UtilizationDefinition: (Billable Days in period/Potential Billable Days in Period)Complicating Factors:• Denominator is adjusted for days that are not potentially billable (vacation, sick, etc.)• Denominator can not exceed 5 days/week.• Individual CAN be > 100% utilized. If a person is legitimately billable six days/week (anything over 5), then they will exceed 100% utilization• Definition of Billable may vary by client – e.g. Fannie Mae caps an individual at 40 hours per week. That could be 4 10 hour days, or 5 8

hour days … or 5 16 hour days – which will get adjusted down to 40 hours for the week.• BVS accounts are treated like a normal KT account, hours are capped at 8 hours/day, not 40 hours per week. E.g. on a BVS account, if you

work 4 10 hour days and fly home the 5th day, that is (4/5) 80% utilized.

Definition: (Billable Days in period/Potential Billable Days in Period)Complicating Factors:• Denominator is adjusted for days that are not potentially billable (vacation, sick, etc.)• Denominator can not exceed 5 days/week.• Individual CAN be > 100% utilized. If a person is legitimately billable six days/week (anything over 5), then they will exceed 100% utilization• Definition of Billable may vary by client – e.g. Fannie Mae caps an individual at 40 hours per week. That could be 4 10 hour days, or 5 8

hour days … or 5 16 hour days – which will get adjusted down to 40 hours for the week.• BVS accounts are treated like a normal KT account, hours are capped at 8 hours/day, not 40 hours per week. E.g. on a BVS account, if you

work 4 10 hour days and fly home the 5th day, that is (4/5) 80% utilized.

Example 1: • Jim flys to client site on Monday (not billable), facilitates Kaizen event Tuesday – Friday (billable). • Jim’s utilization for that week is (4/5) = 80%

Example 2: • Mary provides billable support/mentoring to client Black Belts Monday through and including Saturday.• Mary’s utilization for that week is (6/5) = 120%

Example 3: • Pete provides billable support/mentoring for a client Monday & Tuesday, is sick on Wednesday & Thursday and

works on an internal SSA project to update training material on Friday & Saturday.• Pete’s utilization for that week is (2/3) = 66%• Note the two sick workdays are removed form the denominator.

Example 3: • Pete provides billable support/mentoring for a client Monday & Tuesday, is sick on Wednesday & Thursday and

works on an internal SSA project to update training material on Friday & Saturday.• Pete’s utilization for that week is (2/3) = 66%• Note the two sick workdays are removed form the denominator.

Effective Daily RateDefinition: (Amount Billed/Number of Billable Days)Complicating Factors:• Does not apply to Shared Value accounts• Some clients apply a cap of 40 hours billable per week, rather than 8 hours per day.

Definition: (Amount Billed/Number of Billable Days)Complicating Factors:• Does not apply to Shared Value accounts• Some clients apply a cap of 40 hours billable per week, rather than 8 hours per day.

Example 1: • Agnes flys to client site on Monday (not billable), facilitates Kaizen event Tuesday – Friday (billable) @ $3,500/day. • Total amount billed = $14,000• The Effective Daily Rate is ($14,000/4) = $3,500

Example 2: • Vlad provides billable support/mentoring to client Black Belts Monday @ $2,000, GB training Tues-Thurs @ $4,000

and flys home -non-billable) Friday• Total amount billed = $14,000• The Effective Daily Rate is ($14,000/4) = $3,500

Example 3: • Paulina works 12 hours M-T on the FannieMae account @ $2,750/day and Friday delivers an executive summit for

another client @ $6,000/day• Total amount billed = $17,000• The Effective Daily Rate is ($17,000/5) = $3,400