Data from a Consultancy Firm - How to model?

Questions about the implementation and application of the PLS-SEM method, that are not related to the usage of the SmartPLS software.
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Grydgaard
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Data from a Consultancy Firm - How to model?

Post by Grydgaard »

Hi,
I have som interesting data from a Consultancy Firm, which I want to model. I know it is a rookie question, but hiw can the following variables be modelled?

Variables (Data point per quarter):
  • Revenue Growth (Percent)
    Number of Clients (#)
    Sales Activity (Percent of hours spent on sales work)
    Chargeability (Percent of hours charged to clients)
    Headcount Change (#)
    Recruiting (#)
    Attrition (Percent of headcount who left the company)
    Employee Satisfaction (Percent)
From common sense and simple data analysis I can see the links:
Level 1:
Revenue = A1*Chargeability*Headcount + A2*Number Clients
Level 2:
Headcount = A3*Recruiting - A4*Attrition
Number of Clients = A5*Sales Activity
Level 3:
Attrition = - A6*Employee Satisfaction

How can I model this? All variables I measure the change from quarter to quarter to have same standard in measurement.
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