Why your project looks profitable — until it isn't
Most consulting firms discover margin problems at project close, not during delivery. The culprit is a combination of delayed time reporting, incorrect overhead allocation, and optimistic revenue recognition.
The utilization trap: why 100% billable isn't always good
Firms that optimize purely for billable utilization often damage quality, increase attrition, and paradoxically reduce profitability. The real metric is effective utilization — the balance point where margin, quality, and sustainability intersect.
Spreadsheet profitability: the €50K blind spot
Excel-based project tracking creates systematic errors that compound across a portfolio. The average mid-size consulting firm has a 5–8% margin miscalculation across their project portfolio — often representing €50K+ in phantom profit.
Why consulting firms lose money on their best clients
The clients that generate the most revenue are often the least profitable. Relationship pricing, scope creep tolerance, and "strategic account" discounts systematically erode margin on key accounts.
The bench problem: idle capacity costs more than you think
Unallocated team members cost the firm their full loaded cost while generating zero revenue. Most firms don't quantify bench cost because it's invisible in project-level reporting.