In a Professional Services company, how do you know if you are billing enough hours to be profitable? One way is to check to see if you’re still in business. If so, you’re billing enough hours!
Okay, that works. But wouldn’t it be nice to tune your billable hours for maximum efficiency? That’s what a utilization report does for you. It checks the number of hours for billable vs. non-billable. the image below is a snapshot of one employee’s rates. Not bad, huh?
There’s an unofficial law at our company: Either find a way to bill 50 hours a week, or look for a job elsewhere.
That’s the hard reality at some companies. You can bet management is watching the utilization reports. Of course, if they don’t they’ll probably go out of business themselves.