From Profit Killer To Consultant Burn Out (And The Good Bit In The Middle)
by Paul Church
For most management consultancies, the utilisation rate of their consultants is a one of their key performance indicators and a key target on which staff are measured. Get it right and the chances are the business will be highly successful. Get it wrong and the consequences can be disastrous.
Under achieving can be a real profit killer. A relatively small reduction in utilisation rates can result in a disproportionately large reduction in profitability. And whilst avoiding under achievement is the focus of many directors and managers, the effects of consistently high levels of utilisation should not be ignored. In the short term, the effect looks good, i.e. increased profitability. But in the long term, the effects can be reductions in efficiency and quality of work, through to staff burn out and resignations.
So how do you get the balance right? Utilisation may be a simple percentage number but there are multiple factors that influence its outcome. It’s a complex matrix of clients, projects, tasks, due dates, deliverables, consultants, skills, availability, bids and contracts.
Find out how the seven steps to optimising utilisation can help you...
