Productivity, efficiency and income

Economists will tell you that if you increase the productivity of the country, you raise living standards and increase income for everyone in the economy.  The same applies to your business.  In fact it’s your business that economists are talking about when they talk about productivity in the economy.

Make your business more productive and you will make it more profitable

What is the most pressing problem you have right now?

  • Cash flow?
  • Not enough revenue?
  • Not enough profit?
  • Not enough billable time?
  • Fixed salary costs eating a big chunk out of your revenue each month?
  • Too much work for your existing staff, so you are hiring freelancers all the time?
  • People frantically busy reporting on where jobs are up to but not really planning or producing?

Account service (project management) people are time-poor and stress-rich

The first step to improving productivity in any creative business is improving how your Account Service (project management) team work.  They will truthfully tell you that they are flat out doing all the things they have to do now:

  • Tracking new business
  • Managing existing jobs
  • Updating 2 or more spreadsheets with their new business proposals, billings forecasts and the endless lists of jobs that have to be done, updates given to clients, WIP sheets updated for the WIP meetings…
  • Trying to stay on top of where their live jobs are up to, when they don’t have up to date information…
  • Presenting, collaborating, cajoling, encouraging, complaining…

And don’t ask them which jobs are blowing the budget – they don’t have time to keep on top of that as well!

The problem is you need them to do all that – and more – so you know what is going on in your business, but tracking all of that takes a lot of time.

 Unless you have a friend that makes it happen.

Managing capacity and the impact on profitability

The only way to improve productivity is to effectively manage your capacity and make your business as efficient as possible.  I bet you’d like to know where the capacity issues are going to be in the next few weeks, before they happen, and be able to minimise the need for freelancers.

If you could get all the work done without having to hire freelancers, you’d be more profitable.  If your existing employees are on salary, they cost the same each month no matter how much they produce.

Imagine if you could increase the amount they produce and reduce your average cost of revenue…

To do that, you’d need to see – instantly – all the live and potential work that is coming, including where it is tentatively scheduled…  You’d need to know:

  • who’s working on which days and how many meetings and other tasks they are already committed to;
  • how much PRODUCTIVE time they can produce;
  • who’s going on holidays, when and for how long;
  • what the impact is on capacity; and
  • the impact of every change as soon as it happens.

You’d need your jobs to be planned so everyone knows the plan.  You need to know the capacity of your business and how you are tracking against your capacity.

You need one source of truth for your business.

Imagine if you could have all this at your finger-tips

Picture having instant access to:

  • The value of the proposals in the pipeline and when they are expected to be accepted by the client
  • The capacity of departments and key people
  • The impact that upcoming holidays are going to have on your capacity
  • The potential workload if all your clients accept your estimates.
  • Scheduling jobs and instantly seeing the impact on your capacity.

Imagine the impact that would have on the efficiency of your business.

Ask your Account Service team how it would feel…

If they never again had to fill in:

  • Another forecast spreadsheet that doesn’t link to anything else
  • Another WIP list that is instantly out of date as soon as they save it, and
  • Another billings forecast spreadsheet that STILL doesn’t link to anything.

Then ask them how it would feel if they knew:

  • How their jobs are going against budget;
  • Who hasn’t done their timesheets on their jobs;
  • Who’s recorded time on their jobs when they SHOULDN’T have!
  • When the next deadline on their jobs is;
  • Which proposals they need to chase up;
  • Where the real fires are that they need to fight.

Finally, ask them if they would like:

  • reconciling jobs to be SO much easier,
  • their billings to be done faster, and
  • their jobs to be WAY more profitable…?

Obviously they would.  Who wouldn’t, especially if they are rewarded for profitability? And they can have all that.

But… there’s a catch.  It’s called the Definition of Insanity.  Keep doing what you do now, but expect a different outcome.

It doesn’t work.  Millions have tried, and keep trying every day.

It will NEVER work.  The only thing that will work is if you take a different approach.

Doing something different will give you a different outcome.  It HAS to.

 If you are truly doing something different, it will be a different outcome.

If it’s the same outcome, you are doing the same thing – you just think it’s different.

The problem is we are creatures of habit and we don’t like change.  Change is:

  • scary,
  • requires effort,
  • means learning a new routine,
  • getting your mind into a different place, and
  • making the effort to be different.

The result of doing something truly different is getting a different result – and not being insane!

The biggest cause of inefficiency

It’s really simple.  It’s KNOWLEDGE.  Having the information you need when you need it to get the job done.

If everyone knew what he or she had to do and when, in the absence of bone-idle laziness they’d do it.  If you set out the plan for a job so everyone could see the plan, then the job would be done.

Plans change, so you need to change them.  You need to let everyone know what the new plan is.  You, and everyone else, need to know if the changed plan is going to cause problems and know where those problems are.  Then you need to know how you are going to fix the problem.

Knowledge is the key.  Knowledge starts with Account Service when they create the estimate for the job, and that flows through every part of your business.  It impacts on your sales pipeline, your billings forecasts, your workload, your cash flow, your efficiency, your productivity and your profitability.

Get your estimate(s) right and the results will flow from that.

Does this sound like a dream?

For us, it was a dream.  It has been a dream that we have been living for over 21 years. It’s a dream that we have been striving to turn into reality and now we have done exactly that.

JobBag v6 turns dreams into reality

We have created the ultimate business management system for any creative business.  It doesn’t matter if you:

  • create ads, websites, videos or content,
  • design products, logos, buildings, spaces, towns, cities or ecosystems,
  • manage public relations, image, opinion or time,
  • consult, engineer, create, refurbish, destroy, service, coach, install or implement,

we’ve joined the dots of your business process so you can be more efficient, effective and profitable.

You have to change – to JobBag v6

You want to change.  You know you need to change.  Change is the one constant in life.  How much you embrace that change will be reflected in how successful you are.

A change is as good as a holiday.  Don’t you deserve a holiday?

I thought so.

Call Us – 02 8115 8005.

Leave insanity behind.  Make the change to JobBag v6.

Facebooktwittergoogle_pluslinkedinmailby feather
Posted in Blog