7 Cornerstones of Optimum Operational Efficiency
Vishwajeet Singh, Sr. V P & CIO, Davin Info
Every organization aims to strike the perfect balance between cost, quality and efficiency, as it is a prerequisite to sustain and thrive in today’s increasingly-competitive and rapidly-transforming business environments. Operational efficiency plays a key role in delivering products or services to customers in the most cost-effective manner while ensuring quality, service and support. In simpler words, the aim is to use the least input to achieve the highest output, or reduce the input while upholding the bottom-line. That, however, is easier said than done. The seven cornerstones of optimal operational efficiency are:
1. Regular Technology Updates
The world is rapidly changing, but the pace of transformations in the realm of technology is at an altogether different level. Before one takes note, technologies get obsolete, eventually start acting as an anchor for organizational efficiency and growth. Regular technology audits, therefore, are the primary prerequisite to achieving optimal operational efficiency.
2. Transparent Internal Communication
The operational efficiency of an organization largely depends upon the commitment and zeal of its employees, both of which can take a hit in the absence of transparent internal communication. Be it assessments, appraisals, internal developments, or any other key change, organizations need to ensure that the message is put across to their employees, which is further complemented by a grievance redressal process.
3. Continuous Process Improvement
Two of the biggest drawbacks we have are our inexplicable inclination towards all that’s “familiar” and the fact that we tend to get too comfortable in our shoes, too soon. Many organizations don’t take the time to revisit their business processes that might no longer be appropriate due to changing industry or operational dynamics. Regular improvement of business processes, therefore, is another cornerstone of success.
4. Customer Relationship Management
Organizations looking to optimize their operational efficiency, therefore, must invest in a leading edge customer relationship solution that not only eases the role of their front-desk teams, but also provides the necessary insights to improve all that lies under the hood.
5. Data-Driven Decision Making
In times largely dominated by big data analytics, every organization with a long-term vision for sustainability embraces data-driven decision-making in its operations for various purposes such as growth planning, capital management, forecasting and other similar finer lines of operations. Organizations can leverage data driven decision-making to improve various aspects of their operations, which is bound to reflect positively on its overall operating efficiency.
6. Skill Development
There is a common narrative that employees, once upskilled, leave to chase more rewarding avenues. While a few odd instances of such a tendency cannot be denied, organizations are up again with a bigger question: “What if they don’t train their employees and they “don’t” leave? Needless to elaborate it is imperative for every organization that looking to enhance its operational efficiency, to focus on the skill development of its employees.
7. Remote Work Provision
It has been a few decades since the world woke up to, and embraced, the concept of globalization of trade. Paradoxically, most organizations are still coming to terms with the concept of remote work. In the current time and space, geographical boundaries or distances should no longer limit an organization from reaching optimum operational efficiency.
The Final Word
Organizations from around the world these days are leaving no stone unturned to up their competitors, which has greatly intensified the fierceness of competition in almost all industries and sectors. As there is no universal recipe for success, organizations must devote a part of their might in understanding what will work their business and what won’t. Signing off with a hope that this article will help you propel your organization towards optimum operational efficiency, but the first element for success, might be the awareness of the “need” for transformations.