The Three Dreadful Stumbling Blocks to Time Management

The Three Dreadful Stumbling Blocks to Time Management Ineffective time management is characterized by folks having too many things they need to do (and just a few they must do,) but not enough time for everything they want to do. The key to time management, therefore, is to identify your needs and wants in terms of their importance and match them with the time and resources available.

If your time-management efforts are not getting you the results you envision, you need to pay attention to three hurdles that can get you derailed easily.

  1. The foremost obstacle to time management is a lack of practical awareness of your job duties, as well as the extent of your authority and responsibility. Your efficiency could be acutely hindered by doing the wrong tasks—those that are relatively unimportant or not even part of your job description. You could also not be using the skills or time of others, perhaps not recognizing that you have the authority to do so.
  2. An associated obstacle to effective time management is your failure to prioritize tasks. You may not be able to prioritize because either you’re unaware of your job duties, or you don’t know how to set priorities. As stated by the Pareto Principle, you could be spending 80% of your time on tasks that account for a mere 20% of the total job results. As a result, you could be working on the trivial and the routine, but not the important. In other words, you could be working on the “can do” and not the “must do.”
  3. Equally important, your time management-plans often go off the rails because of “time thieves”—meetings, impromptu visitors, avoidable reports, telephone calls, delays, canceled engagements, redundant rules and regulations, and other claptrap.

Idea for Impact: Develop a high level of awareness in the areas discussed above. Use my three-part technique (time logging, time analyzing, and time budgeting) to control time, conserve time, and make time. Additionally, learn to farm more work out—delegating not only frees up precious time, but also helps develop your employees’ abilities, as well as your own. Try not to say ‘yes’ to too many things and avoid taking on too much.

Use Zero-Base Budgeting to Build a Culture of Cost Management

Zero-Base Budgeting

Traditional Incremental Budgeting

As part of the traditional budgeting process, managers tend to roll their budget over from one year to the next. In addition to accounting for any strategic initiatives or headcount changes, they simply add to every line-item in the previous year’s budget a certain percentage “and then some” to account for cost inflation. They assume that the ‘baseline’ is automatically approved, so they justify just the variances versus prior years.

The drawback of this budgeting process is that nobody questions the underlying ‘baseline’ costs. Further, these cost increases are carried from year to year.

Zero-Base Budgeting

'Zero-base Budgeting' by Peter A Pyhrr (ISBN 047170234X) In the 1970s, Peter Pyhrr, a Texas Instruments accountant, formally developed zero-base budgeting. In his influential Harvard Business Review article and a book titled Zero-base Budgeting, Pyhrr advocated that a prior year’s budget should not be used as a benchmark for the next year’s budgeted costs.

With zero-base budgeting, managers prepare a fresh budget every year without reference to the past. Consequently, they start every line-item in the budget from a zero-base even if the amount didn’t increase from the previous year. They are thus forced to justify all claims on their organization’s financial resources as if they were entirely new claims for entirely new projects.

Advantages and Disadvantages of Zero-Base Budgeting

Zero-base budgeting advocates say that it detects inflated budgets and unearths cost savings by focusing on priorities rather than simply relying on the precedent. Managers secure a tighter focus on operations by justifying each line-item in their budgets, thereby reducing the money they allocate to the lowest level possible. Managers can also contrast competing claims on their ever-scarce financial resources and therefore shift funds to more impactful projects.

Zero-base budgeting critics call attention to the many practical difficulties of implementing this time-consuming tool. More importantly, since zero-base involves give-and-take, the budgeting process is susceptible to favoritism, cronyism, and political influence.

3G Capital’s Success with Zero-Base Budgeting

'The 3G Way: An introduction to the management style of the trio' by Francisco S. Homem de Mello (ISBN B00MKKWZME) Zero-base budgeting has garnered much attention in the last few years as the centerpiece of an aggressive cost-cutting recipe used by 3G Capital, a thriving Brazilian buyout firm that’s renowned for its parsimonious operations. 3G’s predominant investment strategy is to acquire and then squeeze value out of companies, particularly in the food and restaurant industries.

At Anheuser-Busch, InBev, Tim Hortons, Burger King, Heinz, Kraft, and other acquired companies, 3G’s hard-nosed managers have used zero-base budgeting to initiate sweeping cost cuts. They’ve shut down factories, laid off thousands of factory workers, eliminated hundreds of management jobs, sold off corporate jets, forced executives to fly coach, restricted employees’ office supplies to $15 a month, and even asked employees to seek permission to take color printouts.

'Dream Big' by Cristiane Correa (ISBN 8543100836) Inspired by 3G, many other companies have adapted zero-base budgeting to root out bloat. Some have even gotten carried away—for example, Pilgrim’s Pride (an American meat-processing company) used zero-base budgeting to measure how much soap employees use to wash their hands and how much Gatorade hourly employees consume during breaks.

Idea for Impact: Zero-Base Budgeting Is an Effective Cost-Management Tool

Cutting operating costs is an ever-bigger priority at many organizations. For each line-item in your budget, ask “Should this be done at all?” and “Is this the most efficient and effective use of our resources?”

Consider zero-base budgeting to rigorously find cost-effective ways to improve your operations. It can bring about cost discipline, force your operations to become lean, and ultimately boost your bottom line.

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