Do you underuse your time management, billing software?

You have been working with your software since a few years but do you use it to its full potential? Does it still answer your expectations and fulfill  yourfrustré needs?

Most software are normally updated at least once a year and include new features and improvements. The world of software evolves quickly and continuously. Update after update news functionalities are activated and quite often the user has no time to get used with those improvements, and new features and hence cannot really get the benefit of those improvements.

Under which circumstances would you under-utilize your software?

Employees leaving the company
In each and every organization, the staff is called up, sooner or later, to be replaced. Part of their knowledge is then passed on to the successors. This transfer of knowledge is often imperfect, incomplete or erroneous. This fact applies also to the resource(s) who manage(s) the time, billing and project management software. Hence, quality and accuracy of the passed on knowledge might decrease throughout the years, affecting the proper use of software. It is recommended to  write a procedures handbook where the knowledge can be consigned.
Software not updated
Users often tend to forget to update their software. Most programs offer one or more updates per year. Each update includes improvements and new features. Therefore, the users quite often do not use the software to its full capacity, thus depriving them of valuable and useful features.

Additional training required
Quite often the users who maintain their software updated, will partially use the new features, and will not ask for additional training. The risk is then high that new features and software improvements will be misused or partially utilized.
Evolution of the company needs
Each and every business grows throughout time, and therefore company needs and requirements evolve too. Most of the time those needs, such as time management, billing, financial management of the project require a changing features tool. However, the user continues to use the software as he did years ago without using all the benefits that software can provide.

It is therefore recommended, in parallel with regular software upgrades and updates, to  validate the following:

Does the staff know well how to use software?

  • Are my software updated to the most recent version?
  • Do we need to refresh our knowledge of software by means of additional training?
  • Does our time, billing and project management software still answer your growing needs?
  • Do we have an updated and customized procedures handbook ?

 

A look at your current situation conducted with your software provider is recommended.

Reluctance to change, a major obstacle for companies

Types of change

Any change that occurs in the ecosystem of the business generates reactions. There are among others, two main types of changes:

-       Technological changes: for instance we introduce a new mode of production in the factory, or new management tools.

-       Changes related to duties and obligations of employees.MH900198749

In some cases the change will not only have an influence on the technological aspects of the business but will also have an impact on human resources. This is the well-known case of the implementation of new software that modifies the management process, but also the habits and duties of employees. The introduction of a time, billing and project cost management software like Abak is a good example.

 

Possible reactions

The occurred change will have a serious impact on the day to day operation of the company and will also generate very different reactions from the workforce. Those reactions can be of two types:

-       Positives reactions: every change has its supporters. It is seen as a progressive innovation which, at medium and long term, will be productive (time saving, standardization of data entry, improvement of the billing process, optimized management of projects, etc…). Generally, executives and management staff are in favor of these changes.

-       Reluctant reactions: employees will have to complete their timesheets and their expense accounts regularly and in a consistent manner. Furthermore software will generate automated reminders when time sheets are not completed on a specific date. What will be the reactions of the employees?

. The introduction of this tool is a more or less hidden reinforced control tool of employees activities.

. This will result in a work `overcharge’ because the time sheets will have to be filled regularly.

. The employee will have to detail his/her activities and not only declare these succinctly.

. The implementation of such a system can be seen as a lack of confidence from the management towards the employees.

What to do ?

Before the implementation of the time management, expenses, billing and cost management project software, it is recommended to ‘take the pulse’ of the team. We inform the staff of what is coming and we do it in an open dialog.

For example we organise one or more meetings that will focus on several topics:

-       What are the day to day recurring problems. For example: difficulty managing time banks, under billing, loss of valuable time; all factors that affect the efficiency of the business and its competitiveness.

-       The example of companies which have optimised their process by implementing new management tools.

-       The desires of the direction to facilitate the work of everyone in an organized, functional and effective way.

The final goal is to invite employees to think on how to improve the current situation and to present the solution considered as a useful tool for everyone whose use will simplify the daily administration, optimize the billing and project management and employees time bank. Time gain, ease and process optimization are all keywords that will contribute to the general acceptance of that new software.

