{"id":1456,"date":"2024-08-23T14:17:10","date_gmt":"2024-08-23T21:17:10","guid":{"rendered":"https:\/\/functionfox.com\/?p=1456"},"modified":"2024-08-23T14:17:12","modified_gmt":"2024-08-23T21:17:12","slug":"time-drives-value","status":"publish","type":"post","link":"https:\/\/functionfox.com\/time-drives-value\/","title":{"rendered":"Time Drives Value"},"content":{"rendered":"
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Ever been chin-deep in project budgets, proposals, job costing spreadsheets, print collateral for a client running a special promotion on Monday, and this week\u2019s leadership KPIs\u2014all while in the middle of a brainstorming meeting about how best to promote a new line of gourmet chocolate ice cream?<\/p>\n\n\n\n

We have, too. <\/p>\n\n\n\n

Small creative agency life is exhilarating, but it\u2019s not without its stressors. You\u2019re juggling the logistics of managing projects and budgets alongside creative branding initiatives. Your world is fast-paced, and you\u2019ve got to be able to keep up with it all.<\/p>\n\n\n\n

Which means your time is your most valuable asset. As a small creative agency running multiple projects likely on multiple budgets, you have <\/em>to know where your time is going so you can not only use it more wisely, but more efficiently, too.<\/p>\n\n\n\n

This is where agency time tracking<\/a> is a must. Time tracking can make or break your agency business. It can be just the thing that makes you stand out from the competition, ensuring project success and client retention. Tracking time is more than just recording hours. It’s also about figuring out how the time spent by your team adds value for your clients and your business. Without it, you run the danger of budgets blowing out, projects going out of control, and your team burning out.<\/p>\n\n\n\n


The Importance of Creative Agency Time Tracking<\/strong><\/h2>\n\n\n\n

<\/p>\n\n\n\n

Why is time tracking for a small agency important? Great question. We\u2019re so glad you asked. This data can provide you with so much crucial information\u2014from how much time your team is spending on a single project to knowing when it\u2019s time to hire\u2026 or cut back. Knowledge is power, and without great knowledge, comes too much responsibility. <\/p>\n\n\n\n

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Client Billing Accuracy<\/h3>\n\n\n\n

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If your agency bills on actuals, then you have to track your time. Otherwise, you\u2019re billing a client on inaccurate data. In fact, you\u2019re billing them on no data at all. Clients appreciate transparency\u2014if they\u2019re being charged for six hours of time spent on graphic design, then they\u2019re going to want to see that data. Or know that you <\/em>have that information. This is crucial if you\u2019re billing actuals, whether or not you\u2019re sharing that with the client. Remember how we said clients appreciate transparency? Any inaccuracies can breed mistrust. <\/p>\n\n\n\n

Agencies can ensure that clients are billed for the precise amount of work completed by using time tracking to record every minute spent on a project. This degree of accuracy helps minimize overbilling, which could strain customer relationships, as well as underbilling, which can reduce revenues.<\/p>\n\n\n\n

Project Management<\/h3>\n\n\n\n

<\/p>\n\n\n\n

What team works the hardest and needs the most information? That\u2019s right. Your project management team. Without efficient management of projects<\/a>, you\u2019re throwing time and<\/em> money right out the window. Every project requires meticulous budget monitoring, resource allocation, and deadline completion. You can forecast\u2014accurately, mind you\u2014campaign completion times and allocated resources. Agency time tracking nets you successful projects with fewer risks. <\/p>\n\n\n\n

Profit Analysis<\/h3>\n\n\n\n

<\/p>\n\n\n\n

Here\u2019s a big one. Profit analysis\u2014and not just at the project level, but for your small agency as a whole. In order to track a project\u2019s profitability, you don\u2019t just need to know how many ads were purchased or how much those billboards cost. You also need to have a full understanding of the labor involved, and the cost of that labor to the client and<\/em> to you. Even if you\u2019re not billing your clients on actuals, you\u2019ve got to know how much time went into the project. Your staff\u2019s billable rates, alongside their time spent, can give you a much better idea of each project\u2019s profit margins. Even better, you can look at all of your campaigns holistically and see where you\u2019re spending most of your time and what services are the most profitable<\/a>. This allows you to make necessary price adjustments if necessary, or even adjust sales tactics. Branding packages costing you too much? That\u2019s great news. You know now you have to pivot. <\/p>\n\n\n\n

