The concept of utilization is one of the key building blocks of any profitable professional services organization.

To run a PS business, managers must understand how productive their consulting staff is. Billable utilization is a key indicator of that productivity, yet many companies 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 workweek policies?
  • If there is no standard way to calculate utilization, how can geographies compare productivity?

This checklist outlines TSIA’s recommended methodology for calculating utilization for PS delivery staff.

"Research and industry insight from TSIA has helped to articulate and quantify challenges and opportunities better to senior management and benchmark our services against peers in the industry."

Dana Brants
Head of Services Marketing, Swift

six steps of utilization

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