How to Improve Resource Utilization Through Operational Changes

When making improvements at the operational level, the goal is to increase billable hours as measured by the resource utilization rate.

Table of Content

    When you are a professional services firm or project-based business, your bottom line is driven by resource utilization. If your business suffers from disconnected or siloed systems of people, processes, and technology, the various parts of your organization can’t integrate their data, which makes it impossible to track and measure utilization effectively.

    On the other hand, by connecting your disparate systems into one coherent, integrated system, you can effect considerable improvements in utilization, and your bottom line. A connected system will allow you to address the operational, tactical, and strategic challenges that impact utilization at each level, resulting in improved performance and the ability to achieve business goals.

    Improving resource utilization by addressing operational challenges

    When you are looking to make changes at the operational level – which is where you will see the quickest value and the most direct measure of ROI – the goal is to increase the number of billable hours, as measured by the utilization rate. The way to increase billable hours is to increase team and individual productivity by reducing the amount of time that billable staff loses to non-billable activities.

    Operational changes to improve available billable time:

    Reduce app switching 

    By conservative measures, simply opening and closing apps can cost a company of 100 people over 1500 potentially billable hours per year!

    Essential Guide for the Modern Professional Services FirmEssential Guide for the Modern Professional Services Firm

    Simplify time entry

    Easier time and expenses entry = timelier and more accurate data = improvements throughout billing and revenue cycle. Integrated time tracking improves project accounting accuracy. 

    Minimize administrative tasks

    Time spent on administrative tasks means less time available for billing. The goal is to eliminate as much of this as possible. Automate everything you can and then assign dedicated administrative, non-billable staff to do the rest!

    Automate workflows

    Automating workflows frees up billable time, increases accuracy, and improves collaboration between teams, and more.

    Simplify communications

    Simplifying communications improves billable time, manages customer expectations, and reduced internal, non-billable meeting time.

    Provide relevant information by role

    This is very important. When billable resources have real-time insight into their own utilization, billing rates, and project and task status, they can better prioritize their time and efforts.

    Learn more about the challenges caused by disconnected systems and how Velosio’s solutions can help connect your systems so you can make the organizational changes necessary to increase billable time and utilization rates.

    Business Leaders Guide to the New Digital AgeBusiness Leaders Guide to the New Digital Age