An independent international study has revealed that business leaders identify their most common cause of wasted time during the workday is inefficient processes and duplicated efforts.
The study, commissioned by Planview and conducted by research company Loudhouse, shows that companies without tech-driven productivity strategies are suffering the most, which can severely affect customer satisfaction and employee retention.
The research surveyed 515 business leaders and key decision makers, from senior management to CEOs, across the US, UK, Netherlands, Germany and the Nordics. The purpose was to explore the attitudes, challenges and opportunities businesses face when improving productivity, investing in technology and minimizing waste.
“Productivity losses are not just a problem for the management team. Both employees and customers are likely to be the ones who suffer as a result of inefficient working methods,” says Maria Nordborg, Director of Projectplace Customer Experience at Planview. “We can see that efficiency and technological investment go hand in hand so business leaders need to define what efficiency means for their organization. If not, ROI measurement will be another unproductive process that leads to more wasted time further down the line.”
Implications of wasted time
The research shows that workplace inefficiency is a core management issue. The primary cause of wasted time during the workday is inefficient processes (44%), followed by an overload of paperwork (43%) and meetings (41%). Other day-to-day barriers that contribute to wasted time are poor communication and time spent travelling.
Business inefficiencies are more than a nuisance for management. The study shows that employees (57%) and customers (48%) are the most likely to suffer as a result of inefficiencies. The burden of inefficiency placed on employees and customers could lead to retention problems in the long term.
Technology is key to maximizing organizational performance. Almost all business leaders (96%) believe technology helps drive organizational efficiency. Having the right tools in place gives companies the confidence to achieve their productivity goals. That confidence is linked to the use of technology. According to the research, 53 percent of those who regard their efficiency programs as ‘tech-driven’ are more likely to be ‘very confident’ of success than those who regard themselves as ‘tech-hesitant’ (14%).
Recharge or reinvest?
Previous research has shown that time is being wasted regularly due to inefficient ways of working. If business leaders could claim back the wasted time, would they choose to recharge themselves or reinvest time in the business? Over half (56%) would be rechargers, choosing to invest the additional time in themselves. And just under half (44%) would reinvest the time by putting it back into their business.
When all respondents where asked how they would reinvested time in the business, staff development was more likely than typical business tasks. Over half (56%) would invest in their own personal development. Just under half (44%) would coach other employees if given the opportunity. In comparison, just a third would explore growth prospects or evaluate new products for the business.
Know your ROI
It is an increasingly important aspect for modern businesses to identify a meaningful return on investment (ROI) in software and other technology. Only a sizable minority (40%) of companies finds it easy to measure ROI before and after investing in new technology.
Maria Nordborg continues: “Efficiency and productivity can be hard to both define and achieve, so defining the ROI of productivity technologies can naturally be hard to define too. The study shows that the IT team can help identify the ways to measure efficiency gains.”
Business leaders who are closely aligned with their IT department are better able to identify and judge ROI potential. Two-thirds (63%) of those with high levels of IT support claim it is easy to determine value for money both before and after making a technology investment. Less than a third (29%) of those with mid to low IT support believe the same.
You can read the full Powering Productivity research report here.