The Complex Battle for Margin

Innovation-seeking culture is at the opposite end of the spectrum of efficiency. Cost and price are the same thing in your mind, so it's like I know what it's going to cost us. Therefore, I know what I need to charge you because this is how we do things here. In a value-based culture, which to me is an innovation-seeking culture, then you will focus on value creation. You'll start with the idea that if you help create 10 million or $3 million worth of new pricing, you're going to make $10 million a year net new profit. Then you havevalue to be created based on prices paid for those ideas.