The trap: If 75% utilization is good, isn't 85% better? If 85% is possible, why not 95%? Here's why not.
Every consulting firm tracks utilization—the percentage of available hours being billed to clients. And every firm has felt the pressure to push it higher.
The math seems obvious. But it's incomplete.
The Visible Math
COST: The same at 70% or 90% utilized REVENUE: 29% more at 90% vs 70%10-person team: 75% → 90% utilization = 2 additional consultants worth of revenue = Without hiring anyone
◀ This is what drives utilization pressure ▶
This math isn't wrong—as far as it goes.
The Hidden Costs
The Right Utilization Targets
| Role | Target | Why |
|---|---|---|
| Partner | 40% | BD, relationships, firm leadership |
| Principal | 60% | Mix of delivery and BD |
| Senior | 75% | Primarily delivery, some mentoring |
| Consultant | 80% | Delivery focused |
These numbers give you slack. Slack for quality. Slack for growth. Slack for the unexpected.
Utilization as a Symptom
High utilization isn't always a choice. Sometimes it's a symptom:
| Symptom | What It Looks Like | Real Solution |
|---|---|---|
| Understaffing | Can't say no to work | Hire |
| Pricing too low | Need more hours for revenue | Raise rates |
| Scope creep | Projects expand unpaid | Better scope management |
| Pipeline gaps | Take everything that comes in | Better BD |
Pushing utilization higher masks these problems. It treats symptoms while the disease progresses.
Managing Utilization Intelligently
Visibility — Know where you are across the team, in real-time.
Balance — Identify over-allocated individuals early, before burnout.
Forecasting — See what's coming so you can plan, not react.
Trade-offs — Willingness to sacrifice utilization for quality/growth.
This is harder than just pushing a number higher. But it's how you build a firm that lasts.
The right target isn't maximum utilization—it's optimal utilization. The level that balances revenue generation against all the hidden costs. For most firms, that's 70-80% for delivery staff, lower for those with BD responsibilities.