The Business Advisory Blog

Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.

Efficiency and Productivity in Business Operations

Vanessa Williams

Published on 2024-11-19

5 Ways to Improve Efficiency and Productivity in Business Operations

Businesses have a better chance of THRIVING when there’s a focus on operational efficiency and productivity. This reduces costs, improves customer satisfaction and results in a competitive edge.

Here are 5 practical strategies applicable in most businesses (and industries) which can boost efficiency, productivity, profitability and growth.

1. Leverage Automation

Automation transforms routine tasks, like payments, invoicing and some aspects of customer service. Seamless, low-touch processes free up valuable time for use in more strategic initiatives.

Take a small online retailer, for example, which has automated inventory management. New software reduces errors but also saves around 20 hours per week of administrative work. Fulfillment speed has improved so the company can process orders faster, increasing customer satisfaction.

2. Adopt Lean Principles

Essentially, this means minimising waste and maximising value through continuous improvement across all business functions. It is often associated with manufacturers and their production process. That said, any business can benefit from actively reducing costs, minimizing waste and improving processes, especially those which give the customer a better experience.

3. Invest in Employee Training

Skilled employees are more productive and can adapt to new technologies and processes more effectively. Training is a long-term investment in the team's capabilities and morale but there can be short term gains in, for example, project efficiency, accuracy, completion rates and Client satisfaction.

4. Utilise Cloud Computing

Cloud computing is no longer new, and offers scalable resources, from storage to software, accessible from anywhere, improving collaboration and data accessibility.

For instance, a medium-sized environmental consultancy moved its data and applications to the cloud. This reduced IT costs by eliminating the need for on-premise servers and maintenance. It also boosted team productivity due to faster access to data and streamlined collaboration among remote team members.

5. Use Continuous Feedback Loops

Regular feedback from employees and customers provides valuable insights for improvement. This should not be a one-time event but a recurring activity.

For example, businesses with periodic staff and customer feedback sessions can promptly address customer concerns while increasing employee engagement, as the team feels more involved and valued.