Scenario: Your team is filling their time sheets, but it is not accurately relating to project execution. Some of the projects have a lot of hours worked and others too few, but in both cases the financial revenue milestones are at the same point. So what is going on?
Problem: “I don’t have confidence in the relationship of Time sheet quantities (Hours) and the overall project development.”
Time sheet is a very simple and straightforward instrument, but it is constrained as a control tool. It is like looking back in the rear view mirror; it only shows how many hours were spent on the project, giving no clue on how effectively the work was done. Another big issue is the cross relationship between the number of hours spent (as measured by Time sheet) which generates the percentage of completion (POC) of the project and the actual financial milestones that must be completed in the projects. Only by chance, these two items will be similar. In most of the cases, the hours spent on a project (thus the POC) are very different from what is needed to achieve a financial milestone of the project, making the balance uneven. This is a big problem: you only realize that you have worked more hours than what was estimated when you priced the project as the milestone are achieved and enable invoicing, but there is nothing you can do about the past. And let’s face it, it is not an easy task to increase the value of the contract through change orders. This could mean losses, demotivation, and stress at the office.
Solution: You must plan your teams’ work to ensure the amount of time they are spending on a project makes sense to that project’s budget. Time sheet should be a record of this hours that were previously planned and a register you can share with your clients. This gives you some big improvements, such as:
- Margins improvement
- Better prioritization of the work
- Timely deliveries according to deadlines
- Faster work to cash process
- Follow-up on project results
- Better change management capabilities
How Can Crunchflow Help? Crunchflow has a task/resource allocation tool that allows the project managers to breakdown projects into deliverable and task each with its percentage of the job (effort), deadlines, assigning workflow and relationship to milestones. This action enforces that the hourly expenditure of the designers automatically corresponds to what was planned and is cross-checked against the project Budget. This brings enormous value and improvement to processes across the organization.
If you think we can help, please fill this form.
Want to get more insightful content, please subscribe to our newsletter:
Subscribe to our Newsletter: