Shifting political and economic climates over the last two years have precipitated rapid transformations in the business world. All industries in every market worldwide feel the effects of this shift. As a business leader or manager, therefore, you must make radical management changes and implement futuristic growth strategies if you’re to lead your business in the right direction in 2022 and beyond. One of the futuristic strategies that you should keep an eye on is operational efficiency as a key driver of business growth.
What does it mean for a business to have operational efficiency? A business that has optimal operational efficiency uses the least possible resources to produce the highest amount of products or offer the best services to clients. Such businesses have protocols in place to ensure that their manufacturing, distribution, and marketing processes run optimally and sustainably.
How can businesses optimize their operational efficiency and consequently drive business growth?
1. Providing regular and relevant employee training
Your employees are your organization’s greatest asset when it comes to maintaining your bottom line and spearheading growth. It is almost impossible to optimize manufacturing, distribution, customer service, or any other department within your business if your employees aren’t at their absolute best. To optimize operational efficiency, therefore, all your employees must be updated on the best industry standards. They must have unlimited and continuous access to relevant industry data, mentorship programs, and refresher courses. You must put systems and processes in place to keep everyone in your team updated on the best practices for efficiency.
2. Diversify your pool of potential employees
Hiring staff members from your local labor market spares you the bureaucracies and complexities involved in international talent acquisition. You don’t have to worry about the challenges that differences in language, employment laws, and cultures may precipitate. However, you cannot improve your operational efficiency and drive growth if you keep choosing the business approaches that feel safe and convenient. That is why you should start raiding international labor markets for the best of the best talents. International employees bring skills, work ethic, and mindsets that could be hard to find in your local labor market. They bring new cultures that give everyone in your team a new perspective on customer relationships. That makes your organization well-rounded and gives you an edge over competitors.
Note that it is extremely easy these days to dip your feet in international labor markets and even expand into global markets with the help of a professional employment organization (PEO). If you need to tap into the rich talent market of Indonesia and the entire South East Asian region, you can bank on a PEO Indonesia to source, screen, interview, and hire the best talents in the market. The PEO will even help you start business operations in Indonesia if you need to without spending a dime or wasting any time on setting up a legal entity.
3. Automate repetitive and time-consuming tasks
There are more negative than positive impacts of manual processes on your company’s operational efficiency. A lot of time is wasted when humans have to, for example, manually sort out orders or invoices, take stock of inventories, or send emails/SMS to clients. That’s why you should automate whenever possible. Also, whereas automation is expensive because you may have to buy and customize automation software, manual processes are more expensive in the long run. And because there are tons of automation tools for inventory management, accounting, bookkeeping, scheduling, marketing, and other administrative functions, you will always find a tool that suits your budget. Moreover, leveraging automation for operational efficiency significantly minimizes human errors and the costs that come with those errors.
4. Package customer service as an idea and an experience
Quality customer service is at the center of operational efficiency and business growth. But the definition of quality has really changed in the new normal. Clients now want to buy into an idea. They attach a lot of weight to the experience they go through when ordering, paying for, and even unwrapping your products. They want to feel valued and prioritized when booking, paying for and reviewing your services. If you’re only selling products or services at competitive prices, therefore, you will struggle to influence purchase decisions.
When it comes to improving your company’s operational efficiency and driving business growth, there is no one-size-fits-all strategy. It is important that you explore different strategies for improving efficiency in your workforce and systems. Most importantly, be keen enough and consult widely in order to identify the key processes that need revamping for optimal efficiency.