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#COR, Project Management, Resource Management, Time Management

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Time analysis in your business: The secret to improve Profitability and Transparency

One of the most crucial challenges agencies face today is managing the time between the sale and execution of projects. When time estimates are exceeded, projects that were originally profitable are no longer profitable, and teams assigned to take on new challenges are overburdened with additional requirements for similar projects. Furthermore, in the current industry landscape, employee turnover is at record levels, largely due to concerns related to employee compensation and the excessive workload they face.

To achieve full transparency, it is critical to inform the client that quotes represent value for money in terms of time spent, experience, expertise and creative input.

Agencies must carefully analyze how they managed costs on projects sold to assess the profitability of their services. Time measurement plays an essential role in this process, as it allows deviations to be clearly identified and flagged. The information gathered provides the basis for effective communication with clients, enabling them to better understand the progress of projects and, when necessary, negotiate rate adjustments.

How Client Requests Impact Project Budgets

There are several key reasons that may require a budget to be modified. These include change requests from clients, deviations in the development of a project, and underestimation of available human resources. On many occasions, an incorrect number of staff is assigned to a project, which can result in inadequate management of project costs. This problem may recur in the future if not detected in time. 

To evaluate the profitability of their services, agencies should carefully analyze the cost management on the projects they have sold. Time measurement plays an essential role in this process, as it makes it possible to clearly identify and pinpoint areas where deviations are occurring. This information is crucial to engage in discussions with clients and provide them with a more accurate picture of the progress of projects, which can lead to renegotiation of rates when necessary.

It is highly beneficial to have a project management tool that offers dashboards where it is possible to upload and visualize process data in real time. This makes it possible to identify and address these deviations effectively.

Solid Data: The Path to a Profitable Client Conversation

For agencies, it is essential to back up the reasons behind time deviations with solid data, which can lead to rate renegotiations with clients. By leveraging an efficient project management tool, they can gain valuable insights, such as:

  • The average time an agency needs to complete projects.
  • The fee structure is based on different areas of expertise.
  • The time required by designers with different levels of experience to complete projects.
  • Comparison of productivity between teams.

To determine the profitability of your services, you must thoroughly analyze cost management in the projects that have been offered. Time recording plays a fundamental role in this process, as it allows for precise identification of deviations. This information is essential for establishing loyal relationships with clients, providing them with real data on project progress, details about their status, the team involved, and the time invested in each of them.

Conclusion

Efficient management of time between the sale and execution of projects becomes a fundamental piece, as deviations in timelines can significantly affect profitability and overload teams. On the other hand, client change requests, along with deviations in project execution and underestimation of resources, are factors that may require modifying budgets. Time measurement emerges as a key tool for effectively identifying and addressing deviations.

In this context, adopting efficient project management tools with real-time control panels presents as a beneficial solution for your business to stay at the forefront of project management and profitability.

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