Higher productivity equals higher capacity, which drives faster turnaround times. Faster turnaround times create happier clients.
By Frank Stitely
The Relentless CPA
Employee productivity plays a huge factor in managing WIP (work in progress). Because capacity is the denominator in the Lean Six Sigma equation, and employee productivity is a big factor in capacity, employee productivity becomes a big factor in determining turnaround time.
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First, let’s dismiss all the consultants from the room who tell us that time tracking and productivity metrics don’t matter. Mostly, these consultants have never managed or owned CPA firms. Rarely have they worked in firms for any length of time. They have never known the struggles of meeting payroll during the first pay period in February when employee hours are up, but the tax season money is not rolling in yet. Goodbye. Don’t let the door hit you in the butt on the way out, or do let it hit you. That’s up to you. I hope it’s a heavy door.
Here’s an example that shows why time tracking and productivity metrics matter:
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