I am reviewing past week’s (9/2/25) Virtual Workshop “Evaluating a Firm’s Financial Metrics [Exercise A]”.
Question 1 in part 2 asks for a utilization rate calculation for “technical staff members”. I have an understanding that there is a distinction between the office manager and other three staff members in terms of “technical staff” as a term, but I am struggling to know when to count principles as technical staff and when not to count them as technical staff. The example in this particular virtual workshop was based on a firm size of 4.
Is there a clear rule of thumb that can be applicable to multiple scales when looking at these kinds of documents and scenarios?
Thank you!
ps. I haven’t been able to find a reference defining this further in AHPP. If there is one that I am overlooking or that is in another text, I would love to know as well.
@coachphilipcolwell @coachthomasmasino
Take a look starting at bottom of page 292 to 297 of AHPP. There is a clear distinction between “technical staff” versus “administrative staff”. Think of “technical staff” as professionals with specialized skills that have a direct net service revenue per employee (i.e. generate revenue for the firm, regardless of their level - principal, architect, designer, etc.). The “administrative staff”, while critical, their role is part of the general overhead expense for the firm.
@coachphilipcolwell The distinction between technical staff vs administrative staff is clear. What is not clear is whether or not a principal can be considered ‘technical staff’.
Per HESA, “Technical staff are those who are employed to use specialised knowledge of techniques, tools, and technology. They make practical contributions to teaching and learning, research, innovation, and enterprise activities”.
What’s a technician, anyway? Developing a definition of technical staff | HESA
I would consider a principal (or anyone who is technically trained as a professional) part of the “technical staff”.
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HESA is the ‘Higher Education Statistic Agency’ in the UK. I don’t know if this is a reliable source for the ARE. Their definition of ‘Technical staff’ is not in relation to a principal in an architecture firm. According to AI: In an architecture firm, a principal in an architecture firm is not typically classified as ‘technical staff’. While they have deep technical knowledge, their primary role is high-level leadership and business management, which differentiates them from the technical staff who focus on day-to-day project execution. I would tend to agree. I would not classify a principal in an architecture firm, ‘technical staff’.
While there is not a definition for “technical staff” outlined in AHPP, which is a reference from NCARB, think of “technical staff” as the ones who have a direct net service revenue for the firm. AI is not a reliable source, and I would respectfully disagree, as I am a principal of a firm. While I do pursue clients and work on RFP/RFQ’s, I also work on projects and generate revenue for the firm, so I don’t think you can say that they are not technical staff (hence, if you recall, a principal’s utilization rate is typically around 40%).
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@coachphilipcolwell Upon closer examination of the AHPP, the ‘Backgrounder’ on p.417 for Key Financial Performance Indicators (Metrics) has a note under 1. Utilization Rate that says, ‘Professional - technical staff, including principals: 75%-80%’. This is the closest I’ve come to a reliable source that hints at a definition.