I think the utilization metric is so flawed, yet it seems to be the number 1metric people rely to judge fdd staff. It heavily penalizes efficiency (if it takes everyone 5 hours to complete something what motivation do I have to be faster only to need to fill any saved hours with more work). Can you share any ideas on how to improve fdd metrics or perhaps share what your company does that makes performance great again.

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It's the ultimate tug of war that will always exist in public accounting, unfortunately. If realization is good, then they are mad at utilization. If utilization is high, then they are mad at realization. Really on the partners to propose higher fees.

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It’s tough and sadly the people who value looking at this info don’t understand the space but they apply it to an entire firm.

My firm doesn’t factor PTO or holiday, so you could look light just because we had a holiday or vacation - stupid.

Other firms measure utilization on 40-hour week. You could do 35 billable, 20 non-billable (client meetings, networking etc) and you’ll show up as under-utilized despite your NB work being meaningful (not sitting around with a thumb up your ass).

Biggest fear is people actually being light who could help with other groups and projects who need the help, but especially in consulting, things change daily so looking at a week old report doesn’t help. We don’t know someone is going to be light until we find out they will be light. Hard to say there’s a fix when it’s like that.

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I can’t agree more, we need to be task based not hours based. Utilization should really be measuring the number of tasks/projects/impacts (thus the revenue) a person is able to meet/bring with the same number of hours worked.
The hour based measurement is killing efficiency and motivation , exactly like what you said if I know even if I finish my work earlier at 3 I still need to stay till 5 anyway why would I even try to finish things faster. And if when I get work done early the only reward I receive is more work and this is not captured in utilization then what motivation is there for me to think about ways to improve efficiency.
We need to shift the mindset that overtime = hardworking (bc sometimes Its actually just mindless/inefficient working) we need to feel ashamed for working overtime not proud. While I agree sometimes overtime is needed bc of the workload/tight deadline, but we need to continue find ways to motivate people to identify areas with potential efficiency. The reward should be measured using the metrics that how many hours are you able to save (either for yourself or for the whole team) instead of how many overtime hours you worked.
And every year there should be efficiency improvement, the similar projects you are doing this year should be targeting a budget with less hours compared to last year.
I hate it when some people on my team are just chilling during the day and start actually working like 3pm and then stay late bc they didn’t finish work. While I finish my work 3pm but still need to stay longer to pick up their slack bc of the “teamwork” spirit. I don’t mind helping out at all if anyone is really struggling but the fact that some people are obviously just taking advantage of this and purposely being inefficient/slow so other people could pick up their workload in the end is just absolutely disgusting and unacceptable.

smart

Kpmg 1, isn’t that what I said ?

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