When I was traveling back from a customer, I thought of myself as a great illustration. An example of how not to be efficient.
I worked with my client for 7 hrs and spent 4 hours traveling to and fro by car. As the customer pays for this, you might think this is a good situation.
But what is are the consequences of me being ineffective?
At first their might not be a problem for me. At the end of the day, though, my customer is only interested in my value added hours. When I was with him, we discussed about their project teams, about how to improve their efficiency. I was leading those discussions and project meetings. That was the value my customer really pays money for. So, although he is also paying for 4 hrs travel, he is not interested in those hours.
On the long term this inefficient use of time will make me expensive. If someone like me lived close to my customer and only invoiced his value added hours, as there would be no travel time, he would be much more productive (when working 11 hours) or much cheaper (invoicing only 7 hours).
That’s my whole point: if you increase efficiency, it will have a tremendous positive impact on your profitability, because:
1. You will have lower costs
2. You can be more flexible with your price.
You can go lower to outprice your competitors. You can keep it the same and keep more profit in your pocket, because you don’t have so many wasteful hours or activities in your business.
I spent maybe 8 years not daring to invoice my travel hours. So I had to increase my normal consultancy rate to cover at least part of my traveling.
So the customer pays for your inefficiency in the end … and they don’t like that. So if you don’t improve, if you don’t reduce your inefficiency, you will be more and more expensive compared to your competitors.
If you have people like consultants, sales-people, field engineers, district nurses, please contact me. Go to https://herku.com/intake, fill out the form and we will give you a call. Together we will find out if we can help make your business more efficient more lean and, as a result, to increase your productivity.
Go to https://herku.com/intake