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Research Report
Framework for Calculating Utilization
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March 5, 2024
Overview
Challenges
Many professional services organizations lack a standardized method of calculating utilization, which can lead to a less-than-accurate picture of productivity. This report provides guidance on how to align on and implement a standarized definition of billable and non-billable utilization.
Summary
The framework for calculating utilization provides a comprehensive approach to measuring productivity in professional services organizations. It stresses the importance of consistent definitions and tracking methods for time spent on billable and non-billable activities. By implementing standardized calculations, firms can better understand performance, optimize resource allocation, and improve overall revenue forecasting.
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