Managing resources is all about balance. You don‘t want people sitting idle, but you also don‘t want them overloaded and burned out. The best way to keep things under control is by tracking a few key KPIs (key performance indicators). These metrics give managers real visibility into how their team is performing, where problems might be hiding, and what adjustments are needed before it‘s too late.
Utilization rate
Utilization shows how much of a person‘s time is spent on productive, revenue-generating work. For example, if a consultant bills 30 out of 40 hours, their utilization is 75%. Too low = wasted potential. Too high = burnout. A healthy balance is somewhere in between. Best practice: check this weekly to spot problems early.
📚 Learn more: Resource utilization: Strategies and calculation
Billable vs. non-billable hours
It‘s tempting to think only billable hours matter, but non-billable time (training, planning, team meetings) is what supports growth and long-term efficiency. If your team is drowning in admin tasks, productivity suffers.
📚 Learn more: Billable vs. non-billable hours: How to increase your profits
Revenue per resource
This KPI shows how much income each person generates. If revenue per employee dips, ask why. Are skilled employees stuck doing low-value tasks instead of client work? This metric is an early signal of efficiency issues.
📚 Learn more: Professional services revenue recognition: Examples & methods
Planned vs. actual workload
Plans look neat, but reality rarely matches. If someone is planned for 20 hours and ends up working 35, that‘s a red flag. Tracking this helps create more realistic schedules and prevents recurring overload.
Project profitability
A project delivered on time but barely breaking even is not a success. Always compare costs vs. revenue, not just deadlines, to see if projects are truly worth the effort.
Resource forecast accuracy
Forecasts are only useful if they‘re accurate. If your estimates are always off, refine them by reviewing past projects. Example: consistently underestimating development hours means you need to adjust future projections.
Resource availability and allocation
Before saying yes to new work, check who actually has capacity. Availability rate shows how much room is left, while allocation effectiveness highlights if the right people are on the right tasks. Don‘t waste your best designer on data entry.
You don‘t need to track dozens of KPIs. Start with utilization, profitability, and availability. Once those are stable, expand to others. Tools like Birdview PSA bring all these numbers together in one place, giving managers real-time visibility into workload, costs, and performance so teams can focus on delivering their best work.
