How do you track productivity? Find here some tips and tricks

We all know that productivity is important. Use this tips and tricks to enhance your employees productivity and boost the profitability of your organization:

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  • Implement Project Management. There is no secret that implementing project management methodologies will enhance the productivity and the morale of your team. Being well organized the employees will work more efficient and the quality of the deliverable will enhance. There are a lot of easy to use and affordable applications on the market. Having an overview of who is doing what is a good thing for everyone. Managing expectations will keep everyone focused and aware of deadlines.
  • Set Expectations. Set clear goals for everyone. Both teams and individuals need to know the KPIs in order to be focused all the time. In order for them to be productive, they have to know what they’re working towards. Goals shall be specific, measurable and reachable. Goals should also be centered around more than just one type of performance KPI: Day-to-day tasks, Business growth and development, Profitability, Innovation.
  • Real time tracking. Daily checks might feel like you’re trying to micro-manage. But actually, that’s not the truth. Daily checks show employees you care about performance and want to stay in-the-know when it comes to productivity. More of that this is not done directly by you but by an application. Everyone can quantify the progress without any supervision. This is a great way to increase the morale and support the team when needed.
  • Performance orientation. When it comes to employee productivity tracking, this one may seem obvious. But the reality is a lot of companies don’t consider performance as a way to measure success. It’s easy to focus on ‘time spent’ on projects instead. Once you’ve set clear expectations for a team and each individual, be sure to track how well they’re performing their duties. Not how many hours are being put it — but how well goals are being met.
  • Focus on Results — Not Hours Worked. Employees are bound to ‘kill time’ if they feel like they have no other goal than to put in X amount of hours each day. Productivity will increase when the team is results oriented versus time put-in oriented. This is because there’s an incentive to complete tasks and achievements. Rather than twiddling their thumbs to fill time on the clock, your employees will feel motivated to get their work done.
  • Be Transparent by Communicating. Communication is the key to productivity because everyone needs to work together as a team to meet the organization’s goals. Employees shall know: Goals and objectives, How performance is being tracked, What expectations are for performance. This keeps your employees assured and confident of how to meet expectations and how their performance is being measured.
  • Reward Quality Not Quantity. It’s important to find a system for measuring quality when it comes to your employee’s work. Profitability KPIs can be a good indicator of the good work. Maybe your employee had to take a bit longer than usual to deliver at this level but the value received in return is priceless. Be sure to measure and reward quality performance.
  • Measure Goals. Both Short-Term and Long-Term Goals shall be properly tracked and measured. This will keep employees motivated by seeing small accomplishments along the way. It also paints a striking picture. It highlights the impact the little tasks are having at pushing towards the big goal.
  • Be transparent with Business Performance. Track High-Level Business Performance. Are your profit margins reflecting your team’s productivity? The bottom line matters. Period. Set efficiency aside for a minute. Make sure the metrics you use to measure performance can be directly related to your profit margins. Then you can have a system for employee productivity tracking that paints a true picture of the company’s performance.

Keeping track of your employees productivity doesn’t have to be a headache. There are tools and solutions available that can help you to manage your teams performance and take smarter and more informed business decisions.

Start using Wibiway today

Get in touch with Wibiway team and we will be glad to support you. We are experts in tracking profitability indicators, business strategy and digital transformation. Our dedicated application will lead your way to track your profitability indicators and provide you the means to steer your business to success.

For details please visit: https://wibiway.com

Real-time cash flow and profit & loss is a must have

During the economic crisis caused by the COVID19, companies felt the full benefit of instant access to real-time data. Finance professionals will take many lasting lessons from the tumult of 2020, and the absolute necessity of having instant access to their real-time cash flow and profit & loss.

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Businesses had to react accordingly, and those who had immediate visibility over their current and projected cash and liquidity positions were better placed to do so. It is during these charged situations that the true value of a cash flow dashboard becomes abundantly clear.

