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The Professional Services Pursuit
Ep. 63 - How Hybrid Business Models & Value Pricing Drive Organizational Success w/ Caroline Johnson
Mar 21, 2024
Discussing the shift towards value pricing and the importance of changing belief systems in businesses. Exploring hybrid revenue models, top-down program development, and the impact on client engagement. Insights on challenges in business transformation and enhancing business value through strategic separation of capabilities. Highlighting successful client-firm partnerships and the necessity of evolving towards more efficient, transparent engagements.
51:38
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Quick takeaways
- Transitioning to value-based pricing can double or triple firm valuations.
- Embracing disruption and AI, while changing outdated belief systems, leads to sustainable success.
Deep dives
Transforming Business Models for Higher Valuation
Transforming business models from legacy pricing structures to authentic consulting models can significantly impact the valuation of professional service firms. By shifting from time-based charging to value-based pricing, businesses can attract higher valuations and multiples, doubling or even tripling their worth. The expertise gained from corporate advisory transactions led to the founding of the Business Model Company, aimed at helping firms transition to market-relevant models for increased value creation and client engagement.
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