In small consulting firms, “busy” is often treated as a sign of healthy performance. When calendars and timesheets are full, business should be booming but margins don’t always follow suit. The uncomfortable truth is that high utilization doesn’t automatically equal profitability. For growing firms, the real risk isn’t idle time. It’s misdirected time, where effort […]
Most consulting engagements are sold with a margin model that makes sense on paper. You’ve estimated the hours, assigned roles, built a realistic timeline, and set a blended rate that produces a healthy profit. But somewhere between kickoff and the final invoice, something shifts. The project starts consuming more senior time than expected, and a […]
Many small consulting firms discuss profits monthly or quarterly, after finance closes the books and distributes reports. But by the time partners review the numbers, it’s already too late to do anything about them. In consulting, revenue and margin are created (or destroyed) in real time, inside active client delivery. Yet many consulting leaders still […]
