Every business experiences growing pains, but not all pain is necessary. Some inefficiencies are like slow leaks – small at first but quietly draining time, money, and momentum.

The good news? Once you spot them, you can fix them.

Here are five red flags that signal it’s time to take a closer look at your operations:

1. Your Team Is Constantly Firefighting 

If every day feels like survival mode – endless problem-solving, last-minute scrambles, and teams chasing their tails – there’s a deeper issue at play. Businesses that run reactively rather than proactively tend to suffer from fragmented systems, unclear processes, and poor delegation.

The Data Says: A study by McKinsey found that companies with clear processes and efficient workflows see up to a 30% increase in productivity. Yet, many businesses still rely on outdated, ad-hoc methods.

Actions To Fix It:

• Map out your workflows to uncover bottlenecks.
• Establish clear responsibilities so decision-making isn’t a free-for-all.
• Implement proactive planning tools to shift from reactive chaos to structured execution.

 

2. Decisions Take Too Long 

Ever felt like every approval needs to go through 10 people before anything moves forward? Slow decision-making is a silent killer of business momentum.

A lack of streamlined communication and outdated reporting tools often leads to paralysis by analysis – where decisions get stuck in endless loops.

What Experts Say: Harvard Business Review reports that decision-making speed is a major differentiator for high-performing businesses, with the fastest movers achieving up to 22% higher profitability.

Actions To Fix It:

• Reduce unnecessary approval layers—trust your team to act.
• Implement clear reporting structures so decision-makers get the data they need.
• Invest in real-time dashboards for better visibility across teams.

 

3. Your Tech Stack Is Working Against You 

Technology should make life easier, not harder. If your team is duplicating work across multiple platforms or constantly switching between disconnected systems, inefficiencies are costing you more than you realise.

The Hidden Cost: Businesses waste up to 20% of their annual budget on unused or underutilised software, according to a report by Blissfully.

Actions To Fix It:

• Conduct a tech audit – what’s truly essential, and what’s just noise?
• Automate repetitive tasks to free up time for high-value work.
• Ensure all tools integrate smoothly to prevent double-handling of data.

 

4. Revenue Is Growing, but Profit Margins Aren’t 

More sales should mean more profit—right? Not always. If operational costs are rising at the same pace as revenue, inefficiencies are eating into your margins.

Industry Insight: A Bain & Company study found that improving operational efficiency by just 1% can drive a 10% increase in profit margins.

Actions To Fix It:

• Review your cost-to-serve model – where are the hidden expenses?
• Standardise workflows to eliminate waste and inefficiencies.
• Implement financial tracking tools that flag margin leaks in real time.

 

5. Customers or Employees Are Frustrated 

If you’re hearing complaints from employees about inefficient systems or customers about slow service, it’s not just a bad day – it’s a sign that something isn’t working behind the scenes.

The Reality: Companies that prioritise employee experience see a 21% increase in profitability, and those that focus on customer experience can see up to 80% revenue growth, according to Deloitte.

Actions To Fix It:

• Regularly gather employee and customer feedback – don’t assume, ask.
• Identify pain points in processes that create friction.
• Simplify and streamline so that both employees and customers have a smoother experience.

Making Efficiency Your Competitive Advantage

Every business encounters inefficiencies – it’s part of growth. The key is recognising them early and making intentional changes to keep things running smoothly. By addressing these red flags, you’re not just fixing problems – you’re strengthening your foundation for sustainable growth, better team performance, and a more seamless customer experience.

Operational efficiency isn’t about working harder; it’s about working smarter. If you’re ready to streamline, optimise, and take your business to the next level, let’s start the conversation.

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Working with The Artisans

The Artisans: a solutions-focused small business consultancy.

We support businesses to become stronger through the design, development and implementation of robust operational systems.

The Artisans Process.

Step One: Book A Call to discuss your requirements

Step Two: Identify | Conduct an Operational Audit

Why Start Here?

In order to develop an effective solution, we first need to investigate and identify the root cause of the issue(s)

Step Three: Solution

• Take away your Operational Audit Finding / Action Plan and Implement.
• Looking for support, we will design a Tailored Support Package to align with your priorities.

What’s Next?

We offer different levels of support, customised for each client dependent on their needs, whether it be short term for a specific issue, longer term, or even open ended, working with you to analyse and address every aspect of your business.

When streamlining your operations is a priority for you, reach out and we can design the support to take the right next steps towards strengthening your business for the next phase.

 

About The Author: Nicole Smith , Fractional COO and Business Strategist

With over 20 years of experience, Nicole specialises in optimising business operations and designing scalable onboarding solutions that enhance efficiency and employee retention. Her proven six-step process ensures your onboarding system is streamlined, effective, and aligned with your business goals.

Nicole’s expertise spans national and international organisations, including AXA , Rothschild & Co, and Macquarie Group, where she has successfully supported teams in achieving clarity, alignment, and impactful outcomes in both London and Australia.

Passionate about creating human-centred solutions, Nicole integrates your business’s unique culture into every onboarding system she develops, ensuring new hires are set up for long-term success and engagement.