Time is money

Stephene Chikozho

TIME has a monetary value.

For example, if employees spend an afternoon in an unproductive meeting, their time costs the company money.

There is also an “opportunity cost” since the meeting prevents them from doing other tasks that are potentially more productive.

Folorunsho Alakija, a Nigerian businesswoman and philanthropist, says: “Success is not just about hard work; it’s about working smart and valuing your time as your most precious asset.” A time-based approach allows companies to manage labour effectively across the board, gather true-cost data and cut costs by reducing the amount of time to develop and launch new products.

Ashish Thakkar, a Ugandan entrepreneur and founder of Mara Group, confirms this when he says: “The key to scaling any business is efficiency; time is money and wasting it can cost you dearly in a competitive market.”

Comparing approaches

Traditionally, companies have pushed new products through a linear sequence of development, where each department involved in the design works in isolation, completing its task before passing the product to the next section.

In this way, the partly made product might move through the design, engineering and production departments. However, this approach can lead to time-consuming mistakes.

For example, when new cars are being designed, different departments might work on various parts in isolation and in a certain sequence.

When the various subassemblies are finally put together at the prototype stage, the result is often unsatisfactory. And in order to correct one thing, such as a beautiful seat creating visibility problems once in position, parts may have to bounce back through several departments.

The alternative approach, chosen by time-based manufacturers, is to use a team of people from different departments, all working together on a new product right from the beginning.

Project managers play a key role, since they must ensure that the multidisciplinary team members agree to the necessary design trade-offs at a very early stage in the development process. Design integrity is achieved the first time around without any reworking, slashing the amount of time taken to launch the new product.

Time-based management only works effectively in companies that employ flexible, multiskilled staff, who, in turn, respect each another’s skills and value each other’s input.

A nonlinear process means managers must be willing to work with a less-rigid structure and encourage a culture of trust.

This management approach forms the basis of many technology companies today, since it allows them to respond more quickly to changes in the market and customer needs, while providing employees with a more autonomous, creative and productive work environment.

This concept is well-articulated by Isabel dos Santos, an Angolan businesswoman, who contends that “in business, you must be swift and decisive; time lost is an opportunity squandered”.

Africa insights

Africa’s economic potential is immense, with a young and dynamic population, abundant natural resources and a growing middle class.

However, to harness these opportunities effectively, businesses must navigate a series of challenges, including infrastructural deficits, regulatory complexities and market volatility.

In this context, optimising time becomes not just an operational necessity but a strategic imperative. One of the key areas where time efficiency can drive substantial gains is in logistics and supply chain management.

Africa’s infrastructure, while improving, still poses significant hurdles.

Businesses that streamline their supply chains, invest in technology and leverage data analytics to predict and respond to disruptions can significantly reduce delays and costs.

This not only enhances competitiveness but also improves customer satisfaction in an increasingly demanding market.

Moreover, the digital revolution sweeping across the continent offers unprecedented opportunities for time-saving innovations.

From mobile banking solutions that reduce transaction times to e-commerce platforms that connect buyers and sellers instantly, technology is transforming how business is conducted. Companies that embrace digital tools can automate processes, reduce manual errors and allocate resources more effectively, ultimately leading to increased productivity and profitability.

In human resources, time management is equally crucial. African businesses are increasingly investing in training programmes that emphasise efficiency and productivity.

By fostering a culture that values time, companies can enhance employee performance and morale, leading to better outcomes and a stronger bottomline.

Furthermore, regulatory environments across Africa are gradually becoming more conducive to business but navigating them still requires time and expertise.

Companies that establish strong compliance frameworks and engage proactively with regulatory bodies can expedite approvals and avoid costly delays.

 Stephene Chikozho is the CEO of Africa Business Inc. He writes in his personal capacity. WhatsApp +263772409651 or email [email protected]