5 KPIs for a Professional Services Business

Here are 5 typical key performance indicators (KPIs) for a professional services business:

1. Billable Utilisation Rate – The percentage of total hours worked by billable employees that are actually billed to clients. Aims to maximise billable time.
2. Realisation Rate – The percentage of total billable hours that are actually billed to clients. Measures billing efficiency.
3. Billable Hours Per Employee – Total number of billable hours worked per billable employee. Tracks employee productivity.
4. Repeat Business Rate – The percentage of revenue coming from existing vs. new clients. Important for growth.
5. Net Promoter Score – Client satisfaction and loyalty metric based on willingness to recommend the business. Highlights client experience.

Other potential KPIs could include:

• Average Project Margin
• Revenue Per Billable Employee
• Win Rate on Proposals
• Days Sales Outstanding
• Profits Per Partner

The ideal set of KPIs focuses on productivity, profitability, growth, client satisfaction and strategic goals. They provide ongoing insights into the health and performance of a professional services business.

Kevin Harrington Partner

Kevin Harrington is a Partner at Exit Factor UK, helping SME owners increase business value & build a rewarding, well-planned exit. Former CMO at BBC Worldwide.

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