7 Ways To Increase Operational Efficiency

Keeping an edge in a competitive environment requires one to streamline operations and improve efficiency. Here are 7 ways to increase operations efficiency and stay ahead of the curve.

In this article:

      1. Train Employees
      2. Retain Staff
      3. Streamline Communication And Collaboration
      4. Automation
      5. Invest In Technology
      6. Adopt A New Culture
      7. Listen To Customers, Improve Communication, And Earn Loyalty

RELATED: 7 Ways To Increase Sales Productivity

Improve Operational Efficiency

Train Employees

This shouldn’t come as a surprise: well-trained employees are essential to operations efficiency. Develop cross-discipline training along with regular training on procedures and systems.

Highly trained employees not only perform better but also tend to be more satisfied. Satisfied employees are more motivated to work and less likely to seek alternative employment.

Autonomy is another factor to consider. Well trained employees don’t need micromanagement, freeing up managers to work on more productive aspects of the business.

Ensure that all employees have access to training materials or coaching. Cheat-sheets and SOP’s (Standard Operating Procedures) are handy to get new staff up to speed quickly.

Retain Staff

Businesses are people-centric, and relationships are key. Retain employees for operational excellence.

Losing staff is costly. Fewer employees mean less overall productivity, especially if other employees have to do more work because of staffing issues.

Another possible downside to poor staff retention is losing customer loyalty. Customers are often loyal to a person and not to a business and will follow employees to their new company.

Likewise, hiring new employees is expensive and time-consuming. Finding a qualified candidate can take weeks, and once they are onboard, employers need to invest in their training.

Inefficient systems and networks frustrate employees because they can’t get their work done. As a result, valuable staff could get burned out and resign.

Streamline Communication And Collaboration

Interaction between employees, suppliers, and customers need to be effortless. The same can be said for collaborations.

If there’s a breakdown in communication, efficiency drops drastically. Partly because employees can’t complete work or it has to be re-done. And partly because poor communication causes low morale, dissatisfaction, and stress.

Excellent communication ensures employees know what is expected of them. This also enables employees to find solutions quickly by knowing who to communicate with rather than waste time going through the wrong channels.

Poor communication and collaboration is a significant barrier to efficiency. Invest in software and technology to overcome communication obstacles.


Many organizations are looking to automation for operational efficiency. Automation is often thought of as an assembly line tool, but a growing number of enterprises are implementing automation and orchestration systems.

One area business can automate time-consuming tasks, like opportunity tracking, sales conversions, and lead management.

Contact management is another area where automation can improve efficiency. Contact management enhances collaboration and communication because all interactions are tracked.

Reports and analysis can also be automated to improve efficiency. It gives performance and competitor insights as well as sales forecasts.

There are various tools available, and it is becoming increasingly important to automate processes and assist employees with monotonous tasks.

RELATED: Why You Should Be Using AI Right Now

Invest In Technology

For automation and efficiency, businesses will have to invest in the right technology. Three major areas to consider are predictive analytics, artificial intelligence, and edge computing.

    • Predictive analytics
      Often only considered for business data, predictive analytics can be used to analyze IT data as well. Use predictive analytics to estimate budgets, timeframes, and future needs so that managers can allocate resources more efficiently.
    • Artificial intelligence
      Many predict artificial intelligence in operations and management will be the norm sooner rather than later. Studies have found AI can improve sales by building a high-quality pipeline and increasing lead quality.

      From offering customer insights to calculating external factors that could influence a sale, artificial intelligence has many practical applications.
      Historically early adopters have profited from being technological trendsetters, and it seems like AI is no different.

    • Edge computing
      Rather than relying on a central location far away, edge computing aims to bring storage data closer to where it is used.Edge computing gives businesses an advantage because it reduces latency in real-time data that could affect performance. It also reduces cost because processing is done locally, so less data is needed.

The bottom line is to start investigating and investing in these technologies or risk getting left behind. Businesses will no longer be able to keep a competitive edge without the right technology.

Adopt A New Culture

In its essence, company culture is as much a philosophy as it is a set of practices. For more efficiency and quicker innovation, agile, continuous communication and cross-functional collaborations are essential. Make sure the company culture reflects these values.

A cultural overhaul requires a shift in mindset. Focus on integration and collaboration, especially for those areas of business that used to function in relative siloes.

It is also beneficial to build a culture of trust. It will encourage collaboration and improve client retention.

Listen To Customers, Improve Communication, And Earn Loyalty

Customers are great at identifying areas for improvement. Often complaints from customers show gaps in operations.

Once a customer has identified a problem, investigate, and find solutions. Small improvements in customer service can reduce complaints and increase customer satisfaction.

Retaining customers is as valuable as retaining staff. Earning customer loyalty boosts efficiency because getting new customers takes more effort and resources than maintaining existing customers.

Determine how well your organization is performing and how technological solutions are contributing to your business objectives. Investigate existing operations, improve technologies, and evaluate results continuously to ensure operations efficiency.

Are there other methods you employ to improve operational efficiency in your organization? Let us know in the comments section!

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