Value First, Price Second: How to make good decisions in life (and software development)

When making decisions, jumping to the price as the first mechanism for comparison is a common mistake we all make. Everybody has done it at some point already and I am willing to bet most people resort to price as their default assessment most of the time. I know I do.

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Why Work Efficiency Should be Judged on Output not Time

The current system of measuring, and judging, the efficiency of most office-based work is wrong. By requiring staff to be in the office for a specific number of hours each day, and even going as far as limiting them to a specific window of time within the day to fulfill this requirement, the emphasis is on being at work longer rather than achieving better results. Focusing on time-based judgment of work is not productive. It does not allow people to work when they produce their best results, it assumes every person takes the same amount of time to do their job, and it fosters a negative psychology and atmosphere at work.

The solution is simple: the efficiency of our work needs to be judged on output, not time.

Why judging work based on time is wrong

There are many inherent problems with organising work to be solely a time-based operation. Most of these I am applying to a “standard” office-based job. There are examples in society where certain industries and organisations have deviated from the time-based assessment, but for most of the world, the norm is still to judge workers by how long they spend at work, not how much they achieve. Here are some problems with that kind of thinking:

People work better at different times

I’m a morning person which means that I am most productive in the wee hours of the morning, normally when no-one else is around and I can focus on my tasks without distraction. If I could start work early (say 6am) then I would be much more productive in my time at work. I would get at least two hours of ultra-productive work while everyone else was at home sleeping, and my overall output would improve drastically.

I’ve actually proven this in a previous job where flexible start times were allowed. It was so good for me that I was achieving more in those first few hours than I was previously doing in an entire day. By the time the rest of my team had arrived, made their coffee, and were ready to start work, I had knocked off all my critical tasks and I could attend the boring meetings without getting too frustrated.

Flexible work arrangements can go the other way too. Someone else might prefer to start at midday and work on into the evening. Maybe they are young and like to go out partying most nights, or maybe they just prefer being up a night. It doesn’t matter what the reason is, but if these people are forced into turning up to work early just to fulfill a silly time schedule then they will never bring their A-game.

Why not let people start work when it suits them? At least that way you’d be getting the best out of each employee.

Every person does not need the same time for their job

Why is it that every person in the office needs the exact same time to perform their job? Is everyone actually just robots that work at the exact same speed all day?

Even workers doing the same jobs with the same levels of responsibility within the same company can perform at very different speeds and skills. Instead of giving these workers a default amount of time to work, why not judge them based on their achievements and the quality of their work?

Judging based on output is a more accurate measure of efficiency. If you have a situation where two employees perform the same role but at different speeds then forcing them to work the same hours actually has a negative impact on the overall work environment. The more skilled, and thus more productive person will eventually reduce their output to match the lowest common denominator because there is no incentive for them to excel.

There is no incentive to excel

When everybody has to be at work for the same amount of time it creates the attitude that everyone just needs to do the bare minimum to get by. If a worker knows that they could complete a task early and then spend the rest of the day doing something they find interesting (like researching new technology to apply at work, or coming up with innovative ideas to improve their results, or even given the afternoon off) then they are likely to work harder and produce better results.

But instead of rewarding employees like this we tend to “punish” them. When someone finishes their work early the norm is to give them another (boring) task to ensure that they are working (or at least sitting at work) for the expected number of hours. The result is that the normally productive and efficient worker becomes less motivated to work harder and less motivated to produce high quality output.

When a person realizes that no matter what they do (work harder, work faster, or call in sick and go to the beach) their workload does not deviate from the expected number of hours at work then they have no motivation to produce high quality work. Because they are being judged on a time-based scale they will appropriately perform their work on the same scale. If they are given a week to do a task then you can assume that they will nearly always take a full week to do it. Even if you gave them a month to do the same task they would only finish it just before the deadline.

The employee who realises they are judged on time realises they can exploit the work environment to their favour.

It is easy for employees to exploit time-based work

At some point, all employees in a time-based environment will exploit the system. Some will do it purposefully and others will not even be aware they are doing it, but I guarantee that everyone will eventually do it.

Exploiting the time-based work environment is easy. You can continually over-estimate the time it takes to do work, you go out for “meetings” which are really just you catching up with friends, you spend half your time having coffees with colleagues, you have a long lunch because your boss is busy and wont notice, you call in sick on important days so other people get stuck with the tough work, and so on.

In a time-based work environment the employee is judged just on the amount of time between when they arrive and when they leave. In this environment there are many, many, many ways for the worker to exploit the system so that they are doing the least possible work in their allocated time. The sad part about this exploitation is that sometimes a great worker can head down this path simply because they realise that no matter how well they do their job or how much extra effort they put in, they still have to sit in that chair for the exact same time every day.

Summary

This essay could go on and on. There are many more examples of why judging work on a time-basis is wrong but these are just subsets, or combinations, of all the above points. The idea is always the same: the more a worker is judged solely on the time they spend at work, the less productive and efficient they become.

I’m speaking in generalisations here and there are always exceptions. For example, it is obviously better for an NFL team to keep playing for the entire match and not just score 40 points in the first half and then go home. But for most of society, and predominately those office workers that are bound to the desk and chair all week, this is not the case. An environment where the focus is to just work for a specific number of hours is negative and ultimately flawed. It creates the wrong attitude towards work and it fosters a culture of inefficiencies and time-wasters.

How do you judge your employees?

Why 16 Threads Is Not "Work"

A few times recently I have written about my goal to quit work and devote my time to things I actually enjoy. I have talked about how I plan to sustain this lifestyle through several income streams, one of which is my software development business - 16 Threads. Some people have contacted me saying that if I spend my time running my own business then I have not quit work at all, and that I am probably working even harder to get the business running. But I don't consider running my own company to be a job. It's not "work" as most people know it because we see things differently at 16 Threads.

Our Business, Our Choices

The majority of the 16 Threads business is self-driven. We do some work for clients (if we are interested in a project then we will take it on) but otherwise we spend our time following our passion and creating software that we want to use.

Our aim is for everyone to enjoy the work they do at 16 Threads. If someone has an idea, a pet project, or a vision then they are encouraged to follow that. Or if a project comes in but no-one is interested in it then we will happily pass on it.

Sure, like any business money is important, but we feel that the money will take care of itself because when people love what they do they produce high quality products, making them easier to sell.

Fun in the Sun

We're all about fun at 16 Threads. We have fun at work, we have fun with our clients, and we have fun amongst ourselves. We want everyday to be fun because we believe that work doesn't have always have to be serious (or seriously depressing).

We never let fun get in the way of a project but we make sure not to take ourselves too seriously. After all, life is supposed to be enjoyable and that includes work.

Flexibility

We measure performance on output not time. Measuring time is important for tracking how to improve (we're even building some software to help us with this) but the performance on an individual is not linked to the number of hours they spend at the office.

Everyone gets their work done but they do it at times that are best suited to their own lives. If someone prefers working at night they can. Or if we finish a project early we might find ourselves road-tripping to the beach (or pub) instead of sitting in front of our computers all day.

As long as the work gets done (and meets our very high standards) then we're flexible about all the other details.

Having fun and spending time with my close friends, whilst working on projects I love, that fit around my personal life…I don't think that sounds like "work" at all. :)