For time management data to have a positive impact on a consultancy’s business and performance management, the data on which decisions are based upon has to be of good quality. If the data is handled manually or automatically has an effect on the data quality (Kirkham, 2006), since the human error can have a huge impact. The time reporting frequency and the age of data also affect how reliable the data is and what it can be used for. Our research has shown that if the employees feel like it is important to report time and it is easy for them to do it, the data quality will increase.
6.4.1 Reduced Impact of the Human Effect
The human error when reporting time is identified as a major contributor to poor data quality, and as Grisham (2010) states, the quality is an important aspect to consider. The observation and interviews make it clear that different users use the time management system differently and the data quality therefore depends on the user. It is impossible to make all users use a system in the exact same way, but it is possible for management to have guidelines for how the system should be used. We found that there are major differences in how clear the managers are in their communication of how the time management system is to be used.
Our analysis gives an indication that at the companies where there existed clear guidelines on how to use the time management system the quality was higher, and at companies with vague or non-existing guidelines the quality was lower. At companies with clear guidelines, the data was often analyzed and used to create awareness among the employees, which lead to a company culture where time reporting was a given. Another source of error is when the consultant has to report time in several different systems. When the same information is entered multiple times it is easy to make mistakes. To discover errors, invoices and payments can be checked twice. Our study shows that as much as 5-10 % of the data can be wrong and in need of alteration before it is used.
The interviews show that how often time reporting is supposed to be done is often regulated by company management, and the frequency of reporting also affects the data quality. Our research shows that less frequent reporting decreases the data quality since the risk of forgetting details is increased, and the consultant has to make rough estimates. This can be controlled by management with fixed time report submission deadlines, which assures continuous reporting. According to our research, weekly time report submissions is to prefer, since it both increases the data quality and balances the administrative workload of the consultants. Fixed submission deadlines also allows for an administrator to ‘lock’ the reports, protecting them from alteration, also making the historical data useful.
6.4.2 Real-time Data is the Most Valuable
The time management system is used regularly by the consultants, creating data over time, and the amount increases with the number of employees and the complexity of the system. As Hayes and Ra- dosevich (1974) states, the problem is not having too little data, it is rather the other way around. All time management data is usually saved, one of the reasons for this is for the companies to be able to go back and see what has happened, this can be useful when doing follow-ups, estimates or making forecasts.
CHAPTER 6. ANALYSIS AND DISCUSSION
Data ages fast, and even faster in a fast moving industry as the IT consulting industry. It becomes less reliable and less useful as it ages (Mackellar, 1991; Serbanescu and Radulescu, 2012). The most desirable data is real-time data because it provides valuable information about the current state. This is also the most expensive data. Even though Kang and Han (2008) state that real-time data is necessary to improve business performance, we have in our research found that even historical data could help with this. Our research has shown that historical project data can e.g. provide project managers with a template when planning the budget for a new project. When working with historical data it is important to recognize that circumstances might have changed, and what was true one month ago might not be anymore.
6.4.3 Automatic Data Handling if Prefered over Manual
Registration and analysis of the data are both affected by if the data has been handled manually or automatically. The interviewees all state that they use a time management system, but that many of them also complement this with the use of spreadsheets or pen and a piece of paper. Spreadsheets are used e.g. for making forecasts or other tasks that are not available in the time management system. As Kirkham (2006) states, this manual way of handling data exposes the data to human alterations and mistakes, making it hard to get an accurate view of e.g. invoices and profitability.
Many of the consultants who were interviewed also mentioned that they like to keep track of their time by writing it down on a piece of paper or in a spreadsheet, and then transfer it into the time management system. The reason for this is that it is easier than to log in and continuously do it in the time management system. Less manual labor will increase the data quality, but in reality low usability of the time management system might cause even more trouble. Poorly designed systems could make the user reluctant to use it and thereby compromise the data quality. A time management system with high usability is therefore to prefer. Our analysis also shows that an app would make time reporting easier since it would be possible for consultants to time report on-the-go, increasing the frequency, and thereby also the quality. An app also facilitate for consultants that are located at the customers’ offices to report time, since many consulting firms use some kind of secure connection when logging in to the intranet. Only one company stated that they today have a fully functioning app that is available for all employees, and their experiences are good.
