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International Internet Magazine. Baltic States news & analytics Wednesday, 20.06.2018, 14:26

Latvian entrepreneurs raise efficiency by investing in people and processes

BC, Riga, 14.09.2017.Print version
Gemius Latvia study that was commissioned by process improvement system found out that Latvian companies link business efficiency with successful everyday operations management and motivated employees. Study not only showed the depth of Latvian entrepreneurs’ knowledge about increasing efficiency, but also which efficiency activities and aspects they are concentrating on, informs

Almost a half of the surveyed entrepreneurs admitted that they have tried to increase efficiency of the company: 35% of them applied the efficiency increasing experience of their parent company, only 14% outsourced services. Meanwhile, almost one third of the Latvian entrepreneurs consider that for now they have no need to improve efficiency.


Asked what activities have Latvian entrepreneurs applied for improving of efficiency during the last 5 years, respondents acknowledged the importance of their everyday processes and people. In order to increase the efficiency, most of the respondents want to optimize inefficient operations (56%) and increase motivation of employees (39%). Meanwhile, only one third of Latvian entrepreneurs associated efficiency with processes automation. “The following effectiveness increasing activities – investing in employees and business processes – complies with the global practices, therefore Latvian entrepreneurs are moving to the correct path. Modern businesses turn their focus from structures and infrastructures to their daily organizational processes and people that implement them. This is also the milestone of the process improvement system – Lean”, - explains Head of Vidas Petraitis.


It is significant that several companies with the number of employees up to 50 are willing to optimize inefficient operations, but companies with the number of employees above 50 pay more attention to the employees’ motivation. “It is wrong to think that only huge companies invest in process management and the employee motivation is easier managed in small companies. This study shows that Latvian business is trying to find such efficiency increasing practices that work best exceptionally for them – with no matter of the company size or structure”, - says V. Petraitis.


Lean and Quality Management are efficiency improving methods Latvian entrepreneurs know the most. 36% of Latvian entrepreneurs are informed about improving efficiency with Lean system, but only 4 out of 10, of those who are informed, implemented Lean in everyday practice. “If business owner wants to increase efficiency, it is essential to keep up the efficiency increasing practices. Lean systems philosophy says that managers must integrate these initiatives in everyday activities and make them a part of organizational culture. Leaders also need to actively engage with employees and co-workers in order to achieve results,” - says V. Petraitis.


Trends proving that the size of the company or its profits do not determine how successfully efficiency can increase were found amongst Latvian Lean users as well. It is interesting to acknowledge that currently Lean is implemented mostly by Latvian companies with the number of employees up to 50. Also, research showed a correlation between company’s turnover and Lean implementation: the bigger the company’s turnover is, the larger the number of Lean users (19% companies with turnover 500 001 – 1 000 000 EUR and 13% companies with turnover above 10 million use Lean).


Study was performed by Gemius Latvia on May 2017. 312 entrepreneurs were surveyed for the study purposes, 27% of them are owners of small business. team, consisting of 13 experts for over ten years helping many business organizations across the Baltic to increase the efficiency of work processes using Lean methodology recognized throughout the world and have Japanese roots. Since 2011 is the largest partner of “Honsha” in the Baltic States. International partner of the company is the organization of "Honsha", developing the principles of Lean system, which brings together corporate managers and experts "Toyota". the first in the Baltic market began implementing Lean system, which also provides solutions for the public sector - Lean Government. 

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