For the Agency Business to Live, the Billable Hour Must Die
The agency business isn’t dying from lack of innovation – it’s suffocating under the weight of the billable hour. Professional firms can’t compete for top talent or scale their profits when their revenue is tied to time instead of value. To survive, agencies must abandon the hourly rate and reimagine their work as scalable products and programs – decoupling growth from headcount and creating true exponential potential …
The Unscalable Business Model
The faster you work, the less you earn. The more productive you become through investments in technology and training, the less you can charge. The expertise, intellectual capital and intellectual property you accumulate can never be directly monetized. Welcome to the world of professional service firms that bill by the hour. Meet the unscalable business model. But it doesn’t have to be this way …