What is the UxR efficiency formula?

UxR is Felix Velarde's three-part efficiency formula for agencies, from Chapter 7 of Scale at Speed:

Utilisation × Recovery = Efficiency

• Utilisation = the proportion of available billable hours actually worked on projects, products or services. Requires timesheets per person per project.
• Recovery = the proportion of those worked hours that are actually billed to the client (vs written off as scope creep, internal time, or unbilled out-of-scope work). Requires accurate billing data.
• Efficiency = the product of the two.

A team with 75% utilisation and 80% recovery is running at 60% efficiency. The lever you can move depends on which factor is the weak one — Utilisation problems are typically resourcing or sales-pipeline issues; Recovery problems are typically scope, change-control or commercial issues.

Implementing timesheets is usually one of the earliest Process tasks on a 2Y3X Roadmap, because almost every other operational measurement depends on it.

See Chapter 7 — Processes and The 2Y3X Roadmap.