Understanding the relationships between time, money, productivity and value -- A keynote presentation for iSummit by Michael Parler, Chief Strategy Officer at Purple, Rock, Scissors.

1. D o n’ t Wa s t e Yo u r T i m e
B y Tr a c k i n g I t
MICHAEL PARLER
CHIEF OF STRATEGY
WWW. P R P L . R S
@PRPLRCKSCSSRS
@MICHAELPARLER

2. Tr a d i n g Ti m e f o r M o n e y
Understanding the relationships between
time, money, productivity and value

3. To W h o m T h e s e C o n c e p t s A p p l y. . .
S A L A R I E D E M P LO Y E E S
MANAGERS
BUSINESS OWNERS
I N V E N T O R S & I N N O VAT O R S
ENTREPRENEURS

4. T h e s e C o n c e p t s A r e N o t F o r. . .
REPETITIVE LABORERS
A PAT H E T I C
C LO C K WAT C H E R S
“BEAN COUNTERS”
LUDDITES

5. The Classic Exchange
$
Renting your Time in
exchange for Money

6. JOB

7. JOB
Just Over Broke

8. An Incomplete Equation
Rate X Time = Earnings

9. An Incomplete Equation
Rate X Time = Earnings
but where is Productivity?

10. An Incomplete Equation
Rate X Time = Earnings
where is Value?

11. A Better Formula:
MONEY
OVER
TIME

12. A Better Formula:
MONEY
OVER
TIME
...more on this later

13. To d a y ’ s To p i c s : V a l u e & P o t e n t i a l
Download for Free: freshbooks.com/blog/2013/06/12/breakingthetimebarrier/

14. To d a y ’ s To p i c s : C o r p o r a t e C u l t u r e
Read & Laugh: dilbert.com

15. To d a y ’ s To p i c s : P r o d u c t i v i t y
David Allen: The Art of
Stress-Free Productivity
TEDxClaremontColleges
Wa t c h : y o u t u b e . c o m / w a t c h ? v = C H x h j D P K f b Y

16. L e t’ s t a l k a b o u t
Ti m e

18. EVERYONE HAS
24 Hours / Day
168 Hours / Week. 728 Hours /
Month. 8760 Hours / Year.

19. A p p r o p r i a t e Ti m e
Management

20. N O T I M P O R TA N T
NOT URGENT
I: Fires
I M P O R TA N T
URGENT
II: Excellence
Crisis
Deadlines
Some Meetings
Planning & Strategy
Relationship Building
Personal Development
III: Deception
IV: Escape & Waste
Interruptions
Some Emails
Some Meetings
Tr i v i a l M a t t e r s
Time-Killers
“Numbing Out”
T h e E i s e n h o w e r M e t h o d : e n . w i k i p e d i a . o r g / w i k i / Ti m e _ m a n a g e m e n t

21. Ti m e s h e e t s

22. Ti m e s h e e t s
A method for recording the
amount of a worker's time
spent on each job.

23. Ti m e s h e e t s
Advantages
-
Easy Payroll Processing
-
Visibility to Expenses
-
Future Budget Planning
-
Method to Invoice Clients

24. Ti m e s h e e t s
Advantages
-
Easy Payroll Processing
-
Visibility to Expenses
-
Future Budget Planning
-
Method to Invoice Clients
Disadvantages
-
Repetitive
-
Stressful to Employees
-
Prone to Human Error
-
Perverse Incentives

25. PAY R O L L
PROCESSING

26. PAY R O L L
PROCESSING
HUMAN
ERROR

27. BUDGET
PLANNING

28. BUDGET
PLANNING
HUMAN
ERROR

29. C O M PA N Y
EXPENSES

30. C O M PA N Y
EXPENSES
HUMAN
ERROR

31. HUMAN
ERROR

32. Inaccurate Repor ting
Since April 26, 1996
Dilbert / Scott Adams: dilbert.com/strips/comic/1996-04-26/

33. Cascading Issues
Under-perform / Overpaid
Project / Budget Overrun
Over-perform / Underpaid
Breakdown of Trust
Employee
Timesheets
Payroll &
Invoices
Clients
Uncontrolled Costs
Misrepresented Estimates
Perverse Incentives
Poor Justification of Value

34. L e t’ s t a l k a b o u t
Va l u e

35. 21st Century Economics
W h a t i s Wo r k i n
t o d a y’ s m a r k e t p l a c e ?

