April 17, 2012
Economic Efficiency
In tough economic times, the global economic environment is striving for economic efficiency. As an entrepreneur you need to keep operations running smooth and cost-effective.
Competitive environments require team solutions and creativity in developing and implementing efficiencies in your business. Through economic efficiency and efficient operations your business will realize a higher earning potential and at the same time, experience reduced, cost-effective methods and procedures to earning that revenue.
Here are 5 tips to creating economic efficiency in your business.
Economic Efficiency – Eliminate Redundant Procedures in Your Business
Undertake an operational review to identify unnecessary repetitive methods and procedures. Many approval processes go way over board in requiring multiple persons to review, analyze and either recommend approval or approve a project, cost, or contract. Federal government processes in many cases highlight this problem, as procedures go over the top to ensure the highest accountability. Maintain your accountability, but streamline your operations to the necessary reduced human resources to make decisions. Rely on and empower your professional team to make great recommendations at each level. With elimination of steps in procedures, your operation will be more cost-effective.
Implement Technology Wherever it Makes Sense for Economic Efficiency
Automate procedures when it makes sense from operational and budgetary perspectives. Reduce laborious tasks if automation and technology can do the same task more efficiently and cost-effective over the long run. The implementation of Kiva System robots in warehouse operations is one example of efficiencies gained through automation. It would also be a shocker if businesses have still not adapted to computerized sales, accounting and inventory systems – a must in business operations to keep competitive and cost-effective.
Economic Efficiency – Make it Easier For Everyone to work together
In business operations today, being all physically located in one location is not as important as it was decades ago, due to improved technology and connectedness.
Through innovation and technology, staff can work at any location and be easily connected by phone, mobile device, web or cloud-based applications. All current technology methods make communication and business functions more smooth and easy. Businesses that can provide work-life balance flexibilities and mechanisms, can ensure the work can get easily done from any location. Collaboration across units, teams and partners can happen seamlessly with the implementation and the availability of smart technology in your organization.
Business Efficiencies – Making the Customer Process Easier
Straight forward information and sales procedures for your products and services will make the overall experience with customers more effective and efficient. Make the product or service information readily available to the customer, whether at a physical location or web-based. When designing e-commerce sites, ensure the client can easily navigate through to the completion of the sales process. Nail down a streamlined sales process both internally and externally and ensure that your have contingency CRM plans to deal with issues around customer complaints. The more prepared you are, the less time per customer it will take to generate revenue or resolve an issue. More time can then be spent on building the relationship aspect of customer service with more customers.
Business Efficiencies – Getting the work done without the Travel
If you want to quickly and effectively reduce costs in your organization, travel budgets can be significantly reduced, while getting the same scope of work (meetings) done by using technology. Phone and video conferencing can easily replace face-to-face meetings and the costs associated. Meeting in person may be the richest form of communication in cutting a deal or working collaboratively. However utilizing video conferencing or using Skype or other forms is more the standard and acceptable these days. As an entrepreneur you will have to make a careful decision on the appropriate forms of communication for the appropriate audience, while cognizant of the need for cost-effective methods.
Economic efficiency can be achieved in your business, however ensure you take adequate business planning steps to maximize benefits from reduced resources and methods.
Business information, resources and tips for the entrepreneur
© 2012 Strategy Plan One
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