Improve Productivity with Workflows

Reclaim your time to grow personally and professionally with workflow thinking

In this playbook, we equip analysts and operators with actionable guidance to boost productivity, creating more of the world's most valuable resource: time.

What is Productivity and Workflow Thinking?

Productivity, at its core, measures the ability to achieve more within a given timeframe. This principle holds paramount significance for operators across the board, from top-level executives to diligent analysts. For corporations, productivity is the backbone of growth, an essential element for thriving year after year. The concept of compound growth becomes unattainable without the bedrock of productivity.

"Productivity measures the ability to achieve more within a given timeframe"

But what's the secret behind productivity? It lies in effective workflows. Workflows are the sequences of tasks that allow individuals and organizations to accomplish an objective. Productivity isn't just about working harder; it's about working smarter through optimized workflows. I call this Workflow Thinking.

"Workflows are the sequences of tasks that allow individuals to accomplish an objective"

Productivity is not just a buzzword; it's a fundamental life skill that empowers individuals to thrive and evolve, all rooted in the art of effective workflow management.

The unfortunate reality is that workflow thinking remains unfamiliar to many analysts, especially recent graduates, and those deeply entrenched in spreadsheet-intensive work. Often, in the open canvas of a spreadsheet, the concept of a workflow becomes obscured, relegated to a mental grouping of tasks performed somewhat intuitively or in a seemingly haphazard order. The lack of formal education on workflows in traditional programs underscores the need to bridge this knowledge gap and empower individuals to work smarter.

Why is productivity improvement more important for employees than it is for companies?

Productivity improvement is often perceived as primarily benefiting the company, but its true significance lies in its impact on employees. What I like to call "workflow thinking," the ability to envision and improve a sequential series of events, is a pivotal predictor of success, particularly in the realm of analysts.

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Productivity improvements create space in your day, opening the door to opportunity.

Workflow thinking has far-reaching benefits.

• Learn new skills: Harness the extra time to acquire new competencies and stay ahead in your field.
• Create a better work-life balance: Achieve equilibrium between professional and personal life, leading to greater overall well-being.
• Start a side hustle to make more money: Utilize your newfound time to explore entrepreneurial ventures and boost your income.
• Take on more opportunities at work: Elevate your professional stature by tackling additional responsibilities and projects.
• Spend more time analyzing the business: Delve deeper into your company's operations, uncover valuable insights, and drive strategic decisions.
• Take work off your boss's plate and get promoted: Proactively assist your leadership team, demonstrating your ability to lead.

Furthermore, the benefits of employing workflow thinking to enhance productivity are compounding. More time begets more learning opportunities, leading to expanded knowledge and capabilities. These enhanced capabilities, in turn, enable you to handle more responsibilities, manage additional systems, and accomplish more. This growth loop continues, amplifying your impact and potential.

Why is Workflow Thinking vital for success?

Workflow thinking isn't solely about optimizing a company's efficiency; it's equally about enriching the lives of the individuals who contribute to its success.

Conversely, the inability to think in terms of workflows often serves as a common driver of performance failure. While the distinction between a subpar analyst and an outstanding one is significant, it's frequently their capacity for workflow thinking that sets them apart.

For instance, I vividly recall a finance team member presenting their monthly variance analysis, only to discover mid-meeting that they had overlooked a consolidation step. This oversight rendered the entire analysis inaccurate and resulted in a deeply embarrassing situation. It's crucial to recognize that such lapses aren't indicative of incompetence but, rather, a lack of a well-structured workflow to safeguard against errors.

Just as Microsoft Excel flags circular references, a college course adheres to a curriculum, workouts follow a routine, and daily schedules have calendars, workflow thinking can enhance every aspect of life. However, let's focus on its role in propelling analysts forward.

How do you improve Productivity?

Let's break it down. Productivity means achieving more valuable results, not just staying busy. It's about completing tasks efficiently to maximize valuable outcomes in the shortest time.

Now, what are workflows? These are measurable sequences of tasks that drive optimal results. Picture them as non-negotiable routines for success. A workflow is like a routine, but I consider a workflow to be a non-negotiable sequence of tasks to achieve an optimal outcome. Your morning routine may not suffer if you eat before you shower, but you better clean your data before you do analysis.

While other factors matter when measuring productivity, we're honing in on the most precious resource: Time.

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What are the first steps to improving your workflow?

Improving workflows is a structured process that begins with thorough documentation, making Standard Operating Procedures (SOPs) a cornerstone of enhancement. This documentation should be comprehensive, including plain English explanations, task descriptions, code, and comments, facilitating clear communication, especially with technical experts. Once your workflows are documented, consider the following steps to streamline and optimize them:

• List Your Regular Workflows: Begin by documenting your routine workflows, listing them out for clarity.

• Break Down Workflow Components: Identify the individual tasks within each workflow, including manual steps and reminders. This breakdown promotes linear thinking, helping streamline the sequence of events.

