Stop Wasting Time By Tracking It
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Understanding the relationships between time, money, productivity and value -- A keynote presentation for iSummit by Michael Parler, Chief Strategy Officer at Purple, Rock, Scissors.
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Stop Wasting Time By Tracking It
- 1. D o n’ t Wa s t e Yo u r T i m e B y Tr a c k i n g I t MICHAEL PARLER CHIEF OF STRATEGY WWW. P R P L . R S @PRPLRCKSCSSRS @MICHAELPARLER
- 2. Tr a d i n g Ti m e f o r M o n e y Understanding the relationships between time, money, productivity and value
- 3. To W h o m T h e s e C o n c e p t s A p p l y. . . S A L A R I E D E M P LO Y E E S MANAGERS BUSINESS OWNERS I N V E N T O R S & I N N O VAT O R S ENTREPRENEURS
- 4. T h e s e C o n c e p t s A r e N o t F o r. . . REPETITIVE LABORERS A PAT H E T I C C LO C K WAT C H E R S “BEAN COUNTERS” LUDDITES
- 5. The Classic Exchange $ Renting your Time in exchange for Money
- 6. JOB
- 8. An Incomplete Equation Rate X Time = Earnings
- 9. An Incomplete Equation Rate X Time = Earnings but where is Productivity?
- 10. An Incomplete Equation Rate X Time = Earnings where is Value?
- 12. A Better Formula: MONEY OVER TIME ...more on this later
- 13. To d a y ’ s To p i c s : V a l u e & P o t e n t i a l Download for Free: freshbooks.com/blog/2013/06/12/breakingthetimebarrier/
- 14. To d a y ’ s To p i c s : C o r p o r a t e C u l t u r e Read & Laugh: dilbert.com
- 15. To d a y ’ s To p i c s : P r o d u c t i v i t y David Allen: The Art of Stress-Free Productivity TEDxClaremontColleges Wa t c h : y o u t u b e . c o m / w a t c h ? v = C H x h j D P K f b Y
- 16. L e t’ s t a l k a b o u t Ti m e
- 18. EVERYONE HAS 24 Hours / Day 168 Hours / Week. 728 Hours / Month. 8760 Hours / Year.
- 19. A p p r o p r i a t e Ti m e Management
- 20. N O T I M P O R TA N T NOT URGENT I: Fires I M P O R TA N T URGENT II: Excellence Crisis Deadlines Some Meetings Planning & Strategy Relationship Building Personal Development III: Deception IV: Escape & Waste Interruptions Some Emails Some Meetings Tr i v i a l M a t t e r s Time-Killers “Numbing Out” T h e E i s e n h o w e r M e t h o d : e n . w i k i p e d i a . o r g / w i k i / Ti m e _ m a n a g e m e n t
- 21. Ti m e s h e e t s
- 22. Ti m e s h e e t s A method for recording the amount of a worker's time spent on each job.
- 23. Ti m e s h e e t s Advantages - Easy Payroll Processing - Visibility to Expenses - Future Budget Planning - Method to Invoice Clients
- 24. Ti m e s h e e t s Advantages - Easy Payroll Processing - Visibility to Expenses - Future Budget Planning - Method to Invoice Clients Disadvantages - Repetitive - Stressful to Employees - Prone to Human Error - Perverse Incentives
- 25. PAY R O L L PROCESSING
- 26. PAY R O L L PROCESSING HUMAN ERROR
- 27. BUDGET PLANNING
- 29. C O M PA N Y EXPENSES
- 30. C O M PA N Y EXPENSES HUMAN ERROR
- 31. HUMAN ERROR
- 32. Inaccurate Repor ting Since April 26, 1996 Dilbert / Scott Adams: dilbert.com/strips/comic/1996-04-26/
- 33. Cascading Issues Under-perform / Overpaid Project / Budget Overrun Over-perform / Underpaid Breakdown of Trust Employee Timesheets Payroll & Invoices Clients Uncontrolled Costs Misrepresented Estimates Perverse Incentives Poor Justification of Value
- 34. L e t’ s t a l k a b o u t Va l u e
- 35. 21st Century Economics W h a t i s Wo r k i n t o d a y’ s m a r k e t p l a c e ?