And for those of you running on retainer-based<\/a> clients? This is crucial<\/em>. You need to know exactly where your time is spent each month so you can plan accordingly. Are your non-profits paying a flat rate every month, but you\u2019re spending hundreds of labor hours during the giving season only to spend tens of hours in the summer? With ad agency time tracking, you can have a deeper understanding of your profitability on that client.<\/p>\n\n\n\n

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Team Performance<\/h3>\n\n\n\n

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Do certain jobs take more time than others? Where are your teams spending more of their time? Is that because the project itself is time consuming or is because your staff aren\u2019t fully trained on a new process? Agency time tracking<\/a> can show you trends you never anticipated. Agency directors can determine areas where team members may want more assistance, education, or resources by examining time tracking data. This also aids in identifying high achievers, enabling you to recognize output and assign work in accordance with capabilities.<\/p>\n\n\n\n

Resource Management<\/h3>\n\n\n\n

<\/p>\n\n\n\n

Another very important aspect of running any successful business is capacity planning. With time tracking, you\u2019re better able to monitor when your teams are underworked and overstaffed or overworked and burned out. By knowing how much time everyone on your team is spending on each aspect of each service, then you can better budget and resource plan for the next project<\/a>\u2014thus making sure you\u2019re billing your clients accurately. <\/p>\n\n\n\n

Common Challenges in <\/strong>Agency Time Tracking<\/strong><\/h2>\n\n\n\n

<\/p>\n\n\n\n

Sometimes getting staff members to track their time can be a little like pulling teeth, especially the creatives. It can be hard to switch gears from creative brain to remembering to track time. But it\u2019s essential to running an efficient and well-oiled marketing agency. But this isn\u2019t the only challenge agencies face when implementing a time tracking process. <\/p>\n\n\n\n

Multi-tasking <\/h3>\n\n\n\n

<\/p>\n\n\n\n

As you well know, the ad agency world is fast<\/em>. You have to be flexible and dynamic, meaning your team often finds themselves juggling multiple tasks at once. So how do you time track that? Most agencies we\u2019ve worked with don\u2019t even track tasks that take less than 15 minutes. And oftentimes, you can find some sort of bucket to throw that time into. You don\u2019t need to track your time down to the nitty gritty. <\/p>\n\n\n\n

Too many categories<\/h3>\n\n\n\n

<\/p>\n\n\n\n

Having too many options for your staff to choose from when it comes to tracking their time can lead to confusion and frustration. As mentioned above, you can throw some time into buckets. For instance, unless you really need to know this information, you don\u2019t need to track admin office wide meeting times separate from morning stand ups. <\/p>\n\n\n\n

Billable vs Non-Billable Time<\/h3>\n\n\n\n

<\/p>\n\n\n\n

Staff time often doesn\u2019t just include project time. Admin meetings, stand up meetings, professional development, and other administrative duties can take time away from campaign creation and management. Overhead and non-billable time should and must also be tracked. Having an understanding of how much billable versus non-billable time your agency is spending allows you to better glean team productivity and staff utilization. <\/p>\n\n\n\n

Resistance to Tracking Time<\/h3>\n\n\n\n

<\/p>\n\n\n\n

Yes, you\u2019re going to get some push back, especially if your staff don\u2019t currently track their time. Staff may see this as a burden and extra work. They may feel like they\u2019re taking what little time they have to work on creative projects in order to track time. Be sure to share with them the benefits of ad agency time tracking. Paint them a picture of your agency once you\u2019re able to collect and take action on that data. Let them know how much easier their lives will be when you\u2019re able to forecast and prevent burn out, ultimately giving them more time to focus on things they do best. <\/p>\n\n\n\n

Inconsistencies in Tracking Time Processes<\/h3>\n\n\n\n

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Oftentimes, time tracking is left to the individual staff members, but this can lead to inconsistent practices. Some will track time after every task, others at the end of every day, and even more tracking at the end of the week. This leads to inaccurate data telling you a task or project may take more or less time than it actually does. Having accurate data means you\u2019ll need to have consistent data across the board. <\/p>\n\n\n\n

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Tired overworked student prepares for examination session sits at desktop with thoughtful expression surrounded by piles of cut paper makes notes on stickers not to forget about necessary tasks<\/figcaption><\/figure>\n\n\n\n