36. 2 0 T H C E N T U RY ECO N O M I CS
2 1 s t C E N T U RY ECO N O M I CS
Localized Economy
Global Economy
-
Blue Collar & Manual Labor
-
White Collar / Green Collar
-
R e p e t i t i v e / M a n u a l Ta s k s
-
-
Limitations of Local Resources
Repetitive & Dangerous Jobs are
Automated
-
Tr a d i t i o n a l E d u c a t i o n & Tr a i n i n g
-
Global Resources / Outsourcing
-
Te n u r e , P e n s i o n s , R e w a r d s f o r
Investing Time
-
Commodification / Race to Zero
-
Rewards for Groundbreaking
Ideas (Intellectual Property)
-
E m p l o y e e s Tr a d e S k i l l s & I d e a s
for Value
-
E m p l o y e e s Tr a d e T i m e f o r M o n e y

37. T h e r e i s a Wa r o n Wo r k

38. T h e r e i s a Wa r o n Wo r k
Value is Ever y thing

39. Work in the 21st Century
Invention & Inspiration
Creation & Connectivity

40. Wo r k i n t h e 2 1 s t C e n t u r y
C A N YO U F I N D T H E WO R K?
Morning
Afternoon
Evening
Emails
Meetings
Lunch
Inspiration
Commute
Youtube
Breakfast
Blogs
Emails
Twitter
Dinner
Google
Commute
Coffee
Facebook
Strategy
Television
Phone Calls
Ideas
Phone Calls
Meetings
Reports
Wikipedia
LinkedIn
Planning
Interruptions
Analysis
Ping-Pong
Meetings
Reflection

41. Wo r k i n t h e 2 1 s t C e n t u r y
C A N YO U F I N D T H E WO R K?
Morning
Afternoon
Evening
Emails
Meetings
Lunch
Inspiration
Commute
Youtube
Breakfast
Blogs
Emails
Twitter
Dinner
Google
Commute
Coffee
Facebook
Strategy
Television
Phone Calls
Ideas
Phone Calls
Meetings
Reports
Wikipedia
LinkedIn
Planning
Interruptions
Analysis
Ping-Pong
Meetings
Reflection
What defines your productivity?

42. Wo r k i n t h e 2 1 s t C e n t u r y
C A N YO U F I N D T H E WO R K?
Morning
Afternoon
Evening
Emails
Meetings
Lunch
Inspiration
Commute
Youtube
Breakfast
Blogs
Emails
Twitter
Dinner
Google
Commute
Coffee
Facebook
Strategy
Television
Phone Calls
Ideas
Phone Calls
Meetings
Reports
Wikipedia
LinkedIn
Planning
Interruptions
Analysis
Ping-Pong
Meetings
Reflection
What value do these activities
provide?

43. Wo r k i n t h e 2 1 s t C e n t u r y
C A N YO U F I N D T H E WO R K?
Morning
Afternoon
Evening
Emails
Meetings
Lunch
Inspiration
Commute
Youtube
Breakfast
Blogs
Emails
Twitter
Dinner
Google
Commute
Coffee
Facebook
Strategy
Television
Phone Calls
Ideas
Phone Calls
Meetings
Reports
Wikipedia
LinkedIn
Planning
Interruptions
Analysis
Ping-Pong
Meetings
Reflection
Why do we lie to ourselves
by tracking time?

