Operational efficiency refers to how well a business or organization uses its resources, including time and money, to achieve its goals. It is an indicator of how effectively a company can produce goods or services using the least amount of input possible while still meeting demand. Operational efficiency involves minimizing waste, streamlining processes, and optimizing resource allocation in order to maximize productivity and profitability. The higher a company's operational efficiency, the more efficient it is at converting inputs into outputs, which can result in increased competitiveness and long-term success.