Efficiency

Efficiency measures how well you’re delivering work compared to estimates. It’s the difference between what you quoted and what you actually delivered—and it directly impacts profitability.

The Core Concept

Efficiency compares two values:

Quoted Time

What you estimated the work would take

Actual Time

What it actually took to deliver

The Formula

Efficiency = (Quoted Time ÷ Actual Time) × 100

Over 100% (Efficient)
100% (On Target)
Under 100% (Overage)

Actual < Quoted - You delivered faster than estimated.Example: Quoted 6 hours, delivered in 4 hours = 150% efficiency✅ This is good! You’ve created “banked time” that benefits profitability.

How Efficiency Works in CharleOS

CharleOS uses value-based billing that caps how much can be billed, regardless of time spent. This makes efficiency critical:

The Billing Formula

For every task requirement, CharleOS calculates billable time using:

Value-Based Billing

Billable Time = MIN(max, MAX(average, actual))

Where:

Average = The quoted time (middle of the t-shirt size range)
Maximum = The upper bound of the t-shirt size range
Actual = Time actually logged

This creates three outcomes:

Efficient Delivery (Banked Time)
On-Target Delivery
Over-Run (Overage)

Scenario: Actual < Average

Quote: Medium (3-6 hours, average 4.5 hours)
Actual: 3 hours logged

Billable = MIN(6, MAX(4.5, 3)) = MIN(6, 4.5) = 4.5 hours
Banked = 4.5 - 3 = 1.5 hours

You delivered in 3 hours but can bill 4.5 hours. The 1.5-hour difference is banked time—pure profit.✅ This improves day rates and profitability.

Scenario: Average ≤ Actual ≤ Maximum

Quote: Medium (3-6 hours, average 4.5 hours)
Actual: 5 hours logged

Billable = MIN(6, MAX(4.5, 5)) = MIN(6, 5) = 5 hours
Banked = 0
Overage = 0

You’re within the estimated range. Billable time equals actual time.✅ Estimate was accurate, no profit or loss.

Scenario: Actual > Maximum

Quote: Medium (3-6 hours, average 4.5 hours)
Actual: 8 hours logged

Billable = MIN(6, MAX(4.5, 8)) = MIN(6, 8) = 6 hours
Overage = 8 - 6 = 2 hours

You spent 8 hours but can only bill 6 hours. The 2-hour difference is overage—non-billable work you’re absorbing.⚠️ This hurts day rates and profitability.

T-Shirt Sizing and Estimates

Estimates in CharleOS use t-shirt sizing with time ranges:

Size	Time Range	Quoted (Average)	Maximum
XS	0.5-1 hour	45 mins	60 mins
S	1-3 hours	2 hours	3 hours
M	3-6 hours	4.5 hours	6 hours
L	6-12 hours	9 hours	12 hours
XL	12-24 hours	18 hours	24 hours
XXL	24-48 hours	36 hours	48 hours

When a quote is approved and converted to a task:

quotedMinutes = average of the range
quotedMaxMinutes = maximum of the range

These become the baseline for efficiency tracking.

Requirement-Level Efficiency

Efficiency is tracked at the requirement level, not just the task level. This gives granular insights.

Requirement Types

Tasks can have multiple requirement types:

Design

Design work including:

Initial design
Client design feedback
Design revisions

Development

Development work including:

Implementation
Internal QA review and fixes
External QA review and fixes
Deployment

SEO

SEO optimization work

Retain

Ongoing maintenance and support

Each requirement is estimated separately using t-shirt sizing, and efficiency is tracked per requirement.

Example: Task with Multiple Requirements

“Redesign Homepage” task:

Requirement	Size	Quoted	Max	Actual	Billable	Banked/Overage
Design	L (6-12h)	9h	12h	7h	9h	+2h banked ✅
Development	XL (12-24h)	18h	24h	28h	24h	-4h overage ⚠️
Task Total	-	27h	36h	35h	33h	-2h net

Analysis:

Design was efficient (+2h banked)
Development over-ran (-4h overage)
Net result: -2h overage overall

This granularity helps identify where efficiency issues occur.

Where to See Efficiency

Efficiency metrics appear throughout CharleOS:

Your Dashboard (IC)

See your personal efficiency for the last 7 days:

Total banked minutes
Total overage minutes
Net efficiency (banked - overage)
Status badge: “banking” | “on_track” | “overage”
Comparison to previous week

This shows your overall delivery performance.

Client Detail Pages

Each client profile shows efficiency for completed tasks in the current month:

Banked minutes
Overage minutes
Net efficiency
Month-over-month comparison

This shows client-level profitability and estimate accuracy.

Task Detail Pages

Each task shows requirement-level efficiency:

Quoted time (average)
Maximum time
Actual time logged
Billable time
Banked/overage indicators per requirement

This helps you understand efficiency at the granular level.

Manager Dashboard

Managers see team efficiency:

Department-level efficiency
Individual team member efficiency
Trends over time

This helps identify training needs and process improvements.