Cash and liquidity dashboards display live data, generated by cash reporting and forecasting systems and processes, that is most important to businesses and their stakeholders. What’s more, they focus all eyes on a single version of the truth that can be easily understood and digested. With the touch of a button, dashboards can also be rolled into reports and delivered to senior management, who have the option to take a headline view or drill down to the most granular level of detail.

A cash flow dashboard, however, is only worthwhile when fulfilling a specific purpose. Companies must first identify what KPIs best reflect their financial performance, and are therefore worthy of a spot on the dashboard. The importance of profitability indicators lies in the fact that they are the most reliable when measuring the behavior of a company. Because they are based on quantitative data, an investor is much more confident in his decisions. After all, an entrepreneur may be charismatic, but it is the return on investment that will prove management competence.

The basic KPIs to measure profitability are: Gross Profit, EBITDA and Net Profit. Having real time information on Profit and Loss and Cash Flow is the first basic step to ensure a proper steering of a company.

Keeping track of your profitability KPIs doesn’t have to be a headache. There are tools and solutions available that can help you to manage all of your finances and make smarter and more informed business decisions.

Start using Wibiway today

Get in touch with Wibiway team and we will be glad to support you. We are experts in tracking profitability indicators, business strategy and digital transformation. Our dedicated application will lead your way to track your profitability indicators and provide you the means to steer your business to success.

For details please visit: https://wibiway.com

Why is project management important for your business?

According to a survey by the Project Management Institute (PMI), more than a half of companies realize the actual importance of project management and how it allows them to effectively manage the issues they are facing. The same survey state that only 23% of the companies actually use standardized project management practices.

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Without any doubt the project management can stimulate the productivity, improve clarity and transparency and brings a lot of advantages to the organizations:

  • Better resource allocation. The most important resource any project managers have at their disposal is the team members. Project teams consist of people of different backgrounds and departments and they might have other commitments. Through proper project planning, you can ensure that they are available when needed. The other resources can be arranged effectively to avoid project delays during the execution. Through properly allocation for each resource from the very beginning, you can also monitor the phases that are more demanding and prepare accordingly.
  • Increased productivity. The field of project management is actually at the basis of productivity concept in a business or organization. Through proper utilization of resources and having an efficient system in place, a team can easily get more work done in a shorter amount of time and increase productivity.
  • Flexibility. Being more productive and efficient by using project management techniques your organization would be able to gain more capital which it can use to expand the business and hire new talent.
  • Higher risk tolerance. Proper planning means that you are ready for potential “what if” scenarios that may occur. This means that you are somewhat prepared to tackle any unforeseen occurrences that may negatively impact your project or your business. This can lead to bigger profits for your organization.
  • Retain talents. With continuous success and effective performance, your team gains more confidence. Effective project managers inspire their team by incentivizing and regularly rewarding top performers to keep everyone motivated.
  • Better client satisfaction. Retaining clients is considered more important than acquiring new ones and a guaranteed way of doing it is by offering unparalleled services. An effective set of operations that focuses on quality and efficiency, would naturally leave the clients feeling satisfied. This means that they would return with more business in the future. A satisfied client would also refer your organization to other potential customers, which means free marketing for you. This can be an extremely effective marketing strategy for businesses.

Project management today is different from what it was even 5 years ago. With the introduction of different cloud-based project management tools, project teams are no longer bound by geographical location or departmental regulations. Project management tools centralize all data and allow users to track progress, assign tasks, and give feedback easily.

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Do you know how to handle project management cost planning & control for your business?

If you’re still using excel or whiteboards you should consider that it may be time to make the switch to a project management cost planning and control software application to increase your work productivity, reduce risks, measure costs through the full life cycle of a project and consolidate data for your entire business.

