Blog | 03.01.2012

Accounting for the Time/Effort ‘Currency’ At Work

At engineering and services oriented companies, ‘Time’ is the second most important currency after cash. Effort is the aggregate of Time spent by all employees in the team, project, business unit or the company. In any business where employees spend a lot of time in front of PCs to deliver the services and products of the company, accounting for this ‘currency’ is difficult.

Companies adopt a rigorous process to keep track of cash related expense and revenue. Expenditure and revenue is classified under a few accounting heads.  To get the big picture, you need to track each low level financial transaction through cash vouchers, receipts, invoices to clients and from vendors etc. This is rolled up into a high level P&L and Balance Sheet that is useful for senior management to track if their business is on course. Mid level managers can track their business unit’s revenue and spend, accounting executives may compare spending under different heads against the budgets before approving more spending.

Think of Sapience as providing the P&L and Balance Sheet for Enterprise Effort. Managers at all levels can view high level trends, and drill down to more detail if they want. At the lowest level, Sapience must track ‘time’ spent by each user on different applications, activities and projects. However, unlike monitoring tools, that is not what Sapience cares about because this kind of low level data is not what companies are looking for.  Instead, Sapience does aggregation and roll up of low level ‘time’ transactions to deliver the high level P&L about ‘effort’. It provides actionable advisories to individual employees and managers, through which work output can be enhanced at every level. Delivery becomes more predictable through accurate effort calculation.