Utilization in consulting is a crucial metric, because management needs to understand how much time staff members are spending doing billable tasks versus non-billable tasks. Billable utilization and average hourly rate are mission-critical for the financial health of a company.
Many organizations distinguish between Billable Utilization and Productive Utilization (overall utilization including marketing, sales, general management, training, internal projects, etc.)
Utilization is key to overall organizational profitability and productivity. Utilization should be examined in conjunction with overall revenue
per person. Usually, the biggest driver of capacity utilization is the maturity of the business development process (marketing, sales, recurring revenue).