The 2080 Rule for Professional Service Firms

Partners & Principals in Profitable Professional Service and Consulting firms know these rules and metrics:

  • 2080 Baseline
  • 3x+ multiple
  • Utilization rate
  • Realization rate

Every month these firms update the answers to the following questions:

  • What is the revenue generating capacity of our current team?
  • How do we know when we can add staff and maintain profit margin goals?
  • How do we know when we should reduce staff to avoid losses?

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