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 a particular professional service firm with
respect to these key performance indicators depending 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.

The paper was presented at the International System Dynamics Conference (ISDC) 2009.

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