Why track your business activity by progress rather than by billing?
Auteur vérifié
27 May 2021
We are fortunate to work with a wide range of companies, from dynamic startups and creative agencies to innovative digital services firms, bold advertisers, and expert consultancies. Through this diversity, we have been able to create a comprehensive and accurate overview of the trends we’ve observed in activity tracking. Interestingly, the majority of companies with fewer than 20 employees opt for an invoicing-based approach, while agencies with more than 100 employees choose a completely different direction.
The professional world is constantly evolving, and the methods for staying up to date on various ongoing projects and assignments are no exception. But then, why prioritize progress over billing? What are the concrete benefits for your company and for each member of your team?
Furious, with its experience and expertise, is committed to providing you with the answers to these crucial questions. We’re here to guide you and work with you to chart a course toward more precise and vibrant project management. From drafting reports to creating dynamic diagrams, setting clear milestones, and holding weekly follow-up meetings, we’re here to help you solve any problems you encounter and optimize your processes.
By using percentages to track the progress of your projects, holding weekly meetings to update your charts, and using colors to illustrate how your projects are progressing, you’ll be able to see at a glance where you stand and what still needs to be done. This will help every member of your team understand their role and workload, ensuring that goals are met and projects are successfully completed.
At Furious, we’re convinced that this progress-oriented approach is the key to understanding and managing both workflow and associated costs. So come discover how we can help you transform your work methods, and together, shape the future of project management.
Activity Tracking for Billing
What’s that all about? It means that all production tracking is based on the number of invoices sent to customers per year. Revenue is generally calculated at the end of the year. Jean-Mi, the accountant, quickly asks for an update on the latest invoices sent out (you know, those last few weeks of December when all the managers and directors are invoicing like crazy after a warning from BigBoss or our beloved CFO) in order to reconcile the figures with revenue.
December is the time of year when PCA and FACE forms need to be filled out for accounting purposes. Curiously enough, it’s also the best month of the year for these agencies…
The advantage? This tracking method is simple and hassle-free: just add up the invoices you’ve sent and forward them to accounting.
The downside? It’s an accounting-based view that’s far removed from reality.
Example: Imagine that you’re behind on billing certain customers. You might think the company is struggling; and if you’re ahead of schedule, you might be tempted to believe—wrongly—that you’re doing well…
But the worst part is that you run the risk of a several-week—or even several-month—discrepancy between reality and what this tracking method leads you to believe… #failed
https://www.furious-squad.com/wp-content/uploads/2021/05/ezgif-2-e00a13f123.mp4
Another significant risk (and we know this has probably already happened to you… Otherwise, you’re really lucky!): you’ve made more progress on the project than the client has paid for… And the client is holding you hostage to get more time than they’ve paid for.
In short, we usually switch to progress tracking after a project goes wrong…
Progress Tracking
Here, we no longer track the invoicing status for clients; instead, we track the actual progress of the project.
So if the project is 50% complete → we’re halfway through the project.
It all becomes clear, since the sum of the projects’ progress gives you the true production level in real time. And thus, your company’s actual revenue IN REAL TIME! Say goodbye to tedious reviews of PCA and FAE…
So, in real time, you can see everything: delays and advances in billing, project risks, customer risks, risks related to understaffing or overstaffing, and so on.
No more surprises: everything becomes simpler and clearer, and the long-term outlook is obvious.
But how do you do it? There’s nothing magical or impossible about it. Tracking a project’s progress in real time requires a robust methodology. This explains, in particular, why this method is used in the vast majority of cases by the most structured companies—and therefore those of a certain size.
What a shame—a small agency that focused on progress would grow more steadily and thus have a better chance of achieving successful growth!
In fact, based on experience, companies tend to wait until they reach 30 to 50 employees before they realize there’s a problem. That’s the point where you can no longer keep everything under control, and so you lose that intuitive sense of what’s going on.
It’s far too late, because at this point it’s becoming difficult to change the habits of the entire agency!
The Benefits of a Progress-Oriented Approach to Project Monitoring
Tracking a project by progress rather than by billing offers numerous advantages that can significantly improve the management and execution of your projects. Here’s why this approach can be beneficial for you:
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Greater visibility: You get an accurate overview of the progress of your projects, allowing you to better anticipate potential delays and take proactive action. -
Resource Optimization: By understanding where your project stands, you can allocate your resources more effectively—whether in terms of time, money, or personnel. -
Improved Communication: Tracking progress promotes transparent and effective communication within your team, as well as with your clients and stakeholders. -
Informed decision-making: With accurate data at your disposal, you can make better decisions and adjust your strategy as needed. -
Increased customer satisfaction: By delivering your projects on time and meeting expectations, you strengthen your customers’ satisfaction and trust.
Thus, adopting a progress-oriented approach to project management allows you to improve efficiency, transparency, and customer satisfaction, while reducing the risk of project delays.
