Enhancing organizational efficiency and culture for management success

For any business to succeed, it needs to master two foundational concepts: improving organizational efficiency and enhancing company culture. It's an ongoing process to make sure your organization's performance is in top shape and may require a reexamination of your business status quo to truly change. It also requires giving employees the tools and resources they need to perform.

This guide walks through how to improve your organizational efficiency and company culture in the name of business goals.

The first step in building a more efficient organization with a great culture is breaking down key terms and understanding how efficiency is evaluated.

First, how can agility improve organizational efficiency? How do you measure organizational efficiency? And what do these terms really mean?

Efficiency refers to the processes and systems that aim to increase the business’s productivity while saving as many resources as possible.¹

Today’s businesses focus on efficiency because it helps them reduce costs, improve productivity, and keep a competitive advantage. With efficient processes, organizations can work faster and more accurately to save time and money. One popular example of how businesses have looked to increase efficiency is through different self-service models.² Many customers today want to engage with businesses through an online platform where they can view their order status and make payments. This not only improves the customer experience but also saves the company time and uses fewer resources. Customers are able to engage with a set of online tools, on their own time, instead of requiring a team member to walk them through the purchase process and payment.

Efficiency is a distinct term from effectiveness, though many use them interchangeably. Effectiveness is more concerned with whether the end result matches the goal. Organizational effectiveness is key because, going back to the previous examples, there's no point in implementing a self-service portal if your customers prefer to engage with a sales team and there's a low rate of purchases made online. In that case it may be more effective to focus on your sales team performance and provide them with the tools that can help the team do their jobs well. The goal is to balance organizational efficiency and effectiveness so you’re performing tasks in the best way possible while also completing the right tasks that meet your company goals.

And then comes measuring these processes. Key performance indicators (KPIs) are critical. Examples of KPIs that are focused on efficiency and productivity may include:

• Output per hour
• Cost per unit
• Return on investment
• Revenue per employee

Set specific KPIs for each team or area you want to measure. Technology can help you set benchmarks and goals and implement continuous monitoring to track your progress.
Time-tracking software, organizational performance management systems and employee monitoring tools can come in handy when you’re getting started—anything that can help you track changes and view productivity data to make better business decisions.

Alongside establishing better processes, you need to build a stronger company culture. Consider these proven strategies and workplace culture best practices for developing high-performing teams and encouraging positive thinking:

When the entire team supports the company’s mission and purpose, you're more likely to increase employee satisfaction.³ Weave these values into your meetings and messaging.

Welcome feedback and encourage open communication. This shows employees that improvement is an ongoing conversation. Practice transparency to foster trust.

Engaged employees feel a sense of purpose and appreciation.⁴ Start recognizing their wins and rewarding people for hitting their goals.

A positive culture also requires a collaborative spirit. Plan regular activities in which the team can bond, compete and have fun.

If employees feel stagnant at work, they may start to be less engaged and satisfied. Make sure you support their career trajectory and growth with development opportunities.

At every stage, leaders set the example of the company’s values and desired company culture. This also means being transparent about what’s going on and acting as a role model for others.

As the company’s culture improves, focus on boosting your organizational efficiency. These steps will ensure employees have the tools they need to succeed.

Embracing the right tech helps businesses streamline processes, use fewer resources and boost productivity while monitoring output. There are many technologies at your fingertips to improve your workflows. Examples are cloud collaboration tools, customer relationship management (CRM) software, AI-driven platforms, project management software and payment software.

These tools make it easier for employees to connect and collaborate no matter where they’re working. They also largely rely on automation, which can help you improve your accuracy and reduce your mistakes. Tools alone can't improve an organization's performance, however. Defining and refining processes are key to success. With both technology and process improvements, employees play the most important role. New initiatives won’t succeed without effective employee training, clear communication and consistent motivation.

Risk management has a major impact on organizational efficiency. It helps you avoid disruptions, improve organizational stability and consistency, and ensure customer satisfaction. Conduct risk assessments, such as a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis, for each component of your daily operations and identify areas that need additional resources. These evaluations will help you improve your decision-making while optimizing your workflows.

So how are organizational efficiency and company culture related? Some businesses think that both can’t be achieved—that if you prioritize company culture, your productivity will struggle, and vice versa.

But you can find greater efficiency without compromising a great culture. Align your company’s values with everything the team does. Everyone will actually be more productive when they feel like their tasks give them a greater sense of purpose.

This is where recognition also becomes key to finding the right balance—employees will feel more motivated when they’re recognized for their achievements. And in turn, the company culture improves as people feel more positive about their work.

Working toward operational efficiency alongside building a positive culture and team morale doesn’t have to be a challenge when you have the right tools. It also helps to harness the latest in management trends and best practices to understand how to relate to others.