5. Four Assertions
1) Growth without profit is perilous
2) Nonrival assets have more leverage than
rival assets
3) Effectiveness is always and everywhere
more important than efficiency
4) Value-led pricing is superior to cost-plus
pricing for capturing value created by PKFs
15. The Antithesis of Efficiency
• This conference
• All continuing education
• Knowledge management
• Total quality service
• Mentoring and coaching
• Networking
• Business development
• Social media
• Pricing on purpose
16. What you can measure
you can manage
––The McKinsey maxim
17. “The only way to look into the future
is use theories since conclusive data
is only available about the past.”
–-Clayton Christensen, et. al.
Seeing What’s Next
19. Eight Steps to Pricing on Purpose
① Conversation with customer
② Pricing the customer, not the services
③ Developing and pricing options
④ Present options to customer
⑤ Option selected codified into an FPA
⑥ Proper project management
⑦ For scope creep, utilize Change Requests
⑧ Perform After Action Reviews (AAR)
20. “The single most important decision in
evaluating a business is pricing power. If you’ve
got the power to raise prices without losing
business to a competitor, you’ve got a very good
business. And if you have to have a prayer
session before raising the price by 10 percent,
then you’ve got a terrible business.”
Warren Buffet