efficiency:

1. Streamline processes.

Streamlining entails simplifying or eliminating unnecessary or redundant steps in a workflow. This is done by listing all of the tasks and deciding if they provide enough value to justify the involved resources.

2. Integrate technology.

Companies can integrate technology into many areas of operation to speed the process and improve the productivity of employees. For instance, deploying an inventory management system makes tracking the level of stock easier.

3. Encourage innovation.

Encouraging a culture of innovation and collaboration benefits both the company and its employees. Companies that empower their employees to think of ways to improve their work are better able to overcome competition. Employees are happier and more engaged in business outcomes when their contributions directly impact the company’s objectives.