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The only way forward is to increase productivity quickly
Productivity can be calculated using a simple formula: Productivity = result / time. To improve productivity, we need to increase the result (numerator) and reduce the time (denominator). The cold winds currently blowing from the German automotive industry—winds that could quickly spread to other sectors—are certainly not helping results grow at the desired pace.
Therefore, our main task as managers is to optimize the time it takes to achieve results, thus maximizing productivity. When the winds shift in our favor again, we’ll be in a strong position to outpace the competition with full sails.
Let's not forget: time is money
We all know the saying, "Time is money". Money is relatively easy to count and manage, as shown in finance and sales, where it's straightforward to plan, measure, and analyze financial and sales results.
Time, however, is a more complex variable. As soon as you start managing time in Excel, small challenges arise. Employee time management is often handled by the HR department, and at the end of each month, when timesheets need to be converted into salaries, there's a stressful search for data across the company due to inconsistent individual records.
Managers frequently wonder where their colleagues are and what they’re doing when they're not in the office. Are they working in the field, working from home, or perhaps on holiday or sick leave? Salespeople are also frustrated because they lack information on how much time was spent on specific tasks in previous projects. Understandably, they need this to create accurate quotes for the next project and ensure a proper price margin.
Result: focus on strategy and a strong system
A solid IT system for time recording and tracking time by project accurately collects operational data and provides analytics, now enhanced by artificial intelligence. This allows for planning based on insights drawn from historical data.
In the PDCA cycle of continuous improvement (Plan-Do-Check-Analyze), new initiatives propel us into the next planning cycle. By focusing on customer demands (customer-centric) and addressing employee needs (employee experience), we’re consistently achieving better results. The insights gained from this operational time management can then shift the focus of HR and other managers from day-to-day operations to more strategic aspects of the business.
Evidence: examples from Spica partners' practices
According to the Balanced Scorecard (BSC), employees are the fundamental and most important building block, upon which processes, customers, and ultimately finances are built. Implementing a BSC system within a company presents a great opportunity for an HR manager to take on a strategic leadership role and secure a seat on the Board of Directors.
At Spica, we leverage these methods to our advantage and are eager to share this knowledge with you. Our time management software thus supports both operational and strategic management principles. This is evident from our loyal customers, who have shared their extensive experiences through case studies featured in this issue of Spica Magazine International.
I wish you all the best and look forward to staying in touch!
