Utilization target
A utilization target is the planned share of a role's available hours spent on billable client work, used as a capacity planning input. Hydra plans delivery roles at 65% to 75% and leads and account managers at 50% to 60%. A model built at 85% shows up later as unpaid overtime or dropped quality.
The target is set per role rather than per agency, because coordination time is unbillable and unavoidable, and it lands unevenly. A lead who runs standups and reviews work cannot bill like a producer.
Keep the target out of performance reviews. The moment people are judged on it, recorded hours drift toward the number and the capacity model built on them stops being true.
Covered in depth
Agency utilization rate: the target, how to calculate it, and why 100% is a warning signRelated terms
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