This week, I want to talk about a metric that’s crucial for any founder building a service-based business.
Without it, you're basically sailing in the dark and hoping to get lucky. So let’s dive into one of the most important KPIs you can track: True Hourly Value (THV).
Let’s start with an example:
Becky runs a social media agency and offers Facebook Ads services to her clients. For client XYZ Inc. she agrees to build a campaign. She estimates it will take 50 hours at a rate of €100/hour, making the project worth €5,000.
She assigns the job to her consultant, Jack. He does great work. The client is happy. ✅
But there’s a catch.
Jack ends up spending 70 hours on the project— 20 more than estimated —due to various challenges and unexpected revisions.
Let’s look at what that does to Becky’s True Hourly Value:
Becky just lost €29 per hour on this project.
Now, if this were a one-off, no big deal. But here’s the problem: if this happens across multiple projects, you’re bleeding profit without even noticing.
So is the advice just to track time?
Yes... but it’s not that simple.
Here’s the tricky part: 99% of people hate tracking their time. It feels tedious, annoying, and—worse—like surveillance.
And even when people do track it, the data isn’t always reliable. They log rounded-up hours. They “guesstimate.” They forget. They fudge the numbers.
The shift: from control to clarity
Here’s the key learning I want to pass on:
Bring your team into the why.
Explain why tracking actual hours matters—not to judge or micromanage—but to make better decisions, improve accuracy, and build a stronger business together.
Because there are a few reasons you might be overspending on hours:
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You’re underestimating the work and overpromising to clients
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Your team might need more training to work more efficiently
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Your workflow might be missing automation that could save hours without sacrificing quality
None of these are personal. But you can’t fix what you can’t see.
Sounds simple. But it has to be easy.
Once your team understands the purpose, your next job is making time tracking foolproof and frictionless.
Because again: most people hate doing it. So it has to be as easy and painless as possible.
Thankfully, there are some great tools out there. I’d recommend using something that integrates with your project management system. Fewer clicks = more consistency.
Final thought:
Don’t let your team’s dislike for time tracking stop you from doing it.
Help them see it’s for the greater good, not a performance review.
Because if you don’t track your THV, you’re almost certainly leaving money—and insight—on the table.
Founder @ Guram