How does progress status fit into a project’s life cycle?
Progress tracking plays a crucial role throughout a project’s lifecycle, from initiation to closure. Here’s how it fits into each phase:
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Initiation: At this stage, the progress report helps clearly define objectives and expectations, ensuring that all stakeholders are on the same page. -
Planning: During the planning phase, it helps establish a realistic project plan, taking into account available resources and time constraints. -
Execution: During execution, tracking progress is essential to ensure that the project stays on track by quickly identifying deviations from the original plan. -
Monitoring and Control: In this phase, the progress report is used to monitor progress, check the quality of the work performed, and adjust the plan as needed. -
Closure: Finally, during the closure phase, a progress assessment ensures that all objectives have been met and that the project can be considered complete.
By incorporating progress tracking into every stage of your project’s lifecycle, you maximize your chances of success and ensure efficient and transparent management from start to finish.
Methods and Tools for Assessing Progress
Accurately assessing the progress of your projects is crucial to ensuring their success. Fortunately, there are a wide variety of methods and tools available to help you with this task. Here is an overview to guide you:
Key performance indicators for measuring progress
To track a project’s progress, it is essential to focus on key performance indicators (KPIs). Here are some of the most relevant ones:
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Percentage Complete: Estimate the proportion of work already completed relative to the entire project. -
Earned Value: a project management method that evaluates performance by comparing the work completed with the planned schedule and budget. -
Cost Performance Index (CPI): Calculate your project’s cost efficiency by dividing earned value by actual costs. -
Schedule Performance Index (SPI): Measure the efficiency of time spent by dividing the earned value by the planned value. -
Schedule Delays: Identify any discrepancies between planned deadlines and actual progress.
By monitoring these metrics, you’ll be able to make informed decisions to keep your project on track.
Using Project Management Software for Effective Tracking
Project management software is a valuable tool for tracking the progress of your projects. It offers:
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Centralized information: All project-related data is stored in one place, making it easier to access and update. -
Report Automation: Quickly generate progress reports to share updates with your team and stakeholders. -
Real-time collaboration: Enable your team to collaborate effectively, no matter where they are. -
Resource Monitoring: Ensure that your resources are being used optimally and make adjustments in real time as needed.
By using these tools, you can track the progress of your projects more efficiently and accurately.
Manual Techniques: Advantages and Limitations
Although digital tools are very popular, some teams prefer or need to use manual methods to track progress.
Benefits:
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Simplicity: No need for complex training or software investments. -
Flexibility: Easily adaptable to different situations without technical constraints.
Limitations:
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Less accurate: the risk of error is higher without automated calculations. -
Time required: Updates and reports take longer to complete. -
Lack of centralization: Data may be scattered, making it more difficult to access and analyze.
By weighing the pros and cons, you can choose the method that best suits your project and your team.
Strategies for Effective Communication on Project Progress
Communication is a key element of project management, and this is especially true when it comes to tracking progress. Here’s how you can optimize this communication for the benefit of all project stakeholders.
How can we keep stakeholders informed of our progress?
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Regular reports: Provide periodic updates to keep everyone informed. -
Follow-up meetings: Schedule meetings specifically to discuss progress and next steps. -
Communication tools: Use the right tools to share information quickly and effectively. -
Tailoring Your Communication: Adapt your communication to your audience to ensure clarity and relevance.
The Importance of Transparency and Clarity in Communication
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Avoid jargon: use clear, simple language so that everyone can understand. -
Be transparent: share both the good and the bad news to build trust. -
Clarify responsibilities: Make sure everyone knows what is expected of them to avoid misunderstandings. -
Provide concrete examples: use real-life examples to illustrate progress and challenges.
Managing Expectations and Addressing Concerns About Progress
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Be proactive: Anticipate questions and concerns, and address them before they become a problem. -
Listen actively: pay attention to feedback and show that you are taking concerns into account -
Adjust the schedule as needed: be prepared to readjust plans to meet needs and expectations. -
Show empathy: Understand stakeholders’ concerns and show that you take them seriously.
To track a project’s progress, it is essential to focus on key performance indicators (KPIs). Here are some of the most relevant ones:
-
Percentage Complete: Estimate the proportion of work already completed relative to the entire project. -
Earned Value: a project management method that evaluates performance by comparing the work completed with the planned schedule and budget. -
Cost Performance Index (CPI): Calculate your project’s cost efficiency by dividing earned value by actual costs. -
Schedule Performance Index (SPI): Measure the efficiency of time spent by dividing the earned value by the planned value. -
Schedule Delays: Identify any discrepancies between planned deadlines and actual progress.
By monitoring these metrics, you’ll be able to make informed decisions to keep your project on track.
Using Project Management Software for Effective Tracking
Project management software is a valuable tool for tracking the progress of your projects. It offers:
-
Centralized information: All project-related data is stored in one place, making it easier to access and update. -
Report Automation: Quickly generate progress reports to share updates with your team and stakeholders. -
Real-time collaboration: Enable your team to collaborate effectively, no matter where they are. -
Resource Monitoring: Ensure that your resources are being used optimally and make adjustments in real time as needed.
By using these tools, you can track the progress of your projects more efficiently and accurately.
Manual Techniques: Advantages and Limitations
Although digital tools are very popular, some teams prefer or need to use manual methods to track progress.
Benefits:
-
Simplicity: No need for complex training or software investments. -
Flexibility: Easily adaptable to different situations without technical constraints.
Limitations:
-
Less accurate: the risk of error is higher without automated calculations. -
Time required: Updates and reports take longer to complete. -
Lack of centralization: Data may be scattered, making it more difficult to access and analyze.
By weighing the pros and cons, you can choose the method that best suits your project and your team.
Tips and Best Practices for Successful Progress Tracking
To ensure successful progress tracking, it is essential to adopt best practices and remain vigilant about potential pitfalls.
Mistakes to Avoid When Tracking Progress
- Failing to update data: Make sure all information is up to date to get an accurate picture of progress, in order to avoid mistakes to avoid at the branch.
- Don’t overlook small discrepancies: even minor deviations can add up, so stay vigilant.
- Don’t keep problems to yourself: Share challenges and delays as soon as they are identified so you can find solutions quickly.
- Lack of consistency in tracking: Adopt a consistent tracking method to ensure reliable results.
Tips for Continuously Improving the Monitoring Process
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Regularly reassess your methods: take the time to think about what’s working and what could be improved. -
Build your team: Make sure everyone has the skills needed to contribute effectively to the follow-up. -
Use the right tools: Choose project management tools that meet your team’s needs. -
Ask for feedback: Encourage the team and stakeholders to share their ideas for improving the process.
Use feedback to improve progress tracking
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Review past projects: see what worked well and what could be improved for future projects. -
Create a culture of learning: encourage an approach in which mistakes are seen as opportunities to learn. -
Share lessons learned: Make sure that the knowledge gained is shared within the team and the organization. -
Adjust your processes as needed: be prepared to change your methods and tools based on feedback and lessons learned.
By following these tips and staying attuned to the communication needs of your team and stakeholders, you can ensure effective progress tracking and contribute to the success of your projects.
Furious’s Unique Approach
Discover Furious, your ideal partner for managing your projects with surprising ease. It’s not just a tool—it’s a comprehensive, integrated solution designed to meet all your project management needs.
The perfect project management software to easily manage your projects
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Full integration: No more wasting time juggling different, unintegrated tools. Furious offers an all-in-one solution for tracking various types of projects, whether they’re fixed-price, fee-based, time-and-materials, margin-based procurement, or much more. -
Advanced Tools: Take advantage of AI-powered planning tools, Gantt charts, and task and ticket management tools—all in one place.
The Key Benefit of Project Management Software for Your Business
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Boost your growth: Whether you run an agency, a consulting firm, or an IT services company, incorporating Furious into your daily routine means choosing to stay one step ahead. -
A 360° view of your KPIs: Keep track of all your key performance indicators and see the positive impact on your productivity and profitability. -
Optimal Visualization: Our visualization tools transform the way you assess and measure the performance and profitability of your projects.
Manage costs simply and effectively
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Extreme simplicity: manage your cost estimates, incorporate freelance costs, handle purchases with different VAT rates, and much more—all in an intuitive way. -
No more untraceable costs: Get the accounting information you need directly and maintain complete traceability of your costs.
Manage costs simply and effectively
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Easier collaboration: Use tables, lists, and cards to organize your tasks and communicate effectively with your colleagues. -
Simplifying work on large projects: With a system of tags, priorities, and much more, Furious makes working on large projects easier than ever.
A revolutionary tool for gathering customer feedback
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Simplified customer feedback management: Share your designs with your customers and receive their specific, targeted feedback in the blink of an eye. -
One-click change planning: Save time and increase efficiency by planning the necessary changes directly within the tool.
Unparalleled oversight of all your projects
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Anticipate risks: With our unique artificial intelligence engine, stay one step ahead and anticipate potential obstacles before they occur. -
Manage your projects profitably: Identify the most profitable projects and those that require your attention with just one click.
Centralization of Your Projects
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Everything in one place: Access templates for briefs, meeting minutes, reports, and much more, while also being able to upload any file. Everything is centralized to make your life easier.
So how do you go about it?
Furious helps hundreds of companies easily and confidently implement production management using visual and engaging metrics.
It’s never too late to choose the right processes (and tools!) that will help you structure your business. Tracking your business’s progress is one of those must-haves that every good CEO needs to implement.
Beyond providing an accurate, real-time view of your projects—and your business—this will, above all, give you the peace of mind you need for wildly profitable growth!