ROWE and freedom from time-based billing

ROWE and freedom from time-based billing

Do you bill your clients based on time? Do you ever find this to be frustrating, messy, and unpredictable? Do employees sometimes forget to track time therefore creating fire drills to catch up and reconcile billing (which takes even more time)? Does it ever cause issues or disagreements with clients? Do you wish you never had to worry about it again?

I’ve been having some interesting conversations recently with other professional services firms that bill their clients based on time. It’s interesting to me because a few years ago, SpinWeb made two very significant changes:

  1. We implemented ROWE
  2. We eliminated time-based billing

Yes, the two are related.

Pre-ROWE, we billed our clients based on time. We would do the old-fashioned dance of “hmmm… I would estimate this project at 70 hours” and then hope we  magically hit that target. We all knew we were simply making up numbers out of thin air and hoping it was remotely accurate. It was a huge pain. Every time we did this, at least one or more of these things would happen:

  1. No matter how many times we called it an “estimate,” our clients would hear a fixed price
  2. Once the invoice was sent, we would end up arguing over money (see #1)
  3. Employees would forget to track time, which caused us to lose money or spend time going back to find the hours
  4. We would be penalized for being efficient (less money)
  5. Our clients woud be penalized if we were inefficient (over-billing)
  6. We would fudge and edit time reports to avoid arguments
  7. We would spend 10% of our productive time just dealing with all the minutiae of tracking time

As you can see, time-based billing is not much fun. However, it is such an accepted norm in professional services that not many people really question it. They just accept it as “the way things are done” and continue to trudge along with all the lost productivity and pain that comes with it.

However, when we implemented ROWE at SpinWeb a few years ago, an interesting thing happened. As we eliminated time as a measurement of productivity and started focusing 100% on results, we also began to extend that mindset to our services. It became more and more ridiculous to apply time to our internal results and so we began to see how we could revolutionize our billing, as well.

Soon after implementing ROWE and using the tools from that experience, we moved to a 100% value-based billing model. No more time tracking.

It has been one of the most tremendously positive changes we have ever made at SpinWeb.

No more making up numbers. No more arguing over money with clients. No more babysitting employees to remind them to track time. No more answering questions like “how much time should I bill for this?” five times a day. No more making up different prices for each project. No more scary “estimates” that leave clients fearful of over-billing. No more being penalized for being efficient.

All these issues: gone.

Clients are happier. Employees are happier. The company is more profitable. Everyone is more productive. Best of all, we have not had a single argument over money since the switch.

I cannot stress how much of a dream it has been to move to a 100% value-based billing model. If you are still billing based on time, let me assure you that it’s possible to make the switch. If we can do it as a web services firm with lots of moving parts and complexities, I’m confident that anyone can do it.

Have you moved to value-based billing? I would love to hear your experience.

17 productivity hacks and tools that help me accomplish more

17 productivity hacks and tools that help me accomplish more

I’m a pretty busy guy. I own a web solutions firm. I run a social media and technology consulting practice. I work for a workplace productivity training company. I speak at events around the country. I volunteer on non-profit boards and committees. I write books. I travel (a lot). I serve in my church. I blog. I play the cello in a chamber music ensemble. I build e-learning communities. I also try to fit in lots of tennis and sushi, as well. My friends sometimes ask me how I get so much stuff done. Am I an obsessive workaholic? Well, yes. However, I also make use of a number of productivity hacks and tools in my life and business that help me accomplish more in less time.

Each hack on its own my not be much, but when you add up the time saved and the friction removed with each item, it quickly adds up. Here are my favorite productivity hacks and tools that help me get more done.

1. Use reQall to capture ideas. Anyone who has read “Getting Things Done” by David Allen (affiliate link) is familiar with the idea of ubiquitous capture. This is the idea that if you are equipped to record ideas and action items at all times, then you keep your brain clear for creative focus while at the same time ensuring that nothing falls through the cracks. I love reQall because it lets me simply speak notes into my iPhone which are then transcribed and emailed to me for later processing.

