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We have all heard this one before, so many times that we take it for granted. And why not? After all, it is one of those tidbits of wisdom frequently found on the lips of the successful and the wealthy. It is spoken as a counsel not to waste time because it is valuable, and who could argue with that? Problem is, you can not equate time with money. Granted, time can cost you, and it can have a very definite dollar value. But you can not handle time the same way you handle money. |
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Consider this scenario: You make a New Year’s resolution to save time. Over the course of the year, you are quite successful at it. You eliminate lots of wasted time by taking shortcuts, delegating responsibility and planning ahead. Does this mean that this year is longer than your last? Of course not. The fact of the matter is, the passage of time is constant. Regardless of our perceptions, one hour is always sixty minutes long. |
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The problem with this myth arises when companies try to save money by saving time. They fail to realize that you can not actually save time. The best you can ever do is spend it more wisely. Unfortunately, when companies confuse this point, they try to spend less time, rather than spend time better. This is a fine distinction to be sure, but a very important one. |
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Time Management and Customer Satisfaction
Let us consider the fictitious example of a company’s telephone order takers, whose average call takes ninety seconds. In an attempt to save money by saving time, management urges these operators to complete their customer calls within seventy seconds. The calculations of how much money this would save seem to suggest this is a worthwhile goal.
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The operators are pressured to move customers along as quickly as possible, and are monitored to see how well they do. A few of them manage to bring their personal average down to sixty seconds, and are rewarded for it. Other operators can not manage it, and are let go because they are too slow. After a while, management declares the initiative a success, and they have the numbers to prove it. |
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The average call lasts only sixty-six seconds — an improvement of almost 27%! Yet the improvement is even greater than everyone first thought, because operator hours have been reduced by an amazing 40%! |
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But the numbers in this example just do not add up. While it may look, sound and smell like success, it is not. What has been left out of the calculation is a measure of customer satisfaction. The reason why this company could reduce its operator hours by 40%, while achieving a 27% improvement in cycle time, is that they have lost customers. |
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Upon contacting the customers who have not placed an order in some time, management learns that the reason why they took their business elsewhere is due directly to the "Time is Money" initiative. Curt service and increased errors convinced these customers that their money was better spent elsewhere, and they are right. Sometimes, saving time can cost you money. Worse still, it can cost you customers. |
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For those customers that cannot be lost - the internal ones "downstream" in the process - the "time is money" mantra causes compounding problems that can threaten to bankrupt the entire organization. Mishandling time by handling it too quickly is a very, very dangerous and expensive way to get things done. We must all do our jobs right the first time, because in this imperfect world, we are frequently forced to pick whether we want things done well or merely done fast. As a customer, which would bring you more satisfaction? |
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