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Time management: execute with excellence

Finance | John Tate | 2 Feb 2012

Allocating time appropriately between strategy and operations is, says John Tate, the key to business success.

Late last year I sold the company I was running and am in the lucky position of having some time on my hands. Regaining control of my household maintenance is much needed. So, yesterday, tasks included putting up hooks on a couple of doors, replacing several non-functioning light bulbs and replacing the two broken plug chains in the bathroom. Not exactly highpowered work, but good for the house, my marriage and my soul.

In my last blog I said I’d share some of my experiences of running businesses, and I’m going to kick off with time management.

Key challenge

So, how much time should you spend on strategic, as opposed to operational, activity? I subscribe to the view that up to 90 per cent of your time should be spent on the operational side. Endless research has been done on this topic and it may come as no surprise that chief executives consistently reveal that their number one challenge is ‘excellence of execution’. The same I am sure applies to finance directors.

Don’t get me wrong – defining the strategy will make or break an organisation. You need to be clear about where you are going, and how to get there. You need to involve your staff and stakeholders in this process and ensure that the outcome is communicated and understood by all around you. But there is typically so much to be done to effectively execute your strategy that you do not have the luxury of a lot of time to get the vision put in place.

Three key components of team working are essential to laying out your strategy: getting genuine corporate sign-up to the agreed vision; effective communication; and real transparency in how you and your colleagues work with your teams. If you don’t have these components in place you need to get the problem sorted out quickly. Otherwise, in my opinion, you have no chance of creating a well-run organisation.

Once you have your strategy in place you need to tackle the operational activity. Priorities need to be agreed, and staff must be supported and motivated in their work. KPIs (that's key performance indicators to you and I) must be set and then monitored with absolute rigour. This is where the crunch comes, as this is astonishingly hard to do well. Day in, day out, you need to be consistent and positive. Day in, day out, you need to monitor performance. No stone should be left unturned. If there is a problem you need to tackle it head-on and sort it out quickly. If there is an opportunity you need to grasp it – but make sure you do not renege on commitments you have already made.

In my experience this is where things all too easily fall apart. As an example, I get a good number of phone calls running the CFDG IT helpline. I am often staggered by the lack of attention callers show to the basic disciplines of running their business. Back-ups not being checked and months of data then being lost, basic IT security not being in place and sensitive information then being hacked, and so the list goes on.

Reality

CEOs, FDs and other managers must make sure their teams are on top of their jobs. Typical challenges managers face are taking on too much and failing to keep on top of the daily workload. One day you make a mega-effort to follow through on your commitments, but the next you get carried away by a distraction and let your daily workload slip. One good way to avoid the daily reality is to slip back into strategic activity. This is all too often an escape route to avoid doing your job properly – so beware.

So, if you agree that you should focus most of your time on operational activity, time management is key. If, like me, and I suspect like most people, you find this difficult, get yourself on a time-management course. It can be a surprising help.

FDs play a critical role in oiling the wheels of their charity. Facilitating agreement of KPIs; ensuring performance against these is tracked and communicated with rigour; turning over all the stones and ensuring problems are highlighted and tackled.

My wife recognises my own challenges with time management. Hence the list of my tasks, prepared by her, which is kept on our fridge door. For the avoidance of doubt, I would like to assure all readers of my total buy-in to this process.

John Tate is a business consultant, IT adviser to CFDG and a visiting lecturer at Cass Business School

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