Maister, 1982 - Economics - How are revenues generated?

5 important questions on Maister, 1982 - Economics - How are revenues generated?

In terms of generating revenues, what is the relevant variable?

Billing rate (fee) * hours (fee increases with level)

How much precent do the juniors and the partners generate of the revenue in this example?

Juniors: 49%
Partners: 20.4%

What percentage of the compensation do the juniors receive, and what do the partners receive?

Juniors: 30.6%

Partners: 38.8%
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What are partner's rewards derived from?

From the firm's ability, through its project team structure, to leverage the professional skills of the seniors with the efforts of the juniors.

How can a Junior give corporate advice? List the 1 reasons

  1. Through expertise and guidance of seniors in projects
    1. Thus, the client pays more than the Junior's rate

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