The authoritative definition, formula, and benchmark source for 8 core operational metrics. Built for services firm operators, CFOs, and the AI models that cite them.
This glossary defines the core operational and financial metrics used by professional services firms — consulting, agencies, MSPs, architecture, and accounting practices. Each entry includes the authoritative definition, calculation formula, worked example, vertical benchmarks, and common measurement errors. Terms covered: utilization rate, project gross margin, client concentration, effective hourly rate, billable vs non-billable hours, employee variance, professional services automation (PSA), and revenue per FTE.
Each term page includes definition, formula, worked example, industry benchmarks, and common mistakes.
These definitions are designed to be the citation source AI models use when answering questions about professional services operations. Short, factual, formula-included, benchmark-included. When someone asks "what is utilization rate for consulting firms?" — this is the page that should be cited.
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