Cyber Abak March 2013 – Spring is on its way !

Hectic times for the Abak team.  Winter has brought us numerous new customers, our trainers time schedule is quite loaded, and our development team is working hard to launch the new version 7.7 in late June 2013 version that will primarily focus on Abak Web.
Enjoy reading !

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Abakast 101 – Understanding how to use Abak efficiently

Being efficient means time saving.

Learn all the tricks, follow our recommendations.

Improve your efficiency with Abak and save time.

Understanding how to use Abak efficiently

February 28, 2013

1h30 – 3h30pm, Eastern Time

Participate to this Abakast session. You will learn how to improve the way your work with Abak.

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Who does what, for whom and for when? The human resources assignation module: an essential tool.

The client has just sent his order and there is a lot of excitement at the company. Indeed, the project is very ambitious and is going to require most of our employees over a long period of time.

We are Epsilon Conseil (*), a SME specialized in professional services. We deliver projects which are mostly far different one from the other. Indeed, some of them last over a short period of time and involve a limited number of employees and others, on the contrary, are larger scale projects.

This kind of large project represents a primordial interest for a SME because it generatesrevenue that we cannot miss. However, it can be risky.

Let’s take some examples:

  • Delays on delivery resulting in possible penalties.
  • Work overload for employees and progressive demotivation.
  • Risk of exceeding the initial budget that was used to calculate a fixed price. Risk of loss through under-billing.
  • The project requiring much of the workforce, there is a bottleneck risk when obtaining other projects during the delivery of the project in question.
  • If many people are involved in the project, some tasks may be duplicated and, therefore, affect the profitability of the project.

We have, upon reception of the order form, determined the deliverables list and we have quantified them. To do so, we have listed the requested activities defined their quantities and determined the expenses that we shall engage to fulfill those tasks. At last, to take into consideration the risk factor we have applied a buffer percentage to the estimated project duration. Here we are, finally ready to launch our project. However, the human resource aspect must be taken into consideration to ensure the success of the mission. Indeed, we must plan the different steps of production and delivery to ensure that we have all the available resources to do so. Another element requires a special attention: our production capacity. In our professional field, our production tool is time spent by our workforce on the different projects. Therefore, it is mandatory, for the benefit of the project, to ask us these questions:

  • In the meantime during which the project is active, what other projects are in the pipeline?
  • Which impact would have those ongoing projects in terms of staff mobilisation?
  • What would be our flexibility in case we would win new projects during the considered period?
  • How to deal with the delays and their impact on the following projects?

This list is not exhaustive.

The evidence is there: the solution is a planning tool which is integrated not only to the application that controls the working time but also to budget control reports, and other project monitoring reports (work in progress, expenses management, and billing).

Abak software Inc. proposes a resources assignment tool. There are several ways to assign employees to projects. It is possible, when building the project architecture in Abak, to assign several employees for a given period and for a specific number of hours per day during which the employees will work on the project or to assign employees to a specific activity for example.

This results in a monitoring table, Gantt type, which offers an overview of everyone’s time, and determines the level of availability of employees for a given period. The assignment module includes a detailed report as well. Depending on the selected criteria and the employee’s assignment, this application will be able to track the progress of projects and the remaining availability of resources.

Ress -assignation AN

For more details, do not hesitate to contact us

(*): Any similarity with the name of an existing company is purely coincidental.

Discover Abak 7.6.

Just got back from holidays? Welcome back !
Do not miss the opportunity to discover the new functionalities of Abak 7.6.

Follow the guide during our free webcast on January 10.

Free Webinar
Abak 7.6  

January 10th, 2013
2h – 4h pm, Eastern Time

Discover Abak 7.6. and especially the new functionalities brought to Abak Web.

 

 Register Now!

Project management and project cost management: two worlds.

