Tool

Revenue per billable person model and utilisation tracker

Compute RBP at company, division, team and deal level, set a target from your own cost base, and size the four leaks.

The methodRevenue per billable person, and the four leaks

Ships with Revenue per billable person: where a consultancy's money leaks, and is available on its own.

The revenue per billable person model takes revenue, billable headcount and a period, and runs the same arithmetic at company, division, team and deal level, so one number reconciles from the board pack down to a single team. It sets a target from your own cost base rather than a borrowed benchmark, and sizes the four places the money leaks between what your capacity should have earned and what it did. It sits beside utilisation (utilization), not in place of it, because utilisation tells you how busy people were and not what they earned.

The inputs are revenue by unit for the period, the number of billable people in each unit, your salary cost and overhead lines, and the margin you need the business to make. The model keeps the margin on salary cost and the company gross margin as separate numbers, because confusing the two is a mistake that is easy to make in both directions.

The outputs are revenue per billable person for every unit, a target derived from your own costs, the gap between target and actual at each level, and that gap decomposed into the four leaks with a size against each. A worked example company is loaded; it is invented and labelled as invented.

I knew these numbers every month in the business that became DevOpsGroup. The difficulty was never finding them. It was changing them, and knowing which leak to close first. The model is in development and comes with its playbook, Revenue per billable person: where a consultancy's money leaks. The waitlist is open.

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Who it is for