Learning at Work

How is your work day going? What have you learned from your job, from your peers? If you aren’t learning at work, how rewarding is your job, really? In addition to working to maintain a satisfactory standard of living, informal learning at work adds to an individual’s work satisfaction.

Various reports hold that informal learning in the workplace accounts for about 90 percent of everything that employees learn. This may be an accurate number if we consider Albert Bandura’s social learning theory positing that we learn through observing others’ behaviours and attitudes as well as the outcomes of those behaviours.  

In his book, Social Learning Theory (1977), Bandura explains that there are four conditions for modelling behaviour. These are: 

  • Attention. Different factors can increase or decrease the amount of attention paid to a particular behaviour. This includes the behaviour’s distinctiveness, its effect on your emotions (positive or negative emotions are more likely to be remembered than a behaviour that did not evoke an emotional response), prevalence and complexity of the behaviour, functional value (e.g., how important is the behaviour to your job?). An individual’s characteristics also affect attention to the behaviour (e.g., sensory capacities, arousal level, perceptual set, past reinforcement, etc.).

  • Retention. This refers to remembering what you observed. This is impacted by symbolic coding, mental images, cognitive organization, symbolic rehearsal, and motor rehearsal (i.e., practicing what we observed).

  • Reproduction. This is about “doing” what we observed. It includes attention to our physical capabilities to reproduce the behaviour as well as feedback mechanisms through our own self-observation of the behaviour. How well are we reproducing the observed behaviour?

  • Motivation. To imitate behaviour, we need to have a good reason to do so. This may include motivators such as history (e.g., perhaps past behaviours did not result in good outcomes, so a new behaviour is desired) or it may involve promised or imagined incentives.

Like many social and cultural theorists, Bandura believed that the world and a person’s behaviour cause each other – we behave based on our environment, but we also create an environment based on our behaviour. Either way, organizations should take heed of the role that informal and social learning have in the workplace and encourage appropriate learning to maximize efficiency and performance. Following are five ways to increase informal learning in the workplace (adapted from: Growth Engineering).  

  1. Mentoring. Coaching and mentoring help improve training and learning. Knowledge sharing is also a great way to retain knowledge in the workplace and prepare for succession.

  2. Sharing. Social learning flourishes when people get into the habit of sharing their knowledge. Having a center of learning available on the corporate intranet or some other internal forum will go a long way to help employees collaborate and boost their learning.

  3. Experts. Provide expert resources for employees – knowing who to turn to when you have a question will go a long way to helping employees learn from each other.

  4. Rewards. Some companies reward an employee’s hard work with accolades such as “Employee of the Month” or “Top Contributor,” etc. This makes learning more fun. Another way to make learning fun is through gamification – who doesn’t love a good game of Scrabble for Business?

  5. Mandatory Learning. Ensuring that employees complete one level of learning before they can advance to the next level is a good way to ensure that they are reading the corporate handbook (so to speak!). This can be done readily through an online learning platform. This ensures that collaboration and social learning become part of the employees’ learning journey.

Would you like to know how you can learn better from work? Check out the Learning Innovations Laboratory report about the “three stances that make a difference” at work.

Capitalizing on Strengths

Do you feel “stuck” in a job? Even before the workday is done, can you hardly wait to get out of the office? If so, you may be in the wrong job. 

Feeling stuck may be a sign that you are not using your strengths on the job. If you aren’t using your strengths, resentment builds and frustration ensues. Not only that, you are not being productive on the job – think “deadwood” and you’ll get the idea! Let me explain.  

Let’s say that you’re a decision-maker by nature. But you find yourself in a job where you neither contribute nor make organization-wide decisions. As a result, you second-guess the organization’s decisions and you start resenting its decision-makers. On top of this, you start to dislike your boss and co-workers because you see them as part of the problem.  

You might say that you can’t help it – you need to work somewhere. Fair enough – most of us end up in temporary jobs that are nothing more than a way to pay the bills. But for long-term career happiness and productivity, you need to understand your strengths.  