- 36. 2 0 T H C E N T U RY ECO N O M I CS 2 1 s t C E N T U RY ECO N O M I CS Localized Economy Global Economy - Blue Collar & Manual Labor - White Collar / Green Collar - R e p e t i t i v e / M a n u a l Ta s k s - - Limitations of Local Resources Repetitive & Dangerous Jobs are Automated - Tr a d i t i o n a l E d u c a t i o n & Tr a i n i n g - Global Resources / Outsourcing - Te n u r e , P e n s i o n s , R e w a r d s f o r Investing Time - Commodification / Race to Zero - Rewards for Groundbreaking Ideas (Intellectual Property) - E m p l o y e e s Tr a d e S k i l l s & I d e a s for Value - E m p l o y e e s Tr a d e T i m e f o r M o n e y
- 37. T h e r e i s a Wa r o n Wo r k
- 38. T h e r e i s a Wa r o n Wo r k Value is Ever y thing
- 39. Work in the 21st Century Invention & Inspiration Creation & Connectivity
- 40. Wo r k i n t h e 2 1 s t C e n t u r y C A N YO U F I N D T H E WO R K? Morning Afternoon Evening Emails Meetings Lunch Inspiration Commute Youtube Breakfast Blogs Emails Twitter Dinner Google Commute Coffee Facebook Strategy Television Phone Calls Ideas Phone Calls Meetings Reports Wikipedia LinkedIn Planning Interruptions Analysis Ping-Pong Meetings Reflection
- 41. Wo r k i n t h e 2 1 s t C e n t u r y C A N YO U F I N D T H E WO R K? Morning Afternoon Evening Emails Meetings Lunch Inspiration Commute Youtube Breakfast Blogs Emails Twitter Dinner Google Commute Coffee Facebook Strategy Television Phone Calls Ideas Phone Calls Meetings Reports Wikipedia LinkedIn Planning Interruptions Analysis Ping-Pong Meetings Reflection What defines your productivity?
- 42. Wo r k i n t h e 2 1 s t C e n t u r y C A N YO U F I N D T H E WO R K? Morning Afternoon Evening Emails Meetings Lunch Inspiration Commute Youtube Breakfast Blogs Emails Twitter Dinner Google Commute Coffee Facebook Strategy Television Phone Calls Ideas Phone Calls Meetings Reports Wikipedia LinkedIn Planning Interruptions Analysis Ping-Pong Meetings Reflection What value do these activities provide?
- 43. Wo r k i n t h e 2 1 s t C e n t u r y C A N YO U F I N D T H E WO R K? Morning Afternoon Evening Emails Meetings Lunch Inspiration Commute Youtube Breakfast Blogs Emails Twitter Dinner Google Commute Coffee Facebook Strategy Television Phone Calls Ideas Phone Calls Meetings Reports Wikipedia LinkedIn Planning Interruptions Analysis Ping-Pong Meetings Reflection Why do we lie to ourselves by tracking time?
- 44. G r e a t I d e a s Ta k e Z e r o H o u r s
- 45. C i t i l o g o b y Pa u l a S c h e r Learn More: breezycreativedesign.com/2010/05/04/citi-logo-by-paula-scher/
- 46. C i t i l o g o b y Pa u l a S c h e r How can a multi-billion dollar organization base their identity off of a second? Answer: “it’s a second done in 34 years” Learn More: breezycreativedesign.com/2010/05/04/citi-logo-by-paula-scher/
- 47. Under valued Productivity Since September 15, 1995 Dilbert / Scott Adams: dilbert.com/strips/comic/1995-09-15/
- 48. L e t’ s t a l k a b o u t Productivity
- 49. Ti m e i s I n f i n i t e . Yo u r Ti m e i s N o t . What do you do with your 24 hours? Are your 24 hours productive? What is the value of your 24 hours?
- 51. Blurring the Lines Work Internet Learning Social Media Networking Creativity Passion Life
- 53. “Flow” by Dr. Mihaly Csikszentmihalyi Challenge (mee-hy cheek-sent-mə-hy-ee) Anxiety Peak Performance Flow Channel Apathy Boredom Skills David Maister: Dynamos: People who hate Time Sheets Cruisers & Losers: People who like Time Sheets Flow: en.wikipedia.org/wiki/Flow_(psycholog y)
- 54. “ Wa l l y ”
- 55. “ Wa l l y ” bored apathetic disengaged just cruising clock-watching
- 56. “ Wa l l y ” No Productivity
- 57. “ Wa l l y ” Ti m e i s Wa s t e d
- 58. “Flow”
- 59. “Flow” in the moment present in the zone on a roll wired in in the groove on fire
- 60. “Flow” in the moment present in the zone on a roll wired in in the groove on fire Time is Irrelevant
- 61. “Flow” in the moment present in the zone on a roll wired in in the groove on fire Time is Irrelevant Productivity is Everything
- 62. A c u l t u r e w i t h o u t Ti m e S h e e t s will attract more talent who like working in the Flow.
