Project Management
UK SMALL & MID-SIZE FIRMS LOSING OVER £100,000 A YEAR THROUGH SHODDY PROJECT MANAGEMENT PRACTICES
Coretime study finds UK small and mid-tier
project management practices losing
equivalent to cost of two extra fee
earners through poor time recording
- "a sorry waste in lean times" comments
Coretime CEO.
Small and mid-tier accountancy practices,
engineering firms, architects, advertising
agencies, consultancy companies, software
consulting business and other project
management businesses in the UK are
losing up to £100,000 a year because
their time recording and project management
practices are not up to scratch, says
a study by leading project management
software solutions company Coretime.
Losses are being run up through a common
situation of as little as one or two
hours a week going unrecorded on timesheets
- with cumulative costs amounting to
as much as the salaries of two extra
fee earners.
The study outlines how on a total of
37 hours worked in
a week, with 4 hours allowed for project
administration, the fee earner can bill
33 hours. Over 10 fee earners charging
£120 an hour, just two lost hours each
per week would amount to a loss of £2,400
per week - or £115,200 per 48 week working
year.
"Our study is based on
information and statistics we've received
from potential and existing clients"
commented Ray Nolan, CEO of Coretime.
"It seems that to lose an hour or two
a week is a common and simple mistake
to make when a consultant is under pressure
to resolve or forward cases.
"The missing billable hours are often
lost because the fee earner cannot remember
how many hours they had recorded earlier
in the week because they had filled
out their timesheet for billing purposes
on Friday, instead of completing them
at the time of carrying out the work.
We call it admin padding - where the
time recorder assigns a missing hour
to Administration (non-chargeable) because
they cannot recall what they were actually
doing for that hour.
"The pressure is on the fee earner
to complete and submit timesheets and
it is as a result of this pressure that
the billable hours are missed. It is
our experience that as much as 5-10%
of billable hours on a project are missed
as a result of poor timesheet practices.
"No firm that drives its income from
strong skills should
allow such practices to continue - it's
a shoddy waste in such lean times,"
he concluded.
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Management |
Time |
Billing |
Timesheet |
Project |
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www.maketimepay.co.uk |
www.maketimepay.com |
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www.coretime.co.uk |
www.coretime.com |
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