4 articles tagged with Agency Profitability.
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.
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.
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.
Most agencies leave 15-20% of their billable time untracked. Here's why it happens and how to fix it.