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Best Practices for Agency-Wide Time Tracking<\/strong><\/h2>\n\n\n\n

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Standard Tracking Procedures<\/h3>\n\n\n\n

<\/p>\n\n\n\n

If you want accurate data, consistency is key. Establish a process in the beginning, as well as what constitutes billable versus non-billable time. Do you want your staff to live-track their time? To track their time per task as they\u2019re working? Or do you want them to log it at the end of the day, so they can spend their time creatively? You might also designate your team leads to ensure this procedure is followed through every day. Set a standard for the team, but it\u2019s crucial leadership follows this practice as well\u2014even if they\u2019re spending 90% of their time on non-billable. If frontline staff don\u2019t see their leadership team following protocol, they\u2019re more likely to slip on their own. <\/p>\n\n\n\n

Organizing Your Categories<\/h3>\n\n\n\n

<\/p>\n\n\n\n

It\u2019s not enough to just track hours spent on the project. Ideally, you\u2019re tracking how time is spent on each project\u2014not just that time was spent. This is where categories can be helpful. But as mentioned above, you don\u2019t want too many categories. Consider what information is important for the agency leadership team to know. If they were stranded on an island and could only look at a high-level view of time spent reporting, what information would they want to see?<\/p>\n\n\n\n

For instance, you might have service-based categories, like \u201cdesign,\u201d \u201cvideography,\u201d \u201cad management,\u201d and \u201cwebsite development.\u201d But you wouldn\u2019t want to see a massive report showcasing all time spent on \u201cprops,\u201d \u201ctalent acquisition,\u201d \u201ccolor grading,\u201d or \u201ccraft services.\u201d Don\u2019t forget: too many categories like this can be confusing for the staff when they don\u2019t know where to track what time.<\/p>\n\n\n\n

Review & Refine<\/h3>\n\n\n\n

<\/p>\n\n\n\n

Setting a time tracking process isn\u2019t just a one and done deal. Just like with any operating procedure, you\u2019ll need to review the process and make necessary adjustments. In the beginning, it\u2019s sometimes easier to introduce your team to the concept of time tracking by having them only track administrative tasks first and then move on to projects, then move on to categories. You may also find that the process you established early on worked for your small team, but then the agency doubled in size in a year and you have to set some new procedures. <\/p>\n\n\n\n

Make sure to schedule regular reviews\u2014maybe once a quarter in the beginning and then to once a year. This ensures that you\u2019re fluid in establishing the right process for your agency and team. <\/p>\n\n\n\n

Integrate with Your Project Management Software<\/h3>\n\n\n\n

<\/p>\n\n\n\n

Make time tracking as seamless as possible by either using the time tracking feature in your project management system or by integrating your time logging software with your management software. Tools like Clickup, Function Point, Trello, and Function Fox all have the ability to track time alongside your projects. Using a software that has time tracking built-in only makes it easier for you and staff members. This kind of integration allows for in-depth reporting and project analysis and will save you tons of time on spreadsheets in the long run. <\/p>\n\n\n\n

Time tracking isn\u2019t the most glamorous aspect of running your creative agency. But it\u2019s by and large one of the most crucial. Time drives value, so make sure you\u2019re getting the right data to provide the best value to your clients. Choosing the right system for logging your team\u2019s time is the next step in turning your agency from a functioning one to an efficient and valuable one. That can be just the thing that sets you apart from your competition. <\/p>\n\n\n\n

To learn more about how time tracking can benefit your agency, book your no cost demo today<\/a>! Function Fox\u2019s all in one creative management solution provides tools and years of know-how to help you implement an efficient time tracking process, so you can focus on those ice cream ads and budget reports. <\/p>\n","protected":false},"excerpt":{"rendered":"

Ever been chin-deep in project budgets, proposals, job costing spreadsheets, print collateral for a client running a special promotion on Monday, and this week\u2019s leadership KPIs\u2014all while in the middle of a brainstorming meeting about how best to promote a new line of gourmet chocolate ice cream? We have, too.  Small creative agency life is […]<\/p>\n","protected":false},"author":2,"featured_media":1457,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all"],"acf":[],"yoast_head":"\nFunctionFox<\/title>\n<meta name=\"description\" content=\"Time tracking can make or break your agency business. 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