Let’s kill the billable hour. Love the thought. (Although I even brought it to the my current employer to have some form of measurement).
Filling in the hours is in my system now (took a while), but I hate to write down my hours into the billing system. There is a fundamental flaw in doing so. And this guy Jon Lax is explaining this perfectly, where it came from, what is wrong with it and not so much how it can be done.
My personal thoughts on this:
We can measure costs (the billable hour). The input part of the equation. But it is way more difficult to explain ‘value added’. This can be done with a different models:
- no cure no pay
- dependent on the sponsor to make the indication (pay what you want)
- fixed price.
- percentage of extra sales from base
The most important thing stays: culture. If you manage on time it is the most important metric instead of quality and adding value.