Use this simple calculator to analyze changes in the most critical levers of your Professional Services business. It is a simple yet powerful tool and it only takes a minute to get started. You will find it easy to make adjustments and get instant visual feedback on what your Services P&L may attain.

Getting Started:

1. Enter the following information to establish a baseline for your business.
2. Use the P&L Statement to confirm it looks about right.
3. Click on the 'Go to Calculator' button at the bottom of the page.
4. Have fun!

Please contact us with any questions or feedback.

Use this simple calculator to analyze changes in the most critical levers of Professional Services. As a simple yet powerful tool, it only takes a minute to get started. You will find it easy to make adjustments and get instant visual feedback on what your Services P&L may attain.

Getting Started

1. The calculator is pre-populated with a set of data to serve as a reference example. You can depress the Reference Example Notes link for further details and notes.
2. Complete the five data points included in the Resource Profile and Delivery Profile sections to calculate a pro forma of your Services P&L. A pop up box is available for the definition of the required data input. Further information is available in the Reference Example Notes.
3. As there may be some variation in your P&L and the calculator's P&L, it likely indicates where there may be some inconsistencies in the metrics populated. Using your best judgement, make adjustments to the data points so that resulting P&L is a reasonable approximation of your Services P&L.
4. Complete the questionnaire and depress the button "Go To The Calculator".

Company X is an established $100 million services business staffed with 500 billable headcount. Current visibility suggests it is able to achieve an average bill rate of $180/hr when it is sells projects to its customers. Its average fully burdened (salary, benefits, bonus) cost per resource is $120,000 annually. Billable utilization and delivery overruns, respectively 65% and 20%, are not at desired levels and the resulting P&L is about 41% of revenue.

The following P&L impacts can be modeled by making adjustments to the levers on the Calculator page:

Billable Utilization :

Holding As Sold Bill Rate and Delivery Overruns constant, every single point change in Billable Utilization increases margin by $1.56 million or 0.9%. If the business were to attain a Billable Utilization of 70% from its current 65%, the business would be almost $8 million more profitable with its business margin increasing from 40.8% to 45.1%.

Delivery Overrun :

holding As Sold Bill Rate and Utilization constant, every percentage point reduction in project overruns provides margin increases of $852k or 0.5%. If the business were to reduce overruns from 20% to 15%, the business would be $4.4 million dollars more profitable with its business margin increasing from 40.8% to 43.3%.

As Sold Bill Rate:

holding Utilization and Delivery Overruns constant, every dollar increase in As Sold Bill Rate increases margin by $560k or .7%. If the business were to increase As Solid Bill Rates by $5, the business would be more than $2.8 million more profitable with business margin increasing from 40.8% to 42.4%.