The workshop aims to make progress in developing the next generation of techniques, models and tools to combine X-ray spectral and variability (timing) information to map the regions closest to black holes and neutron stars. We will build on the latest developments in this area using the improving data and methods (e.g. the new hot topic of X-ray reverberation mapping) as well as other approaches, which combine X-ray spectral and timing information. To do this, we need to consider not only the data itself and models to fit the data, but also how to do that fitting (e.g. using new software or ideally, integrating new capabilities such as Fourier transforms and Impulse Response modelling into future generations of existing spectral-fitting packages). We will also put this together in the context of new instrument capabilities, e.g. hard X-rays with NuSTAR and ASTROSAT, high spectral resolution with ASTRO-H, soft X-ray spectral-timing with NICER and in the longer term, future polarimetry and large-area missions and of course, ATHENA.