Most managers like to think about time management as a personal productivity issue. People who manage time get ahead; those who don't manage time well fall behind.[1] However, it is crucial to understand that operationally, there are ways of organizing or reorganizing work to reduce the amount of time wasted. The old saw, "Time is money," has particular relevance here. Time is a vital resource that is subject to 'leaks.' Too many organizations, neither measure nor analyze how they spend time. Time drifts away, the noiseless killer of a company or nonprofit.
Time 'leaks.'
A time 'leaks' analysis has some handy applications in both the for-profit and nonprofit worlds. Tracking time can yield valuable insights into everything from employee utilization rates (in consulting, that's the percentage of billable hours divided by total hours worked) to how focused (or not) a particular employee may happen to be on the work performed.
Consultants, lawyers, accountants, and other professionals who bill for time spent, detest the daily ball and chain of accounting for time. We track our time so we can accurately charge our clients. But we also use time tracking so that we can recognize the opportunity cost of the time we dedicate to business development, pro bono, or administrative activities as well. This third use is essential to our discussion. Looking over those timesheets on a cumulative basis, for example, for the past year, yields valuable insights into how we are performing economically, and the kinds of projects we are taking on.
Most businesses don't sell their time, and so time-tracking is unfamiliar; however, the discipline of tracking time is a powerful one, and one that can be used to identify additional "leaks." As savvy managers, we should look at how much time each employee is dedicating to various activities. "Diary analyses of how different people spend their time in the same role--sales rep, trader, store manager, regional vice president--often provoke astonishment at the sharply contrasting ways different individuals perform the same job." So say authors Frankki Bevins and Aaron De Smet, in a January 2013 article in McKinsey Quarterly. "The not-so-good performers are often highly fragmented, spending time on the wrong things in the wrong places while ignoring tasks core to their strategic objectives.[2]"
Such analyses can identify underutilized resources in your organization. You can find opportunities to automate inefficient manual processes. In some cases, you can locate redundant activities repeated by business units or departments. To develop this data, use time tracking software or an online data form. Ask each employee to track their time, allocating their workdays in quarter hours to a previously agreed-upon list of activities. Ask them to do this for two or three weeks or long enough to provide a representative time allocation, meaningful in your organization. Summarize the data at the employee level, then at the group level. Meet with the employees, both individually and at the group level. Then, drill-down and understand anomalous data and trends.
What to Look for
Employees will be nervous about this activity, so it is crucial to make them feel at ease. Your goal will be to help them be more productive with the time they have and to manage the entire department's time better. You will be surprised by the amount of time that your employees dedicate to tasks that can be automated.
Every organization is different, but here are some opportunities that may exist in your organization:
By tracking and managing employees' time as an organizational resource rather than a personal one, leaders can come to understand how their team accomplishes its work. Analyzing employees' work activities over time, allows managers to identify activities and processes which are wasteful. By making comparisons between employees, you can bring to light best practices.
Further, by informing the staff that their managers think employee time is valuable, leaders empower team members to find more time-efficient ways to complete their work. This analysis creates a virtual circle: analysis, improvement, additional analysis, additional improvement. In the beginning, this change may cost the organization upfront investment in technology and automation. However, long-term, the organization will be rewarded with higher productivity, higher employee satisfaction, lower turnover, and higher profits.
[1] See http://www.mckinsey.com/insights/organization/making_time_management_the_organizations_priority#sthash.YMbwQxlt.dpuf
[2] See http://www.mckinsey.com/insights/organization/making_time_management_the_organizations_priority#sthash.YMbwQxlt.dpuf
[3] For a great example of this problem, see Hammer, Michael, "Reengineering Work: Don't Automate, Obliterate." Harvard Business Review, July-August, 1990, p. 104.
[4] See http://www.oracle.com/us/products/applications/rightnow/engage/knowledge/features/index.html
[5] See http://www.nanorep.com
[6] John Seddon, "Freedom from Command and Control, Rethinking Management for Lean Service, Productivity Press, 2005 (pp. 26-28).