About Gut Feelings, And Why You Need Time & Billing Software

Learning how to determine latitude by using a sextant is Senta Osoling, student at Polytechnic High School, Los Angeles, Calif. Navigation classes are part of the school's program for training its students for specific contributions to the war effort (LOC

We had a client who signed on to us because he and his associate could not agree on what was most profitable in their business. While one thought one type of contract was most profitable, the other associate believed it was something else entirely.

The problem was: they were both basing their conclusions on their gut feelings, their instinct. And while instinct is indispensable in business, it may not be the best guide to assess business performance. Why? Because our gut feeling does not have a 360-dregree view of the business. It only has access to the data we pay attention to.

Sales Myopia

From the sales perspective, we’re focused on sales contracts. How much one client signs for over another. However, once the contract is being executed, it’s often out of our hands. Hence, we may not know that the client requires a lot of non-billable work, which drives profitability down faster than a mortgage crisis.

Project Manager Myopia

From a project management standpoint, we see how projects go: how fast we get approvals from the client, how well the project is scoped and how many (or how few) change requests we get. If the project budget and timeline are respected, then the project seems successful. However, if this client takes 90 days instead of 30 to pay invoices, and requires a lot of legwork to get contracts signed before the project can start, it may not be as profitable as it seems.

Administrator Myopia

From an administration standpoint, what makes a good client is accounts receivables. However, the speed at which a client pays does not necessarily mean profit. What is this client generates too much non-billable work? What is this client’s projects consistently go over-budget?

Our gut feeling doesn’t see straight

Because our personal perspective on the business is not as accurate as we would all like to believe, we need data. Cold, hard, heartless data.

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