Chapter 7
Conclusions and
Recommendations
In this final part of the report, we would like to present our conclusions and recommendations that have been drawn from the conducted research. This research has been focused on the IT consulting industry, but our recommendations are general enough to be relevant for consultants within other industries as well.
Every IT consulting firm uses some kind of time management system because they need to keep track of the consultants’ working hours both in order to create invoices to the customers and to be able to manage salary payments to the employees. The consultancy firms have a business model where time and money are closely connected and the valorization of time is the core of the business. Despite this, we found that there was a gap in the previous research regarding how time management and performance management could complement each other within the IT consultancy industry.
As stated in the introduction, the objective of this report was to investigate why IT consulting firms work with time management and if it is possible to use the time management data to measure company performance. What characteristics the data needs to have and the question of how employees can be motivated to work with time management was also investigated. The answers to the research questions have exemplified how an IT consultancy firm can work with a time management strategy in combination with performance management.
We conclude that there are several other areas of usage, in addition to billing and salary payments, in which data from the time management system could be used. By working with time management, it is possible to increase the amount of repeat business, which is more profitable. Time management linked together with performance management can also increase the control and care of the employees. Other areas of usage for the time management data that have been identified during the research are creating forecasts and estimates, making evaluations and follow-ups, keeping track of the utilization rate, and as a supporting metric when hiring.
It is important to note that there is a need for the managers to actively motivate the employees to use the time management system in a way that is aligned with the company’s strategy. The culture within the company has a big impact on this. Creating awareness among the employees and facilitating the possibility to get an overview of the company’s well-being and how each individual contributes are also important aspects. We also conclude that it is preferable if the time management system is not too complex and have high usability. Time management data can be used as a support for decision-making, but in order for the data to be relevant and bring value to the company, our study has confirmed that it has to have good quality. The quality is mainly affected by human factors, such as reporting frequency and human errors, but also from the design of the time management system.
CHAPTER 7. CONCLUSIONS AND RECOMMENDATIONS
The research’s results are a combination of literature and empirical findings. The empirical findings con- firmed what we later read. The literature has been more general, looking at different types of consultants, while the empirical study only looked at IT consultants. This makes it possible to draw more general conclusions that are useful for consultants in other industries than the IT industry. However, during our research there were some things that surprised us. For example that there does not seem to be a difference in time reporting in fixed price and hourly rated contracts, and not all employees report time. Another surprising finding is that the time management systems often have low usability and lack basic features, such as the possibility to see overtime and flextime.
This chapter will now continue with a discussion of the sustainability aspect that should be considered when implementing a time management strategy. After that, five recommendations will be given, which consultancy firms can take into account when a time management strategy is developed. The chapter will end with a section where areas of further research are suggested.
7.1 A Sustainable Time Management Strategy
When developing a time management strategy it is important to take the sustainability aspect into consid- eration. This can be done from three perspectives within the context of the company: (i) environmental, (ii) social, and (iii) economical.
By having a time management strategy that allows the company to sort different periods of the day on different tasks, it is possible to see how much time the consultants spend on e.g. travelling. Travelling is one of the aspects that should be considered when the company is performing its environmental evaluations, in order to see how they can improve their environmental impact. A clear time management strategy can thereby contribute to enlighten environmental issues within the company.
In order to be socially sustainable, it is essential for a consultancy firm to have a prosperous and healthy workforce, since the workforce is the most valuable asset of the company. By working with performance management and aligning it with time management, employees could feel more awareness and partici- pation at their workplace. These are regarded as important health factors that increase the well-being and make the employees more satisfied with their situation. The social aspect is important and must be considered in order for a consultancy firm to perform at its best.
Finally, an IT consultancy firm also has to think about economical sustainability, within the context of the organization, especially when in an expanding phase. In small companies it is possible to handle a lot of the planning and evaluation by just talking to each other, but as the company grows, more formal ways of communication are needed. The need of more analyses also becomes more pressing as the company grows. It is also more difficult to keep track of what is happening in the company as it expands, therefore the need for system support increases. A risk for a company when growing is that the business system is not scalable and unable to adapt to the new circumstances. This could lead to expensive double work and dissatisfaction among the employees. Because of this, it is essential to have a time management strategy that is scalable and thereby can handle these kinds of growing pains.