When times are hard as well as when things are progressing well, all businesses can utilize efficient action steps to increase productivity, reduce costs and improve revenue.
Definition of Efficiency?
- The accomplishment of or ability to accomplish a job with a minimum expenditure of time and effort. (dictionary.com)
- A measure of effectiveness;specifically,the useful work (business dictionary.com) output divided by the energy input in any system.
- The simple, often used, definition of efficiency is (“doing the thing right“). (smartinsights.com)
Here are a few ways to calculate efficiency:
(according to ask.reference.com)
In banking, efficiency is derived from the non-interest expenses divided by the revenue. It is written as a ratio. An increasing efficiency ratio is bad, as the bank or company is spending too much on expenses.
The efficiency of a process is calculated by dividing the output by the input, and then multiplying the result by 100. This gives the percentage of the effort put into the process that will be recovered in the form of output by the device.
In order to calculate a production line efficiency you need to obtain data of the number of pieces and the number of hours worked. In addition, you will also need to obtain the piece/min data by conducting a time study at the front and end …
Now that we have defined efficiency and we have a few ways to measure…
9 – Suggested Action Steps Toward Increasing Efficiency
- Determine if you want to be effective or efficient…maybe it’s both. Effective means that something works. Efficient means that something works well – i.e., that it both works and consumes the fewest resources in the process.
- Evaluate your processes…what systems do you have in place or need to develop? What should you get rid of or stop doing?
- Manage your time. Group like tasks together and manage priorities, that will help to stay focused and manage your time much more efficiently.
- Determine how you will evaluate time spent on tasks by yourself, current or future team members, etc. How will success be judged? What is your approach in gathering feedback and measuring the impact?
- Be strategic in your planning. Gain a clear picture of where you want to go and how you’re going to get there. Set realistic goals and time frames.
- Review the capabilities of your team or prospective team. It’s key to being efficient to have the right team in place and knowing what they can and cannot do.
- Communicate, communicate, communicate. Leaders need to have support in place. You will need to make sure your communication helps your team to develop and practice the necessary capabilities.
- Encourage your team to challenge how things are working, to contribute ideas, and most importantly to boost morale.
- If your team is virtual, take some time just say thank you…find ways to encourage them so that they remain motivated. We all need to hear that every now and then, it encourages the best of them to work even harder. Of course, if they are in the same office, find ways to show your appreciation
What would you consider to be #10?