The Role of Timesheets in Agency Profitability, With Kristen Kelly

Jun 18, 2025

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1:08 – 2:17 – Why Time Tracking Still Matters: Kristen and Marcel introduce the episode’s goal—to reframe time tracking from a frustrating chore into a strategic advantage for agencies.
2:28 – 4:59 – Debunking Common Misconceptions: Marcel breaks down the three common arguments against time tracking, particularly the mistaken belief that it's only relevant for time-and-materials billing.
5:04 – 6:19 – Understanding the Agency Business Model: Marcel explains why all service businesses, regardless of pricing model, must measure time to truly understand costs and profit margins.
6:33 – 8:39 – When Time Tracking Becomes Non-Negotiable: The hosts argue that the ideal conditions for skipping time tracking rarely exist—most agencies operate in too much uncertainty.
8:45 – 10:47 – The Cultural Problem with Time Sheets: Beyond logistics, the core issue is lack of transparency—teams don't understand how time data is used or how it benefits them.
10:53 – 13:12 – Misuse of Metrics and the Consequences: Marcel describes how overexposing metrics like utilization or budget variance skews behavior, leading to inaccurate and untrustworthy data.
14:20 – 16:38 – Time Tracking and Cost Visibility: Even with fixed pricing models, agencies must know how much time goes into work to assess whether it's profitable or sustainable.
16:44 – 18:58 – Key Metrics Affected by Time Tracking: Delivery margin, utilization, and average billable rate are highlighted as critical performance indicators that depend on time data.
19:04 – 21:58 – The Profitability Flywheel Explained: Kristen and Marcel introduce Parakeeto’s four-step framework for building a feedback loop that drives clarity and continuous improvement.
24:22 – 27:33 – Modern Alternatives to Time Sheets: They outline a spectrum of options—from traditional time sheets to resource planning and AI-assisted tools—offering flexibility based on agency complexity.
28:06 – 32:25 – Sequencing Time Tracking for Success: Marcel shares Parakeeto’s phased approach: start with modeling and forecasting before implementing time tracking to ensure team alignment and data utility.

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