2. Use Tungle to schedule meetings. I cannot find the words to explain how much I heart Tungle. How much time is typically wasted playing phone tag or sending emails back and forth doing the “when are you free” dance? Tungle solves all that by allowing me to book meetings in 30 seconds by sending out a link that allows others to see my open times, suggest time slots, and automatically add meetings to my calendar. I think anyone who doesn’t use Tungle is stark raving mad.

3. Use TextExpander to save typing. How often do we type the same blocks of text over and over? Meeting details, locations, addresses, messages, etc. TextExpander allows me to save commonly used blocks of text into an archive and then magically pop them into data fields with a simple shortcut. For example, my email signature becomes “ssig”, my name becomes “nname”, and my Tungle link becomes “ccal”. It saves tons of time and helps me maintain my workflow without copying and pasting things. TextExpander is for Mac only but I’m sure there is some Windows alternative out there but I wouldn’t know about that.

4. Use the same GoToMeeting details for all my meetings. Not everyone knows this but you can set up a recurring meeting in GoToMeeting and simply re-use that meeting over and over. You just schedule a meeting, check the box that says “Recurring meeting” and poof! Use the same meeting details over and over. You never have to set up another meeting again. The bonus hack with this is that I have a TextExpander shortcut set up so that when I type “ggoto” it drops in the meeting URL and other details into emails or calendar invites so I can effortlessly schedule meetings and send GoToMeeting info in a matter of seconds.

5. Follow Inbox Zero. Merlin Mann made Inbox Zero popular during a talk he gave at Google. I have since adopted and tuned the system to help me process email faster and be more productive as I manage it. It takes discipline but when I follow the system, it helps me get more done.

6. Keep up with online articles using Instapaper. I subscribe to a lot of blogs and see lots of information go across my radar on a daily basis. I love this because it keeps me informed and helps me stay in a state of continuous learning. However, if I read everything in real time I would get nothing done because I would be reading blogs and articles all day. Instead, I save interesting articles to Instapaper and then catch up with them on my iPad when I have more focused reading time, such as when I’m on a plane or winding down at night. This helps me avoid missing useful educational material while not letting the input slow me down.

7. Migrate to a Kindle. I love to read but transporting a bunch books when traveling is cumbersome. Once I went Kindle, I never looked back. For those who use the common retort “but I like the feel of a real book” I say: give the Kindle a try. Trust me. It is awesome. I love being able to carry an entire book collection with me on a tiny device that gives me the ability to choose what I want to read any time and switch books with the click of a button. And it looks and reads like real paper. The Kindle is truly a revolutionary device. Oh, and don’t waste your time on the alternatives like the Nook, etc. Go Kindle. Trust me. Since moving to Kindle, I find myself finishing more books than I ever did before.

8. Use a hands-free cellphone device. Talking on the phone can take up a good portion of my day. This includes sales calls, client meeting, returning voice mails, etc. By keeping a hand-free device handy, I can turn driving time into productive meeting time. Yes, I realize that even with a hand-free device there is still an element of distraction while talking and driving so please don’t yell at me for suggesting this. Just be careful. It’s amazing how many phone calls I can get through as I drive from one destination to another with a bluetooth headset. It’s also helpful as I walk around the office or do other non-intensive tasks. I can also get a lot of laundry folded while returning phone calls! My favorite is the Plantronics Voyager Pro+. It looks dorky but has excellent sound quality.

9. Leave actionable voicemails. How often do we play phone tag with someone by leaving voice mails that say “call me” with no additional details? Sometimes you really do need to discuss something in real time, such as sensitive or emotionally-charged issues. However, much of the time we spend too much time playing phone tag unnecessarily when we could be moving action items along by leaving better voice mails. When I leave a voice mail, I usually leave very specific details that give the other person information on exactly what needs to be done. Sometimes I can leave a message that simply answers the question clearly and specifically. Other times I leave details on where the information can be found online. I will sometimes even briefly offer multiple options/answers for different scenarios. The point is, I leave details that are useful to the other person, rather than just saying “call me back.”

