Date: Monday 31 October 2022
Ian Richardson, Marbral Advisory.
When it comes to business, efficiencies can be labour-related, operational, process, environmental or financial, and they all tie back to Return on Investment (ROI).
There is no universal formula for improving efficiency, it will depend upon your business model, your resources, and your goals. However, there are several areas we can focus on to reduce inefficiency. Additionally, many efficiency wins in one area will also positively impact others.
So, where can we look to improve efficiencies today?
Most, if not all, readers will already be incorporating efficiencies - whether that be automated e-mails or chatbots, making team meetings shorter, or streamlining processes. There is, however, a lot more that can and should be done and efficiency tools are becoming a necessity in the modern business world.
Cementing a defined business strategy for the next 5-10 years, alongside a defined set of standards and goals is at the core of the efficiency cycle. Complimenting the business strategy should be circular feedback from end users, employees and stakeholders, canvassing input to help develop a culture of learning and innovation. For the efficiency journey to continually iterate and innovate we must adapt and embrace progress. We must also look to implement solutions and maximise automations utilising AI, but never automating from the sake of it or attempting to automate something that is fundamentally broken and ineffective to our business.
Where does ESG fit in?
Investors, customers, employees, and other stakeholders are turning up the pressure on companies to reduce the environmental and social impacts of their businesses and be more transparent about ESG reporting. Some jurisdictions have made it legislature and others are beginning to follow suit. Getting ahead of the curve when it comes to ESG, is now fundamental.
Incorporating ESG priorities can be positive for every business. By implementing policies that support employee well-being and protect workers’ rights, companies can create a more uplifting workplace culture. Not only that, consumers and employees are increasingly interested in purchasing or being a part of products and services from companies that align with their own values. Environmental, social, and governance factors are three important qualities consumers consider when making purchasing and career decisions. Therefore, a strong ESG strategy can help your company attract new customers and employees as well as keep existing ones.
Sustainable business practices also play a leading role in reducing greenhouse gas emissions, conserving resources, and preventing pollution. The implementation of environmentally friendly business efficiencies and practices not only helps protect our planet but can also save companies money over time by developing long-term alternatives. These factors weigh strongly with investors, both existing and potential. Investors are recognising the value and importance of ESG performance, and many are making investment choices based on companies that have a strong commitment to ESG. This provides a unique opportunity to further develop sustainable business models, which can help companies grow whilst benefiting their customers and employees.
Governance will continue to evolve, as it has always done, to underpin every decision an organisation makes and provide guidelines for every change. But digitisation of governance procedures has seen the previous time wasted decline.
Business efficiencies and ESG can work hand in hand and improve organisations on a holistic level with improvements to multiple factors, whether that be financial, environmental, labour, processes, operational or ROI. The most important takeaway is, you absolutely can deliver on ESG priorities whilst increasing efficiency across your business.
Marbral Advisory assists businesses in the Isle of Man with strategy, efficiency reviews and governance. To find out more, visit www.marbraladvisory.com, contact: hello@marbraladvisory.com or sign up to the newsletter here.