# What is the UxR efficiency formula?

**UxR** is Felix Velarde's three-part efficiency formula for agencies, from [Chapter 7 of *Scale at Speed*](https://2y3x.com/agents/book/scale-at-speed/chapter-7-processes/):

> **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](https://2y3x.com/agents/book/scale-at-speed/chapter-7-processes/) and [The 2Y3X Roadmap](https://2y3x.com/agents/method/2y3x-roadmap/).