Utilization - PwC says vacation won't hurt it but if denominator is set at 1,976 hours that's factoring in 52 weeks minus firm holidays. Shouldn't it be 176 hours less to truly not count against it?

Vacation definitely affects utilization. They more or less lied about it on all hands calls.

You're correct, the total hours used to calculate utilization are 1,976 (2,080 yearly hours - 104 holiday hours = 1,976 work hours in a year used to calculate utilization).

But, that's assuming you are trying to get to 100% utilization by client chargeable hours alone.

There are two types of chargeable hours - client and non-client - just as there are two utilization metrics that exist - client utilization and resource utilization.

Client chargeable hours only affect your client utilization metrics, while client and non-client chargeable hours affect your resource utilization. At least, that's how it was explained to me.

Resource utilization is the metric shown on "My Metrics" dashboard and is the one that I understand is used at CRT. Again, this is how it was explained to me, regardless of whatever they've said on the all-hands calls (I don't attend those).

The utilization targets we are given are for client utilization, so feasibly you could meet your client utilization metric (e.g. 73%) while still taking vacation, and end up with a higher resource utilization metric because of non-client chargeable hours (reinvest, PD, internal projects, etc), though not all non-client codes result in chargeable hours.

It's also why, if you talk to people familiar with the review processes, "hours over standard" (or, alternatively "overtime hours") are talked about. The standard is 1,976 hours * your utilization target. Hours over standard could be additional client chargeable hours, reinvestment work, practice development (proposal work, etc), or internal projects.

The expectation is that a certain percentage of your resource utilization is made up by client chargeable hours and a certain percentage by non-client chargeable hours (e.g. PD, reinvest, etc).

Now, go find the FY18 expectations placemat on myKcurve and take a look at the utilization example. Hopefully, it's a little more clear now.

As long as you are meeting your standard client chargeable hours (minimum client utilization), you can take vacation without fear. You can also get a 1 with only the minimum client utilization (I have, multiple times). How is that done? Through having measurable, documented impact. If you miss the minimum utilization metric, it's doubtful you'll get a 1 or a 2, but it's still possible to get a 3, so long as you have other things to lean on which merit a rating better than a 4.

Also wtf, only get 15 days to start at PwC 😒

P6, I believe Global Utilization only factors in international holidays commonly recognized, not vacation hours. You'd have to check with HR. But as you said, no one uses it in the US.

Uhhhh.... Didn't we also just switch to 45 hour workweek?

The expected hours per week worked minimum in the US firm is 56. That is what they figure you work in an avg week with some higher/lower. This the the likely reason they don't deduct vacation and why PD and such isn't included in utilization. I have some weeks with PD that are 90 hour weeks. And no I'm not a partner.

Resource utilization, if that's what your demand teams calls it, includes internal 4 codes. The standard utilization metric used across the firm for all reporting includes client and internal codes with credit. Reinvest and PD do NOT count toward any utilization rate as your original post states.

PwC allegedly moved to a 45 hour work week and pricing week. S& utilizes a 50 hour work week.

Pwc14 is a 👹👹👹👹

My Demand team isn't the only one that calls it resource utilization; the myMetrics dashboard calls it resource utilization as well (along with different placemats available out there on myKcurve that have been created throughout the years).

I have had my client utilization be X% and my resource utilization be Y% where Y > X, and I have never charged a 4 code, but I have worked on internal projects that are viewed at CRT as reinvest work (but do not charge against the generic reinvest codes), that have increased my resource utilization.

But, what do I know? I'm just a PwC guy... I guess you guys in S& have encountered everything and have learned all there is to know about the firm and its internal working in the mere 3 years since your acquisition and my experience counts for nothing...

Think what you want. I have the experiences and documents to back my statements.

Average overtime is around 450 hours last I knew. Pwc14 is stating expectation is twice that. Total BS.

Pwc4 - vast vast majority of reinvest and internal work does not help your utilization that is looked at in CRT.

PwC 7, I agree. However, there are some that do. Most of the internal non-4 codes, to your point, does not impact resource utilization (that which is looked at during CRT), but does help your hours over standard... S&, good for you. By the way, it wasn't a "side HR gig," it's an important initiative to my practice that is also viewed as reinvest at CRT (but you're right, it's not a general reinvest code available to all staff - but it doesn't matter whether the code is reinvest or not - it matters if it is given credit and how the activity is perceived at CRT).