• ‍Provide Reasons for Each Step: Comment on the reasons behind each step. This process can spark new ideas for improvement as you critically evaluate the purpose of each task.

• ‍Automate Where Possible: Identify areas within your workflows that can be automated, reducing manual effort and potential errors. If you don't have a dedicated IT team for Finance/Rev Ops, a Finance Operations platform is the way to go.

• ‍Connect Workflows: Look for opportunities to connect related workflows. For example, integrate your actuals process with your variance analysis workflow to create a more seamless and efficient process.

By following these steps, you can systematically enhance your workflows, making them more efficient and effective, while also fostering a culture of continuous improvement.

How to prioritize workflow improvements for maximum impact?

Prioritizing which workflows to improve involves a strategic approach based on several key factors. Firstly, consider the linearity of your workflows; the less linear they are, the greater the need for improvement. Focus your efforts on high-frequency workflows that demand substantial time and effort, as optimizing these can yield significant personal and organizational benefits. High-visibility workflows also deserve attention, as they can impact corporate visibility and decision-making. For instance, executives invest heavily in ERP implementations due to their visibility. However, bear in mind the bias in workflows; often, the most critical ones are overlooked.

Take customer acquisition cost (CAC) as an example: while companies typically focus on basic forecasts or high-intensity workflows for CAC, they often neglect the leading indicators. Automating and streamlining these upstream workflows, such as data wrangling, analysis, and interpretation, can be game-changing. This shift transforms an analyst's role from a niche finance focus to a high-visibility workflow that provides valuable insights across various departments.

Choosing the right workflow to target can vary, with options ranging from those offering the highest organizational benefit, personal benefit, or simply eliminating the most bothersome tasks. A straightforward corporate benefit method involves estimating the value created by workflows multiplied by their frequency of occurrence, using a simplified ranking system. On a personal level, consider ranking tasks based on the level of personal pain they cause or how they hinder career improvement or work-life balance, and multiply this by their frequency. Ultimately, the choice of which workflow to enhance should align with your overarching objectives and the broader goals of your organization.

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How to stay ahead of the curve? A survival strategy

Productivity improvement is a constant evolutionary process. Here are some effective practices to not become extinct, including relevant examples, to integrate into your routine:

• Keep SOPs up to Date: Regularly update your Standard Operating Procedures (SOPs) to reflect any changes or improvements in your financial modeling workflows, ensuring that all team members have access to the most current procedures and standards.
• Daily Retro & Calendaring: Incorporate daily retrospectives and calendaring into your routine to reflect on what went well and what could be optimized in your daily financial analysis tasks. For example, after a budget variance analysis, take a moment to identify any inefficiencies in your process.
• Quarterly Workflow Review: Every quarter, set aside time for a comprehensive review of your financial forecasting workflows. Identify opportunities to streamline data gathering, analysis, and reporting, making the process more efficient and accurate.
• 3rd Party Workflow Review: Seek an external financial process expert to review your financial modeling workflows. They can provide valuable insights on optimizing your models and forecasts based on industry best practices.
• Team Workflow Review Meetings: Organize regular team meetings dedicated to reviewing and enhancing financial analysis workflows collectively. Collaborate to identify bottlenecks, share best practices, and explore new tools for improved forecasting accuracy.
• Time vs. Value Documentation: Continuously document the time spent on different financial analysis tasks versus the value they deliver. This data helps you prioritize which aspects of your workflow to optimize. For instance, you may discover that spending less time on data collection and more on strategic analysis leads to better insights.
• Magic Wand Exercise: Imagine having a magic wand that could instantly free up your time. Consider what financial analysis tasks you'd delegate or automate and work backward to identify solutions. For example, automating data entry for routine reports could save hours each week.
• Automation Exploration: Allocate time each quarter to explore new automation tools and technologies relevant to financial modeling. For example, investigate the latest financial forecasting software that can automate data integration and perform complex scenario analysis.
• Celebrate Success: Acknowledge and celebrate the successful implementation of workflow improvements. When your team implements a more efficient budgeting process, celebrate the time saved and the accuracy gained. Recognition maintains motivation and momentum.
• Regular Workflow Audits: Conduct quarterly assessments of your financial analysis workflows. Identify areas for improvement, such as outdated data sources or redundant reporting, to enhance accuracy and efficiency.
• Continuous Learning: Invest time in ongoing learning and skill development related to financial analysis and modeling. Stay updated on the latest industry trends, financial software, and data analytics techniques.
• Feedback Loops: Encourage feedback from team members involved in financial analysis workflows. They may have valuable insights into areas that can be streamlined or improved. For instance, input from data analysts may reveal ways to automate data cleansing processes.
• Benchmarking: Compare your financial analysis workflows to industry best practices and benchmark against competitors. Identify areas where your team can excel, such as implementing advanced forecasting methods or adopting more sophisticated financial software.

These practices and exercises tailored to FP&A not only keep your financial analysis workflows efficient but also nurture a culture of ongoing improvement, ensuring that your productivity remains on an upward trajectory.

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