44. G r e a t I d e a s Ta k e Z e r o H o u r s

45. C i t i l o g o b y Pa u l a S c h e r
Learn More: breezycreativedesign.com/2010/05/04/citi-logo-by-paula-scher/

46. C i t i l o g o b y Pa u l a S c h e r
How can a multi-billion dollar
organization base their
identity off of a second?
Answer: “it’s a second done
in 34 years”
Learn More: breezycreativedesign.com/2010/05/04/citi-logo-by-paula-scher/

47. Under valued Productivity
Since September 15, 1995
Dilbert / Scott Adams: dilbert.com/strips/comic/1995-09-15/

48. L e t’ s t a l k a b o u t
Productivity

49. Ti m e i s I n f i n i t e . Yo u r Ti m e i s N o t .
What do you do with your 24 hours?
Are your 24 hours productive?
What is the value of your 24 hours?

50. 20th Century Concepts
Work
Life

51. Blurring the Lines
Work
Internet
Learning
Social Media
Networking
Creativity
Passion
Life

52. Productivity
Simple & Effective

53. “Flow” by Dr. Mihaly Csikszentmihalyi
Challenge
(mee-hy cheek-sent-mə-hy-ee)
Anxiety
Peak Performance
Flow Channel
Apathy
Boredom
Skills
David Maister:
Dynamos: People who hate Time Sheets
Cruisers & Losers: People who like Time Sheets
Flow: en.wikipedia.org/wiki/Flow_(psycholog y)

54. “ Wa l l y ”

55. “ Wa l l y ”
bored
apathetic
disengaged
just cruising
clock-watching

56. “ Wa l l y ”
No
Productivity

57. “ Wa l l y ”
Ti m e i s Wa s t e d

58. “Flow”

59. “Flow”
in the moment
present
in the zone
on a roll
wired in
in the groove
on fire

60. “Flow”
in the moment
present
in the zone
on a roll
wired in
in the groove
on fire
Time is Irrelevant

61. “Flow”
in the moment
present
in the zone
on a roll
wired in
in the groove
on fire
Time is Irrelevant
Productivity is Everything

62. A c u l t u r e w i t h o u t Ti m e S h e e t s
will attract more talent who like
working in the Flow.

63. To u g h Q u e s t i o n s
CEO: “How do we measure productivity?”
COO: “How do we measure accountability?”
CFO: “How do we measure profitability?”

64. L e t’ s t a l k a b o u t
Money

65. Productivity

66. Clear Goals
Appropriate Engagement
D i re c t Fe e d b a c k

67. Peak Performance

68. Ever ything is a Project

69. E v e r y P r o j e c t h a s Va l u e

70. Pe r f o r m o n e v e r y P r o j e c t

71. Classical Project Management
Quality
Time
Budget

72. P r o j e c t M a n a g e m e n t i n D i f f e r e n t Te r m s
Quality
Time
Budget
Value
Productivity
Money

73. M e a s u r e m e n t To o l s F o r M a n a g e r s
Tr a c k i n g & A n a l y z i n g R e s o u r c e U s a g e

74. M e a s u r e m e n t To o l s F o r M a n a g e r s
Tr a c k i n g & A n a l y z i n g R e s o u r c e U s a g e
( . . . y e s , I m e a n “m o n e y” )

75. Example: Start-up Company XYZ
Project Manager
Graphic Designer
-
Project Oversight
-
Creative Concepts
-
Networking / Biz Dev
-
Graphics & Assets
-
Client & Project Management
-
We b s i t e I n t e r f a c e s
-
Risk Analysis & Mediation
-
Print Material
Content Writer
Web Developer
-
Creative Concepts
-
We b s i t e D e v e l o p m e n t
-
Ads / Copywriting
-
Maintenance & Support
-
Social Media Management
-
General Office IT
-
Wr i t i n g P r o p o s a l s

76. C o m p a n y X Y Z ’s Fi n a n c i a l s
Annual Labor Costs . . . . . $140,000
Overhead (~20%) . . . . . . . . $28,000
Gross Annual Costs . . . . . $168,000
Target Profit Margin . . . . . . . . . 20%
Profit Value . . . . . . . . . . . . . $33,600
Annual Target . . . . . . . . . . . $201,600
Semi-Annual Target . . . . $100,800
Quarterly Target . . . . . . . . $50,400
Monthly Target . . . . . . . . . . $16,800