10. Convert “coffee meetings” to video conferences. If you do a lot of networking like I do, you probably get asked to “get together for coffee” quite a bit. While there is nothing wrong with having coffee (or in my case, a smoothie) with people, a lot of the time these are simply exploratory meetings that may or may not be a good use of your time. If I said yes to every request to get together for coffee, I would be spending all my time driving to Starbucks. So if someone asks me to have coffee as a “get to know you” meeting, I suggest that we do a short video conference (or phone call) instead. This helps keep the meeting short and more actionable. There is something about meeting at a coffee shop that seems to make meetings last longer and lack focus but a video conference or phone call tends to be a medium more conducive to a clear agenda and an actionable conversation. With so many options for video conferencing, like Skype, GoToMeeting, and Google+, there is really no excuse to avoid it. If both parties don’t have a webcam, do a phone call instead.

11. Use Highrise for a CRM. Just about all organization need a good CRM to keep track of contacts and opportunities. Highrise is the best CRM I’ve found for those needing something simple and easily accessible. The thing about Highrise that makes me productive is the fact that it removes friction from the process. I’ve used CRMs in the past that required me to log in, paste in notes, click a bunch of buttons, and generally jump though hoops to get things done. This either caused me to waste time in the application, or not use it all all, which is even worse. Highrise makes tracking communication almost effortless. I can Bcc my Highrise dropbox to record correspondance, I can set up opportunities in a couple of clicks, and I can set up tasks and reminders in seconds. Additionally, I can record voice notes using the iPhone app and append them to contacts while on the go. This saves me even more time.

12. Manage my social networks with HootSuite. I have profiles on all the major social networks and I also manage accounts for a few other organizations. HootSuite lets me manage them all in one place. It also lets me schedule certain posts using an editorial calendar which lets me focus my time and accomplish more by batching my distribution and block scheduling when I work on my social marketing.

13. Store receipts in the cloud with Shoeboxed. I used to hang on to business receipts and then toss them all into a big file cabinet periodically. Then, if I ever needed them again it would be a nightmare since I had no real filing system. It was also annoying to hang on to all that paper while traveling. Now, I simply scan business receipts using the Shoeboxed app on my iPhone, discard the paper, and all my receipts are now stored in a nice, organized, searchable database online. This saves time and effort, not to mention storage space. Shoeboxed saves me even more time when I want to create an expense report. I just select the receipts I want to include and it generates an accountant-friendly expense report in seconds.

14. Manage personal finances using Mint. I think Mint is the greatest thing since sliced bread. It’s a personal finance app that lets you bring all your accounts into one dashboard, manage budgets, and track spending with a few clicks. It eliminates the need for budget spreadsheets, recording transactions, and doing math (gasp!) to get an analysis of your finances. Mint keeps it all in one place and even has a mobile app for when you’re on the go. Mint saves me incredible amounts of time on personal finances.

15. Use OpenTable to schedule dinner appointments. Ok, so this is not always a problem but I do sometimes spend more time than I want to when I’m trying to set up a dinner appointment and I go through the routine of choosing restaurant options, calling around to see who has reservations available, and getting it booked. Rather than go though that routine, I pull up the OpenTable app on my iPhone, let it locate me and suggest restaurants near me, and then choose from available reservation times to book my dinner appointment. It all gets done in a matter of seconds. OpenTable does save a little bit of time but for me it’s more about eliminating friction from the process.

16. Keep a todo list in Backpack. Like Highrise, Backpack is a 37 Signals product and it’s slick. It’s a super-simple todo list, note taking app, and simple project storage system. I organize my todo lists by context (calls, blogs, errands, etc.) and then use the iPhone app to track items throughout the day. Backpack gives me a one-stop repository for all my todo lists and ensures that nothing falls through the cracks.

17. Shop for household supplies with Alice. I hate going to the store. For this reason, I love Alice. When I’m about to run out of an item like paper towels, deodorant, or toothpaste, I simply scan the product barcode with the Alice app on my iPhone to add it to my shopping cart. Then, once I reach a critical mass of items, I place the order with a few clicks and a big blue box containing my items appears on my doorstep a few days later. It’s like magic! I cannot even begin to add up how much time I’ve saved by eliminating shopping trips since using Alice.

These are some of the productivity hacks and tools that help me get more done in the limited time I have. Do you have any favorite techniques that work well for you? Please share below.

What did I ship in 2010?

