Improve margins and pricing
Most agency owners can tell you their revenue off the top of their head. Fewer can tell you their margin. Almost none can tell you their realization rate, their effective bill rate, or their unbilled work-in-progress at this exact moment.
Utilization rate is one of those metrics that agency owners know they should be tracking but often aren't. Or they're tracking it badly. Or they're tracking it and have no idea whether their number is good, bad, or somewhere in between.
There's a number that keeps agency owners up at night, and it's not revenue. It's the gap between the revenue they should be earning and the revenue that actually hits the bank account.
Revenue tells you how much money came in. Headcount tells you how many people you're paying. Neither tells you if you're actually running a healthy business.
Most agencies leave 15-20% of their billable time untracked. Here's why it happens and how to fix it.
The definitive guide to agency financial benchmarks. See how your metrics compare to top-performing agencies.