As we explore our Time Management and how it impacts bottom line results, we need to talk about the Average. In this case, we are talking about the Average Hourly Wage. Last time I blogged about Zero Basing and one of the challenges that people have with learning how to Zero Base is where to start. Well, Average Hourly Wage is a good place to start.
The way to look at Average Hourly Wage is to answer the question: “How much would I pay a person to do that job?” You do this will all of your activities that you do on a weekly (or monthly) basis. Then you assign percentages of time to each of the activities and you come up with what your Average Hourly Wage.
Now that you have this number, you have to look at how to raise that number. Higher Average Hourly Wages will lead to more Revenue and Profit for your business. This is a quantitative way of analyzing your personal productivity. You can apply this technique to your employees and see the value that they are bringing to the firm.
Now nobody is going to have no low-value activities, there is always a few things that you need to do. But if you can optimize your time by focusing on high Average Hourly Wage activities you will have a great start. Now if you can lay some of these activities out with other people then you can arrive at some larger business processes and systems that you might want to eliminate or reduce. If people are spending time on these low-value activities across a firm, then you may wish to rethink that process as part of your Zero Basing.
This is really the difference between Zero Basing and Average Hourly Wage. The former is a Company Wide view and the latter is a personal (or a person at a time view). Needless to say, Company Wide reductions are better, but can be hard to start with. By focusing on Average Hourly Wage, we have a good starting point even if you don’t reach nirvana in productivity. Starting out is the best way to get done. You can do the first pass using Average Hourly Wage and then use that data to Zero Base the business.
Now these are both quantitative views of time and time management. Next week, I want to look at a qualitative view.
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