OPTIMIZING PS BILLABLE UTILIZATION
The concept of utilization is one of the key building blocks
of any profitable professional services (PS) organization.
To run a PS business, managers must understand how productive their consulting staff is. Billable utilization is a key indicator of that productivity.
The concept of utilization is one of the key building blocks of any profitable professional services (PS) organization. To run a PS business, managers must understand how productive their consulting staff is. Billable utilization is a key indicator of that productivity.
However, TSIA members continue to debate the appropriate way to calculate this fundamental metric. What number should be used when determining the total available hours for each consultant? Should the total available hours be modified from country to country to accommodate variances in holidays, vacation, and work week policies? If there is no standard way to calculate utilization, how can geographies compare productivity?
TSIA will never completely put to rest the debate surrounding utilization calculation. That said, we have published recommended practices for calculating utilization; documented variances in utilization metrics based on the service strategy profile of the PS organization; and proposed effective strategies for calculating utilization across multiple geographies.
Explore the following links to learn more:
The concept of utilization is one of the key building blocks of any profitable professional services (PS) organization. To run a PS business, managers must understand how productive their consulting staff is. Billable utilization is a key indicator of that productivity.
However, TSIA members continue to debate the appropriate way to calculate this fundamental metric. What number should be used when determining the total available hours for each consultant? Should the total available hours be modified from country to country to accommodate variances in holidays, vacation, and work week policies? If there is no standard way to calculate utilization, how can geographies compare productivity?
TSIA will never completely put to rest the debate surrounding utilization calculation. That said, we have published recommended practices for calculating utilization; documented variances in utilization metrics based on the service strategy profile of the PS organization; and proposed effective strategies for calculating utilization across multiple geographies.
Explore the following links to learn more: