What are the key differences between BrainStore's Pay-What-You-Wish-Model and the classical Consultancy model?
BrainStore and the customer negotiate service specs based on a clear briefing. Value is provided. After receiving the results and the report the customers has 2 days of time to reflect on the value and to set the price. There is no minimum and no maximum price. The customer communicates the price and BrainStore sends an invoice.
The Classical Model is based on fixed day rates or hourly (which might depend on the level of seniority). The customer and the consultancy agree on a number of days/hours for the services to be provided.
The Pay-What-You-Wish model is very much in line with the mindset of Agile Working. At BrainStore, we work in cycles with clearly defined value increments. We set the scope of the next cycle based on the outcome and the experiences of the previous cycle.
The Consultancy focuses on large and long projects involving many consultants. This generates the most revenue. Not very lean in a fast-moving world.
The Pay-What-You-Wish model is very simple. The BrainStore partner is responsible for defining the scope of a cycle. The customer is responsible for reflecting on the value and setting a fair price. Collaboration can start and grow.
A full-scale agreement of the project scope needs to happen before you get started. This includes making many assumptions about scope, resources, and outcome. This is not very efficient in fast-moving environments.
Good preparation for a project creates substantial value for the customer.
Why prepare? Focus on selling is much more important.
The focus of collaboration is on creating value for the customer in a straightforward way. And having a good time doing so.
In the classical model the might be conflicting interests, when it comes to easy solutions. Making things look complicated and adding additional loops is good for business.
BrainStore shares know-how, processes, tools, and network access joyfully with the customers, knowing it provides value and will be considered in the value determined at the end of a cycle.
Consultants are hesitant to share internal processes, tools, and contacts with customers. It's not paid for, and there is a risk of losing business.
Pay-What-You-Wish leads to high mutual respect. BrainStore listens carefully and communicates transparently. The customer appreciates BrainStore's value and shows respect with quality inputs, feedback, and excellent remuneration.
There is a high risk of evolving into a employer → employee relationship.
BrainStore has a strong emphasis on ongoing R&D work. The better the findings, the more efficient processes and tools are, the more value can be created for the customer.
Why invest in research and development? We can't bill those hours.
Value is created by interaction, experience, listening, research, and applying robust, proven tools and processes created over the years.
My time is your money.
Changes to the project scope can be instantly integrated in the collaboration process.
Changes to the project scope can lead to lengthy discussions and might require renegotiation and reapproval of the agreement.
The Pay-What-You-Wish model is resistant to the larger economic situation. In times of recession, the honorarium is adjusted - when business is booming too.
The classical model can only adjust to the overall economic cycle with delays, and daily rates are adjusted only when pressure gets high.
With the Pay-What-You-Wish model, BrainStore has skin in the game for every customer project. As co-entrepreneurs of our customers, with share goals with our customers and are held accountable for the outcome. This leads to asking the relevant questions, also uncomfortable ones, and sharing uncomfortable recommendations.
Classical consultants have little skin in the game. Their invoices get paid independent of the quality of the outcome. Temptation is big to deliver results that please and not so much to deliver results that provide value.
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