We all know the feeling…
Work keeps coming in, and work keeps going out.
Everybody seems so busy all of the time, but the pile of work never seems to get any smaller.
Some files have been on our desk for days, others weeks, others months – but we’re not really sure when they came in, or when they’re due to go out.
Meanwhile the cash in the bank account is looking a bit low…
There’s lots of work tied up in the office sitting on peoples desks, and not so much cash in the bank to pay this month’s wage bill and invest in marketing.
Ask yourself – “what is my current WIP days?”
And then ask yourself – “in what ways is this affecting my practice?”
How To Reduce Your WIP To 30 Days Or Less
This is really simple.
Too many people try to overcomplicate how to achieve this – and as a result get nowhere.
If you want to reduce your WIP to less than 30 days, there’s really 2 numbers that you want to track:
1. Date of work in
2. Date of work out
So what is the date of work in/out?
It’s up to you to decide what this is in your practice.
Create a clear definition of what constitutes work in e.g. every time a complete set of accounts/books is in and work can start.
And the same goes for work out.
Create a definition within your practice for what constitutes work out e.g. every time you sign a piece of work off as complete.
Once those 2 dates have been clearly defined, have an admin person or receptionist, whoever you choose to track these for you, put the numbers into a spreadsheet.
Keep it simple, subtract the 2 dates and you have your turnaround time.
Reduce your turnaround time, reduce your WIP.
And once you know what this number is, you can set targets to measure and improve it.
I know that with our BlackBelt clients, they use whiteboards in their offices to track this.
And on a weekly basis they review the target, how far away from achieving the target they are and what progress has been made.
When you do it like this, it will not just be in your awareness, but in the awareness of your team as well.
This might sound overly simple – but like many things in life we can overcomplicate things to a point that doesn’t help us.
I promise that if you do it like this, your WIP will start reducing within a few months.
What if it just isn’t coming down?
If you find that it’s not reducing, then ask yourself:
– Why is it not reducing?
– What’s the reason behind it?
– What do we need to change in our systems?
– What lessons have we learnt?
– What systems can we implement to make it improve?
When you change your mind set from ‘this won’t work’ to ‘how can I make this work?’ – I promise you that your WIP will start coming down pretty quickly.
(NOTE: Want to find out how you can increase your profits, work less hours & build a hands-free practice that gives you freedom? Register for our next free training webinar by clicking here.