Hack:
2P Model of enagagement

Companies could experiment the "Pay for Performance" model in which the customer gains the value upfront and based on the value they could decide on the amont to be paid. This opens up a completely different approach in the way services are provided to the customer.

Traditionally, companies set  the rate before the work is done.  With the 2P experiment, I intend to turn this model upside down. Instead of quoting a standard rate, the client would determine my fee after the work was done.

Innovation can be of three levels:

 

• Level 1: Innovation as an event
• Level 2: Innovation as a process
• Level 3: Innovation as a system 

From my experience, most organizations are at the first level where their innovation efforts are nothing more than a series of ad hoc events.  These events can be brainstorming sessions that produce walls of flip charts and Post-it notes.  In some cases, these events can produce incredible value.  But you know, as well as I do, that most of these sessions typically only serve two alternative purposes: 1) killing time, and 2) creating more trash for landfills.

 

Conducting a speech is another such ad hoc event.  Customers hire someone to pump up the organization with information and motivation.  But once the buzz of the keynote subsides, it is business as usual.  There is nothing sustainable about the event and it ends up being a nice memory with perhaps some cool photographs.

 

Instead of treating innovation as a one-time event, the opportunity lies in treating innovation as an end-to-end process.  This allows it to become repeatable.  It gives it some level of predictability.  And it affords you the opportunity to manage and measure the process.

 

Eventually, after becoming masterful at the process level, innovation can emerge at a more organic level, allowing it to flourish without the need for well-defined processes.

Constant reinforcement helps produce sustainable results.  Although the revenue  could be incremental, it keeps the company in front of the client for a long period of time and they view it as someone who is committed to their success.  This inevitably leads to more work down the line.

 

This concept can be applied to any practice.  If you are a dentist, don’t just sell bi-annual teeth cleaning; offer a complete tooth maintenance package.  If you are a plumber, don’t just fix the toilet, but offer a warranty program that gives customers “peace of mind.”  If you are a landscaper, don’t simply mow their lawn; define a process for keeping their entire yard looking amazing.

 

The key is to avoid becoming an order taker.  When a potential client asks you how much your service or product will cost, step back and ask yourself, “What would create the greatest value?”  What is an outcome I want to help them achieve?

 

Oscar Wilde was correct.  Buyers don’t know what is in their best interest. When we create exponential value for them, we invariably create value for ourself.