The Ultimate Guide to Improving Process Efficiency in Enterprise Businesses

Every business wrestles with processes that quietly sap time, money, and energy. Left unchecked, these inefficiencies create significant challenges, especially in large enterprises where scale amplifies the impact. Refining your operations counters this drain by creating smoother workflows, improving communication, and enabling smarter decision-making, with even small changes driving significant gains.

This blog post outlines practical strategies to help you drive process efficiency by setting and monitoring the right metrics, identifying inefficiencies, leveraging automation to eliminate bottlenecks, and fostering a culture of continuous optimization. Explore our best practices and see how refining your processes can enhance productivity, reduce costs, and create a more agile, resilient organization.

Process efficiency is about optimizing how a business executes its tasks and activities while using the least amount of resources to achieve the desired outcome. At its core, it means accomplishing more with less effort, time, and cost. For any organization, particularly large enterprises, improving efficiency involves streamlining operations, eliminating waste, and enhancing productivity. This can involve a range of measures, from process automation and refining workflows to enhancing collaboration, optimizing resource allocation, and adopting data-driven decision-making. At the end of the day, a well-optimized process accelerates results, strengthens competitiveness, and supports long-term success in any industry.

Process Cycle Efficiency (PCE) measures how much of a process’s total time is spent on activities that add value compared to the overall time required to complete it. It reflects how efficiently a process operates by showing the ratio of value-adding time to total process time, which includes both value-added and non-value-added activities.

Process Cycle Efficiency = Value-added time / Total process time

Value-added time includes activities that directly contribute to delivering the final product or service to the customer. These are the steps that enhance quality or move the product closer to completion.

Examples:

• Assembling a product: When a worker actively puts parts together, the time spent is value-added because it directly contributes to the final product.
• Writing software code: If a developer writes a feature that will be used by customers, this is value-added since it improves the product.

Non-value-added time includes activities that do not directly contribute to the product or service and offer no real benefit from the customer’s perspective. These often include delays, waiting, or unnecessary steps that could be minimized or eliminated.

Examples:

• Waiting for approval: If a document or task is delayed because it is waiting for a manager’s approval, this time adds no value to the customer.
• Reworking a product: If there is a mistake in assembly and the product needs to be reworked, the time spent fixing it is non-value-added since it only corrects an error rather than improving the product.

Maximizing value-added time and reducing non-value-added activities is key to improving PCE. A high PCE indicates that most of the time spent on a process directly contributes to the final outcome, while a low PCE suggests inefficiencies that need to be addressed. By increasing PCE, businesses can enhance productivity, reduce waste, and optimize overall process efficiency.

Throughput Time refers to the total time required for a unit to move through a process from start to finish, including both value-added and non-value-added activities. Lead Time represents the total process time from the customer’s perspective, encompassing all phases, including order processing, production, and delivery.

Although the terms are sometimes used interchangeably, they are not always the same. In rare cases, such as when there are no delays, waiting periods, or external dependencies, Throughput Time and Lead Time can be identical.

For example, in a coffee shop:

• A customer places an order (process starts)
• The barista immediately prepares the coffee (no waiting)
• The coffee is handed to the customer (process ends)

In this scenario, the time taken to prepare the coffee (Throughput Time) is equal to the time from order to delivery (Lead Time). However, in most real-world situations, particularly in manufacturing or service industries, Lead Time tends to be longer due to factors like queuing, scheduling, or transportation delays.

Efficient processes directly enhance productivity and overall performance by enabling employees to complete tasks faster and with less effort. When workflows are streamlined, resources are used more effectively, allowing organizations to accomplish more in less time. A well-structured process eliminates confusion, ensuring that employees know exactly what needs to be done and how to do it. This clarity allows them to focus on their tasks without unnecessary delays, leading to higher output and faster turnaround times. Increased efficiency not only improves individual performance but also strengthens the organization’s overall success.

