‘Time costs money’ is a very old saying but it is totally true.
Just think for a moment, does everyone in your business understand how their working time relates to business profit and prosperity? In our quest to ensure that every member of an organisation understands how they can personally impact working capital we must never ignore or forget this old saying.
If you take too long to complete a task it means that the total cost of the product or service is higher. It is hard to quantify but a task that takes too long means less product produced or less customers served and ultimately means we have less to sell. It also means that our costs are higher so our prices have to be higher or our profit smaller. Time costs money.
Without comprising quality or customer service every person in your organisation should be thinking of ways to do things quicker.
For instance when things take longer than they need to because of time wasted having to ask questions or waiting on parts or adding in detail that is never used. Most people when asked can identify things that ‘waste’ their time and they will pretty much know how they could complete things more quickly than they do today.
This is all about working smarter not harder. If everyone is engaged in finding ways to work smarter then this can only lead to a more productive outcome. Any wasted time removed will then naturally turn into money.
This is a really simple concept so why don’t people always think like this? Generally I think the answer is pretty simple too. Businesses can try and bit too clever. They can wrap the message up in business improvement initiatives, give it a fancy name or make it a management task. But the fact is that working as effectively as possible is everyone’s job. We just need to make sure people have the skills and motivation to do it.
Here are some examples. If you can…
- Standardise an email or a form or a proposal so that you don’t have to start from scratch each time
- Provide systems which fire up quickly so you are not waiting on them
- Ensure that you only have to fill in one form instead of two
- Ensure that all the tools and any information are needed are close to hand
- Start meetings on time and ensure they are productive
… then you will reduce the time that it takes to complete tasks and reduce frustration.
We have been helping companies to achieve this goal for over 20 years and I am always astounded that so little focus and effort is put into this. If we can get everyone to remember the direct relationship between time and money they we will absolutely transform our businesses.