As a business owner, you need to be concerned about efficiency. Inefficient processes waste time and resources. If they cause you to delay shipments or miss deadlines, they can also cost you customers. Clients expect a short gap between placing an order and delivery. To increase your business’s level of efficiency, you need to look at every aspect of how you get things done.


Part of a manager’s job is to increase and maintain efficient operations. In order to carry out this function, your managers need to be well aware of what is going on in their part of the business. Part of every day should be spent observing the employees who are their responsibility. Some managers use the Gemba walk technique on a regular basis. In this Japanese business practice, the manager will walk through the entire operation looking at each step and trying to minimize waste.

Employee Skills

An employee with the wrong skill set will slow things down. This person will struggle to meet expectations if he or she is just thrown into a position. Make certain that every employee has the skills to accomplish the tasks that you assign. If people are lacking knowledge or skill, it is important to take the time to give them the training they need.

Production Method

The way your business makes production decisions can either boost or decrease overall efficiency. Some production methods do not rely on historical data and forecasting, but instead, produce inventory based on customer purchases. If customer demand tends to be steady, these methods might work well. However, customer demand is often cyclical with peaks and valleys. By paying attention to historical demand, you can prevent surplus inventory sitting in a warehouse or panic over inventory shortages.

Hire a Consultant

Because you are invested in your business, it can be difficult to be self-critical. You may want to keep your current processes in place because you developed them. An outside consultant can help you point out gaps in efficiency that you might miss. You may find that there are redundant procedures in your operation simply because you have always done it that way. Someone with a different point of view can make a big difference in your productivity.

Increasing efficiency is crucial to maintaining a competitive edge. At every step of your production process, time and money can be gained or lost. Every person in your operation enhances or decreases productivity. By paying attention to the efficiency of your business, you are investing in its long-term growth and health.

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