Speaking of Efficiency…

Speaking of Efficiency…


I have recently attended a meeting as a guest speaker, where I also had the chance to read the efficiency report jointly prepared by Enerjisa and IDEMA. Below you will find my interpretive summary of this report, containing some quite valuable findings.


Energy is not the first thing that comes to mind when speaking of efficiency in Turkey. Human resources, machinery and equipment come to mind, hence directing people’s focus mostly on “speed, stability and profit”. Most of the decisions and actions businesses take are primarily aimed at cutting costs. When they are asked why they are using technology or why they are transforming themselves digitally, these businesses always give the same answer: “cost reduction”, which appears to be their main motivation.


The good news is that, according to the efficiency-related future perspective described in the report, “energy” rapidly replaces that cost-related motivation of business organisations. So, I think we could gladly say that their awareness is increasing.


A survey on digital transformation, which is included in the report, shows only large organisations try to extract the highest benefit from the big data activities, unlike the small ones. On the other hand, as revealed by surveys conducted by various institutions, businesses do not exactly know how to accurately measure their efficiency. Human resources, raw materials and machinery/equipment are the first three things that come to mind when measuring efficiency, but based on my experience, I do not believe they do this correctly either. Thankfully, the report states that companies in Turkey have been becoming more aware of the importance of efficiency, and as their scale grows, they measure efficiency more precisely.


According to the report, the biggest flaw of organisations is their failure and/or inability to keep themselves up to date with hence apply for incentives and other winning opportunities. Large-scale companies have their own departments dealing with government incentives, but as the scale gets smaller, it becomes difficult to be aware of such opportunities. Sadly, small-scale companies consider these breakthroughs, which help them grow in many ways, as “luxury”. Many business owners praise efficiency at every opportunity, but when they are asked what they have done about it, their answer is, “Nothing! It is very costly!”. Everyone is aware of its benefits yet everyone is hesitant to take a step forward.


Perhaps the solution is that companies should focus on their main business and outsource the steps necessary for achieving efficiency. In order for a company to survive in the market, it has to be strong in many fields, including production and sales, logistics, energy, advertising, financing, branding, design, R&D, innovation, and supply. It is not easy for small scale companies to both ensure efficiency and manage risks.


A study conducted in the US indicates that there will be more freelancers than payroll workers by 2027. So, many departments, divisions or units will be removed from the organizational chart and instead companies will outsource staffing. Determining how to manage many functions, including energy, will perhaps be a vital element for companies in terms of running an efficient business.