Seth Godin wrote a great post this week listing the things he shipped in 2010. Taking some inspiration from his post, I am also listing the things I shipped last year. As Seth said, it doesn’t matter whether these things were a hit or not, just that I shipped them. Here is my list.

Most of these things were done with help from my outstanding team at SpinWeb. A huge thank you goes out to those who contributed and assisted.

I enjoyed this exercise and it helped me see 2010 with a new perspective. It also helped me see what things I wanted to ship but didn’t, which makes for a some nice goals for 2011.

What did you ship in 2010? I would love to hear via your comments below.

Resume or productivity footprint?

What is the standard procedure when applying for a job? You inquire about openings and the first thing you are told is “send us your resume”, right? Is this relevant anymore?

I would argue that resumes are antiquated, lifeless leftovers from a time before rich online communications. A resume is just a simple document outlining where you’ve worked before, what you did there, and how well you can embellish.

We have tools today that are so much better than a resume. The first place I go to research a prospective employee is LinkedIn. This will show me recommendations from others, previous work, communication skills, and connections.

I can do a simple Google search and find out a great deal about someone’s previous work. I would much rather read a candidate’s blog than a boring resume. A blog will tell me how well that person writes, what that person is passionate about, and what that person knows. I’m interested in what he or she posts on Twitter and why he or she finds it important. I look for a personal website that collects previous work and showcases it in a rich, living medium.

We all have a productivity footprint, which is a collection of all the work we have done, words we have published, and profiles we have created online. This productivity footprint tells me so much more about a person than a resume.

This is why I don’t really look at resumes. When someone inquires about a job at my company, I am more interested in that person’s productivity footprint than a lifeless document.

What do you think? Should we stop using resumes?

Smart, simple solutions

There is an abundance of complexity in the world. It occurs pretty much everywhere. Companies create products with way more features than we need, bosses over-complicate policies and procedures, and our government passes ridiculously complex legislation that no one even has time to read.

We do it to ourselves, too. We think we need big, complicated systems to run our accounting and business systems. We create convoluted policies to try to anticipate every possible scenario. We look for that magic piece of software that will do all 500 things we think we need it to do.

After the air clears and we’ve spent a lot of time and money on our complex solutions, what happens? We usually end up only using 10% of it.

This is why our brand promise at SpinWeb is “smart, simple solutions.” We happen to build websites but our over-arching goal is to help you work smarter with simple online tools. Rather than sell you a big website with 27 tools, we’re more likely to encourage you to consider a smaller site first that does 3 things really well. You’re probably more likely to use it and you’ll save some money, too.

Ask yourself if you really need all the complexity that is currently in your business, or in your life. Could you serve your customers, employees, and partners better if you simplified?

So you think you’re in a ROWE?

So you think you’re in a ROWE?

SpinWeb became a ROWE a few years ago. Since then, we have enjoyed a happier workplace, more balanced lives, and dramatically improved productivity. From my perspective, ROWE is to the traditional workplace as the Renaissance is to the Dark Ages. I look back on our pre-ROWE work environment and I actually feel embarrassment at how we ran things. I feel the need to apologize to my employees for the senseless way we ran the company. Unfortunately, it happens to be the way most companies today still do things.

The good news is, we are a now in a ROWE and life is good. However, when I describe our company and ROWE to others, I sometimes get interesting reactions. Aside from all the predictable “That would never work in my company” reactions, I sometimes hear things like “Oh, that sounds like my company… we’re already a ROWE.”

Really?

It’s easy to hear a few things about ROWE and then declare that your company is already a ROWE, but in most cases that’s not quite the case. When people claim they are already in a ROWE, it’s usually because they have a “flexible schedule,” or the option to telecommute. This does not mean that your company is a ROWE. Let’s look at a few indicators. These apply to all employees in the organization.

If you have to ask permission or even notify someone when you work from home or will not be in the office, you are not in a ROWE.

If you have a quota of sick, personal, or vacation days, you are not in a ROWE.

If you get the evil eye from your boss or from co-workers when you don’t come into the office for a while, you are not in a ROWE.

If you are expected to be available or in the office during a core set of “business hours,” you are not in a ROWE.

