Are hours written off as an equal percentage per employee when a deal is over budget, or is it employee by employee? I believe it is the latter, but not entirely sure. Working on a deal with another manager who is new to the firm and they are lighting up the code like I’ve never seen before, and it’s not measuring up with the work they’ve completed.

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Somebody probably needs to talk to bro but you still get the hours for you util. Your realization will drop though once it’s actually billed.

I wouldn’t advise on lighting up the code for more hours. They’ll see the WIP and know it’s the new mgr

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I’ve had a partner ask me to estimate the amount of overage in fees due to internal “development” where I took a percentage of the new/underperforming team members time multipled by their cost rate and applied the standard margin to calculate the amount we would not bill to the client

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Equal %.

Staff billing rate at $400 per hour had 10 hours = $4000 in WIP. Manager billing rate at $600 per hour with 20 hours = $12000 WIP.

If you end up only collecting $12,000, you are at 75% realization. Assume staff's work was useless and manager had to redo everything, everyone still gets 75% realization. You would not give staff 0% and manager 100%.

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Lighting up as in charging their actual hours worked most likely?

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Probably, but we all know that’s not how this works for a lot of deals. Just not enough budget; especially if you’re not efficient

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Write offs happen as a single line item in my experience. Labor is a fixed cost, it’s on the engagement leader to manage hours and recovery.

I think you need to 1. Do what ey 1 mentioned and take a look at what is investment for them learning the firm, etc. and 2. Have a talk with the ppmd noting that the project is over budget, you think some time is more investment time based on 1 and ask them how you can help prep billets, etc. for the client if ppmd decides to bill over budget. Maybe the client asks are truly over budget/out of scope or maybe the ppmd is asking the new person for a few things on the side or maybe the new person simply put their time in the wrong wbs.

First you write off the associates, then the seniors, managers, directors, your bonuses, pay rises, before you finally get to partners.

Its why they can't afford bonuses or pay rises, or so a certain 3 letter acronym firm told its employees last year.

i would imagine it is based on the firm’s calc

but my firm does it equally. so everyone booking time to that engagement will have the same realized %

I've been at 5 firms and don't recall any not doing it equally.

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