For many service delivery leaders, utilization metrics provide clarity and peace of mind when it comes to the on-the-ground efficiency of their service offerings. But while utilization is an important KPI, it is too often treated as a primary field service success metric that directly reflects profitability.
The reality is much messier.
After all, it’s possible for high utilization rates and low growth rates to coexist, and this fact should concern anyone relying heavily on utilization data. The truth is that high utilization rates can mask other labor inefficiencies that are eating away at your company’s bottom line, and relying too heavily on these metrics can lead to blind spots and profitability issues that undermine your potential for growth.
My goal with this article is to give service delivery leaders a better understanding of a metric problem that is hindering many in the industry — and suggest a few solutions.