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The tool you choose must have at least the following features:

  • Cost estimation. One of the most important elements of a project management cost planning and control tool is cost estimation. The solution shall have at least the forecasting feature for a complete project with a defined scope. There are several types of cost estimation in project management, including fixed, variable, direct, and indirect cost estimation. Because the project scope, project schedule, or other factors can change, it’s important to update price estimates with the help of cost management software so you have an accurate idea of how much the project will cost.
  • Budgeting. The best cost management tools generate weekly and monthly reports on expenses, so you can be sure that your projects never goes over budget, which could cost you unexpected expenses. Plus, these tools allow teams to set budget limits based on time or cost. When a project budget is nearing its limit, the software will send you a notification so you can adjust the project’s scope. Having regular updates on a project’s expenses can offer you important clues about the direction your project is going and whether or not additional action is required.
  • Reporting. To keep projects running smoothly, find a cost management tool that offers a variety of easy reporting options. If building a report requires a manual or the help of an outside consultant, continue your search. Secure sharing in the cloud for total visibility is also important when it comes to reporting.
  • User-friendly interface. Cost matters and accounting are difficult as they are, so a user-friendly cost management tool is a must. A user-friendly interface can minimize project hiccups and increase your team’s productivity. If you’re struggling to use your tool, you should probably look for another one.
  • Affordability. Small businesses need functional cost accounting tools to achieve business success. Fortunately, many of these tools offer low-cost or even free options to help increase productivity while reducing costs.

While there is no perfect project cost management tool, it’s not so difficult to find one that covers the features that are important for your business.

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Get in touch with Wibiway team and we will be glad to support you. We are experts in tracking profitability indicators, business strategy and digital transformation. Our dedicated application will lead your way to track your profitability indicators and provide you the means to steer your business to success.

For details please visit: https://wibiway.com

How project management approach increases business profitability?

As the business world is expanding and becoming more and more competitive, it is increasingly becoming indispensable to undertake a higher number of projects at any given time for better resource optimization. We all know that “Time is money” and now the question is how we translate saved time into better and more efficient utilization for more money for the organization. The answer lies in relaying on project management techniques. The equation goes like this:

Better project management — Better Execution — Higher performance of your business — Increased revenues — Increased profits

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Project management techniques are essential for all the executives not just for the project managers contrary to general belief. Statistics mention that only 34% of all the projects succeed and the average product has a 43% cost overrun. There is no better way to improve these numbers than by defining clear project objectives and requirements that contribute to project success.

Here are some tips you can follow:

  • Communicate with your peers or team members – The first step is to get your peers or team members in a room and start communication in a group to make sure everyone is on the same page as far as the requirements and objectives of the project are concerned.
  • Create a project plan – This will help further in organizing your project schedule thereby maintaining cost, risks and resources required to manage these elements.
  • Use Cloud Based Project Management Tools – Improve collaboration by using cloud based project management tools. These tools are designed to promote collaboration and provide built in workflows.
  • Create a project schedule – In order to complete the project efficiently and on time, it is important to create a project schedule by pre-defining the upcoming tasks and approximate delivery date. This will help you in attaining the desired tasks on the decided dates.
  • Measure & Track the performance – For smooth running of the project, it is important to measure and track the performance of the project as per the pre-defined schedule to ensure the milestones are going to be achieved.
  • Learn from mistakes – There are bound to be complications so it is important to learn from those mistakes. Make sure to write everything down, this will help make it easier to track what went wrong and later discuss ways to improve these mishaps. Communication is key, make sure you are communicating clearly and concisely.

Lastly, remember that a business can only be successful if it delivers the results that the business has set out to achieve. Be in control of the business by managing and adjusting to the proper time and cost constraints. Nothing will improve the business more than delivering projects that allows to realize strategic benefits.

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Get in touch with Wibiway team and we will be glad to support you. We are experts in tracking profitability indicators, business strategy and digital transformation. Our dedicated application will lead your way to track your profitability indicators and provide you the means to steer your business to success.

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How cost management creates strategic competitive advantage for companies

In an attempt to minimize the damages caused by financial crises and the use of company resources, managers apply strategies that only work on short term, but that in the medium and long term can pose serious risks to the survival of the business. Given this, it is necessary to view the strategic cost management as a competitive advantage in companies.

