Hourly billing hates Productivity

by Sep 27, 2022

Why hourly billing isn’t working anymore.

It hates productivity. There is no incentive to improve it.

Suppose we define increasing productivity: fewer hours for the same result.

So, what would happen if we bought a tool for €1000 that reduces our work by 20%? You think that would be a good deal, don’t you?

But the result is that you can invoice 20% less! Doesn’t sound like a good deal now anymore, isn’t it?

A quote which describes this so simply:

IF you bill yourself out by the hour
AND you increase your productivity
THEN you lose money

Jonathan Stark

Hourly billing hates Productivity!

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