Financial advisory for professional services firms

In a services firm, capacity is inventory. Utilization, realization and pricing discipline determine whether the firm scales or simply gets busier.

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Operating model · Professional Services

Realization is where strategy meets reality.

What we focus on

The drivers that decide the outcome.

Utilization by team member
Realization against standard rates
Effective hourly rate by engagement type
Pipeline coverage and close rate
Client concentration risk
Staffing leverage and delivery mix
Collections and scope-creep exposure
Capacity before the next hire

What owners in professional services actually describe.

01

Busy without becoming more profitable

Growth in hours without growth in effective rate is a pricing problem wearing a capacity costume. We tell the two apart.

02

Scope creep absorbed silently

Unbilled work is the most common leak in services. We quantify it by engagement so pricing and change orders get enforced.

03

Hiring decisions made on feel

We model the utilization and pipeline required to make the next hire accretive rather than hopeful.

Util.
Utilization

Capacity sold against capacity paid for.

Rate
Effective rate

What the work actually earns per hour.

Pipe
Pipeline coverage

Committed work against capacity.

Monthly

Utilization and effective rate, unbilled work, pipeline coverage, cash forecast.

Quarterly

Engagement profitability, pricing review, staffing leverage and hiring capacity.

Annual

Owner compensation, entity structure and proactive tax planning.

Questions we hear first.

Which kinds of firms does this fit?

Agencies, engineering and architecture practices, consultancies, IT services and other firms that sell expert time.

Do we need time tracking for this to work?

Some form of time or capacity data is required. If tracking is inconsistent, we start with the minimum needed to measure realization.

Can you help with pricing model changes?

Yes. We model retainer, project and value-based structures against the delivery hours they consume before you change your proposals.

Better financial decisions in professional services start with better information.

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