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This is a matter of survival in the market, since processes that are poorly thought out and not prepared by analyzing the data and the entire value chain end up becoming villains rather than tools that ensure the operation and health of corporations.

What is strategic cost management?

Strategic cost management has emerged with the technological innovation of companies. Before using software that automate and manage a good part of the financial processes, the management was directed only at the reduction of expenses, in a way that it was possible to decrease the prices of products or services and, thus, allowing the company to continue to stand out.

However, business models have changed, and strategic cost management is seen as a competitive advantage for companies. This is because, currently, this control takes into account the relationship between the expenses of a product or service and the financial management of the business.

In other words, the strategic cost management starts to study the entire consumption process, from internal to external factors.

Therefore, this concept has more importance than many companies believe, as it is responsible for placing the organization in a strategically competitive position without regarding the costs only as numbers, but as a chain of financial resources.

After all, with the changes in the market and the consumption habits of the population, price is no longer the only relevant factor for companies that want to have brand authority and competitiveness.

In moments of crisis, for example, a company that has a good strategic cost management end up having enough resources to overcome the situation and do not come out of it very fragile, mainly due to the control of wastes and failures.

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Get in touch with Wibiway team and we will be glad to support you. We are experts in tracking profitability indicators, business strategy and digital transformation. Our dedicated application will lead your way to track your profitability indicators and provide you the means to steer your business to success.

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10 reasons why the profit is important

Lack of proper profit has the following impact on a business:

  • Losses eat away the equity to a point where lenders feel that the business is too risky to lend additional money to.
  • Good employees leave because the company doesn’t have the money to keep the competition from stealing the good help.
  • Equipment maintenance is reduced, shorting the life of the equipment.
  • Officers are paid less because the company doesn’t have the cash.
  • Bonuses and third parties are eliminated because there is no cash.
  • Vendor terms shorten because payments are not paid according to terms.
  • Large projects are shunned because the company doesn’t have the ability to fund material or labor costs.
  • The value of the business drops dramatically.

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Here are 10 reasons why the profit is important:

  1. Essential for survival – Any entity cannot spend more money than it takes in. No one works for free.
  2. Funds growth – Profit is the primary component that grows balance sheet equity.  Growth in equity allows growth in lender/vendor debt.
  3. Ability to borrow money – Lenders won’t lend money to businesses that are not profitable. Lenders look to profit to pay back the borrowed money.  No profit = no ability to pay back; therefore no new loan.  Lenders also look at profitability as a way to measure the ability of management to run the company as follows:
    • Businesses that are consistently profitable – Great management.
    • Businesses that are profitable but erratically – OK management.
    • Businesses that lose money – Poor management (run away as fast as possible).
  4. Grows market value of business – Profit is typically the biggest component of EBIDTA and businesses can obtain 2x-8x EBIDTA for valuation purposes. Profit is much more valuable than the assets of the company.
  5. Measures the effectiveness of management – Profit is one way outsiders measure the effectiveness of the management team. Lenders, investors, and vendors all use profit as a tool to measure how good management is in running their business.
  6. Ability to pay down debt – Profitability, if not used to grow assets, can pay down debt. Businesses without profit cannot pay down debt.
  7. Builds working capital – Profit is one of the elements that improves working capital. Businesses that are consistently profitable have consistent improvements in the ability to fund working capital needs, such as increased labor costs, big jobs, longer terms, etc.
  8. Attracts investors – Investors want to be on a winning team. People with money want to make more money with their money, not lose it.  Profitability is the measurement of management’s ability to operate efficiently (this is defined as making profit) and investors will typically look at the historic profitability as a reflection of management’s ability to perform in the future.
  9. Hire better employees – Profitability is one of the few things that enable businesses to hire better people. Profit creates cash. Companies that are not profitable don’t have the cash resources to pay or increase the pay of good employees.
  10. Builds cash – Profit is one of the few things that will enable a company to increase cash in the bank.

