Consulting Best Practices

Learning Book-to-Bill Ratio

Information from across the business spectrum has value to consultants. In a post at Consultant’s Mind, John Kim succinctly discusses a piece of information used in business-to-business marketing called the book-to-bill ratio. Basically, this ratio tells you if business is on the upswing or the downswing. It is calculated by dividing bookings/orders by billings/revenue. A ratio above 1 spells good news for the business and vice versa.

In the context of consulting, Kim says a ratio above 1 means you should keep hiring and investing. When the ratio falls above 1 is when you should take careful stock of your situation. For further thoughts, you can view Kim’s post here:

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