The Four Metrics
Day Rates
How much revenue you’re earning per day of work delivered
Utilisation
What percentage of available time is spent on billable work
Capacity
How much working time is available for allocation
Efficiency
How actual delivery compares to estimates
How They Work Together
These metrics are interconnected and tell different parts of the profitability story:1
Capacity: The Foundation
Capacity defines how much time is available for work. This is the starting point for all other metrics—you can’t track utilisation or day rates without knowing available capacity.
2
Utilisation: Time Allocation
Utilisation shows what percentage of that capacity is being spent on billable client work. High utilisation means you’re making good use of available time.
3
Efficiency: Value Delivery
Efficiency measures whether you’re delivering work in the estimated time. High efficiency means you’re creating value faster than expected, which leads to better day rates.
4
Day Rate: The Bottom Line
Day rate is the ultimate profitability metric—it shows how much revenue you’re earning per day. It’s influenced by both utilisation (are you working on billable things?) and efficiency (are you delivering efficiently?).
Example Scenario
Here’s how the metrics work together in practice: Sarah’s February Performance:- Capacity: 18 working days × 6.5 hours = 117 available hours
- Utilisation: 88 billable hours logged = 75% (on target)
- Efficiency: Completed work 10% faster than quoted (banked time)
- Day Rate: £720/day across her clients
- Sarah has good time allocation (75% billable)
- She’s delivering efficiently (beating estimates)
- Her profitability is slightly under target (goal is £800/day)
- To improve day rate, focus on higher-value work or better estimates
Why These Metrics Matter
Understanding these metrics helps you:Track Profitability
Track Profitability
Day rates and efficiency show which clients are profitable and which are over-serviced. This helps you make informed decisions about pricing and scope.
Plan Resources
Plan Resources
Capacity and utilisation metrics show whether you have bandwidth for new work or need to hire. They help identify bottlenecks before they become problems.
Improve Delivery
Improve Delivery
Efficiency metrics highlight where estimates are off or where delivery can improve. This drives continuous improvement in scoping and execution.
Make Data-Driven Decisions
Make Data-Driven Decisions
Combined, these metrics give you objective data for decisions about:
- Which clients to prioritise
- Where to focus improvement efforts
- When to raise prices or renegotiate contracts
- Whether to hire or redistribute work
Target Benchmarks
CharleOS uses industry-standard targets for each metric:| Metric | Target | What It Means |
|---|---|---|
| Day Rate | £800+ | Profitable delivery with healthy margins |
| Utilisation | 75% | Good balance of billable and internal work |
| Capacity | 6.5 hours/day | Realistic productive time (accounts for meetings, admin) |
| Efficiency | 100% | Delivering work in the estimated time |
These targets aren’t rigid rules—they’re guidelines. Different roles, clients, and phases may have different healthy ranges. The key is understanding trends and making informed decisions.