Did you deliver value? Did you have a $10,000 day?

By | April 23, 2014

Consultants, lawyers, accountants bill for time. For good or bad, the traditional time and expense way of billing still prevails. This means that your time is valuable to you (as a professional) and to the client (as an expense). Every hour that you bill, the client pays out of their profits. Every dollar you bill hurts their bottom line. . . unless you deliver more value.

Bill rates differ considerably by staffing leverage and type of work. That said, it’s not unrealistic that you are billing $250 a hour, working 8 billable hours a day, then you are likely billing $2,000 per business day. Continuing with that logic, if client gets a 5x return on your work = you need to deliver $10,000 of value a day. Isn’t it reasonable for the client to get a good return on your efforts?  After all, they are paying your fees out of their profits.  Their staff is committing their time. Opportunity costs.

Consulting value

Sure, there are caveats.  

  • The results are not immediate. Results cannot be guaranteed.
  • The results are subject to “implementation” and variables not within your control.
  • Strategy work does not translate immediately into a metric.
  • Risk management avoids a potentially expensive thing in the future.
  • Change management is needed, but does not immediately translate into revenues.
  • Technology enables savings, but involves lots of fixed cost up front.

I get all that.  The question remains, did you have a $10,000-worthy day?

Dollars

 

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