Operational Efficiency

Operational Efficiency

Generally, operational efficiency is expressed by the relationship between the result obtained with an operation or activity and the cost or effort employed in its generation. In all segments, sectors, areas and functions, whether related to management, production or administration, in any business size, operational efficiency is fundamental to increase productivity and ensure competitiveness. We can list some known gains from companies that operate with a high level of operational efficiency:

  • Increasing sales, profitability, marketing share;
  • Reducing costs in a structured and sustainable manner;
  • Reducing the capital employed (in inventory, for example);
  • Increasing customer satisfaction and reducing complaints;
  • Reducing losses and rework;
  • Maximizing the use of assets and optimizing investments;
  • Increasing synergy between business and areas of the organization;
  • Increasing time-to-market speed for new products, services, channels, etc.;
  • Gains in productivity for production and backoffice areas;
  • Maximizing the return of promotional campaigns and offers;
  • Increasing service level with the current capacity.

For a company to have these gains, some affirmations need to be present in their daily operations:

  • The certainty that everything can always be improved;
  • What is not measured is not managed;
  • What is not managed does not evolve;
  • It is possible to gain efficiency without compromising quality;
  • Service levels and a culture of efficiency and operational discipline are great allies of companies, executives and managers.

In business daily operations, we hear executives' intentions about "doing the same with less" or "doing more with what we already have" or even bigger ambitions to "do more with less." However, many actions come down to the direct reduction of people without necessarily changing the models and operational processes that will ensure the quality of the operation after reducing the structure and without even sustaining that reduction over time.

In this context, our team of consultants combines expertise across several business segments with analytical skills, the ability to deeply understand operations and their cause-and-effect relationships with methodological experience to help our customers change their efficiency level in a sustainable way, from diagnosis to implementation and operation.

Our operational excellence principles listed below have helped our customers in the retail, banking, manufacturing, services, education and healthcare segments to generate value by increasing operational efficiency in core and backoffice processes.

  • Rethink, reconfigure, reduce what does not generate value;
  • Re-sequence activities, redefine responsibilities;
  • Assess and address root causes of known problems;
  • Have a clear and pragmatic method to know "new problems" and attack them;
  • Rethink features and increase automation;
  • Use workflow and BPM tools to ensure processes and manage performance goals;
  • Define clear and efficient indicators for critical matters;
  • Manage routine;
  • Define service levels for activities that depend on different areas;
  • Rethink “make or buy”, outsourcing and centralization;
  • Set effort drivers and tools for resource sizing

Learn more about our operational Efficiency activities in the following industries

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