I originally posted this in November 2010, but as it is formally rule #2, it will follow rule #1.
The phrase ‘time is money’ holds evermore true in the global economy where time zones have been removed as constraints to commerce. Even in our global depressed economy there is not fair balance between time and money.
Regardless, of your time management techniques, methodologies or process discipline you cannot –
- or Control
Anyone who professes to, is comparable to someone saying they can change the past or make a pitcher throw a strike in the instead of walking that first batter in the bottom of the ninth. Sorry, a distraction there regarding the current playoffs. However, you can create, save, make, manage and control MONEY. You can use what money you have now to make more. You can use save the money you have now to use later. But, most importantly, you can use money to have an activity take less time by getting the right expertise, quantity of staff or tools. So, to restart – there is NEVER more time, but there is ALWAYS more money. Yes, even now.
The value of time –
This statement about money and time, I have used during my career to help guide me on decisions. Whether the decision regarded hiring, firing, budget allocations or what client to work for or not. It is part of my value system. If you do utilize this value statement as I have, you must accept the following explanation of the statement.
What is money? In business, money is the item we use to exchange for our goods or services. Money can be cash, receivables (billed, not paid), a credit line, an asset, a loan or an investment. The business invests all of the previous lists of money in people, facilities, equipment, raw materials, services to vendor and taxes, of course. These investments are planned, analyzed, considered, debated, refined, measured and tracked to grow a business. At times, the investments may be to forestall a competitive advance or meet a government or industry compliance requirement.
Even if the investment decision is to meet a compliance requirement, it is still made and the money spent to help the business grow, as begrudgingly as the money is spent on this compliance, it does so to allow it to continue to grow. The balance between the money spent and the growth achieved is the challenge every business struggles to be on the positive side. Tracking, measuring, forecasting, budgeting, banking, reporting and so on all about money. Upwards of 80% of a businesses reports are configured to report currency. How much money did we spend, get back in return (ROI) and/or what advantage did the money deliver.
Now what is time? Regardless of business or non-business, time is only the now or later. Today or tomorrow, this week or next, this year or 10 years from now are other ways to say it. But, they all mean now or later. We could get into Einstein’s theories on time, but for me there is right now or later. Time can be measured and tracked. The amount of time can be planned, analyzed, considered, debated, and refined. Some investment of time is always needed when there is an investment in money.
However, this where the large difference in money and time, time and money comes to light.
You have up to 80% of reporting in a business regarding money, that leaves only 20% for time, but in truth time reporting is 5% or less. The other 15% is made up of reports on material, people or facility quantities. So with all this attention, prioritization and focus on money, does business consider time as a major component of their decision making?
Most do not consider time as a major component, more as an afterthought. To use my value statement of ‘There is always more money, never more time’, a business must make time more than an afterthought.
More money can be made, found, borrowed, heck even stolen
Legal Disclaimer – I do not recommend, condone or suggest that stealing is acceptable, ethical or something you should do – so no blaming me for getting caught
, but time cannot be made, found, borrowed or stolen. The phase ‘make more time’ is false. An allocation or assignment of more future (later) time is possible. But, a there is no way to make or give more time. This is the important basis to use this statement as part of your value system in making decisions.
The final point here is that spending the correct amount of money, on the correct material or service at the correct point in time can reduce the amount of later time a business uses to attain some growth. A project the business decides to spend money on and to hire expert consultants to perform part of the project, reducing the ‘later’ time the project will take to deliver the return on the money investment or a business decides to spend more with a local supplier to ensure ‘later’ time deliveries have a higher likelihood of on time delivery. The important part here is to create metrics and reporting that validate that the ‘later’ time was saved based on what you value time as, thus back to money. Time is worth money and money is worth time – a business needs to consider both equally.
What do I want to say – that spending money is almost always worth it if you can reduce future ‘later’ time.
What do I want to people to do – start considering time more when they make decisions, especially on where to spend money. How much ‘later’ time will this money save if I spend it now versus spending it when ‘later’ comes.
Especially, when you consider a proposal and decide to cut a component of the proposal to make the proposal fit into a money constraint. Take the time to consider what that reduction means when the future comes around and you may need to spend that small amount of money you cut anyway. Yes, you may not have had to spend any more money, but I would put a dollar of my money over a minute of my time that decision cost you twice as much time.
Time is just as easy to track as money.
Ask yourself how much of your decision making data includes time oriented information.
Some other thoughts by others on time vs money –
Marketing Wharton School