Measuring Effort (Time) vs. Measuring Results

It’s always been that way. Effort is easy. It just requires time. Effort is also all about appearance. The more “face time” you put in at the office, generally speaking the more value you’re adding to your organization from the viewpoint of management. It’s been that way in organizations for a hundred years, and probably will continue to be that way for another one hundred years. Our industry is no different. We measure charge hours the way restaurants measure customers, retailers measure daily sales, and manufacturers measure production output. The more the better, right?

Maybe*.

The “*” is the objective of writing about this specific topic. I hope to challenge the status quo thinking in many firms and bring attention to what I believe are dire effects from our industry’s all out pursuit of charge hours, “keeping people busy”, and rewarding effort as opposed to results.

First to come in, last to leave. I learned first-hand and very early in my professional career that there is a distinct difference between effort (looking and staying busy) and results. I began my career in a financial leadership development program at a Fortune 25 global organization. I had the great fortune to spend my first several years rotating every six months into a new business unit and department to get a well-rounded experience. After my second rotation, I was heading into a Corporate Accounting rotation that was dubbed the “live at the office” rotation. The person who had that role before me in the same time period worked 10-12 hour days plus weekends what seemed like every week of those six months.

I mentally prepared myself for the time I was about to be investing, along with prepping my wife for what was about to be 6 months of me living at the office. Boy was I surprised when after the first several weeks I found myself not working more than 45-50 hours per week. So I did the first thing many of us do when we get work done early – I asked for more. And I got more. But I was still working normal hours over a month into my rotation. And then I thought to myself “Something is wrong. Why am I not working crazy hours?” I scheduled an urgent touch-base meeting with my Director because I thought it had to be me. I rationalized that they weren’t giving me the same workload as the previous guy because they weren’t sure if I could handle it. Boy, was I surprised again when I had this meeting with my Director and he said that I was getting the exact same quantity and level of work, plus a little more. And my rationalization I discovered was way off base. Instead of feeling like I was failing, I was exceeding expectations and succeeding (without the need to work 70 hour weeks).

I had a job offer from that department (as well as my previous department) immediately upon completing that rotation. All the while working hundreds of hours less than my counterpart before me.

And from that point forward I never made the mistake again with seeing people work long hours and automatically assuming they were “the best” and the “hardest workers”. They just appeared to be putting in more effort, not necessarily working smart and getting stuff done.

We may need to change our thinking. In many CPA firms, there is no shortage of busyness. Being busy (all the time) seems to be the new norm. However, there is a distinct shortage of getting stuff done. In the last several years, it actually appears to be getting worse. The hours are creeping up and up, but the results are going out slower and slower.

Granted, some of this is due to the retraction in personnel overall in the industry in 2008-2010. Many firms are trying to do more with fewer resources, which means an uptick in hours for everyone. But I also see several disturbing trends that are developing and exacerbating the situation. In our constant state of busyness, we are:

• Trying to maximize people’s utilization to the point that they are not developing. Sure, we’re keeping them busy cranking away at those tax returns and audit workpapers and financial statements. But they are not getting opportunities for growth. And ultimately that leads to longer term inefficiency in the firm because you never have the right people with the right level of experience.
• Continuing to reward individuals based on effort (charge hours) as opposed to results (getting stuff done). You worked 80 hours last week? Good for you. What did you accomplish / wrap up / finish? That is the real question that needs answered.

Track and Reward Results, Not Effort. We are big proponents of tracking metrics that actually measure and reward results, not just effort. Metrics like turnaround times, length of time at certain steps in the process, and output. If we are turning over our inventory quickly (our engagements / deliverables), moving work ahead in the process (not back), and getting more done at key milestones during the year, we are being productive and getting results.

Sometimes the measurement just needs to be intermediate milestones and accomplishments. Some people will argue internal deadlines are pointless. If you feel that way you probably aren’t hitting internal deadlines. The people who believe internal deadlines are beneficial to help manage engagements are much more likely to have the quicker turnarounds, better realization, and timely client service. The deadline shouldn’t be the external drop-dead deadline…it should be something sooner. Firms who have professionals that relentlessly drive to hit internal customer deadlines are winning. And not surprisingly are working less hours.

I never pick up and start work without a clear game plan for completion in mind. Even if completion means moving it far enough ahead that there is a status change and a well-documented pick up point. What I see and hear often in firms is throwing work at people to keep them busy. And never training on this mindset of thoughtful completion of what is started. Instead, it’s hot potato to get it off a desk and then pick up the next thing and do the same. That is a recipe for loops, delays in deliverables, and more effort and hours exhausted to get stuff done. Sure, charge hours and utilization look good. But realization and the most important metric of all, profitability, don’t look so good.

I can’t work that way. I need to get stuff done and not just put in effort and hours. The professionals who succeed in this profession over the next 10 years will be those who have this very same mindset and whom it drives them nuts to have work that is not productively moving ahead. Your processes must be developed in a way that supports this mindset. A constant state of busyness is burning out this profession – from Staff up to Partner. Let’s resolve this coming year to make some progress forward to measure and care about results (including interim milestones), not just effort. The results will speak for themselves – and we’ll all have a little more time to enjoy.

About the author

 Dustin Hostetler, Lean Six Sigma Master Black Belt