Have you encountered inefficiencies in your business or sidehustle? As would be expected every small business works slightly differently because people themselves are different, and each part of the business machine gets human input somewhere along the line.
What we usually forget (especially given our big dreams and even bigger expectations!) is that humans are fallible, and sometimes the ways some parts of a business operate are not as efficient as they should be. So how can inefficiencies be identified and then rooted out?
It’s not always people that cause a business to be inefficient. Frequently it is the way systems work, and although these would initially have been set up by the owner and other employees they can get to stage where they are no longer fir for purpose. So is your system a working one?
Examining systems operation
The most effective way of examining the way a business operates is to take baseline measurements right across the company. By looking at the figures and tracing them back to source a picture can be put together to help address what may be considered problem areas. Some examples might be:
- Examining the cost of IT expenses: are there any parts of the IT network that are redundant? Is the procurement team getting the best deal possible for equipment and software?
- Looking at customer satisfaction scores: are customers returning regularly? Are complaints or problems dealt with smoothly and by whom?
- Looking at duplication of data inputting: If each department has to manually input data that another department also has to update it is taking a lot of employee time. This is where a good piece of business software, such as Enterprise Resource Planning can make a difference. Input data goes to a central database where all other departmental information is automatically updated. This frees up employee time to concentrate on developing other aspects of the business.
It is also worth considering how much time employees spend in meetings. Is every meeting absolutely essential? Can they be streamlined? What are the measureable outcomes of these meetings?
By measuring the steps taken in any part of the operation it becomes possible to see where inefficiencies can be weeded out.
People problems
Business inefficiency can also be caused by people; employees who are not working effectively to help generate the returns required for a sound bottom line.
There may be many reasons that an employee is not working efficiently, including problems with family or a relationship, difficulties on the shop floor between employees, or an underlying illness that requires time off.
One aspect that business owners should consider is the possibility of drugs or alcohol misuse. A business has the responsibility to keep its employees safe, and any under the influence of substances present a real risk to co-workers, especially if they are in charge of machinery.
Many companies go to drug and alcohol testing specialists so that can identify any problems as early as possible before taking action. A wide range of substances can be tested for, and it is becoming more and common for businesses of all sizes to take this step to protect both the business and its employees.
Inefficiencies are a common road hump in the running of a business, but it can be overcome with proper follow through and well-oiled systems in place. Do you have any advice for business owners going through inefficiency problems? Tweet us now @mcareergirl or comment below!
