Just like every business, business efficiency is important for a cooperative society. It is important that the amount of work put in matches the result that the business gets. With how important cooperative societies are to the world at large, business efficiency cannot be overlooked. This is because it directly impacts on how much positive effect they have on their members.
As a cooperative executive, do you sometimes sit down to think about how well your cooperative is performing? Surely, you must have thought of ways to improve the efficiency of your cooperative. This article is filled with tips about how to help you meet this need, however, before we need to understand what a cooperative business and business efficiency are.
WHAT IS A COOPERATIVE BUSINESS?
A cooperative business is a business consisting of members who have equal rights in the decision making of the business, regardless of how involved they are or how much they invested in the business. It is a separate legal entity from everyone else in the cooperative. This means that the members, directors, managers and employees are not going to be responsible for any debts incurred by the cooperative unless in a case of fraud.
Having established that cooperative societies need to prioritise efficiency to meet their needs, we will look at what business efficiency is for a cooperative society and the types there are.
WHAT IS BUSINESS EFFICIENCY?
Business efficiency is the ability to avoid wasting energy, efforts, money, and time in doing something or in producing the desired result for your cooperative society. It is the intelligence you put in to utilise all efforts; big and small, to the benefit of your cooperative society. Below are the types of business efficiency;
The financial efficiency of a business can be measured as to how every amount of money utilised yields profit for the organisation. Cooperative executives should endeavour to make sure that the money spent is worth every penny.
Operational efficiency measures the efficiency of the core business process of an organisation. As a cooperative executive, you have to make sure that the processes that make up your operations are efficient enough to produce the required results. Knowing this will help you take away unnecessary processes that give less than they take.
Like stated above, processes make up operations. Process efficiency is the amount of effort you need to reach your business goals. It measures the efficiency of all your processes to make sure that they lead your cooperative society to tick off your goals. To make a process efficient, you should know what goal it is intended for. This helps you measure the effectiveness of the process correctly.
Employees are important stakeholders in a business. Their input can make or mar a business. Labour efficiency is a performance indicator which defines how much of an employee’s time is spent working productively. You should note that if there is a loophole here, efficiency everywhere else will be affected. You can take a look at the factors that affect the efficiency of labour, here.
It is important as a cooperative executive to take note of these types of efficiency as they all work hand in hand. You should endeavour to ensure that there is no lag in any. Now that we have explained the important forms of business efficiency, we will go on to talk about ways that a cooperative society can increase business efficiency.
WAYS TO IMPROVE BUSINESS EFFICIENCY
Even when your cooperative is doing well, there is the burning need to make things better than they are. Here are a few things to do to improve the efficiency of your cooperative business;
Have a good business plan
This is great if you are about to start your own cooperative business. Make sure that you have a highly detailed business plan and include information on all aspects of the business, including the industry, marketing, finance, personnel and various operating procedures. Click here to find out more about writing a good business plan. For a step by step guide business plan template, click here.
Train and develop employees
Training employees is crucial for your cooperative society’s development and success. Employees must be equipped with the knowledge to execute their tasks effectively.
Match Task to Skills
Do not put round pegs in square holes. Your employees should be matched to tasks according to the skills that they most excel in. Make sure you have clearly defined the job so you can assign the employee’s skill set to the right job role. Putting the right person in the right job can be the difference between success and failure.
In today’s competitive business environment, business automation is very necessary. Automating tasks saves your cooperative society time and gives room for more critical thinking. It may be expensive to implement automated processes in the beginning, but in the long run, it will cut costs and greatly increase business efficiency.
Obtain and analyse customer feedback
Everything you need to know about your business lies in the tongue of your members. Their feedback and complaints are key to knowing how to make your processes better. Be sure to categorise the complaints to give you a clear picture of what to do about it.
Proper Goal Oriented Research
Make sure that your research is tailored around what will help you reach your goals. Set your sights on new technologies that will help the business.
Looking at our previous article, we now know that successful cooperatives don’t just come out of thin air and that they require deliberate work. They do so by setting up structures that encourage efficiency. Below is a list of some successful cooperatives in Nigeria.
- Zero Interest Multi-Purpose Co-operative Society
- Sweet-Suinix Investors, Savings And Loan Cooperative Multipurpose Society
- Lagos Local Governments Co-operative Multipurpose
- Nigeria Police Cooperative Society
- SeedersHub Multi-Purpose Co-operative Society Limited
- Lekki Cooperative Multi-Purpose Society Limited
- LUTH CMUL Cooperative Multipurpose Society Limited
- Prime Asset Housing Cooperative Multi-Purpose Society Limited
- Cowries Cooperative
- UNILAG Staff Cooperative
HOW EASYCOOP CAN INCREASE BUSINESS EFFICIENCY FOR YOUR COOPERATIVE SOCIETY
Easycoop is specially designed to help cooperative societies improve efficiency with minimal effort. It efficiently handles your cooperative’s functions with automation giving you more time to create more value for your members. This is why operations like member signups, account reporting and loan application become easier than before. Your employees will get work done faster and experience minimal burnouts with EasyCoop. There is also a 24-hour user support system and advanced data security to protect your cooperative society against fraud and unauthorized access.
You can visit www.enquiries.myeasycoop.com or send an email to firstname.lastname@example.org to find out more about how EasyCoop can help your cooperative society improve efficiency.