In addition to identifying our strengths, we need to understand how we work best. And how we work best depends on our personality.  

Our personality determines how we perform, no matter what it is that we do – from how we organize our breakfast in the morning to how we process our daily tasks to how we relate to people. Each of us has an inherent capability of how we manage our “to-do’s.” 

But consider this fact:  While our habits can be modified, few (if any) people can outright change either their strengths or habits. Instead, what we can do is identify our strengths and habits and then choose to improve both in a way that moves us further in our careers. 

Here are five ways that you can improve your strengths and use them to catapult your career to the next level. 

  1. Pay attention to feedback. What do others say about your strengths? What do they notice about you? Sometimes, we instinctively know what we’re good at, but for whatever reason, we become blind to our strengths. It may take several people to point out your strengths before you start to pay attention.
  2. Tune in to your performance. How do you produce your best work? Is it by working alone or in teams? Do you prefer to learn through reading, listening, or viewing? What time of day are you most productive and why at that time? By understanding “how” we work, we will be able to understand the unique characteristics of what comprises an ideal work day for us and when we are most productive.
  3. Notice what gives you energy. When working on a task, does it make you feel tired, bored, overwhelmed, interested, or is the work challenging? Does the task motivate you to work even harder to get the job done? Do you feel alive? If the work makes you feel so energized (even if you’re physically tired), then that’s the type of work you need to be doing.
  4. Do not comprise your values. The place where you work must reflect your own values. The organization’s policies should be in line with their practices. In other words, the organization should practice what it preaches. If your beliefs are in line with the organization’s culture, then you have a match made in heaven.
  5. Contribute like there’s no tomorrow. Based on your strengths, work on improving the organization’s systems, processes, methods, policies, and other practices. This will serve to not only make a positive difference to the organization, but also to help you feel a sense of accomplishment. If you can feel as if you have accomplished something, you know your strengths are serving you well.

Roman philosopher Lucius Annaeus Seneca said, “Luck is what happens when preparation meets opportunity.” Substitute “career” for the word “luck” and you can see how our strengths can be used to build happy and productive careers.

 

 

 

Before You Buy That New iGadget

Recent promos for the latest new technology gave me pause. And it should give you pause, too.

There is no doubt that we are a society of “must-have-the-latest-new-toy,” but have you thought about what happens to your old technology – those smartphones, laptops, printers, and other energy-emitting devices that you no longer wish to use? What is your old technology doing to Mother Earth?

You might say that you are responsible and recycle your old electronics. Good for you. And I bet many recycling depots do a decent job of ensuring safe recycling practices. But some old electronics may fall through the cracks.

In August 2009, CBS revealed some startling evidence (as only 60 Minutes can!) about old electronics being shipped illegally to countries like China where the dismantling of the equipment is hurting (understatement) the people and the environment. You can see the show here: http://www.cbsnews.com/videos/the-wasteland-50076351/.

If the 60 Minutes investigation does not give you pause, perhaps the following might.  

A report by Liam Young and Kate Davies of the Unknown Fields Division traces the supply chain of the global economy in reverse. Their research brings the point home (literally).

After the 60 Minutes expose aired, the Chinese government tried to clean-up Guiyu’s booming e-waste operation. However, Young and Davies state “that what really happened is that it went underground – or more specifically, inside.”

“Actually what happened is that the industry has moved from the street and into peoples’ houses,” he says. “So now this new form of mining is now a domestic industry, where a circuit board bubbles away to refine the copper next to a pot of noodles in someone’s kitchen.”

“It’s too easy for people to sit in an air conditioned flat in New York or London, tweeting on laptops and talking on their phones about the horrors of the rare earth mining industry or cheap production and exploitative labor in China,” Young says.

The reality is much worse.

Young and Davies collected some of the toxic mud created from recycled technology and created “lovely” toxic sludge vases. These vases are part of an exhibit at the Victoria & Albert Museum in London which opened on April 22, 2015.

