6 Key Performance Indicators (KPIs) Professional Service Firms Should Track


“If you can’t measure it, you can’t manage it.”

Using NetSuite’s dashboard interface, executives track and compare their Key Performance Indicators (KPIs) in real time while comparing different time horizons. With NetSuite’s central database for all your business information, your data is easily accessible in one place, providing you with one version of the truth.

Many of our professional services clients use the below KPIs on their custom NetSuite Dashboard and KPI Scorecard.

1. Annual Revenue per Billable Consultant

Total Revenue/Number of Consultants

Revenue per billable consultant is key to tracking productivity. Compare this number against labor costs to get an overall view of your effective billable output. Depending on the industry, revenue per consultant should be roughly two-to-three times the full cost of that consultant.

2. Annual Revenue per Employee

Total Revenue/Total Number of Employees

Revenue per employee differs from revenue per billable consultant in that it measures overall organizational efficiency. Generally, the more non-billable employees an organization has, the less revenue each employee is bringing in. This KPI is important for determining the appropriate size of the organization and how resources should be distributed. This number highly correlates with overall organizational health.

3. Billable Utilization

Billable Hours/2,000

This KPI is an indicator of how well you are utilizing assets. It can be important in letting you know if you need to expand or contract, as well as how well you are maximizing opportunity.

4. Project Overrun

Budgeted Cost/Actual Cost

Project overruns kill profitability, in addition to limiting the launch of new projects. High overrun typically correlates with decreased customer satisfaction and indicates project management needs improvement.

5. Project Margin

Project Revenue/Project Cost

There are numerous ways for service organizations to bill their projects. Regardless of how you price your services, it’s vital to keep your margins above 40%. Low margins kill an organizations ability to invest in the future.

6. Sales Pipeline

Are there enough leads and prospects in your pipeline to meet your revenue goals? Are your sales teams generating enough opportunities and closing enough deals to achieve your revenue targets? Track your lead/prospects and the opportunities by status and estimated close date. Project a weighted revenue projection (estimation) based on the status in the pipeline. The Sales Pipeline is standard in NetSuite.

Modern marketing pioneer Arthur C. Nelson once said, “The price of light is less than the cost of darkness.” This couldn’t be more relevant today for professional services companies.

NetSuite is a comprehensive ERP/CRM program used by over 20,000 companies worldwide.  It is designed with dashboards and KPIs so that all your key data is available in real time.  Request a Free Trial Account and Demo

If you need help in setting up your NetSuite KPIs for your company, please contact us through our website

Trimtab Consultants LLC is a NetSuite Solution Partner who specialized in NetSuite sales, implementation, customization, and training.  We also have an exclusive automated training technology for our clients.