Utilization Isn't the Enemy - But the Way You Frame It Might Be

Utilization continues to be one of the most debated and emotionally charged metrics in professional services. Ask ten leaders how they feel about it, and you'll get ten different answers - ranging from "it's the only number that matters" to "it's destroying our culture." That tension isn't a coincidence. 

For many consultants and practitioners, utilization isn't just a performance metric, it's a source of anxiety. When it's tied tightly to promotions, rankings, and job security, it stops being a business signal and starts feeling like a threat. People stop asking "how can I best serve my clients?" and start asking "how do I hit my number?" A subtle but damaging shift.

In our recent webinar The Utilization Dilemma we looked into the matter with two experts David Binnings, Sr. Director, Services Strategy & Operations at Docusign, and Beth Hunter, Resource Experience Management Leader at Rehmann - why this happens and how to turn the tide. Watch the full webinar or keep reading. 

The problem with utilization

According to David, the key pain point of utilization is that what goes into the utilization rate number is often misunderstood and not transparent across different teams (consultants, delivery managers, leaders, finance).

Because each group looks at utilization for its own purpose and doesn’t share a clear, common understanding of:

• How it’s built
• What is included/excluded
• Why it’s designed that way

You get conflict, confusion, and strong emotions - some people want to throw the metric out, others insist it’s critical. That lack of shared definition and visibility is, for David, the core problem.

Beth highlights that different groups use the same number for very personal, high‑stakes purposes:

• Finance looks at utilization to tie it directly to money – revenue, profitability, and how the firm is tracking financially.
• Consultants look at it as a mirror of their personal performance and position vs. peers, especially in “up‑or‑out” environments (promote or be fired, bell-curve ratings, etc.).

Because it becomes a reflection of “how am I doing compared to others, and will I survive here?”, Beth says nothing is more personal than that kind of mirror. This is what makes utilization emotionally charged, fuels competition and fear, and creates the strong tension around the metric.

Utilization is often framed as both a business measure and a deeply personal signal for individuals - which is why people are so passionate and sensitive about it.

4 shifts that make utilization less scary 

Here are four practical shifts that can transform utilization from a source of dread into a genuinely useful management tool.

1. Stop treating utilization as the make‑or‑break metric

Utilization is one signal, not the whole story. When it becomes the only thing that matters in a performance review, it crowds out everything else that actually makes a consultant valuable. Use it alongside other measures such as:

• Customer satisfaction (CSAT, NPS)
• Time to value / how quickly clients see outcomes
• Business development
• Practice development / teaching and training others

The goal isn't to make utilization irrelevant. It's to make sure performance conversations shift from "did you hit the number?" to "did you create value for clients and the business?" That's a very different conversation, says David.

2. Change the narrative: from “be busy” to “be productive and helpful”

There's a subtle but important difference between filling hours and using them well. When utilization is framed purely as a number to chase, consultants naturally start asking, How do I get my utilization up? - which is the wrong question entirely.

The better question is: How can I best serve this client with the time I'm spending?

That reframe turns utilization from a measure of busyness into a measure of intentionality. Time that is genuinely valuable to a client will show up in the numbers - but it will also show up in referrals, renewals, and reputation. Those things matter too.

3. Remove “up‑or‑out” fear dynamics

A lot of utilization anxiety isn't really about the metric itself. A big part of the fear comes from cultures where:

• Promotion vs. termination is tied tightly to utilization and rankings.
• People are constantly comparing: “Where am I on the bell curve?”

The constant mental comparison - Where am I on the bell curve? Am I safe? - is exhausting and counterproductive.

To reduce fear, Beth highlights, firms need to look honestly at their underlying culture. Her advice is to: 

• Move away from up‑or‑out models and pure ranking cultures
• Make utilization a supportive signal, not a weapon
• Emphasize growth, learning, customer impact, and mentoring as equally important

4. Make the model transparent and co‑created

Much of the fear around utilization also comes from ambiguity. People don't always know what counts, how targets were set, or why the denominator is what it is. That uncertainty fills in with anxiety.

Transparency helps. So does involving the right people in designing the model - finance, senior leaders, resource managers, HR, and the consultants themselves. When the people being measured help shape the measurement, the metric starts to feel shared rather than imposed.

At a minimum, firms should publish a clear, simple explanation that covers:

• The denominator - whether that's 2,080 hours or a local equivalent
• What's included and excluded - how PTO, holidays, training, and internal work are handled
• What the real expectations are - not just the target number, but the spirit behind it

When everyone is working from the same understanding, utilization becomes a shared language rather than a hidden scorecard.

Continue reading about utilization: 

• 5 Ways to Use Utilization Data to Drive Operational Efficiency
• How to Build & Read a Utilization Report
• 7 Best Resource Utilization Tools Reviewed