Kelsey Campbell-Dollaghan summarizes the journey of the vases in a report titled “These Vases are Actually Made From Liquefied Smartphone ByProducts.” Here’s an excerpt:

“The mud that makes up each of these vessels was carefully drawn from a toxic lake in Inner Mongolia, where the sludge from the world’s most prolific Rare Earth Element refineries ends up. It was brought to London, where a ceramicist in a hazmat suit worked to turn it into actual pottery, representing the waste created by a smartphone, a featherweight laptop, and a car battery. Starting today at the Victoria & Albert Museum’s exhibit What Is Luxury?, you’ll be able to see each vase in person—a stark visualization of exactly what’s involved in building your electronics.”

After reading Campbell-Dollaghan’s report, I learned that our smartphones each have about 380 grams of toxic and radioactive waste. Think about that the next time you go to answer or make a call on your smartphone.

The questions before us are simple: 

  1. How much newer-better-luxury stuff do we really need?
  2. At what point will manufacturers take responsibility for killing the planet?
  3. What can be done now to reverse the damage?

The answers to the questions are probably not as simple.

Best Time Efficiency Hacks for the Generations

How do you save time? This depends on who you speak to and their age. Each generation has an affinity for different efficiency tools and techniques.

Baby Boomers, born between 1946 and 1964, tend to opt for multi-tasking because they believe that doing more than one thing at a time saves time. Truth is it doesn’t. Multi-tasking is counterproductive and decreases efficiency. Perhaps Boomers’ nonconformist ways make them stick to their beliefs. In fact, Boomers labels of themselves range from “self-obsessed” to “stuck in their ways” (Jane Holroyd, Sidney Morning Herald).

To improve efficiency, Boomers are unlikely to put in the effort to change their habits at this stage – unless they can buy it and it’s easy to assemble.

Gen Xers, born between 1965 and 1976, are often labeled as the “slacker” generation. They appear to be uncommitted, unfocused and disorganized. They tend to move between jobs frequently, preferring a balanced lifestyle over the financial comfort that their parents craved.

Gen Xers, you can improve your efficiency by:

  • Closing all applications on your computer other than the one that you’re working on. This will help you maintain focus.
  • Do work in small manageable chunks, rather than tackling the whole project at once. This will help you reduce overwhelm.
  • When something needs doing, do it right away. If you think about it for too long, you may procrastinate and not get the job done properly (or on time).
  • If a task is boring or frustrating, think of something else that you might be doing that may be worse. Then use that comparison to start working on the task at hand that now does not seem so bad!
  • Every hour, take a ten minute break to refresh. When you do, you will have more energy and focus to attend to the task.

Generation Y (also called “Millennials”), born between 1977 and 1994, are the largest cohort since the Baby Boomers. They are labeled as lazy, debt-ridden and programmed for instant gratification. They are portrayed as demanding and unrealistic in their career aspirations. They also tend to be Internet-addicted and lonely.

Millennials don’t mind working hard, but they want to be judged on their output and results, rather than the total number of hours they put in. Their time efficiency hack is leveraging technology to help them gain greater work-life balance. In other words, whatever can be automated to save time, should be!

Here are some efficiency hacks for millennials by millennials:

  • When not in a mental state to work, hit the gym or go running. Don’t forget to shower before returning to work!
  • Return phone calls while waiting for the bus, taxi, airplane, or ferry.
  • When you have an idea, chase it until you figure it out. If you don’t, the idea may drive you nuts and lead you to procrastinate and be overwhelmed.
  • Instead of a computer, use an e-reader for reading books – the lack of multitasking actually helps you maintain focus because you cannot switch between windows with a browser.
  • Make friends that can save you time – for instance, if your friends love to browse online for the best deals, get them to tell you when they find a great deal. Then, all you have to do is “click” to buy. The homework has already been done for you.
  • Allocate one hour each and every day to handle e-mail and other “to-do’s” that you need to clear off your list. This can be either at the beginning or end of the day. This is a must for saving time!