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Why profitability is more important than profit?

Profitability is the very essence of a business, It is the reason for starting a business in the first place. We measure profit by calculate total revenues minus total expenses. A better approach would be to look at the relative profit, how much profit is made compared to total revenue. The latter is known as profitability.

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As we mentioned above, profit it is simply defined as what is left when you deduct expenses from revenue (profit = revenue – expenses). Revenue, or income, is generated by delivering services or selling products. However, generating revenue is typically not a free exercise, it comes with lots of expenses, or costs, such as employee wages, equipment, and marketing to name a few. So, profit is an absolute measure of how profitable a business is. It tells you the amount of how much extra money is left for owners at the end of a period.

Profitability is a relative measure of how profitable a business is. What this means is that calculating profitability removes the raw absolute amount of the profit, revenue, and expenses and looks at those in percentage terms. By doing so, you can look at companies of different sizes and look at their levels of profit side by side. Generally, a company with higher profitability is more efficient, in as much as they are generating a higher percentage of profit for each of input expended. So profit and profitability are very much related, they use the same numbers but they are vastly different in their uses.

Profitability is the relative measure of profit. It compares how much profit a company makes compared with its overall revenue and costs. By so doing, it enables you to have a more realistic view of how well a company is doing. There’s no better way to learn than to practice yourself by using Wibiway application.

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Do you know what a cost center is and how this contribute to your business profitability?

It is not surprising that the job of running a business involves great management skills in the various departments of the company, such as in inventory, personnel, customer service and finance management. When the entrepreneur is unable to efficiently structure his company, the chances of delaying the projects are much greater. This is because, in order to maintain the health of the business, all internal activities need to be aligned with the company’s growth objectives.

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For this to be achieved, managers should fully understand each specification and strategic concept linked to their enterprise. In the case of the financial sector, this fact is even more important, as it involves the balance of business expenses and investments. In this sense, a factor of great relevance that can be mentioned concerns the cost center, since it encompasses the organization of a large part of the company finances.

At first, it is necessary to understand what the cost center in a company consists of. This concept is basically related to a unit within the business, which can be a department or a type of financial project, that involves revenues and expenses, contributes to the simplification of data analysis, and helps in the managerial decision-making.

Cost centers contributes to make the company more efficient by distributing strategic resources to the points where there is the greatest potential for return. By understanding the specifications of each sector, it is also possible to identify where there is more spending and to measure the performance of each one of them.

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Tracking profitability indicators, a nice to have or a must?

When receiving a clinical exam result a patient is confronted with a series of unfamiliar terms. He don’t understand what is cholesterol or blood sugar level and the effect they have on his overall health status. Likewise many companies do not take time to understand the profitability indicators and what they say about the health of the company.  

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A common mistake that companies made is that they do not keep up with the main profitability indicators of their business. If you want to know more about these indicators, what they are and how can be tracked go to Wibiway blog.

In any enterprise, many things can be measured in numbers. No matter the area of operation or the size of the organization, it is always possible to know, more or less roughly, what is happening to the business through metrics.

The entrepreneurs may want to know, for example, how much was the revenue in a certain period or what the related costs were, or how large their debt to creditors is.

The importance of profitability indicators lies in the fact that they are the most reliable when measuring the behavior of a company. Because they are based on quantitative data, an investor is much more confident in his decisions. After all, an entrepreneur may be charismatic, but it is the return on investment that will prove management competence.

The basic profitability indicators are: Gross Profit, EBITDA and Net Profit. Having real time information on Profit and Loss and Cash Flow is the first basic step to ensure a proper steering of a company.

Start using Wibiway today

Get in touch with Wibiway team and we will be glad to support you. We are experts in tracking profitability indicators, business strategy and digital transformation. Our dedicated application will lead your way to track your profitability indicators and provide you the means to steer your business to success.

For details please visit: https://wibiway.com