Efficiency Status

CharleOS categorizes efficiency into three states:

Status	Condition	Badge	What It Means
Banking	Net > 0	✓ Green	Creating banked time, improving profitability
On Track	Net = 0	− Blue	Breaking even, estimates are accurate
Overage	Net < 0	! Red	Losing time, hurting profitability

Example

Last 7 days:
- Banked: 12 hours
- Overage: 5 hours
- Net: +7 hours
- Status: Banking ✅

How Time Is Tracked

For efficiency tracking, time entries must be linked to:

1. Subtasks

Tasks are broken down into subtasks that map to requirement types: Design Subtasks:

Design work
Client design feedback

Development Subtasks:

Development work
Internal QA review
Internal QA fixes
External QA review
External QA fixes
Deployment

When you log time to a subtask, it’s aggregated into the appropriate requirement.

2. Time Entry Fields

Each time entry includes:

duration - Minutes logged
date - When work was done
activityType - Type of work (maps to requirement)
isBillable - Whether it counts toward billable time
taskId or subtaskId - What it’s linked to

Only entries with isBillable = true count toward efficiency calculations.

3. Automatic Aggregation

When time entries are created, updated, or deleted, CharleOS automatically:

Sums actual minutes per requirement
Applies the billing formula
Updates task_requirement.actualMinutes, billableMinutes, bankedMinutes, overageMinutes
Aggregates to task level
Updates task-level efficiency metrics

This happens in real-time, so efficiency metrics are always current.

What Affects Efficiency

Understanding what drives efficiency helps you improve it:

Things That Improve Efficiency (Create Banked Time)

Factor	How It Helps
Accurate Estimates	Setting realistic expectations you can beat
Clear Requirements	Less rework and back-and-forth
Good Preparation	Understanding the work before starting
Reusable Components	Leveraging existing code/designs
Focused Work	Minimizing interruptions and context switching
Experience	Doing similar work becomes faster
Process Efficiency	Streamlined workflows reduce waste

Things That Hurt Efficiency (Create Overage)

Factor	How It Hurts
Poor Estimates	Underestimating complexity or time needed
Scope Creep	Work expanding beyond original scope
Unclear Requirements	Rework due to misunderstandings
Technical Debt	Working around old code slows delivery
Interruptions	Context switching wastes time
Unexpected Issues	Bugs, environment problems, dependencies
Learning Curve	New technologies or unfamiliar work

Efficiency and Day Rates

Efficiency directly impacts day rates:

High Efficiency → Better Day Rates
Low Efficiency → Worse Day Rates

Scenario: You consistently create banked time.Impact on day rate:

Same revenue, less time spent
Days used is lower
Actual day rate increases

Client: £5,000/month, 60 hours allocated

Efficient delivery:
- Billable: 45 hours (banked 15 hours)
- Days used: 45 ÷ 7.5 = 6 days
- Day rate: £5,000 ÷ 6 = £833/day ✅

Inefficient delivery:
- Billable: 75 hours (overage 15 hours)
- Days used: 75 ÷ 7.5 = 10 days
- Day rate: £5,000 ÷ 10 = £500/day ⚠️

Efficiency is the fastest way to improve day rates.

Worked Examples

Example 1: Perfectly On-Target

Task: “Add user profile page”

Design: S (1-3h, avg 2h, max 3h)
Development: M (3-6h, avg 4.5h, max 6h)

Time logged:

Design: 2.5 hours
Development: 5 hours

Billing calculation:

Requirement	Quoted	Max	Actual	Billable
Design	2h	3h	2.5h	MIN(3, MAX(2, 2.5)) = 2.5h
Development	4.5h	6h	5h	MIN(6, MAX(4.5, 5)) = 5h
Total	6.5h	9h	7.5h	7.5h

✅ Perfectly on target. Estimate was accurate.

Example 2: Efficient Design, Development Overage

Task: “Redesign checkout flow”

Design: L (6-12h, avg 9h, max 12h)
Development: XL (12-24h, avg 18h, max 24h)

Time logged:

Design: 7 hours
Development: 28 hours

Billing calculation:

Requirement	Quoted	Max	Actual	Billable	Banked	Overage
Design	9h	12h	7h	MIN(12, MAX(9, 7)) = 9h	2h ✅	0
Development	18h	24h	28h	MIN(24, MAX(18, 28)) = 24h	0	4h ⚠️
Total	27h	36h	35h	33h	2h	4h

Net: -2h overage Analysis:

Design was efficient (+2h banked)
Development over-ran (-4h overage)
Net result: losing 2 hours overall
Action: Review what caused development overage

Example 3: Everything Under-Estimated

Task: “Build complex reporting dashboard”

Design: M (3-6h, avg 4.5h, max 6h)
Development: L (6-12h, avg 9h, max 12h)

Time logged:

Design: 8 hours
Development: 18 hours

Billing calculation:

Requirement	Quoted	Max	Actual	Billable	Overage
Design	4.5h	6h	8h	MIN(6, MAX(4.5, 8)) = 6h	2h ⚠️
Development	9h	12h	18h	MIN(12, MAX(9, 18)) = 12h	6h ⚠️
Total	13.5h	18h	26h	18h	8h

Net: -8h overage Analysis:

Significantly under-estimated across the board
Gave away 8 hours of work
Action: Review estimation process, use larger t-shirt sizes for complex work

Tips for Improving Efficiency

Review Past Tasks Before Estimating

Look at similar tasks you’ve delivered:

What size did you estimate?
How long did it actually take?
What unexpected issues came up?

