The article undertakes considerations aimed at bringing a closer view of effective time management. Paper describes the important role of project management and the importance of project effectiveness in managing modern IT organizations. Particular attention was paid to the very definition of project effectiveness. An important element of the analysis is a discussion of project’s limitations and the proposed methodology for measuring effectiveness in IT projects. A model for measuring the project's effectiveness was proposed in this paper. Time was considered as the basis for the designed project’s effectiveness measure. The concept of billability has been defined. Based on the case study, the effectiveness of billability measurement in the diagnosis of project effectiveness was also demonstrated.