A simple and and versatile metric that indicates the efficiency and effectiveness of a pro-services company.
Annual-revenue-per-billable-employee is an awesome metric because it's so simple and versatile. It can be used to benchmark a team of any size across a wide variety of companies in the services industry. Whether it's a digital agency, a custom software shop, a mobile development team, or a design studio - any pro-services team can use annual-revenue-per-billable-employee to many depicts the service organization’s total revenue divided by the number of billable consultants. Alternatively, this metric is derived by multiplying the consultant’s average bill rate times billable hours. Revenue per consultant provides an indication of consultant productivity; the likelihood the firm will be profitable is foretold by the labor multiplier.