Identifying Business Inefficiencies

Christopher J. Henneforth has been working in executive positions at various companies for over a decade. The co-founder and chief financial officer of Omnia Medical in West Virginia, Christopher J. Henneforth handles all daily finance, HR, IT, and legal activities.

Part of managing cash flow in a business is identifying inefficiencies in business processes. These inefficiencies result in numerous issues, ranging from missed deadlines and compliance problems to stressed and frustrated staff members.

The first step in identifying these inefficiencies is evaluating the processes that are currently in place. While this evaluation is time-consuming and complex, it’s essential for managers and other business leaders to observe the current processes and determine how work is controlled, what periods of time are busiest, and other related issues. Doing so makes it easier to see key process inefficiencies.

After observing, leaders must measure key data affected by their current operations. This includes customer satisfaction ratings and return on investment for marketing. Collecting this information on a regular basis helps demonstrate where certain operations are falling short of expectations.

Talking with staff members is also essential for identifying inefficiencies. Employees have unique insight about how processes are handled every day, and also have their own opinions about what will improve their company and their quality of life at work. An open discourse with employees also improves morale, as it shows employees that they are appreciated and involved in certain business processes.

Finally, leaders can implement new technology, processes, or programs that improve on the inefficiencies they have discovered. These new additions require continued measurement so companies can track their benefits and adjust or remove them if they are not beneficial.