Operational Efficiency

Operational Efficiency is about doings right, minimizing the resources input requirements for a given output. Four drivers can be identified:

1. Economies of scale and learning
2. Optimization of product design
   1. Business process re-engineering and smart product design enables companies to reap efficiency benefgits.
3. These efficiencies may be complemented by Lowering of input costs
4. Culture and norms may also increase operational efficiency. In the eyes of some employees, low cost curve is not particular attractive way to spend a working day. As a result they create organizational slack.