Increase organizational efficiency in times of economic downturn

Only 5% of organizations have reached their full potential white-collar productivity, with survey results suggesting that organizations have, on average, more than 25% higher total potential productivity than today. Many factors account for this productivity gap, and solutions require a focused and coordinated effort to optimize performance.

BOSTON, November 14, 2022 /PRNewswire/ — Most data shows that we are approaching an economic downturn, and Creo Advisors’ recent survey of leaders suggests that “white collar” organizations have a significant opportunity to achieve greater productivity. Admittedly, this is a challenge given the massive disruptions, shifting patterns of work, and rapid pace of change in recent years. Many business models and processes still need to catch up. Earnings pressures anticipated in 2023 will force industry leaders to “rethink” their business to improve team performance, using new processes, policies and tools more effectively.

We interviewed more than 250 executives of American companies whose turnover exceeds $100 millionwho felt:

  • Only 5% of companies see themselves at the full potential of white-collar productivity
  • Companies have, on average, the full potential for organizational efficiency, which equates to more than 25% more white-collar productivity

Many factors have led to this productivity opportunity. Our survey identifies a set of factors that prevent organizations from achieving optimal performance, such as:

  • Management efficiency
  • Employee contract
  • Frequency and effectiveness of meetings
  • Hybrid Work Optimization
  • Process improvement
  • Accountability and feedback

Rich Vitaromanaging partner and founder of Creo Advisors, notes that “increasing organizational productivity is complex but an extremely valuable endeavor. It has become more difficult for cross-functional organizations in this rapidly changing disruptive environment, where workload, Technology and low barriers to meetings and tasks can lead to overwhelming complexity and priorities Removing low-value tasks has never been more important Plus many companies are keeping legacy processes despite a new work environment and pace of change Prioritization, use of the right tools and improved communication help organizations “row together” more and achieve high performance We apply advanced analytics along with qualitative techniques to help organizations address these challenges and increase productivity e “.

The environment in 2023 will likely remain fluid and require agility to flourish. The survey results highlighted that the disruptions will continue into 2023, but with different themes. Rich added “In 2023, the disruptions appear to be less about supply chain, inflation and hiring, although still very significant, and more about navigating a potentially more difficult and possible financial environment. China/business issues. Additionally, companies seek to improve labor efficiency and engage new and existing customers to capture market share. Finally, as businesses are in the planning cycle, it is important to set appropriate expectations for the next year. We found that 50% of people who foresee a recession this year or next also foresee growth for their own sector in 2023. More companies are likely to be negatively affected by the market than they realize. . »

Given the scale of disruption and pace of change in recent years due to events and technology, organizations have adapted but not perfected their performance. The realization is that “work from anywhere” is here to stay. Our survey only shows a 5% increase in return to work for 2023, with a very hybrid pattern still in place. As companies seek innovation, change and cost reduction, they are also reaching out more to external partners. The survey showed that a significant number of companies currently work with external partners in areas such as strategy, sourcing, manufacturing, distribution, marketing and administrative support. Even with a potential downturn, companies expressed continued reliance on external partners throughout the value chain. Best-in-class companies further integrate external partners into an organizational ecosystem to extend capabilities, provide agility, and drive change. There are more opportunities to strengthen these cross-departmental and cross-partner workflows to maximize efficiency.

The predicted downturn will put increased pressure on organizational productivity, but few companies are fully prepared with agile, highly productive organizations reaching peak performance. Large companies can take a new approach to “re-create” organizational efficiency leading to peak performance. Will it be you?

About Creo Advisors

Creo Advisors is an advisory firm that partners with ambitious leaders, private equity firms, boards and teams seeking to achieve superior performance. We help our clients “create” sustainable value by identifying, focusing and executing on key levers to deliver peak performance. Customer success is our ‘North Star’. Creo Advisors provides strategy, growth, supply chain and human capital services to companies across multiple industries. Please visit our website at www.creoadvisorsllc.com

For more information, contact Creo advisors at: [email protected]
Follow us on LinkedIn

SOURCE Creo Advisors LLC

Aubrey L. Morgan