Utilization - If you calculate utilization - what do you include? What is your equation?

James Evans

If you calculate utilization...

Do you calculate the factor differently for Exempt vs Non-Exempt resources? (Does the denominator hours change based on Exempt vs Non-Exempt?)

What hours do you include in the Numerator. i.e. All Billable hours? Education taken and/or delivered?

Do you modify the FTE based on job role? i.e. count a Team Lead as zero or partial FTE?

StevenForth

We only calculate billable hours for utilization as that is what drives the business model, but we intentionally keep our target low, 50%, as that aligns with our business model. We follow a service led growth strategy so profitability on our services is very high as our consultants can leverage a lot of powerful software.

James Evans

Thanks Steven.