Use historical data to calibrate estimates.

Clarify Requirements Before Starting

Spend 15 minutes clarifying requirements upfront to save hours of rework later:

What’s in scope and out of scope?
What are the success criteria?
Are there any edge cases?
What does “done” look like?

Track Time as You Go

Don’t wait until end of day to log time:

Log time when switching tasks
Note what took longer than expected
This data improves future estimates

Identify Patterns in Overage

When you have overage, ask:

Was the estimate too optimistic?
Did scope expand mid-task?
Were there unexpected technical issues?
Could the approach have been better?

Learn from patterns to improve processes.

Communicate Early When Over-Running

If a task is taking longer than expected:

Don’t wait until it’s done to raise it
Flag it when you hit 75% of the max estimate
Discuss whether to adjust scope or accept overage

Transparency helps manage expectations.

Celebrate Banked Time

When you deliver efficiently:

Note what went well
Share with the team
Apply those practices to future work

Positive reinforcement of good practices.

Common Misconceptions

Misconception: Overage means I'm bad at my job

Reality: Overage can happen for legitimate reasons:

Genuinely underestimated complexity
Unexpected technical issues
Requirements weren’t clear
Scope expanded mid-task

The key is learning from it, not feeling bad about it.

Misconception: I should pad estimates to always bank time

Reality: Over-estimating has downsides:

Quotes become uncompetitive
Clients may question value
Encourages work to fill time (Parkinson’s Law)

The goal is accurate estimates that you can reasonably beat, not inflated ones.

Misconception: Efficiency only matters for profitability

Reality: Efficiency affects:

Client trust (are estimates reliable?)
Team morale (constant overage is demoralizing)
Capacity planning (inaccurate estimates mess up schedules)
Learning and improvement culture

It’s about more than just money.

Day Rates

Efficiency directly impacts day rates—banked time improves profitability per day

T-shirt Sizing

Learn how to estimate work using t-shirt sizes that feed efficiency tracking

Value-Based Billing

Understand the billing model that makes efficiency so important

Time Tracking

Learn how to log time accurately to track efficiency

Financial Metrics

Billing & Pricing

Estimation

The Core Concept

Quoted Time

Actual Time

How Efficiency Works in CharleOS

The Billing Formula

T-Shirt Sizing and Estimates

Requirement-Level Efficiency

Requirement Types

Design

Development

SEO

Retain

Example: Task with Multiple Requirements

Where to See Efficiency

Efficiency Status

How Time Is Tracked

1. Subtasks

2. Time Entry Fields

3. Automatic Aggregation

What Affects Efficiency

Things That Improve Efficiency (Create Banked Time)

Things That Hurt Efficiency (Create Overage)

Efficiency and Day Rates

Worked Examples

Example 1: Perfectly On-Target

Example 2: Efficient Design, Development Overage

Example 3: Everything Under-Estimated

Tips for Improving Efficiency

Common Misconceptions

Day Rates

T-shirt Sizing

Value-Based Billing

Time Tracking

Financial Metrics

Billing & Pricing

Estimation

​The Core Concept

Quoted Time

Actual Time

​How Efficiency Works in CharleOS

​The Billing Formula

​T-Shirt Sizing and Estimates

​Requirement-Level Efficiency

​Requirement Types

Design

Development

SEO

Retain

​Example: Task with Multiple Requirements

​Where to See Efficiency

​Efficiency Status

​How Time Is Tracked

​1. Subtasks

​2. Time Entry Fields

​3. Automatic Aggregation

​What Affects Efficiency

​Things That Improve Efficiency (Create Banked Time)

​Things That Hurt Efficiency (Create Overage)

​Efficiency and Day Rates

​Worked Examples

​Example 1: Perfectly On-Target

​Example 2: Efficient Design, Development Overage

​Example 3: Everything Under-Estimated

​Tips for Improving Efficiency

​Common Misconceptions

​Related Concepts

Day Rates

T-shirt Sizing

Value-Based Billing

Time Tracking

The Core Concept

How Efficiency Works in CharleOS

The Billing Formula

T-Shirt Sizing and Estimates

Requirement-Level Efficiency

Requirement Types

Example: Task with Multiple Requirements

Where to See Efficiency

Efficiency Status

How Time Is Tracked

1. Subtasks

2. Time Entry Fields

3. Automatic Aggregation

What Affects Efficiency

Things That Improve Efficiency (Create Banked Time)

Things That Hurt Efficiency (Create Overage)

Efficiency and Day Rates

Worked Examples

Example 1: Perfectly On-Target

Example 2: Efficient Design, Development Overage

Example 3: Everything Under-Estimated

Tips for Improving Efficiency

Common Misconceptions

Related Concepts