Generation Z, those born between 1995 and 2012, grew up with the Internet. They are incredibly technology-savvy and can be labeled as the iPad generation. These kids are just entering the workforce and you can bet that whatever efficiency hack they use, it will involve technology.

Generation Alpha, those born from 2010 onward, will likely be the most formally educated generation in history. They began school earlier (think pre-school or daycare at the age of two or three) and will be studying longer. These children are from older, wealthier parents with fewer siblings and they are already being labeled as materialistic (Baby Boomer déjà vu?).

Regardless of which generation defines you, the best way to be efficient is to rest when you need to, get over overwhelm, don’t procrastinate, plan your days in advance, and use your “to-do” lists to monitor your progress toward your goals.

Improving Productivity by Working from Home

Does working from home improve productivity? A Stanford University study of a Chinese travel agency concluded that it does. 

The study found that employees working from home: 

  • Were 13% more productive (9% worked more hours, taking less breaks and fewer sick days and 4% had higher performance rates per minute – hypothesized to be due to quieter working conditions).
  • Had 50% less attrition.
  • Reported higher feelings of work satisfaction.

Total factor productivity increased between 20 and 30 percent (the increase was due from two sources – efficiency in calls per minute and capital input). In addition, the company estimated annual savings of $1,900 per employee.

The learning from the experiment included the following:

  1. Working from home improves performance.
  2. Allowing employees a choice generated a far greater effect than requiring employees to work from home.
  3. A large sample of treatment and control employees allowed the firm to evaluate the impact on different types of employees.
  4. Management was surprised by the dramatic drop in attrition.

In addition to benefits to employees and employers for working from home, society as a whole sees benefits. These benefits include people choosing where they wish to live (instead of close to the employer’s office), less pollution and traffic congestion from work commutes, and an overall better family and community life because of the flexible hours.

However, improving productivity and saving money by having employees work from home does not work (pardon the pun) for everyone. People need to be able to recognize in themselves whether they have the discipline to perform as well as, or better than, working in an office environment.

Also, some individuals need the socializing that comes with working in an office – these individuals cannot thrive in isolation. For others, a careful balance must be struck.

As John James Jacoby (proclaimed lover of naps) writes: “For me, home was always where cool stuff happened, and the office was where I spent time waiting to go home to make more cool stuff happen.”  

Self-control and pride in one’s work is mandatory for working from home. An ability to complete tasks and communicate effectively with others is also a requirement. Trust is also a big element when working from home – employers need to trust that their employees are doing their best, but they also need to respect schedules and expectations.

I work from home most of the time and I cannot be happier about this arrangement. In fact, my most rewarding client work is done at home. This is likely because I am disciplined and have the necessary self-control about my work. It also helps that I love what I do.

Overpowering Boredom

Many people experience boredom, but did you know that there are different types of boredom? And that each of us usually experiences a specific “type” of boredom consistent with our personalities?

According to 2006 research published in the journal of Motivation and Emotion, there are five different types of boredom (a follow-up study in 2013 identified a fifth type – apathetic). Here is a summary of each type:

  1. Indifferent – These individuals appear to be calm and withdrawn. Sometimes, they can appear to be very relaxed. Jessica Leber of Co.Exist also uses the term “cheerful fatigue” to describe this type of boredom.
  2. Calibrating – These individuals have wandering thoughts. They are willing to engage in almost any activity that will get them out of the boredom inducing activity. Calibrating boredom usually stems from engaging in repetitive tasks.
  3. Searching – These individuals experience negative feelings and unpleasant restlessness. They actively search for a way out by focusing on alternate activities.
  4. Reactant – This boredom is the most mind-numbing. Individuals experiencing this boredom may be highly aroused and hold a lot of negative emotions. They may also be restless and aggressive. Their way of escaping this boredom is to blame others for their situation and escape from them by thinking of places and situations where they would rather be than in their current surroundings.
  5. Apathetic – This boredom is similar to helplessness and may be a contributor to depression (according to researcher Thomas Goetz and his colleagues). “At least 36 percent of high school students in the survey reported it.” People with this type of boredom generally show little arousal and a lot of aversion.”