77. C o m p a n y X Y Z ’s Fi n a n c i a l s
Annual Labor Costs . . . . . $140,000
Overhead (~20%) . . . . . . . . $28,000
Gross Annual Costs . . . . . $168,000
A Better Formula:
MONEY
OVER
Target Profit Margin . . . . . . . . . 20%
Profit Value . . . . . . . . . . . . . $33,600
Annual Target . . . . . . . . . . . $201,600
Semi-Annual Target . . . . $100,800
Quarterly Target . . . . . . . . $50,400
Monthly Target . . . . . . . . . . $16,800
TIME

78. C o m p a n y X Y Z ’s Fi n a n c i a l s
Annual Labor Costs . . . . . $140,000
Overhead (~20%) . . . . . . . . $28,000
Gross Annual Costs . . . . . $168,000
A Better Formula:
MONEY
OVER
Target Profit Margin . . . . . . . . . 20%
Profit Value . . . . . . . . . . . . . $33,600
TIME
...without worrying about hours.
Annual Target . . . . . . . . . . . $201,600
Semi-Annual Target . . . . $100,800
Quarterly Target . . . . . . . . $50,400
Monthly Target . . . . . . . . . . $16,800
Just deadlines.

79. Productivity Driving Growth
Productivity is the ratio of output to inputs in
production. It is a measure of efficiency.

80. Productivity Driving Growth
Productivity is the ratio of output to inputs in
production. It is a measure of efficiency.
INPUT
TO
OUTPUT

81. Productivity Driving Growth
Productivity is the ratio of output to inputs in
production. It is a measure of efficiency.
INPUT
MONEY
OUTPUT
TIME
TO
OVER

82. Productivity is about
getting things done.

83. C o m p a n y X Y Z ’ s P r o j e c t Tr a c k
Jan
Project 1
Project 2
Project 3
Project 4
Project 5
Feb
Mar
Apr
May Jun
Jul
Aug
Sep
Oct
Nov Dec

84. “ M o n e y O v e r Ti m e”
Jan
Project 1
Project 2
Project 3
Project 4
Project 5
Feb
Mar
Apr
May Jun
Jul
Aug
$25,000
$12,000
$35,000
$20,000
$35,000
Target: $201,600
Sep
Oct
Nov Dec

85. “ M o n e y O v e r Ti m e”
Jan
Project 1
Project 2
Project 3
Project 4
Feb
Mar
Apr
May Jun
Jul
Aug
$25,000
$12,000
$35,000
$20,000
Project 5
$35,000
Earnings: $127,000
Target: $201,600
Sep
Oct
Nov Dec

86. “ M o n e y O v e r Ti m e”
Jan
Project 1
Project 2
Project 3
Project 4
Feb
Mar
Apr
May Jun
Jul
Aug
Sep
Oct
Nov Dec
$25,000
$12,000
$35,000
$20,000
Project 5
$35,000
Earnings: $127,000
Remaining: $74,600
Target: $201,600

87. “ M o n e y O v e r Ti m e”
Jan
Project 1
Project 2
Project 3
Project 4
Feb
Mar
Apr
May Jun
Jul
Aug
Sep
Oct
Nov Dec
$25,000
$12,000
$35,000
$20,000
Project 5
$35,000
Earnings: $127,000
Remaining: $74,600
Potential: $127,000
Target: $201,600
Potential: $254,000

88. “ M o n e y O v e r Ti m e”
Jan
Project 1
Project 2
Feb
Mar
Apr
May Jun
Project 5
Aug
$25,000
$12,000
Project 3
Project 4
Jul
$35,000
$20,000
$35,000
Unexpected Project Overruns
Sep
Oct
Nov Dec

