Economics/Business

Efficiency in business/keys business efficiency/achieving efficiency

A good organization within a company is essential. Not only to achieve your business mission, but also in terms of performance. Therefore, one of the main objectives of any business must be efficiency .

Today we are going to analyze what it consists of, what its keys are or why accounting programs can help achieve it.

Efficiency is the ability to achieve an objective with the least possible resources. Therefore, to achieve an efficient work environment, it must necessarily be equipped with the necessary tools that are capable of streamlining processes.

However, efficiency is often confused with effectiveness when the two are different concepts. It indicates as efficiency the “ability to achieve the effect that is desired or expected”. That is, it may be the case that it can be effective but not efficient.

What is efficiency in the business?

When we talk about business efficiency , we refer to obtaining favorable productivity for the business. In other words, get the maximum results with the minimum amount of resources.

“The crux of the matter lies in saving or reducing resources.”

To measure efficiency, various elements must be assessed, including:

  • Time.
  • the efforts invested.
  • capital.
  • The quality of the generated product.
  • Etc.

In short, an efficient company will be the one that earns more for less . Which, logically, has a direct influence on the profitability of the company.

Efficiency vs. Effectiveness

Some people confuse efficiency with effectiveness. The second means being able to achieve all the set goals. On the other hand, being efficient has to do with how to achieve such goals : study different variables, reduce possible errors, use fewer resources, satisfy the objectives set, reduce the time that tasks take…

Importance in a company

Performance and productivity are necessary factors to guarantee the success of a company. However, maintaining this level is the result of an accumulation process of good decisions and rigorous work, an effort that involves everyone and requires commitment.

Organizations seek business excellence and this can only be achieved through efficiency , striking the right balance with effectiveness. Under this scenario, there are several ways to make this goal a reality.

The first recommendation is always to take people into account, promoting a model in which interactions and trust between the members of the organization is the engine of the company , achieving the commitment of people, especially in businesses that are intensive in human capital. and ensuring the efficient design of the organization and its roles, collaboration and talent management are some ways to achieve the goal.

This is why the results and profits of the company depend directly on the performance of its workers . An organization with uninvolved employees will produce worse results.

Competent professionals who add value to the business, a sustainable company culture, a source of unified thinking and the implementation of good work habits inspired by discipline are some of the keys to efficiency.

Some of the benefits that efficiency presents in companies are: creation of value and generation of wealth, clear definition of objectives and adaptation of plans to guarantee their achievement, systematic way of operating applied to processes and systems, knowledge to satisfy the needs and expectations and wishes of its clients , design of development plans and continuous improvement,  promotion of work motivation programs and promotion of professional development .

When a company achieves efficiency,  its main objective and priority must be to maintain itself and continue to grow. This requires the commitment of all parties and the design of a strategy on which to continue progressing.

The keys to business efficiency

Yield, production and profits are essential factors to guarantee the success of a business. When a company achieves efficiency, its main priority is to maintain it and continue to grow. This requires the commitment of all parts of the organization, but, above all, designing a strategy that allows it to continue progressing. This must be based on the following:

Optimization of work processes

To increase the income of the company you have to save on resources. These are not merely economic, and they also have to do with time. With accounting software, for example, it is possible:

  • Simplify administrative processes .
  • Automate different procedures (which avoids human errors).
  • Reduce the amount of paper (because these systems issue receipts electronically, which saves space at work, printing costs, etc.).

Consequently, increasing technological investment is essential to improve team processes.

Accounting software: essential for any company

An accounting software is basic to account for billing or payroll, in addition to generating models for presentation to the Treasury. Likewise, it is beneficial for the efficiency of a company, because it speeds up all these procedures that consume so much time, being able to dedicate it to tasks that require more dedication.

More motivation

Establishing a favorable work environment , avoiding negativity and promoting healthy competition, is also one of the keys to business efficiency. If employees are comfortable, they will work more effectively and further develop their potential.

improve work

Optimizing efficiency in the company does not mean more work by employees, but rather that they do it better. An excellent alternative is to create a priority table , which allows each employee to understand which are the tasks that have to be solved first. Establishing tools so that each employee can organize their work time is crucial.

Communication

Fostering good internal communication with the company’s workers is advisable to improve work efficiency. Promoting teamwork and achieving goals is something that should be exercised from positivism. Likewise, it is convenient that any employee of the company can raise their doubts and proposals without hesitation. Thus, it is easier to improve the different work processes.

Achieving efficiency in your business

It seems evident, therefore, that in a context as digital as the one in which we are immersed, having an efficient and effective work environment is a guarantee of success. For this reason, at Corporates Technologies  we have prepared a small guide to ensure that your company reaches the proposed goals through a series of simple guidelines that will lead you to have a correct use of your resources.

Take note:

1.- Make your processes less expensive

It is convenient to analyze, first, what uses you are giving to paper in your company. The data indicates that more than half of the organizations continue to base their processes on paper compared to only 15 percent that are already making the leap to digitization, with paper being, for 62% of the companies, one of the greatest risks of security. Consider that, according to data from the consulting firm Gartner and Arthur Andersen, 11,000 euros is what it costs to file your documents in a traditional archive compared to the 114 euros stipulated in adopting an electronic system. In addition, the use of paper can lead in the long run, if you do not have optimal document management, loss of credibility, customer delays and poor financial decisions. Not to mention that your security, using paper, can be a powder keg if you don’t have the appropriate  conservation and custody measures .

2.- Automate

The goal is clear: replace manual tasks and start doing them automatically. An example of this is electronic invoicing . With automation you will achieve very obvious advantages: more agility at work, you will save costs, you will also have a more complete vision of your business, thus detecting which are the least efficient parts of it and implementing improvements. Keep this information: For example, the paper invoice costs about 5.61 euros (issuance and reception) compared to the 3.91 euros that is also for issuance and reception, which is the cost that is encrypted for the electronic format. Remember that automation will allow you to focus on more productive tasks that bring you more business.

3.- Control spending

Ask yourself the following question. Do you really know how many times you print and how many paper copies are made in your office? It’s something simple, but companies find it a complex issue if they don’t have the right tools for it. The management of the printing park is essential to know where you can improve in your organization and what to save on, however, many companies are unaware of the numbers they handle in this regard. Honestly the numbers may surprise you. Keep in mind that the lack of control almost always generates unnecessary expenses.

4.- Learn to manage change

Organizations today seek flexibility, they must be able to adapt to the changes imposed by the constant technological innovations that have been installed in the new business environment, much more dynamic that seeks above all to satisfy, almost instantly, the needs of a customer increasingly educated and above all more digital. For this reason, an increasing value today is efficiency and to achieve this, tools such as Solpheo Suite are without a doubt the greatest ally to improve productivity and improve its processes, which will benefit in better decision making. The lack of agility to adapt to changes can make you lose competitiveness and today it is undoubtedly required that both document management and internal processes of organizations be done differently.

5.- Always mobile

Your company is where your technology is. Mobile apps are making work possible in any environment, wherever you are. Relying on the right technology is crucial to maintain survival today. Digitization has also meant that organizations must make an effort to always be connected, giving quick answers to their clients and, in this, having tools that promote mobility is already key to success.

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