People & Acquisition

How to improve organisational efficiency and effectiveness

6 strategies on how to improve organisational efficiency and effectivity in your organisation.

5 min read · Posted February 08, 2021 · Tagged

Making an effective organisation is a complex task and there is no silver bullet. However, there are a few things you can do to start the process of becoming more effective as an organisation. The keyword here is “becoming” – it is an ongoing process that never finishes, and therefore it is not possible to make a clearly defined end-goal. It is all about gradual optimisations.

In this article, we give you 6 strategies on how to improve organisational efficiency and effectivity in your organisation.

Get ready to optimise!

#1 Define what “effective” means for your organisation

Before it’s even possible to start making an organisation more effective, you need to start identifying some of the markers and pointers to what effectivity means in your organisation. Depending on what line of business you are in, effectiveness can be many different things. Therefore: Clarify what it means to your organisation specifically.

#2 Figure out how to measure effectivity

Before you really consider how to improve organisational efficiency and effectivity in your organisation, you need to decide on a method for how to measure it. If you have no way to measure whether A is more effective than B, then you will have no way of identifying which initiatives work.

#3 Get measuring – ask your employees

Once you have defined what effectivity means to you and how to measure it, you need to go into the organisation and start asking people about it. Make sure that the people you ask understand your definition of effectivity and then ask them:

  • “What is the biggest obstacle for you to become more efficient?”
  • “Where are you wasting time?”

Your employees are the experts of the work they do every day. You don’t need consultants to tell you were the bottlenecks of your organisation and your workflows are. Your employees will be able to spot 80% of them with no preparation. Why? Simply because they witness it every day.

#4 Prioritise your effectivity obstacles

Once you have a list of “effectivity obstacles” from your organisation, you need to rate them. You can’t optimise everything at once, so the best way forward is to prioritise by rating them based on the following two variables:

  • How much of an effectivity boost would removing this obstacle bring to the organisation? (scale from 1 = very little to 10 = very much)
  • How easy would it be to solve this obstacle? (scale from 1 = not very easy to 10 = very easy)

This allows you to give each obstacle a score from 2 to 20, and thereby you can identify which of them will give you the highest gain.

#5 Get to work – remove the obstacles!

Well, no further explanation really needed – find the solutions to overcome the effectivity obstacles and get to work!

#6 Remember: Effectivity gains enhance effectivity gains

What does that mean? Basically, it is the old story of inspiring people to act in the same way as yourself. In other words: When something is handled smarter, faster, easier or cheaper, it has the potential to inspire people to think “that was easy – why don’t we do that in relation to…”.

Keynotes on how to improve organisation efficiency and effectiveness

So, it is extremely important to let the organisation know when something is improved, as it will inspire and motivate people to improve other areas – on their own initiative. At the same time, this serves as a recognition of the people in the organisation you asked about an opinion – like a kind of “thank you – we have used your input!”

From a psychological perspective, it’s very important for people to feel that what they contribute with also adds value and is taken seriously. By doing so, you make them more likely to come back with more information in the future – and with more perspectives on how to improve organisational efficiency.

We wish you good luck optimising your effectivity level!

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