Make your time at work pay – Financially (From Times Series)
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David Davis is managing director of the Mill Hill-based business, Total Purchasing Solutions. He has worked with more than 200 organisations ranging from schools to charities, retail chains and legal practices to help cut their costs and boost business. |
Make your time at work pay – Financially
12:40pm Monday 22nd March 2010
We’re all cost conscious and at the moment and ‘every penny counts’. However, is the effort worth it?
I use 2 simple methods in making business choices – Next Best Option and Hourly Rate:
• Next Best Option –Is there another activity that is of more value? For example, prepare for tomorrow’s Board Meeting or look through the Carphone Warehouse brochure to make sure you have the latest Blackberry of iphone. I suspect the former is a move valuable use of time – having a real impact on the business (even though the latter maybe more enjoyable).
• Hourly rate – take your salary plus benefits and any bonus, divide by 1,800, that is your approximate hourly rate. The question now is – does the activity in question have more value than your hourly rate. This is an excellent way to judge weather any activity is a viable use of time.
Applying these methods I can refine my ‘Customer Proposition’ – being to save every client at least £20,000 whilst requiring less than 4 hours of their time or give them a return of £5,000 for every hour they invest.
Are there any methods that can improve on how I make business decisions. All input will be greatly appreciated.
