Coming from my field, I get it if we're trying to bill customers/clients. But in terms of just "management", it's a failed strategy. Sort of symptomatic of something I said in P/R, but we have this perception that EVERYTHING is recorded somewhere, and the reality is, it's not. Not always.
(I forget who said it, but one thing I wouldn't do: use "pre-agreed" entries for "when we're not busy". Call me paranoid, but if it ever came down to a situation where headcount was an issue, I'd hate to be the one with more "pre-agreed" entries.)