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What one consultant earns for the firm, and what 10 points of utilization cost

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

Harbourline Advisory (a fictional firm in Singapore) has a consultant available for 1,800 hours a year, billed at a standard rate of USD 250 an hour. The firm collects 90 percent of its standard fees (realization). The consultant costs USD 150,000 a year in pay and benefits. What is the yearly contribution at 70 percent utilization, and what happens if utilization falls to 60 percent?

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

Contribution = fees collected minus the cost of the person
- Fees collected = available hours x utilization x billing rate x realization
- Cost of the person = pay and benefits (paid whether or not hours are billed)
- Test the change: redo the fees at the new utilization, cost unchanged

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Hours billed at 70 percent
What a strong candidate does: 1,800 available hours at 70 percent.
Hours billed: 1,800 × 0.7 = 1,260
Step 2: Fees collected at 70 percent
What a strong candidate does: 1,260 hours at USD 250, and 90 percent of it collected.
Fees collected (USD): 1,260 × 250 × 0.9 = 283,500
Step 3: Contribution at 70 percent
What a strong candidate does: Fees minus USD 150,000 of pay and benefits.
Contribution (USD): 283,500 - 150,000 = 133,500
Step 4: Contribution at 60 percent
What a strong candidate does: 1,080 hours billed, the same rate and realization, the same pay.
Contribution at 60 percent utilization (USD): 1,800 × 0.6 × 250 × 0.9 - 150,000 = 93,000
Step 5: How much contribution is lost
What a strong candidate does: The fall in contribution as a share of the starting contribution.
Fall in contribution (fraction): (133,500 - 93,000) ÷ 133,500 = 0.3034

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

Harbourline should treat utilization as its first profit lever, because a fall from 70 to 60 percent cuts this consultant's contribution by about 30 percent, from USD 133,500 to USD 93,000. First, fees fall by USD 40,500 while pay stays at USD 150,000, so the whole fall lands on profit. Second, a rise in the rate or in realization of a few points would not make up for it. The risk is pushing utilization so high that people have no time for training or selling. As a next step, track weekly hours on the bench (not billed) by level and office.

Risks a strong answer names: Very high utilization burns people out and raises attrition; Discounts to win work lower realization, which hides behind good utilization figures.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.