- 63. To u g h Q u e s t i o n s CEO: “How do we measure productivity?” COO: “How do we measure accountability?” CFO: “How do we measure profitability?”
- 64. L e t’ s t a l k a b o u t Money
- 65. Productivity
- 66. Clear Goals Appropriate Engagement D i re c t Fe e d b a c k
- 67. Peak Performance
- 68. Ever ything is a Project
- 69. E v e r y P r o j e c t h a s Va l u e
- 70. Pe r f o r m o n e v e r y P r o j e c t
- 72. P r o j e c t M a n a g e m e n t i n D i f f e r e n t Te r m s Quality Time Budget Value Productivity Money
- 73. M e a s u r e m e n t To o l s F o r M a n a g e r s Tr a c k i n g & A n a l y z i n g R e s o u r c e U s a g e
- 74. M e a s u r e m e n t To o l s F o r M a n a g e r s Tr a c k i n g & A n a l y z i n g R e s o u r c e U s a g e ( . . . y e s , I m e a n “m o n e y” )
- 75. Example: Start-up Company XYZ Project Manager Graphic Designer - Project Oversight - Creative Concepts - Networking / Biz Dev - Graphics & Assets - Client & Project Management - We b s i t e I n t e r f a c e s - Risk Analysis & Mediation - Print Material Content Writer Web Developer - Creative Concepts - We b s i t e D e v e l o p m e n t - Ads / Copywriting - Maintenance & Support - Social Media Management - General Office IT - Wr i t i n g P r o p o s a l s
- 76. C o m p a n y X Y Z ’s Fi n a n c i a l s Annual Labor Costs . . . . . $140,000 Overhead (~20%) . . . . . . . . $28,000 Gross Annual Costs . . . . . $168,000 Target Profit Margin . . . . . . . . . 20% Profit Value . . . . . . . . . . . . . $33,600 Annual Target . . . . . . . . . . . $201,600 Semi-Annual Target . . . . $100,800 Quarterly Target . . . . . . . . $50,400 Monthly Target . . . . . . . . . . $16,800
- 77. C o m p a n y X Y Z ’s Fi n a n c i a l s Annual Labor Costs . . . . . $140,000 Overhead (~20%) . . . . . . . . $28,000 Gross Annual Costs . . . . . $168,000 A Better Formula: MONEY OVER Target Profit Margin . . . . . . . . . 20% Profit Value . . . . . . . . . . . . . $33,600 Annual Target . . . . . . . . . . . $201,600 Semi-Annual Target . . . . $100,800 Quarterly Target . . . . . . . . $50,400 Monthly Target . . . . . . . . . . $16,800 TIME
- 78. C o m p a n y X Y Z ’s Fi n a n c i a l s Annual Labor Costs . . . . . $140,000 Overhead (~20%) . . . . . . . . $28,000 Gross Annual Costs . . . . . $168,000 A Better Formula: MONEY OVER Target Profit Margin . . . . . . . . . 20% Profit Value . . . . . . . . . . . . . $33,600 TIME ...without worrying about hours. Annual Target . . . . . . . . . . . $201,600 Semi-Annual Target . . . . $100,800 Quarterly Target . . . . . . . . $50,400 Monthly Target . . . . . . . . . . $16,800 Just deadlines.
- 79. Productivity Driving Growth Productivity is the ratio of output to inputs in production. It is a measure of efficiency.
- 80. Productivity Driving Growth Productivity is the ratio of output to inputs in production. It is a measure of efficiency. INPUT TO OUTPUT
- 81. Productivity Driving Growth Productivity is the ratio of output to inputs in production. It is a measure of efficiency. INPUT MONEY OUTPUT TIME TO OVER
- 82. Productivity is about getting things done.