Quite often when we speak about project management, we usually refer to the set of monitoring tools that are utilized to ensure that we shall deliver the project according to the three universal criteria:

• Deliver on time

• According to the specifications

• According to budget

It is rather simple to list the required specifications and to comply, and it is relatively easy (everything being kept in perspective of course) to plan the final delivery date for a project. However, it is more difficult to incorporate changes and contingencies that may arise during its execution. In general, project management tools used to manage these changes along the way allow limiting risks, at least on the organization point of view. It remains no less true that these changes have an impact on the financial component of the project.

Therefore, the concept of delivering ‘according to the defined budget’ becomes quite often uncertain.

The importance of billing method is obvious:

If we invoice the real number of hours and related expenses, then the situation is perfectly clear and there are no problems in sight. Whatever the changes involved in the life of the project might be, the billing will be done based on the real number of hours incurred in the performance of services and expenses. However unforeseen costs may occur after project delivery.

If we bill on a fixed fee basis, the following question will soon or later arise: what do we do if our flat rate billing does not reflect the reality on the ground? In other words, if we charge a lump sum which in equivalence is less than the selling value of the worked hours? Shall we post the difference in losses, or initiate a negotiation with the client? It will depend on the customer’s goodwill and on our negotiating skills.

Anyway, at this point we find ourselves still in the phase of delivery of services, but what about services rendered to customers beyond the delivery date of the project? Although these occur in retrospect, they were not initially budgeted, and as such they will affect the level of profitability of the project.

Let’s take an example:  we develop a software solution for the industry.

My project consists of three phases: needs analysis, development, commissioning. For the entire project I planned respectively 25, 100, and 50 hours for a total of 175 hours. My average hourly cost is $ 35 and my average hourly rate is $ 70. The agreement with the client is based on a lump sum of $ 14,000 (175 hours and a 25 hour buffer at the rate of $ 70).

I underestimated, in my analysis, development needs. In addition, the Beta version contained bugs that I had to fix. In total I spent 40 hours more than anticipated in my original budget (excluding the buffer). In compliance with the agreement I have  with the client I charged a flat fee of 200 hours and therefore have recorded a loss of 15 hours, representing $ 525  (cost). Software has been delivered. Two months later, the client informs me that there are recurring malfunctions and I have to work twenty hours to correct the situation. In total, although the project has been delivered I recorded a second loss equivalent to $ 700 (cost). To summarize:

Beyond project delivery, financial loss may occur. It is therefore appropriate to include in the budget a risk factor which ideally would represent the price of one year of service contract. In the example, besides the 25 hour buffer, it would have important to add an amount to cover the risk of post-delivery, for example 10 to 15% of the total contract value. Abak software specialist in time recording, billing and cost management of the project includes a component for budget calculation. Tell us about your projects, we will discuss your budget.

 

 

Implementing new software sometimes looks like walking in the desert.

Each company is sooner or later confronted with the need of new management software, for instance a time, billing and project cost management solution. Such kind of software is a tool which belongs to a constantly changing world, and its life cycle is quite often very short.

Installation is only a preliminary stage of an implementation process that can sometimes be complex and require a lot of time. In the case of ERP systems, for example, the implementation process will generally require several months. One can imagine the stress and uncertainty that such an operation generates within a company.

Beyond technical considerations such as compliance of the IT infrastructure with technical prerequisites, integration with other software, and import of existing data, there are other important elements that play a role in the successful implementation of the new program.

These are human parameters. They should be taken into account in the specification of the implementation process:

• the risk of reluctance to change
• the motivation of key players involved in the implementation process
• the availability of key personnel during the implementation process.

Reluctance to change
The situation is well known, and very symptomatic. For example, employees of a company are accustomed to log their time in an Excel format. The implementation of new timesheet software can be seen as a disruption of habits and a strengthened way of controlling employee’s time.

Another example: invoices are generated manually with word processing software. The advent of software that processes timesheets, expenses and generates billing may create irritation and reluctance because its implementation will modify work methodologies which often are deeply rooted among the employees. This climate of reluctance could generate the risk of delaying the commissioning of the new time; billing and project cost management software and affect its performance.

