Operating Efficiency is an important concept in business, as it directs how well a company is able to use its resources to generate desired results. It is defined as the ratio of the output from a business process to the input that is required to generate that output. The output could include any desired results such as increased revenue, increased customer satisfaction, or increased productivity, while the input includes resources such as labor, materials, and capital. Operating Efficiency thus measures the effectiveness of a company’s management in utilizing resources to achieve desired outcomes. High levels of Operating Efficiency demonstrate a company’s ability to maximize its output with a minimum of resources and thus is of great importance. Companies must be able to identify and measure their Operating Efficiency in order to understand how they are performing and to develop strategies to improve it. This can be done through the use of analytics, metrics, and other performance indicators