89. “ M o n e y O v e r Ti m e”
Jan
Project 1
Project 2
Feb
Mar
Apr
May Jun
Project 5
Aug
$25,000
$12,000
Project 3
Project 4
Jul
$35,000
$20,000
$35,000
Project Impact & Ripple Effect
Sep
Oct
Nov Dec

90. “ M o n e y O v e r Ti m e”
Jan
Project 1
Project 2
Project 3
Feb
Mar
Apr
May Jun
Jul
Aug
Oct
$25,000
$12,000
$35,000
Project 4
Project 5
Sep
$20,000
$35,000
Project Delays, Late Starts
Nov Dec

91. “ M o n e y O v e r Ti m e”
Jan
Project 1
Project 2
Feb
Mar
Apr
May Jun
Jul
Aug
Sep
Oct
$25,000
$12,000
Project 3
$35,000
Project 4
$20,000
Project 5
$35,000
Actual: $99,500 ($100,800)
Nov Dec

92. “ M o n e y O v e r Ti m e”
Jan
Project 1
Project 2
Feb
Mar
Apr
May Jun
Jul
Aug
Sep
Oct
Nov Dec
$25,000
$12,000
Project 3
$35,000
Project 4
$20,000
Project 5
$35,000
Actual: $99,500 ($100,800)
Up Hill Battle: $102,100

93. Productivity is about Deadlines.

94. Manage Deadlines.
N o t Ti m e .

95. Benchmarks
w i t h o u t Ti m e s h e e t s
Value
Productivity
Money

96. Analyze the Benchmarks
-
Value
Do his projects meet our
standard of excellence?
-
Does she operate in the best
interest of our company?
-
Does he have groundbreaking
ideas that move the needle?

97. Analyze the Benchmarks
-
Productivity
Is she meeting project deadlines?
-
Is he flexible and understanding
with schedules?
-
Can she operate in the Flow?

98. Analyze the Benchmarks
-
Money
Is he generating an appropriate
amount of target revenue?
-
Is she compensated fairly for her
efforts?
-
Is he providing hidden value to
our company and our clients?

99. I d e n t i f y Yo u r O w n
Metrics for Success

100. A n a l y z e & L e v e r a g e Yo u r D a t a
“How can we improve?”
“What are our most profitable & successful services?”
“Are services priced properly based on the value they
provide to our clients?”
“Where & How can we expand?”
“What trouble areas do we have?”

101. A n a l y z e & L e v e r a g e Yo u r D a t a
“Big Data” Concepts in
manageable chunks

102. A n a l y z e & L e v e r a g e Yo u r D a t a
“Big Data” Concepts in
manageable chunks
All without the use of
Timesheets.

103. Examples Close to Home
F i g 1 . P R P L’s G r o s s R e v e n u e
500,000,000%
In 2010, Purple, Rock, Scissors made
a decision to throw out timesheets,
focusing our efforts on Productivity
and Value for our clients.
375,000,000%
By the end of 2012, we began using
the Time over Money concept to
track, manage and analyze the usage
of our resources.
250,000,000%
125,000,000%
0%
2009
2010
2011
2012 2013 *
By the end of 2013, we are on track
to more than quadruple our gross
service revenue compared to 2009.
Financials do not include media buy / ad spend.
Just what matters: gross service revenue.

104. Wr a p p i n g I t U p
A t b e s t , t i m e t r a c k i n g c a n u n d e r - v a l u e y o u r p r o d u c t i v i t y.
At it’s worst, tracking time encourages damaging and perverse
incentives ( Wallys ).
Peak Performance: Focus on what matters. Results,
Deadlines and Value.
Explore ways to measure & optimize your
performance.
D o n’ t Wo r r y A b o u t Ti m e .

105. In Closing
Dilbert / Scott Adams: dilbert.com/strips/comic/2008-08-31/

106. D o n’ t Wa s t e Yo u r T i m e
B y Tr a c k i n g I t
MICHAEL PARLER
CHIEF OF STRATEGY
WWW. P R P L . R S
@PRPLRCKSCSSRS
@MICHAELPARLER