ABSTRACT

As to the size and shape of an organisation, an examination of the databases of professional organisations finds that there is an optimum ratio for maximising profit between the number of fee earners, technical support and administration staff. The ratio changes over time and needs to be regularly updated. This ratio can be applied to engineering consultancies and then to other professions. The ratio has changed over the years as technology has reduced the need for the latter categories using software as a replacement. The ratios can be applied to the medical professions, engineers, solicitors and accountants. One very large professional engineering consultancy firm with a surprisingly out of skew ratio and consequent poor profitability was forecast to go into administration, and it did a few years later as the problem was not addressed.