The Consultant’s Dilemma: Utilization Percentages

Target Annual Utilization = 85%

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On the bench 3 months, utilization is 0%.

On a project 9 months, working 60 hours but can only bill 40 (under-estimated, over-allocated), recorded utilization can only be 100%.

Year ends…

Actual utilization for the year = +115% -> blew utilization target out of the water

“Great, Utilization Bonus Time!”

Or

Recorded utilization for the year = ~77% -> didn’t meet target

“What the…, Low to No Utilization Bonus?”

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