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Efficiency As a 2023 Mantra

August 25, 2023

by Innova Solutions

“Efficiency Is Doing Better What Is Already Being Done.”
~ Peter F. Drucker

Efficiency on the Radar

The metaphor, ‘Change is the Only Constant,’ gets as real as one could imagine in today’s uncertain business environment. As companies refocus their attention on efficiency measures, efficiency climbs back to the top of their agendas, this time with a reinvigorated mandate to create more efficient organizations that place resources where they matter the most. No matter what their size, industry, or operating markets may be, uncertainty often magnifies organizational inefficiencies in tough times like today. It also draws attention to the mismatch between existing operating models and market realities —an event that is unlikely to cross our minds in good times.

Is efficiency all about managing the crisis at hand or resource optimization? Are you efficient enough as an organization if you deploy two resources for the same task instead of five? No, while it could be a component of efficiency, this does not entirely characterize organizational efficiency. On the contrary, effective deployment of resources at places that matter the most has an equal impact on the top and bottom lines. Efficiency also implies empowering employees and giving them the confidence that the organization they work for places its trust in their abilities.

The ‘New Definition’ of Efficiency: An Understanding

Without a second thought, employee efficiency is the key to the success of any business. Every employee should work towards the vision and mission of the company they are part of. There is no predetermined ‘ground rule’ that defines the efficiency of an employee; rather, it is about how efficiently a company manages, motivates, and upskills its employees to stay ahead of the curve.

In the present scenario, it is quite important for a business to focus on developing agile business models, collaborative requirements across multiple disciplines, and the impetus to drive more efficiency while utilizing a limited number of resources.

What Contributes to Organizational Inefficiencies?

Organizational Structure: Complicated organizational structures with multiple layers and a narrow span of control lead to unnecessary inefficiencies. Complexity often comes along with a lack of clarity in roles and responsibilities, which results in confusion, duplication of efforts, and slow decision-making. All of this adds up to being compounded at the organizational level, resulting in redundant activities whose outcomes may be disastrous due to ambiguous processes and indefinite workflows.

Unnecessary Interactions: It is normal to see multiple people included in the decision-making process. This phenomenon is often the byproduct of a matrixed structure, due to which excessive interaction becomes the workplace norm. One of its traits is scheduling meetings for a particular number of hours each day. Employees occasionally ponder why they have been invited to a meeting and what value they may bring.

Addressing the Elephant in the Room: Dealing with Inefficiencies

Empower your Employees: Allowing the power to cascade from top to bottom, especially in terms of decision-making, can help enhance the efficiency of an organization.

Root Cause Identification: Do not judge organizational inefficiencies by their outward appearance. Take your time to analyze the factors that have been causing inefficiencies and make a concrete plan to address them.

Start at the Top: Any organizational reform is not possible unless it is supported across levels. This implies that active involvement by the C-suite is inevitable for improving overall efficiency.

Program Monitoring: It is necessary to ensure that the value of a program is captured and that any deviations are quickly identified. Tracking the impact of change and deploying a transformation team to do the same are equally important.


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