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Increasing of business efficiency
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  • All organizations are at least 50% waste – waste people, waste effort, waste space, and waste time Robert Townsend (1920-1998)

Increasing of business efficiency

The word “efficiency” –is a buzz word for everybody, but pronouncing it, everyone puts his own sense into it. So, let us try to specify what YUYDI experts understand under that word.  

As it is written in most of works on economics, business efficiency has quantitative and qualitative characteristics.

An important quantitative parameter is productivity. It reflects complex result of using all basic business resources: financial, human, technological, IT, etc. 

In the first place it is an economic parameter – income and cost ratio, expenditure for a unit of a product/service. The structure of those expenses consists of expenditures for marketing, operating personnel, raw materials, machines, logistics (if any), etc. Managerial expenses are definitely part of it as well.

Unfortunately, as practice has shown, improvement of business efficiency ( decrease of expenses, to be more precise) starts on the mentioned above  consistency. However, it should be vice versa…

Decrease of special expenses, for instance for manufacturing staff, has visual, but unfortunately short-term effect.    

Improvement of business efficiency must start from management. This problem exist throughout the whole Russia. Management is not effective and “expensive” by that reason. *Managerial expenses for a ruble of income are tremendously high.

But high expenses for management are nothing in comparison with ineffectiveness of that management which is the reason of all other high expenses and ineffectiveness of business in general.

There are several reasons of that. They are the following: lack of plan with many scenarios (strategy) for development of business or consistency in its following, lack of appropriate organizational structures for this strategy, modern tools of management, low motivation of management (motivation for qualitative work and self-development) and many other problems. Business efficiency is a complex phenomenon. It is like in a living organism. “Health” of one organ depends on many others and the body in general can not be healthy even if one organ is in a poor state.     

But when everything is organically tuned, the business develops coming through any obstacles, like a plant makes its way through asphalt without tension…

YUYDI expert have unique knowledge and experience of making solutions for Your business, solutions leading business on a absolutely new level, solutions making your business really effective.

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