If you're serious about improving your business operations, time tracking should be treated as a non-negotiable. Period. End of story.
Without it, how can you even come close to answering the questions that are most important to your business?
Join us in this 10 minute episode of Automate Your Agency, as Alane and Micah share how time tracking goes beyond its stigma of micro-management, offering you a wealth of knowledge to accurately steer and operate your business.
Interested in implementing time tracking in your business? We recommend a specialized timekeeping software like Toggl to ensure you can accurately capture and review all the data you need.
Effective time management aligns directly with the ability to improve processes, scale operations, and ensure profitability. The conversation between Alane and Micah on "Automate Your Agency" underscores the necessity of tracking time meticulously within an organization.
"How do you know how long things will really take? How do you know if there's an issue with the process?" - Micah
When Alane and Micah started their agency, they didn't track time initially, leading to inefficiencies. As they began utilizing Toggl, it became evident that time tracking provides invaluable data, allowing them to refine operations, better train employees, and enhance overall productivity.
Unveiling Time Variations in Task Completion
Tracking time can often reveal discrepancies in the amount of time different employees spend on the same tasks. Micah elucidates this point brilliantly when discussing the varied time it takes team members to complete similar tasks.
"One person it might take 30 minutes, another person it might take 3 hours. Is that due to lack of training? Is that due to skillset mismatch?" - Micah
This insight allows managers to identify and address underlying issues, whether they relate to training needs, process inefficiencies, or even individual performance issues. Understanding these differences can help in optimizing each team member’s strengths, improving overall productivity.
Addressing Process and Training Needs
Time tracking isn't just about holding people accountable; it is about understanding where guidance and process improvements are needed.
"A lot of times we found that it's process and training. The process is broken and they don't know how to do their job and they're just scrambling." - Micah
Rather than penalizing employees for taking longer on tasks, this approach encourages identifying when and where the process breaks down. Subsequent training empowers employees, ensuring they understand their tasks better, leading to quicker completion times and improved morale.
Enhanced Accuracy with Dedicated Software
Specialized time tracking tools like Toggl or Harvest can provide powerful features that basic project management tools might lack.
"You get the ability to integrate directly with a tool like Quickbooks. You get hierarchy, levels of projects and tasks and clients and estimates and all the things that you actually need." - Micah
Using dedicated software for time tracking—as opposed to relying solely on the limited functionality of general project management tools like ClickUp or Asana—ensures accurate and comprehensive data collection. This can facilitate more precise project estimates and better client billing.
Better Pricing Strategies
Accurate time tracking informs more precise pricing strategies. Only with concrete data can businesses ensure they are not underpricing their services.
"Maybe it does take 10 hours this first time around. If you're not tracking that, then how do you know the next time around and you do it 8 hours, you improved." - Micah
Understanding the precise time investment required for each project means agencies can better forecast the time and resources necessary for future similar projects, setting more accurate prices and maintaining healthy profit margins.
Identifying and Addressing Profitability Issues
Without proper time tracking, agencies risk losing money on projects. The transcript reveals how Micah and Alane realized this the hard way.
"There was times, especially starting this business out [...] it took way longer than expected. If we weren't tracking that, we wouldn't have been able to look at it and go, wait a second, we're losing money on this." - Micah
By meticulously tracking time, agencies can quickly identify unprofitable tasks and take corrective action, whether by renegotiating terms with clients, streamlining the process, or discontinuing non-profitable services.
Having a structured time tracking system shifts the focus from mere compliance to constructive collaboration. Alane provides a practical example of this with her PR manager, highlighting the ongoing dialogue sparked by the insights time tracking can provide.
"After the first month, we looked at her time, and I'm like, okay, let's go through, like, what were the most time-consuming things so we could look at the data of our time." - Alane
This collaborative approach not only optimizes operations but also empowers employees, making them an integral part of the improvement process. It shows that management values their insights and is committed to making their work more efficient and enjoyable.
Time tracking is an essential tool for improving transparency, efficiency, and profitability in agency operations. Whether for setting accurate prices, streamlining processes, or uncovering training needs, the data derived from time tracking fosters a culture of continuous improvement and collaboration. Agencies equipped with such insights can operate more effectively, ensuring they deliver value to clients while also safeguarding their bottom line.
Alane Boyd is a serial entrepreneur, passionate leader and a high growth founder (2x SaaS Exit and published author 3x). She is an Enneagram 3 with a Driver leadership style. She a visionary that believes in impact-driven, result-oriented leadership. Her skillsets focus on operations, sales, marketing, and technical skills. Alane has been featured and spoken at major events, including SXSW, Entrepreneur, Huffpost, and Goldman Sachs.
Micah Johnson is a serial entrepreneur, advisor, and support-driven leader (3x successful exits). He has successfully scaled businesses (and failed a couple of others along the way, for good measure). Micah is skilled at translating business requirements into requirements a technical team will understand while being able to provide clarity on design and the user experience. He is a visionary who can identify gaps in systems and markets and an implementor who can build and execute a plan to fill those gaps. His skills include operations, systems, automation, design, software development, and UI/UX design. Micah has worked with large billion-dollar brands and manufacturers, and has been featured in newspapers, business journals, and trade publications throughout the US.
Empower your team with efficient project management, unlocking their potential to streamline workflows, enhance productivity, and achieve remarkable success in every endeavor.
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