Cost-Reduction Best Practices
Our partners at Info-Tech Research Group surveyed and talked to more than 200 IT executives about the techniques they are using in four key areas to control costs.
Most businesses and other organizations have some sort of time-tracking system in place, whether used to record activities for billing purposes or to calculate employee payroll and absenteeism. But some companies rely on more informal methods that require employees to keep track of time and productivity on their own.
While such an honor system is admirable (and may work perfectly well in some situations), it's obviously vulnerable to dishonesty, and the larger problem is one of measuring efficiency. Informal methods don't capture valuable insight into performance, both at the employee level and the project level. Not having this information doesn't just mean that cost reduction opportunities can't be seized. You may not even be able to identify any savings opportunities if sufficient records aren't recorded and maintained.
Info-Tech Research Group's "Time Tracking-A Secret to Cost Reduction" research note provides information regarding the two main disciplines of time tracking, time-keeping and time-reporting, with the goal of demonstrating the benefits of good tracking practices to project managers. These benefits include the ability to make resource and budget allocation changes on the fly, before problems occur, and to actively track the "health" of a project using the quantitative data generated by the tracking method.