In a services organization, small changes in utilization can drive big impacts. One of the most overlooked—but powerful—levers in services economics is a single percentage point of billable utilization.
For every 100 billable resources, a 1-point increase in utilization (e.g., from 72% to 73%) equates to roughly 100 additional billable hours per month—per person. Multiply that by your average billable rate, and the numbers quickly add up. For many organizations, that translates into hundreds of thousands to millions of dollars in additional revenue and contribution margin annually.
But the value goes beyond dollars. Higher utilization—done right—also signals better alignment between demand and supply, more efficient staffing, and stronger project delivery discipline.
Of course, not all utilization is created equal. The goal isn’t to max out your team, but to intelligently optimize their time on the right work—work that drives client value, employee engagement, and business growth.
Bottom line: In services, utilization is more than a metric—it’s a strategic lever. And when managed well, even one point can make a significant difference.
Curious what one point of utilization is worth to your business? Use our Utilization Impact Calculator to plug in your team size and average bill rate—and instantly see the financial impact. It’s a simple tool with powerful insights to help you build the business case for better resource management.