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Mastering Utilization and Capacity Planning for Agency Profits

Mastering Utilization and Capacity Planning for Agency Profits

Released Wednesday, 24th January 2024
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Mastering Utilization and Capacity Planning for Agency Profits

Mastering Utilization and Capacity Planning for Agency Profits

Mastering Utilization and Capacity Planning for Agency Profits

Mastering Utilization and Capacity Planning for Agency Profits

Wednesday, 24th January 2024
Good episode? Give it some love!
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  • 0:00-2:00  –  Introduction to the solo cast episode focusing on utilization rates, emphasizing its significance for agencies.
  • 2:00-6:00  –  Historical context of utilization, highlighting its relevance in the billable hour era and its evolving role in the modern agency landscape.
  • 6:00-11:30 – Challenges in measuring utilization, emphasizing variations in defining billable hours and capacity, hindering benchmarking efforts.
  • 11:30-15:00 – Emphasis on a comprehensive management framework and the interconnectedness of utilization with financial metrics.
  • 15:00-18:00 – Discussion on the impact of utilization on agency profitability and the absence of a universal benchmark.
  • 18:00-22:30 – Introduction to the Parakeeto framework and its consistent approach to calculating utilization within a broader context.
  • 22:30-26:00 – Insight into utilization as a lever affecting delivery margin, with examples highlighting potential discrepancies in profitability.
  • 26:00-30:00 – Exploration of the formula for utilization, defined as delivery hours over capacity, with detailed explanations of each component.
  • 30:00-34:00 – Importance of considering delivery hours over billable hours in the context of utilization, using examples to illustrate profitability discrepancies.
  • 34:00  – End Conclusion on the significance of a thoughtful and consistent metric aligned with a broader management framework, with a focus on the flexibility of the Parakeeto framework.

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