114 billable hrs./mo, eh ? Justify that . — OZONE Asylum, home of the Mad Scientists

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114 billable hrs./mo, eh ? Justify that .

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Your Text: Insert Slimies » Insert UBB Code » Close Last Tag \| All Tags UBB Help	This calculation is based on my time at the big consulting companies, they've got this down to a science! OK, lets asssume a short month, with 4 weeks at 40 hours/week, that makes 160 hours of "work time". These numbers can be extended, mainly by toruturing your employees into working longer hours, weekends, etc., but in general, seen over a long period of time, it averages out to 160 hours each month. (Months are longer than 4 weeks, but think holidays and vacations, etc... It works out.) The magic number for consultants is the "utilization rate". This is just the percentage of hours that people actually manage to bill, as opposed to how many they "work". Many companies have an actual utilization rate of 40-50%, sometimes lower, but the magic number to shoot for is 70%. Some dot-com-boom companies tried to boost productivity by demanding that people raise this rate even higher in order to increase profitability, but it never lasts, people burn out and quit if driven this way for too long. So! Get out your calculators! 160 hours * 70% = 112 hours/month. Did I say 114 in that other post? That was wrong, the true number is 112. To be fair, what you really need to do is figure out the number of working days in the year, multiply by the hours in a day, and then divide by 12, but this is a calculation that can work across a large group of people, and that you can actually hope to meet. For myself, over long periods of time, I routinely average more in the range of 80-90% utilization, but average me out with a bunch of people less insane and it still averages out to 70% at it's very best. I've personally done periods as short as a week with 112 billable hours in them, but after a week like that I'm shot for at least a week, good for nothing more than reading Dilbert and playing silly web games. Your pal, -doc- [url=http://www.ozones.com/] [img]http://www.ozoneasylum.com/examples/ozoneSIGc.gif[/img] [/url] Loading...
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