Abstract for: Key performance indicators in professional service firms - a dynamic perspective

Four major factors affect the performance of project based professional service firms: The ratio of senior to junior staff referred to as the firm's leverage, the average fee charged per unit of time, the percentage of billable time referred to as utilisation, and the profit margin. This paper takes a holistic approach to analysing the performance of these KPI's at a particular professional service firm based on the time senior staff allocates to the following tasks: Project acquisition and delivery, contact and customer maintenance, service innovation and development and hiring junior staff.