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We have two metrics. Standard utilization leaves those hours in the denominator and of course used pto hours aren't included in the numerator. Adjusted utilization subtracts those from the denominator along with a few other things (I think training also comes out). Adjusted utilization used for setting bonus eligiblity, but all other reporting tracks standard utilization.
I think the best metric to look at would be, as someone said above, how many weeks do you have to be utilized in order to make target. In that regard Deloitte Consulting is probably the highest of any firm( at least for analysts) our denominator is always 2080 and our target utilization (in tech) is 95%. That means you HAVE to bill 0.95*2080 = 1976. Since the standard work week is 45 hours, that means you have to be utilized for 1976/45 = 44 weeks.
While that sounds amazing (8 weeks off!) you have to discount the 10 days that are mandatory holidays. Now that makes 6 weeks. So all in all I have to be on a project for about 46 weeks out of 52 which is definitely higher than any other firm since you could just take holiday. EY for example reduces the PTO from the denominator and their utilization goals is less than 95%. This is one of the main things that I think D needs to correct for. But sadly even if they come up with a new system, it’ll essentially mean the same thing of being billable 46 out of 52 weeks.
P1 - i guess you are still working in your leadership acumen
No why would it be you’re on vacation! Now if you want to argue that it should be deducted from your base hours (denominator) that’s a different story
Pwc1 - what energy? Being on fish bowl? Hypocrite much?
P1: no one here believes you are a partner.
Everyone else, thanks for the datapoints. For the record I’m actually perfectly ok with pwc’s format... several people in the PwC bowl seem to think it’s akin to indentured servitude and insisted that “other firms do it differently!”
Manifestly not
If y’all would direct even half of this energy toward finding projects and delivering value to clients, you’d make partner in 7 years like I did.
Example from when I was a new SC: 85% of 2080 hours is 1768 hours. Standard billing is 45 hours, so 39.3 weeks to hit the target. That leaves 12.7 for other stuff. If you get 5 weeks of vacation you can use it all and still have 7.7 weeks of bench time (almost 2 months). Seems fair to me.
D3...that’s the point. 2080 is working every work day for the year. Holidays is included in that 2080 so it does count against your utilization.
Unlimited PTO is a facade
We exclude it from the denominator so it neither helps nor hurts you. We also have only one utilization number (as far as I know - only one is published/calculated by HR).
No, we deduct it from the denominator to get effective utilization, which we switched to many years ago. However, not sure if our targets are higher as a result: 85% PI, 95% Risk at the staff - manager level.
A2 is right... There is also chargeabilty and recoverability. Non chargeable time can either be recoverable (BD or market development) or non recoverable let (training/bench). It matters more at higher levels to show that you're building new business even if you're not billing a client. Hope that helps!
It counts against our utilization which is lame
SC1 that’s not true. It’s NOT subtracted from our denominator in my market. So if you take PTO, it counts against you.
Think of it this way: how many hours do you need to hit your target in a year, and how many weeks of full utilization does that take? Subtract from 52 and that is the number of holiday, PTO, and bench weeks you are allowed. The discussion then is simple: is that number acceptable or not?
In IBM holidays and vacation time is detrimental to your utilization. The base is total hours in the year
@sc2 ah yeah, utilization calcs vary by market, so it’s anybody’s guess 😂 target % changes, too. Gotta love the “one company, no consistency” stuff
No
No