The 4% you need next year. What does a utilization increase mean for you?

The 4% you need next year. What does a utilization increase mean for you?

Austin Rohr
Tags: PSA, ROI Calculator

It’s that time of year again. No, I’m not talking about Turkeys or Reindeer. It’s time to set next year’s fiscal plans and budgets. Whether you’re a growth organization or just trying to increase margins, 4% is a very important number for you and here’s why:

Service Performance Insight (SPI), the industry standard for Professional Services benchmarking, surveyed over 500 PS organizations across the globe and found that those utilizing a commercial PSA solution delivered on average 4% higher utilization than those that don’t.

What does a 4% utilization increase mean for you?

Let’s look at the following as an example:

  • 100 Billable resources
  • 2,000 Hours of capacity per resource in a fiscal year (this excludes 80 hours of holiday)
  • Realized Rate per Hour of $150/hr
  • 67% Utilization for organizations not using PSA per SPI
  • 20% Margin

ROI Screenshot
Granted this is a high level model, it proves 4% can mean a great deal for any organization. By simply increasing utilization by 4% our example yielded an additional $1.2M in revenue and almost half a million in margin. These results are achieved not by simply installing any PSA tool but by adopting a commercial PSA solution that streamlines your resource management, capacity planning, and project delivery. FinancialForce PSA is that solution. Check out our ROI calculator to see how 4% would help your organization.

As you’re planning and looking to improve next year let FinancialForce help you get that 4%. With our PSA solution leveraging the Salesforce platform we open up communication lines between Sales and Services, meaning 4% is just the beginning.

Want to see what your 4% looks like? Try our ROI calculator. To get a copy of the 2016 SPI Benchmark Report, Download it here.

 

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