Optimized processes help minimize errors and reduce operational costs by eliminating inefficiencies, unnecessary steps, and rework. Ineffective workflows often lead to mistakes that waste time and resources, driving up costs. Clear, repeatable processes reduce the likelihood of errors, which is particularly critical in industries where precision is essential. For example, an efficient inventory management system ensures that the right products are always in stock, preventing costly overstocking or shortages. By cutting out redundant tasks and streamlining operations, businesses can lower costs, improve resource allocation, and focus on growth.

Hint: Explore the cost-saving power of BPM in our blog.

Adaptability is crucial for long-term success, and efficient processes provide the flexibility needed to adjust to market shifts, evolving customer demands, and operational changes. Optimized workflows make it easier to identify areas for improvement, implement necessary adjustments, and scale operations without major disruptions. As businesses grow or enter new markets, efficient processes help manage increasing complexity while maintaining quality and performance. A well-structured system enables organizations to respond quickly to new challenges, remain competitive, and capitalize on emerging opportunities.

One major barrier to process efficiency is the existence of shadow processes and undocumented workflows. Shadow processes refer to informal, unapproved methods employees develop to bypass inefficiencies in the official workflow. While they may seem practical in the short term, they often lead to inconsistencies, errors, and communication gaps. Undocumented workflows create similar challenges, making it difficult for employees, especially new hires, to understand the correct procedures. Without clear process documentation, optimizing processes, tracking progress, and identifying bottlenecks become far more challenging. Ensuring that all workflows are well documented and standardized helps maintain consistency, improves transparency, and supports efficiency across teams.

Hint: Learn more about the most common Process Documentation mistakes and how to avoid them.

Unnecessary steps and excessive approval requirements slow down workflows and increase administrative burden. Many processes include approvals or extra tasks that add no real value, causing delays and frustration for employees. When decision making is needlessly complicated, productivity suffers. Regular process reviews help identify and remove redundant steps, ensuring that workflows remain streamlined. Simplifying approvals and eliminating unnecessary tasks reduce delays, allowing employees to focus on work that directly contributes to business outcomes.

A lack of proper training and skill gaps within the workforce create inefficiencies that lead to delays, errors, and incomplete tasks. As businesses evolve, employees need to continuously develop their skills to keep pace with new technologies and methodologies. Without ongoing learning opportunities, knowledge gaps widen, making it harder to execute processes efficiently. Investing in regular training programs, mentorship, and upskilling initiatives ensures employees have the expertise needed to perform their tasks effectively. A well trained workforce is more capable of optimizing processes and driving continuous improvement.

Too much or too little information can severely impact efficiency. When employees are overwhelmed with excessive data, they struggle to prioritize tasks, make informed decisions, or focus on what matters most. On the other hand, insufficient information leads to confusion, delays, and poor decision making. Both scenarios create inefficiencies that slow progress. Organizations can address this by streamlining information flows, ensuring data is relevant, accessible, and easy to process. Using centralized databases or dashboards helps employees find the information they need without unnecessary delays or distractions.

A lack of standardization and inconsistent terminology across departments can lead to confusion, errors, and inefficiencies, especially in cross functional collaboration. When teams use different methods, terminology, or systems for the same process, it creates misunderstandings and duplication of effort. Standardizing workflows and establishing a shared vocabulary ensures that everyone is aligned, improving communication efficiency. Clear guidelines and standardized processes help teams work more cohesively, eliminating unnecessary complexity in day to day operations.

One of the most effective ways to eliminate inefficiencies is through business process automation and digital transformation. Automation uses technology to handle repetitive tasks that would otherwise require manual effort. By automating activities such as data entry, scheduling, and reporting, businesses can minimize errors, enhance consistency, and free up employees to focus on higher-value tasks.

Hint: Discover our Process Automation solution for ADONIS.

Digital transformation complements automation by integrating modern technologies to optimize business processes across the organization. Cloud-based solutions, integrated software, and artificial intelligence enhance workflows, improve decision making, and boost productivity. Leveraging these technologies helps businesses eliminate bottlenecks, streamline operations, and drive greater efficiency.

