Efficiency separates thriving businesses from those that merely survive. In an era of tight margins and fierce competition, how companies allocate resources, manage workflows, and eliminate waste often determines their long-term viability. Yet true operational efficiency isn’t about squeezing employees or cutting corners. It’s about creating systems that help teams achieve more with focused effort.
Michael Shvartsman, an investor who specializes in operational turnarounds, observes: “Efficiency gains aren’t found in grand gestures but in hundreds of small refinements. The most productive organizations relentlessly question their own processes while keeping sight of what actually creates value.”
Mapping the Hidden Costs.
Many inefficiencies lurk in undocumented processes—redundant approvals, unnecessary handoffs, or legacy procedures that persist simply because “we’ve always done it this way.” The first step toward improvement involves creating visibility.
Michael Shvartsman notes: “When we diagram how work actually flows—not how managers assume it flows—we typically find 30% of effort adds no customer value. That’s not laziness; it’s system design failure.”
Practical mapping approaches include:
- Tracking how much time employees spend on various tasks
- Identifying where delays or bottlenecks consistently occur
- Pinpointing steps that require rework or corrections
The Automation Sweet Spot.
Technology can eliminate repetitive work, but only when applied thoughtfully. The most impactful automations address tasks that are:
- Rule-based and predictable
- Time-intensive for humans
- Prone to human error when done manually
“I’ve seen companies waste millions automating the wrong things,” says Michael Shvartsman. “The best candidates for automation are tedious tasks that drain energy without requiring judgment—freeing people for work that actually needs their humanity.”
Decision Velocity Matters.
Organizations lose countless hours to sluggish decision-making—circulating drafts for unnecessary feedback, deferring choices through endless analysis, or maintaining approval chains that exist more for politics than practicality.
Michael Shvartsman’s rule of thumb: “If a decision won’t materially impact the company if it’s wrong, it should be made quickly by whoever’s closest to the information. Perfectionism paralyzes operations.”
Streamlining decisions requires:
- Clear guidelines on authority levels
- Acceptance that some reversible decisions warrant speed over certainty
- Psychological safety to course-correct when needed
The Forgotten Lever: Workplace Design.
Physical and digital environments profoundly impact productivity. Cluttered workspaces, excessive notifications, and poorly structured meetings drain more energy than most leaders realize.
“Efficiency starts with reducing friction,” Michael Shvartsman explains. “Something as simple as reorganizing a warehouse to minimize steps, or standardizing how teams name digital files, can save hundreds of hours annually.”
Small design improvements with outsized impact include:
- Centralizing tools to reduce context-switching
- Creating quiet zones for focused work
- Standardizing templates for recurring tasks
The Talent Efficiency Factor.
Operational efficiency depends on having the right people in the right roles. Misalignment creates drag—whether from skills gaps, unclear responsibilities, or mismatches between work types and personal strengths.
Michael Shvartsman’s perspective: “You can’t process-map your way past a poor team fit. Sometimes the most efficient move is reassigning someone to work that plays to their natural abilities rather than forcing square pegs into round holes.”
The Metrics Trap.
While measurement matters, the wrong metrics incentivize busywork over real productivity. Tracking activity (emails sent, meetings held) often conflicts with outcomes (problems solved, value created).
“I’ve watched teams ‘win’ on efficiency metrics while losing in the marketplace,” Michael Shvartsman warns. “The only metrics that matter are those tied to customer results, not internal motions.”
Continuous Improvement as Culture
Lasting efficiency gains come from embedding refinement into daily work—not occasional initiatives. The healthiest organizations:
- Encourage employees to suggest small improvements
- Celebrate fixes that save time or reduce frustration
- Share efficiency wins across teams
Michael Shvartsman concludes: “Peak efficiency is a mindset. The companies that sustain it are those where everyone feels empowered to ask ‘Could we do this better?’ every single day.”