Time is a finite resource, but by effectively managing it, you’ll contribute to your individual success and the long-term prosperity of your firm.
When you think of billable professions, you might think of doctors, lawyers, or accountants – but what about engineers? Yes, many times, engineers bill by the hour, too. The success of both your professional development, and the engineering firm you work for, isn’t just about technical work; it’s also about contributing to making sure the business is healthy. Specifically, managing your billable hours and tracking time.
Engineering goes far beyond design for projects. What we’re really creating – and contributing to our clients – is hours. Embracing this mindset, from day one to retirement, is crucial for setting both you and your firm up for success. Let’s take a deeper dive with Croy’s Chief Financial Officer (CFO), Adam Langley, into what this means for you, your team, your clients, and your firm.
Understanding billable hours and measuring metrics.
Adam likes to tell young engineers to think of your firm as an assembly line. The track starts to run, and everyone must be ready to do their part. If one person on the line takes too long, rushes their process, or drops the ball, the entire operation won’t move efficiently – and may end up costing your firm. Plus, if you don’t spend your hours wisely, the trust you’ve built with your team and with your client could start to be questioned.
So, how do you avoid things getting off track? Begin by managing your time effectively. This includes knowing how many hours you can bill to a specific task given the budget and schedule – and sticking to it. It also means consistently communicating with the project manager, department head, and other team members to make sure schedule or scope hasn’t changed to avoid unnecessary work.
Another critical component is to make the most of your hours in each day, coupling your time management efforts with tracking your utilization goal. But what is utilization? Utilization refers to the percentage of time spent on billable tasks compared to non-billable tasks. For example, if you work 40 hours a week, and only 30 of those hours go toward billable work, your utilization rate is 75 percent. Balancing your billable time (on projects) with your non-billable time (business development, professional development, and/or administrative duties), is critical and depends on your role in the company. Being highly utilized with quality hours is the basis for a thriving project, department, and, ultimately, firm.
Want to learn more about making your hours count? Keep reading this article at The Zweig Letter by clicking here.