If you don’t feel like you can decline a meeting with your boss or with co-workers, you are not in a ROWE.

If you would get in trouble for sleeping until noon on a weekday, you are not in a ROWE.

If the freedoms of a ROWE are only available to management or a select few, then you are not in a ROWE.

If you don’t feel like you can leave at 2pm for a matinee movie without asking permission, you are not in a ROWE.

If any of these apply to your company, then I would encourage you to re-think your work environment. Are you really in a ROWE? If so, great! If not, Let’s talk. ROWE will change your life.

As always, comments are welcome. Are you in a ROWE?

Don’t use consumer email for business

I frequently attend networking events during which I meet a variety of business owners. Often we exchange business cards and I continue to notice a trend which disturbs me: the use of consumer email as a business email address.

I often see email addresses using the domain “sbcglobal.net”, “yahoo.com”, or (shudder) “aol.com” listed on a business card. This really makes me cringe. It’s poor branding, and says to the world that your business has not invested in a proper email system. It’s also risky to operate your business on a free system or a system that is designed for consumer email due to the lack of support and functionality.

When you are using a proper email system for business, your email address will match the address of your website. For example, my email address is michael@spinweb.net, which matches my company’s website address: www.spinweb.net.

There are many options for excellent business email. At SpinWeb, we provide Google Apps for Business for our clients, which gives them a complete email, calendaring, documents, and collaboration system. Other companies may want to consider using Microsoft Exchange, which is a great business communications system. Scott Sells at ZingTech provides an excellent Exchange solution.

Let’s get rid of the consumer email addresses on business cards. Brand your business properly and use a system you can rely on.

How does building websites change the world?

At SpinWeb, we create professional websites and online marketing initiatives. We’ve been doing it since 1996 and have gotten very good at it. We’ve gotten so good at it that it amazes me how fast and how well we deploy new websites on time, on budget, and with amazing design quality.

Sometimes, however, I think we get so caught up in the mechanics of our systems and processes at the “runway” level that we can lose sight of why we are doing what we do. How does our work make a difference? How does it change the world? How does it change lives?

I think it’s important to stay focused on these questions and the answers that go with them. So what does our work really mean?

One very exciting part of our work is seeing how a beautiful new website can inspire confidence, pride, and brand strength in the organizations that we work with. Often, we work with businesses that are looking for that extra push to help take them to the next level and reach new markets and when we create a website that helps them look like an industry leader, it has direct application to business growth and especially company morale.

We also love to empower individuals within the organization to do their jobs well. When we help the marketing director launch her online campaigns in a fraction of the time it used to take, she now has more time to work on other activities or spend time with her family. This improves her quality of life.

It brings a smile to my face when we can help a non-profit modernize the online donation, fund raising, and volunteer recruiting process so that they are able to help more people in need and bring positive change to the world.

When we can provide online tools that help event planners promote and manage successful conferences, we are helping bring together professionals who learn from each other and grow in their professions.

When we provide businesses with a website that helps them reach their customers and deliver solutions in a more efficient way, we are giving them the ability to grow faster and create jobs.

There are so many ways that online marketing and technology can improve the quality of life for those who embrace it. I love being a part of it and creating the solutions and tools that change lives.

No matter what you do, make sure you understand why you are doing it and how it makes a difference, no matter how small. At SpinWeb, we create professional websites and online marketing initiatives that change lives.

How to make your website socially aware

Social media is everywhere. It’s new and shiny and everyone is trying to figure out how to use it, talk about it, and make money from it. However, once we put aside the hype, it becomes clear that social media is simply an evolution in how we communicate. It does not replace traditional marketing and communication, but rather augments it and breathes new life into what we do.

One great way to blend social media into your existing framework is to extend your website and make it more “socially aware”. Your company website is your information hub and should be a high-quality, interactive source for constituent engagement. However, many websites need to be upgraded to extend the organization’s reach into the social space, as well.

Here are some ways your next website can utilize connections to social media:

1. Include a company blog on your website. Your company blog should be integrated into your website, not hosted somewhere else or worse, on a free blogging service. It needs to be hosted under your domain name to maximize your search engine visibility and needs to follow your organization’s branding. A blog also gives you a platform of content to publish on other networks. Publish high-value articles that educate and position your company as an industry leader.

