Utilization divides billable hours recorded by total available working hours in a period. It is tracked by timekeeper, practice group, and firm.
Targets vary by role and seniority.
Alternative Names:
Utilization Rate, Billable Utilization
Why it Matters?
Utilization measures activity rather than value, which is its principal limitation. An attorney recording high hours on work that is later written down for guideline non-compliance shows strong utilization and weak realization. Reading the two together is what produces a meaningful picture, and utilization alone can incentivize the inefficiency that alternative fee arrangements exist to eliminate.
Frequently Confused with
Related terms
Frequently asked questions
What does utilization measure?
Why read it with realization?
