![]() The Total Available Hours can be adjusted down in cases where the company offers greater than two weeks’ time off throughout the year. In this scenario, two weeks of the year are discounted as time off and therefore, not available for the resource to work. The next most common number is 2000 Total Available Hours (where 2000 = standard 40 hours per week * 50 weeks in the year). Most professional services organizations use 2080 hours as the traditional number for Total Available Hours (where 2080 = standard 40 hours per week * 52 weeks in the year). weekly, monthly, and quarterly, yearly) to view possible trends in your business?Ĭalculating Utilization and Realization Ratesįirst, how do you get to utilization %? By definition, the utilization % is the percent of time a resource worked compared to the total available hours the resource could work. Can you measure utilization/realization for any period of time (i.e.Are full-time and part-time resources treated similarly?.How are PTO days (including holidays and vacation) factored into the equation?.What baseline number should be used to determine the hours available for a consultant to work in a calendar year?.However, the debate continues about what the right formula is for calculating utilization and therefore, realization. The ability to measure both consistently and regularly allow management to align resources to the right tasks, at the right time, for the right reasons. Utilization and Realization are two concepts critical to project resource management in profitable professional services organizations.
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