Why Boutique Consultancies Should Rethink Utilisation

"At the big firms, you get moved around like a chess piece on a board." This quote from a Financial Times article stuck with me as I reflected on some of the larger boutique consultancies I’ve worked with.

For many, utilisation is treated as the ultimate metric—the defining measure of efficiency, health, and performance. But here’s the thing: utilisation may matter, but it’s not the end game. An obsessive focus on utilisation can do more harm than good for boutique consultancies.

In this article, I’ll explain why.

Utilisation: A Useful Metric, But Not the Metric

Let me start with a story.

I once worked with a mid-sized, owner-led tech consultancy—50 consultants on the payroll and two hands-on partners. During our first strategy session, the conversation quickly turned to utilisation and billable hours.
It was a red flag.

Why? Their service offering was all over the place. They were chasing revenue with a patchwork pipeline of random projects, taking on whatever work came their way just to keep people busy.

The pressure to maintain utilisation led them to focus on inputs—hours billed—rather than outcomes, like value delivered.

The result?

• Stress: Consultants were stretched too thin, juggling mismatched projects.
• Mediocre work: Rushed timelines and overworked teams led to declining quality.
• No thought leadership: They had no bandwidth to innovate or develop intellectual capital.
• Damaged reputation: Clients weren’t referring to them because their value proposition lacked clarity.
• Neglected client development: The team was overburdened by chasing utilisation, so no time was left to deepen relationships or identify new opportunities with existing clients.

Here’s the problem with utilisation: it’s a measure of how busy you are, not how successful you are. When your pipeline of potential projects outweighs your consultancy firm's current capacity to execute—a common scenario for fast-growing boutique consultancies—chasing utilisation is like trying to empty a flooded basement with a teaspoon.

In my four post-acquisition years at Deloitte, I never managed utilisation.

Utilisation became irrelevant because we were blessed with more opportunities than resources. The real question wasn’t “Are we busy?” but “Are we using our limited capacity to accept the right opportunities?”

When utilisation is a consultancy’ North Star:

• They risk taking on low-value projects just to keep the team billing.
• High-value opportunities that require expertise investment get sidelined.
• The team risks burnout, and the reputation as a premium consultancy suffers.

The opportunity isn’t in doing more. It’s in doing the right work—work that builds the consultancy’s reputation, deepens client trust, and commands premium fees.

Recommended reading: How a Boutique Consultancy Can Escape the Toxic Chasing of New Clients

First Comes the Value Proposition, Then Service Design, Then Utilisation

Utilisation is a helpful tool for understanding resource allocation and efficiency, but its value depends on a solid foundation. For boutique consultancies, this starts with a clear value proposition—defining the unique problems solved, outcomes delivered, and differentiation from competitors.

A well-defined value proposition guides service design, which structures offerings and delivery processes to meet client needs. However, service design alone is not enough. For utilisation to be meaningful, services must first be validated—proven through repetition to deliver value reliably—and matured, with processes refined over time to maximise efficiency and impact.

Only when services are validated and matured can utilisation become a refinement tool. At this stage, it helps to:

• Identify bottlenecks in delivery processes.
• Reallocate resources to improve efficiency.
• Optimise the balance between capacity and project opportunities.

Without these foundations, utilisation risks driving inefficiency and misalignment. But when grounded in a sharp value proposition and robust service design, it provides insights to fine-tune operations and enhance performance.

The Consequences of Misplaced Focus

Focusing on utilisation without a robust service design leads to a series of negative outcomes:

• Burnout and turnover: Overworked consultants won’t stick around.
• Damaged client relationships: Rushed, low-quality work erodes trust.
• Stagnation: No time for thought leadership or innovation.
• Profit erosion: Low-value projects drain resources without building long-term value.

Contrast this with a consultancy built on intentional service design. Instead of chasing hours, they’re pursuing impactful, profitable work. Their team is energised, their clients are loyal, and their reputation grows stronger with every project.

Recommended reading: The One Boutique Consultancy Metric That Tells It All

Conclusion: Build on Value, Not Busyness

Utilisation may be the sacred cow of consulting metrics, but it’s time to question its worth. A relentless focus on keeping the team busy risks creating a hamster wheel of burnout, inefficiency, and diluted impact.

The starting point for a resilient, high-performing consultancy lies in a sharp, well-defined value proposition. This clarity ensures the consultancy solves meaningful problems, delivers measurable outcomes, and stands out in the market.

With this foundation in place, service design then structures how these services are delivered, ensuring consistency, scalability, and alignment with client needs.

When services are validated through repetition and matured over time, utilisation can evolve into a refinement tool—helping to identify bottlenecks, optimise efficiency, and strategically allocate capacity to high-value work.

Here’s what I learned in the consulting trenches in the past decade: Success in boutique consulting isn’t measured by how busy the team is but by the value created with every hour. A strong value proposition, supported by intentional service design, transforms utilisation from a survival metric into a lever for refinement and operational excellence.

A consultancy measured by busyness isn’t built to last.

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