But, we're getting into semantics here...

The high-level is that, to be successful at CRT, you need to:
- Meet your minimum client utilization requirement (which will guarantee that whatever utilization metric is looked at - client or resource - will be at least meeting the minimum requirement)
- Work on a decent amount of PD, reinvest, and other internal work, preferably internal work that is given credit (thus increasing resource utilization)
- Make a measurable impact in your client and internal work, and get it documented in a snapshot as a performance differentiator
- Keep up your network with leadership; put yourself in a position to have as many partners as possible at the table saying good things about you

I've seen people with 100%+ client utilization get 2s and 3s because they disregarded PD, reinvest and other expected internal work, and/or because they didn't have an impact or, alternatively, they had an impact but it wasn't properly captured.

At the same time, I've had a year where I had 88% client utilization, but had high impact on the client I was working on, alongside some proposal work, and also did internal work that is non-4 code/non-generally available reinvest code, but is considered high impact and is highly visible within advisory and my practice and thus given credit in resource utilization calculation and also viewed as "reinvest" work during CRT conversations (resource utilization 95%), taken vacation, and come away with a 1.

All of that said.... Charge what you work, stay staffed, take your vacation.

🍿

Someone explain this 45 hour work (client code) week to me. I haven't see that communication or expectation. That would also change all the above example calculations (2080 hours for the year for 40 - holiday)

PwC 15, a 44-45 hour work week is basically what is required to maintain 100% client utilization at most levels (once you have full vacation balance of 176 hrs per year available to you).

40 hr "standard" work week * 52 weeks in a year = 2,080 hr "standard" work year.

13 firm holidays * 8 hrs per "standard" work day = 104 hrs of holiday time, or 2.6 weeks (using 40 hour week)

Holiday time is removed from hours used to calculate utilization (so there isn't a utilization penalty for taking holidays)...

So now, there are 2,080 - 104 = 1,976 hours in a "standard" work year.

Full Vacation balance is 176 hours, or roughly 4.4 weeks (using 40 hour week). Add holidays (104 hours, 2.6 weeks), and you've got 280 hours of paid leave time, or 7 weeks

So, assuming 1,976 hours is 100% utilization, and assuming you take all holidays and all vacation, you've reduced your effective "working" year to 52 - 7 = 45 weeks.

1,976 / 45 = 43.9 hrs per week required to work 1,976 hours over 45 weeks.

So, assuming you take all holidays and vacation time, you must work an average of 44 hours per week through the remaining weeks in the year to hit 100% client utilization. Now, that doesn't factor in that the performance year (which is what we're measured against),is slightly shorter than 52 weeks. Let's say it's a week shorter, just for shits and giggles (too lazy to look it up). That means your effective working year assuming all time off taken is 44 weeks... 1976 / 44 = 44.9 = 45 hours per week (average) required to make 100% client utilization.

You didn't read my post and I certainly didn't read all of yours. There is a comment above about moving to 45 hour work week. I wanted that explanation.

Go look up the advisory FY18 expectation placemat then and do your own research. You're welcome.

Lol again. Did. Not. Read. Poor snapshot due to you. My original post literally says placemat would be wrong if this 45 hour thing is true. Hence I know the placement. Gosh. Read the comments above.

P15, utilization calculations are based on a 40 hour work week. All non-S& practices are supposed to be moving to a 45 hours of client chargeable work a week. I've seen a few practices begin selling the work at 45 hours but continue to tell staff to bill at 40 hours a week.

P4: and you need to back out another 40 hours a year for mandatory training, and another 40 hours per year for recruiting, which should put you close to 50 hrs per week required to hit 100% utilization.

S&1, I didn't back out 2 weeks for training and recruiting from the "effective working year" (44-45 weeks) because:
1.) not every practice has a mandatory training requirement *that would pull you out of work* for 40 hours a year (I'm assuming you're getting 40 hours a year from the 3 year rolling requirement for CPE hours broken evenly over the 3 years). CPE credits can be earned via web based trainings after working hours
2.) Not every LOS or practice requires involvement in recruiting, and even if one does, it's not an activity that would necessarily *pull you out of work*, as many of the events happen after working hours (happy hours, dinners, etc)

So, neither of these activities necessarily shorten your effective working year, whereas the assumption for holidays and vacation is that you are not working at all those days (or god help you, if you have to).