Technical Staff and Firm Finance Calculations

Practice Management
1

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

2

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.