2. Add a Twitter feed to your home page. By placing your Twitter activity on your website, you are allowing others to see real-time updates on your events, news, and announcements that you can update externally from other sources, like your mobile device. This also allows visitors to subscribe to your communication channel via Twitter.

3. Use Ping.fm to distribute content. By connecting your website content to Ping.fm, you can automatically push out news, events, blogs, and other content to social networks. This ensures that your content comes from a single, central location and is then distributed across many networks.

4. Include RSS options for all dynamic content. Make sure that your blog, events, news, and other dynamic content can be syndicated via RSS to make it easy for visitors to stay in your communication channel or publish your content on other sites.

5. Show the faces of real people in your organization. Many corporate websites shy away from displaying information about employees. However, today’s customers are interested in real people. Create a directory of key employees and provide links to email addresses, LinkedIn profiles, Facebook profiles, and Twitter accounts. Make it easy for customers and prospects to engage in conversations with your team. This builds trust.

6. Make sure your blogs, articles, and other landing pages publish correctly on social networks. This means that your code should be structured so that the proper image or logo appears when the content is shared on Facebook, and the right content blurb appears so that the preview is informative. This may involve an upgrade to your website structure.

7. Link back to your website from all other social profiles. This should be obvious but it is often overlooked. Be sure that your website link appears everywhere you have a social presence so that all traffic is driven back to your information hub. Also, make sure your social profiles are designed to match the branding on your website.

When creating your next website, be sure to make it socially aware so that you extend your points of capture into social networks and maximize your permission-based followers.

In a ROWE, every day is a snow day

Remember snow days? As a kid, the first big snow of the season was an eagerly-anticipated gift because it could mean that school was canceled, which would be followed by sleeping in, sledding, and other recreational hi-jinks. As we got older, snow days started to affect us in different ways. As employees, snow days could be dreadful because we were still required to drive to an office, which meant getting up earlier for the dangerous commute so we could get to work on time. Or perhaps we had a “flexible” boss who said we could stay home as long as we were working during business hours. The temporary telecommuting was mixed with pangs of guilt as we tried to make sure we looked busy by sending lots of emails and making phone calls while watching TV. Or perhaps the grumpy manager-types among us would become annoyed at the employees who were not committed enough to make the drive to work in the snow. Wow… so much drama and anxiety over some beautiful snow!

As I sit in my cozy living room by the fireplace, I am enjoying the minor snowstorm we’re having here in Indianapolis. Every time we get a good solid snow here, it seems to play havoc with the typical workday. Why? Because most companies in Indianapolis are still stuck in the 8-5, 40-hour week mindset. Because of this, we have things like “rush hour” and “commutes” which become worse during inclement weather. The Mayor of Indianapolis is even urging workers to “leave early” or “stay late” to avoid hitting rush hour in the snow.

In contrast, SpinWeb is a ROWE, which means that we are absolutely unaffected by this lovely day of snow. Why? Because we focus on results, not time or physical location. We have 10 employees but only two of us even showed up at the office today and it was just to briefly pick something up. No one “checked in” at 8am. No memo was sent out urging employees to leave early to avoid rush hour. It simply was not an issue. Emails were sent to clients, conference calls were held, websites were being built, and work got done – just like any other day. I’m sure many of our employees slept in and enjoyed some coffee by their own fireplaces as they watched the snow. Since our phone system is cloud-based, those who called our office got a live person who helped direct their calls to the appropriate person’s cell phone, just like any other day. The technology exists to allow us to break free of the need to sit at a desk with a hardwired phone. With laptops, cell phones, and the right infrastructure in place, we can operate with extreme flexibility under any conditions at at any hour of the day or night.

In a ROWE, the company focuses primary on one thing: what gets done. It doesn’t matter when it gets done, where it gets done, or much time is spent on it. What matters is that work is getting done correctly and on time. Employees take control of their own time and their own lives and everybody wins. That brings some excitement and enjoyment back into work, doesn’t it?

When you work in a ROWE, every day is a snow day. Enjoy!