Motivation of key players during the implementation
Before making a choice of change or acquisition of a new timesheet management tool it is crucial to ensure that key stakeholders, that is to say, the managers of the company are really motivated by this implementation and consider this new project management software as a significant improvement in their current processes. If this is not the case, the duration of the implementation will be longer than normal, and the brand new tool is likely to be under-utilized. A common example refers to professionals with highly developed ‘creative’ skills (communication professionals, architects, and others) who could be poorly motivated by the perspective to use organizational and financial software features for monitoring their projects.

Availability of key people
When you implement a new management time and expenses recording software, key people (Controller, General Manager, HR …) need to be available in order to assiduously attend training sessions. Experience shows that too large time gaps between training sessions has the perverse effect of diluting the knowledge acquired progressively, to discourage individuals and to significantly slow the process of implantation. In addition, the software vendor expects to be guided by his client to set its product plan and organize training according to the customer’s expectations.

Conclusion
Choosing a time and billing software based on technical requirements and software performance is a good strategy of evolution of the company. In contrast, the human component, as briefly mentioned above should require a detailed analysis beforehand. If all the conditions required for the implementation (technical and human) are not gathered, one should then perhaps postpone the operation to ensure its success later. In a nutshell, availability and motivation of key people constitute the key to a successful implementation. When a company decides to move forward with our time and billing and project cost management software we take those human parameters into consideration, and work closely with the customer to ensure a successful implementation.

When too detailed becomes a labyrinth.

When it comes to project management, project managers would generally apply the methodology which consists into a fragmentation of the project into a variable number of phases and sub-phases. The purpose of this action, by means of phase based project architecture, is to identify all components of the project. Next step being to distribute them on a timetable, associate tasks, assign resources, and determine a set of milestones.

It seems to be a good strategy, and generally speaking the adage “divide and conquer” is quite appropriate. The project revolves around a row of successive steps. For each of those phases we have determined the workload, define responsibilities of each and every one, and have budgeted the time required for each sub-step that constitutes the project phases.

It is a fact that, to properly define a budget, it is recommended to go into the details of the activities composing the project, and for each of them to estimate the time that is necessary for its implementation and the related costs.
However, a grain of sand can slip in this fancy management mechanism and generate complexity and confusion. Indeed, if the architecture of the project is too detailed, employees are at risk of getting lost when logging their time and expenses.

Let’s take an example:
My project consists of twelve phases. On average, each phase consists of five sub-phases. Each sub-phase is composed of an average of four sub-steps. Finally, each of these sub-steps consists of three to five types of activities. Consider the activity ‘meeting’ for example. In Phase ‘1’, I shall have the choice between five sub-phases and then four sub-steps to log my time spent on the activity ‘meeting’.

The risk of error is extremely high, especially if the input mode is done manually (via email, file, or using Excel, for example) … Every mistake will affect the budget per phase and may cause violent headaches to the controller or the project manager during the billing process. Especially if the controller bills the real number of hours and related expenses spent on the project. In terms of project management, it is therefore necessary to find the ideal compromise between determining a realistic budget and a project architecture limited to main phases and sub-phases. Going into detail activities to define the budget is recommended. In contrast, the architecture of the project, for obvious reasons of ease of use and monitoring should be limited to the main steps.
To avoid this pitfall, we recommend validating the relevance of each step, and clearly define the needs in advance when creating project templates. Abak Software specialized in time management, billing, and project cost management will guide you through this process.

Contact our experts for more information.

Invoicing can be fast and easy !

One of the most important forms of business documentation is the invoice, which the seller issues to the buyer to provide details of a good or service the seller has provided.

Sometimes the invoicing process might be a bit tricky and time consuming.

Abak has the solution. Speed up your process and avoid mistakes.
Register for our Abakast on Basic Invoicing

Thursday, October 25th
1h30 – 3h30pm, Eastern Time

Get acquainted with the basics of invoicing: from the time sheet to a finished invoice in just a few minutes.

  • Time and expenses billing
  • Fixed fee billing
  • Manual transactions

Only 99$

Register Now!

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