You’re achieving the optimal results for this metric. Your business processes in this area are highly efficient and stand out against competitors. Keep investing in this area to maintain these results.
Maintaining positive customer references is critical to success for any consulting service company. Not only will this result in repeat business from satisfied customers, but these customers are also a great tool in prospecting new clients. Sharing genuine customer success stories from customer to customer enables brand building and validates your offering compared to your competitors. The larger your customer reference program is, the easier it is to find relevant success stories to share with your prospect.
Annual Revenue Per Billable Consultant
Annual revenue per billable consultant is a rough indicator of how much revenue your billable resources generate each year and the productivity of your consultant team. This number should be higher than the average fully-loaded cost of your consultants, meaning your consultants are generating more revenue than it costs to employ them. This number varies widely depending on the type of consultancy and services provided to clients. Architecture, engineering, and legal consulting firms tend to see a higher annual revenue per billable resource.
As a consulting firm, your most valuable assets are your employees and their skillsets. Utilization rate indicates how much time your employees are spending on client project work compared to internal tasks. Increasing employee utilization optimizes your profits and allows your business to take on more projects, hire the best talent and attract high-caliber clients. It’s important to set realistic utilization targets for your employees and compensate them for their achievements. A utilization target that is too high may result in consultant burn-out, while a target that is too low won’t incentivize employees to be more productive and reach their full potential. Having a clear view into your company’s utilization rate is critical to recognizing inefficiencies, improving staffing, identifying training opportunities and increasing profitability.
Annual Rev per
Time to Close the
Finance FTEs per
IT FTE Per
Source(s): SPI, Finlistics