- 83. C o m p a n y X Y Z ’ s P r o j e c t Tr a c k Jan Project 1 Project 2 Project 3 Project 4 Project 5 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
- 84. “ M o n e y O v e r Ti m e” Jan Project 1 Project 2 Project 3 Project 4 Project 5 Feb Mar Apr May Jun Jul Aug $25,000 $12,000 $35,000 $20,000 $35,000 Target: $201,600 Sep Oct Nov Dec
- 85. “ M o n e y O v e r Ti m e” Jan Project 1 Project 2 Project 3 Project 4 Feb Mar Apr May Jun Jul Aug $25,000 $12,000 $35,000 $20,000 Project 5 $35,000 Earnings: $127,000 Target: $201,600 Sep Oct Nov Dec
- 86. “ M o n e y O v e r Ti m e” Jan Project 1 Project 2 Project 3 Project 4 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec $25,000 $12,000 $35,000 $20,000 Project 5 $35,000 Earnings: $127,000 Remaining: $74,600 Target: $201,600
- 87. “ M o n e y O v e r Ti m e” Jan Project 1 Project 2 Project 3 Project 4 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec $25,000 $12,000 $35,000 $20,000 Project 5 $35,000 Earnings: $127,000 Remaining: $74,600 Potential: $127,000 Target: $201,600 Potential: $254,000
- 88. “ M o n e y O v e r Ti m e” Jan Project 1 Project 2 Feb Mar Apr May Jun Project 5 Aug $25,000 $12,000 Project 3 Project 4 Jul $35,000 $20,000 $35,000 Unexpected Project Overruns Sep Oct Nov Dec
- 89. “ M o n e y O v e r Ti m e” Jan Project 1 Project 2 Feb Mar Apr May Jun Project 5 Aug $25,000 $12,000 Project 3 Project 4 Jul $35,000 $20,000 $35,000 Project Impact & Ripple Effect Sep Oct Nov Dec
- 90. “ M o n e y O v e r Ti m e” Jan Project 1 Project 2 Project 3 Feb Mar Apr May Jun Jul Aug Oct $25,000 $12,000 $35,000 Project 4 Project 5 Sep $20,000 $35,000 Project Delays, Late Starts Nov Dec
- 91. “ M o n e y O v e r Ti m e” Jan Project 1 Project 2 Feb Mar Apr May Jun Jul Aug Sep Oct $25,000 $12,000 Project 3 $35,000 Project 4 $20,000 Project 5 $35,000 Actual: $99,500 ($100,800) Nov Dec
- 92. “ M o n e y O v e r Ti m e” Jan Project 1 Project 2 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec $25,000 $12,000 Project 3 $35,000 Project 4 $20,000 Project 5 $35,000 Actual: $99,500 ($100,800) Up Hill Battle: $102,100
- 93. Productivity is about Deadlines.
- 94. Manage Deadlines. N o t Ti m e .
- 95. Benchmarks w i t h o u t Ti m e s h e e t s Value Productivity Money
- 96. Analyze the Benchmarks - Value Do his projects meet our standard of excellence? - Does she operate in the best interest of our company? - Does he have groundbreaking ideas that move the needle?
- 97. Analyze the Benchmarks - Productivity Is she meeting project deadlines? - Is he flexible and understanding with schedules? - Can she operate in the Flow?
- 98. Analyze the Benchmarks - Money Is he generating an appropriate amount of target revenue? - Is she compensated fairly for her efforts? - Is he providing hidden value to our company and our clients?
- 99. I d e n t i f y Yo u r O w n Metrics for Success
- 100. A n a l y z e & L e v e r a g e Yo u r D a t a “How can we improve?” “What are our most profitable & successful services?” “Are services priced properly based on the value they provide to our clients?” “Where & How can we expand?” “What trouble areas do we have?”
- 101. A n a l y z e & L e v e r a g e Yo u r D a t a “Big Data” Concepts in manageable chunks
- 102. A n a l y z e & L e v e r a g e Yo u r D a t a “Big Data” Concepts in manageable chunks All without the use of Timesheets.
- 103. Examples Close to Home F i g 1 . P R P L’s G r o s s R e v e n u e 500,000,000% In 2010, Purple, Rock, Scissors made a decision to throw out timesheets, focusing our efforts on Productivity and Value for our clients. 375,000,000% By the end of 2012, we began using the Time over Money concept to track, manage and analyze the usage of our resources. 250,000,000% 125,000,000% 0% 2009 2010 2011 2012 2013 * By the end of 2013, we are on track to more than quadruple our gross service revenue compared to 2009. Financials do not include media buy / ad spend. Just what matters: gross service revenue.
- 104. Wr a p p i n g I t U p A t b e s t , t i m e t r a c k i n g c a n u n d e r - v a l u e y o u r p r o d u c t i v i t y. At it’s worst, tracking time encourages damaging and perverse incentives ( Wallys ). Peak Performance: Focus on what matters. Results, Deadlines and Value. Explore ways to measure & optimize your performance. D o n’ t Wo r r y A b o u t Ti m e .
- 105. In Closing Dilbert / Scott Adams: dilbert.com/strips/comic/2008-08-31/
- 106. D o n’ t Wa s t e Yo u r T i m e B y Tr a c k i n g I t MICHAEL PARLER CHIEF OF STRATEGY WWW. P R P L . R S @PRPLRCKSCSSRS @MICHAELPARLER