Lean is a methodology focused on maximizing customer value by minimizing waste, streamlining processes, and eliminating non-value-added activities. Six Sigma, a data-driven methodology, aims to improve process quality by identifying and eliminating defects and variations. Both approaches enhance process efficiency, reduce waste, and drive continuous improvement.

A practical example of a technique that supports these methodologies is process mining. This data-driven approach helps identify inefficiencies, bottlenecks, and non-compliance in real-world workflows. By providing a clear visualization of existing processes, process mining enables teams to optimize workflows in alignment with Lean and Six Sigma principles. It also works effectively alongside process automation, amplifying the benefits of both methodologies. Additionally, process intelligence can further enhance these efforts by using insights from process mining and applying advanced analytics and AI to predict outcomes, optimize decisions, and recommend process improvements, ultimately driving smarter, more effective automation.

Efficient processes depend on a well-trained and skilled workforce. Employee training and upskilling are essential for overcoming inefficiencies and ensuring tasks are completed accurately and efficiently. Ongoing training keeps employees up to date with the latest tools, technologies, and best practices, enabling them to work more effectively. Upskilling helps employees adapt to evolving job requirements, further optimizing business processes. A knowledgeable workforce can identify inefficiencies, contribute to process improvements, and drive innovation, leading to smoother operations and increased productivity across the organization.

Fostering cross-department collaboration and alignment is a powerful way to eliminate inefficiencies. When departments operate in isolation with limited communication, it often leads to duplicated efforts, delays, and missed opportunities. Encouraging collaboration improves information flow, reduces redundancies, and accelerates problem-solving. For example, aligning marketing, sales, and customer support ensures a seamless customer journey from initial contact to post-purchase support. Regular cross-department meetings and joint initiatives help build a culture of cooperation and shared objectives, enabling more efficient workflows and optimized processes across the organization.

Hint: Explore our tips & tricks for improving BPM collaboration.

Lucerne University of Applied Sciences and Arts identified inefficiencies in their HR department, particularly in managing application forms. The process was largely manual, leading to errors, delays, and a lack of transparency. To overcome these challenges, the university implemented process automation using the ADONIS Process Automation module. The goal was to eliminate repetitive tasks and reduce the time spent on manual data entry and document processing.

The university followed a structured approach to implement process automation successfully:

Step 1: Evaluating Process Automation Tools
The university assessed various tools to find one that met their requirements, including BPMN 2.0 modeling capabilities, autonomy, IT and data security, system stability, and flexibility.

Step 2: Selecting Suitable Processes for Automation
Two HR processes, as well as training requests and reimbursements, were chosen as initial candidates due to their high volume and non-critical nature.

Step 3: Testing and Rollout
After modeling these processes in ADONIS BPM Suite, they were transformed into executable workflows, necessary forms were created, and live environment tests were conducted before full implementation.

Step 4: Identifying and Prioritizing Additional Automation Opportunities
Further processes across HR, Finance, and IT Services were analyzed to identify and prioritize additional automation opportunities.

By following these steps, the university successfully implemented process automation, fully integrating training requests and reimbursements into daily operations. Additional processes suitable for automation have also been identified and prioritized.

Beyond improving process transparency and input quality, automation delivered clear financial and operational benefits:

• Cost savings of approximately 36,458 CHF per year
• Time savings of around 700 working hours annually
• Two-thirds of all applications completed within five days
• Three-fourths of refund requests processed within one day

These results highlight the success of the initiative. Increased efficiency led to significant time and cost savings, allowing employees to focus on more critical tasks. Improved process visibility and understanding further enhanced overall clarity, demonstrating the effectiveness of automation in optimizing operations and conserving resources.

Hint: Read more about our Business Process Automation Case Study at Lucerne University for detailed insights.

Optimizing process efficiency is essential for reducing waste, improving productivity, and enabling business growth. By leveraging automation, refining workflows, and fostering collaboration, organizations can eliminate inefficiencies and enhance overall performance. Continuous monitoring and improvement ensure that processes remain effective, allowing businesses to operate more smoothly and make better use of their resources.