Growing your business: Efficiency vs Effectiveness

Business efficiency guide - automation blog

In our minds, a business is moving in one of two directions; either forwards or backwards.

The urge to grow a business helps to ensure increased strength and protection against events beyond the control of company leaders. In theory, the more diverse and evolved an organisation is, the greater likelihood is that it will not just survive any number of unforeseen events, but will thrive ‘no matter what’.

To develop a strong business, we’ll consider efficiency, and effectiveness.

By efficiency, we simply mean to do things in the best possible way to ensure consistent and quick results.

By effectiveness, we mean executing actions that will deliver the results you want.

Efficiency is vital when it comes to the overall profitability of a business. Effectiveness is vital to ensure growth. As business owners, we’re always searching for ways to increase profitability. Best practice dictates that we document all processes and systems, and work closely with teams to come up with new ideas. For years, businesses have worked with us to do exactly that.

Computerisation acts as the additional support team to implement new systems and ways of working that will drive your business forward.

Often, we encounter businesses that have built a good level of efficiency around a process that actually should have been removed altogether. You want a plan to help improve how your people work together on the same information set on excel? We say, stop working with excel wherever possible and move activity onto a shared custom database.

HOW WE RECOMMEND THAT YOU WORK TO ENSURE EFFICIENCY:

A great way to ensure maximum efficiency is to evaluate all processes and systems. Employees can be a great help with this. Engage your team to start to document, measure, and evaluate every critical process in your organisation. As you become more efficient you will discover new capacity for production and profitability.

Remember that a truly efficient employee is one that is supported with proper automation so they’re free to dedicate brain power where it will really pay off. Proper process management will help to ensure that anything that can be improved is clear to see. Inefficient processes will have nowhere to hide when a business shows proper commitment to identifying them.

HOW TO IMPROVE BUSINESS EFFECTIVENESS

The best way to improve effectiveness is for company leaders to consistently take the time to evaluate, plan, and focus the wider team on the overall goals of the business. An effective employee is one that has a clear understanding of the wider goals of a business, and understands their place to support those goals.

How efficient or effective is your business?

What are you doing to improve efficiency? What are you doing to improve effectiveness? By freeing up resources through automation, you can put more minds to work on achieving your company’s goals.

Contact us to schedule a no-obligation consultation help improve business efficiency to ensure that your business is effective as you move forward.