Business efficiency: secrets of an efficient company

Published on 08/04/2024

Business efficiency: secrets of an efficient company

Published on 08/04/2024
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Business efficiency: secrets of an efficient company

Efficiency is not the same as effectiveness. While the latter concept refers to the ability to achieve the desired or intended effect, the former implies the ability to utilize someone or something to accomplish a goal with the minimum possible resources. Both are highly valued concepts within a company, and in today’s post, we will focus on the latter, efficiency, as it is a concept that all companies should pursue, regardless of their size or business area.

We could say, to summarize, that effectiveness boils down to the end result, while the term efficiency refers to the means but always with a focus on a goal of adjustment that implies optimization of utilization. It is possible to be efficient without being effective, and likewise, it is also possible to be effective without being efficient, although the ideal scenario involves a combination of both qualities.

Organizations strive for business excellence. This can only be achieved through efficiency, achieving a proper balance with effectiveness. There are several ways to ensure that this goal becomes a reality:

  • Taking into account the people involved.
  • Promoting a model where interactions and trust among organization members drive the company forward.
  • Achieving commitment from individuals, especially in businesses intensive in human capital.
  • Ensuring efficient organization and role design, collaboration, and talent management.

In practice, implementing such actions involves incorporating all these aspects into efficiency improvement programs.

This article addresses the topic of efficiency in companies. If you want to learn more about the topic, download our free guide:

Business Efficiency in Spain

Productivity in Spain is lower than in almost all European countries (except Portugal and Poland). Its efficiency is also not remarkable, yet Spaniards are among the workers who spend the most hours in the office. A whopping average of 1,780 hours per year, according to data from the Institut National de la Statistique et des Études Économiques (INSEE) and the OECD, in Spain.

This astronomical figure is only surpassed by Japan with 1,790 hours, the United States with 1,800 hours, and South Korea with 2,100 hours. Three countries that achieve higher levels of productivity than ours, incidentally. So, what is the issue?

Within the European continent, such long working hours are not the general trend. For example, in the United Kingdom, the average is around 1,630 hours, very similar to Sweden with 1,600 hours. Central European countries lower the bar: France 1,540 hours, Germany 1,410 hours, and the Netherlands 1,390 hours. Even other Southern European countries have a more reasonable working schedule, such as Italy with 1,560 hours.

Staying in the office and being seen at the workplace, a very Spanish custom, distances us from productivity, which is based on:

  • Better time utilization.
  • Higher quality of performed activities.
  • Positive business efficiency.

The keys to business efficiency

Performance and productivity are necessary factors to ensure a company’s success. However, maintaining that level is the result of a process of accumulation of good decisions and rigorous work, an effort that involves everyone and requires commitment.

Intuition, improvisation, and luck are excluded from this realm. Instead, competent professionals who add value to the business, a sustainable corporate culture and a source of unified thought, and the implementation of good work habits inspired by discipline are required. These are the keys to efficiency and the starting point for creating optimal conditions to ensure satisfaction among employees, customers, suppliers, distributors, and the entire business network.

Identifying an efficient company is simple, as all efficient companies present the following basic attributes:

  • Creation of value and generation of wealth.
  • Clear definition of objectives and adaptation of plans to ensure their achievement.
  • Systematic way of operating applied to processes and systems, oriented towards positive results.
  • Understanding and concern to meet the expectations and desires of customers.
  • Design of development and continuous improvement plans.
  • Promotion of employee motivation programs.
  • Promotion of professional development for work teams.

When a company achieves efficiency, its main goal and priority should be to maintain and continue to grow. This requires commitment from all parties involved and the design of a strategy to continue progressing.

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