Equilor Corporate Advisory: operational excellence is the key to development

The issue of corporate efficiency was examined by Equilor Corporate Advisory’s research, the aim of which was to reveal in which functional areas domestic companies fall most short of the desired efficiency level and what factors hinder development. The survey involved 50 medium-sized and large Hungarian companies, in which senior managers assessed their company’s performance. The analysis examined six interconnected, yet distinct areas of corporate operations: sales, HR, operations, IT, finance, and investment and strategic processes.

In most companies, the main tasks and decision-making logics are organized around these areas, meaning that these functions are where the most acute efficiency deficiencies and development opportunities are. The study not only evaluated individual sub-processes, but also sought answers to how these areas are connected to each other and how it affects the entire organizational operation if a function does not function properly. Sales and HR areas pose the greatest challenge Based on the responses, companies are well aware of the needs of their business partners, but the background structures supporting sales, such as marketing, the sales incentive system, and CRM, do not operate with sufficient efficiency. According to respondents, the factors hindering new customer acquisition include strategic deficiencies (lack of a designated target market, inadequate external communication), sales process problems, human factors (motivation problems, high turnover) and technological lag (outdated or missing CRM).

Together, these lead to sales processes being less efficient and performance not being measured objectively, which hinders reaching new customers and increasing orders. In many companies – especially smaller companies – sales tasks and the relationship system are concentrated in the hands of a single employee, which makes it difficult to scale orders due to capacity constraints. HR processes were also assessed as a major challenge by companies, which can be primarily explained by the lack of automated administrative processes and appropriate individual key performance indicators (KPIs). Although employee satisfaction and training are emphasized, transparency in performance evaluation and individual objectives is often lacking.

As a result, managers do not receive real-time feedback and employee motivation is not built systematically, according to research by Equilor Corporate Advisory, part of the Equilor Group. Automation is a key issue, but not yet common practice The companies participating in the survey rated the automation of their administrative processes on average only 2.42 points on a 5-point scale, which was the lowest indicator in the entire research. This indicates that although the technological possibilities and the benefits of digitalization are now known to everyone, practical implementation is still in its infancy, and in many companies it is not clear how and in what areas the available tools could be effectively applied.

Experience shows that extraordinary benefits can be derived from the automation of individual operational and administrative processes, such as time and cost savings, a reduction in the frequency of errors, and data-driven, faster decision-making resulting from up-to-date data. Manual work is still typical in administration, as the construction of the necessary background infrastructure often encounters methodological and organizational resistance. That is why it is essential for managers to set an example and actively commit to change for a successful transition.