A dictionary would define efficiency as achieving the maximum productivity, with minimum effort or expense wasted.
However, businesses may look at it slightly differently, seeing it as generating the most out (this could be sales), whilst putting the least in (this could be money spent on supplies). In this case, it could be seen that efficiency is fundamental to whether a business will succeed or not.
But as times change, so could efficiency. It will still be key to running a successful business, but what is considered efficient is most definitely changing.
So what’s changed? Simply… the current climate.
In previous years the chance of world events causing extreme disruption seemed too small to affect entrepreneurs’ day-to-day decisions. However, the last few years have caused this attitude to change.
With the pandemic forcibly closing businesses, and changing consumer behaviours massively, businesses had to adjust what they did and how they did it to keep their businesses afloat. The pandemic continues to throw up many issues, such as supply chain bottlenecks, transportation issues, and export and import restrictions.
A report found by our partner UBS showed that global supply chains still remain under stress, causing business owners to rethink their efficiency, even after the pandemic.
War in Ukraine is also likely to lead business owners to challenge their assumptions of geopolitical risks and security across the markets in which they operate.
In today’s world, it is increasingly important that entrepreneurs reevaluate their company’s approach to efficiency and be prepared for any challenges they may face.
UBS looks into the best ways that entrepreneurs can continue to produce goods and services in any circumstances, focusing on what “efficiency” means in four different channels.
But what are these channels? What do they mean for entrepreneurs? And how can business owners and executives respond?
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