The Ultimate Guide to Process Efficiency in Enterprise Businesses

Process efficiency is at the core of every high-performing enterprise. Inefficient workflows and redundant steps drain time, money, and resources. 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 guide explains what process efficiency is, why it matters, how to measure it, and the best strategies to improve it. 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 the measure of how effectively a business uses its time, resources, and effort to achieve desired results. It reflects how well processes convert inputs into valuable outputs with minimal waste or delay. High process efficiency means tasks are completed faster, costs are lower, and workflows run smoothly across the organization.

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 boost productivity by helping employees complete tasks faster and with less effort. Streamlined workflows eliminate confusion and wasted time, allowing teams to focus on what truly adds value. The result: higher output, faster turnaround, and stronger overall performance across the organization.

Optimized processes cut waste, reduce rework, and lower operational costs. When workflows are clear and repeatable, the risk of mistakes drops — saving time, materials, and resources. For instance, efficient inventory management prevents costly overstocking or shortages, freeing up capacity for growth and innovation.

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

Efficiency builds agility. When processes are lean and well-structured, organizations can adapt quickly to new demands, market shifts, or internal changes. Optimized workflows make scaling easier, reduce disruption, and ensure quality as the business evolves. In short, efficiency gives enterprises the flexibility to grow and stay competitive.

Even the best-designed workflows can lose efficiency due to a few common barriers. Recognizing and addressing them early is key to sustainable improvement.

Informal or unapproved “shadow” processes create inconsistencies, errors, and confusion. Without proper documentation, it’s difficult to track progress or optimize performance.

Solution: Standardize workflows and ensure all processes are clearly documented.

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

Too many approvals or tasks that add no real value slow everything down.

Solution: Regularly review and simplify workflows to remove redundant steps.

Untrained employees and outdated skills lead to delays and errors.

Solution: Invest in continuous training and upskilling to maintain efficiency.

Too much or too little information disrupts decision-making.

Solution: Use centralized systems, such as Process Portal, to ensure relevant, accurate, and accessible data.

Different departments using inconsistent methods or terminology creates misalignment.

Solution: Adopt unified standards and shared process language across the organization.

Improving process efficiency requires a combination of technology, methodology, and culture. The most effective organizations focus on four key strategies to eliminate waste, streamline workflows, and maximize value creation.

Automation eliminates repetitive manual work, reduces errors, and speeds up execution. Combined with digital transformation initiatives, it connects systems, data, and people, improving visibility and decision-making across the enterprise. Start by automating high-volume, low-risk tasks for quick wins.

Lean focuses on reducing waste, while Six Sigma minimizes variation and defects. Together, they create a structured approach to continuous improvement. Techniques like process mining and process intelligence help identify bottlenecks and drive data-driven optimization.

Hint: Discover our Process Automation solution for ADONIS.

Processes are only as efficient as the people executing them. Continuous training ensures employees stay aligned with best practices, tools, and evolving technologies. Empowered, knowledgeable teams sustain efficiency over time.

Efficiency breaks down when teams work in silos. Collaboration across departments improves communication, eliminates duplication, and speeds up problem-solving. Establish shared goals and process standards to align teams around outcomes.

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

A powerful example of process efficiency improvement comes from the Lucerne University of Applied Sciences and Arts. The university identified inefficiencies in its HR department, where manual handling of training requests and reimbursements caused delays and errors. By implementing process automation with the ADONIS Process Automation module, the institution streamlined workflows and reduced repetitive tasks.

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 automation tools that met data security and flexibility needs.

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: Modeling and testing workflows before full 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: Scaling automation to other areas like Finance and IT.

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.

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

• Annual cost savings of ≈36,500 CHF

• Over 700 working hours saved per year

• 66% of applications completed within five days

• 75% of refund requests processed within one day

This case demonstrates how structured automation and BPM tools can significantly improve transparency, reduce costs, and accelerate process execution in real-world enterprise environments.

Process efficiency is a strategic capability that drives productivity, cost reduction, and business agility. By streamlining workflows, automating repetitive tasks, and fostering collaboration, organizations can eliminate waste and achieve measurable, lasting improvements.

Enterprises that prioritize efficiency build stronger, more adaptable operations able to scale, innovate, and thrive in changing markets.
Continuous monitoring and improvement ensure processes stay aligned with business goals and deliver consistent value.

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