Boredom does not have to be, well, so boring. It can be turned into a powerhouse of productivity with just a few little tweaks to our day. Here are seven things you can do right now to turn your humdrum into a welcome main attraction:

  1. Take a break. Get rid of your world-weariness by removing yourself from your current environment and do something engaging – something that makes you happy. Use a “Happy App” to help you get into a better headspace that will, in turn, help you defeat your feelings of boredom.
  2. Listen to music. Or tune into your favourite radio station while at work. When experiencing a monotonous task, listen to the radio for uplift before returning to your task.
  3. Schedule your day to work in 25 minute spurts. Those who work 25 minutes, then do something else for five-to-ten minutes are more productive than those who do not divert their attention from their work. For instance, during your five-to-ten minute shift away from work, e-mail a friend, surf the Internet, plan your weekend, or call your mother-in-law!
  4. Get more involved in your work. While the work might be boring, think of a new way to approach the task. Perhaps reviewing your past activities at work and researching how to improve your job overall might be a way to re-do your job completely. In the process, it may even result in a raise and high praise for a job well done.
  5. Make a change. Evaluate your work environment. Maybe you need a new chair? Does your desk need rearranging or decluttering? Make yourself aware of things around you that you can improve. And improve it/them!
  6. Learn something new. There is nothing more monotonous than doing the same old thing in the same old way for days/weeks/months/years. Defeat tedium by expanding your mind. Read a good book (educational or not), ask your co-worker to teach you their job, take a night class, or go finish your Master’s Degree.
  7. Don’t stew. If you feel you have tried it all, but you just can’t get rid of your boredom, talk to your boss. Together, you can figure out how to improve your job, so that you and your organization will experience maximum productivity from your efforts.

In the end, don’t let monotony control you and your day. It’s much better to have multiple tasks to juggle than it is to suffer in joyless work.

In short, if your situation is suffocating your happiness, then change your situation! We all have the power to change our own circumstance.

The Competitive Edge

What’s your competitive edge? What makes you or your business the “one” to beat?

If you’re like most businesses, you probably say that you’re good at what you do or that you’re better than anyone else in your craft. That’s all well and good, but why should clients care?

Here’s the thing:  Clients don’t actually care about you or your business. They only care about themselves and what you or your business can do for them. This makes sense, since clients want as much value as they can get, but they don’t typically care where they get it.  

What can you or your organization do to position yourselves to be the best? Here are four considerations: 

  1. Cost. Reducing operating costs will provide you with a competitive advantage in the marketplace. Relentlessly pursue the removal of all waste in your organization to reduce operating costs. Look at the entire cost structure of your organization for all potential cost-reduction areas. And don’t forget to pursue Lean production in all you do.
  2. Speed. Make sure you are able to deliver on your promises quickly and by no later than promised due dates. You can improve speed of delivery by improving your organization’s communications capabilities (think:  Technology) and using equipment that is reliable and right for the job. Ensure you have knowledgeable workers to assist with your projects. Also, use just-in-time production to reduce inventories and reduce risk.
  3. Quality. While some companies employ quality as a reaction to the marketplace, to compete on quality means that you and your organization use it to please the customer and not just a way to avoid problems. Since quality is different for each customer, you and your organization need to understand your customers’ needs, wants and requirements, so that you can translate them into exact specifications for the customers’ desired goods and services.
  4. Flexibility. Competing on flexibility means that your organization is able to adjust to changes in the marketplace relating to its product mix, volume or design. This means being able to produce a variety of goods or services within the same facility to meet customized requests. Multi-skilled workers and excess capacity in the business can help an organization compete on flexibility. 

Most organizations should start positioning themselves in the market by focusing first on quality. Once quality is perfected, then focus on speed of delivery, then cost-cutting in operations and, finally on flexibility. 

If your organization is not as competitive as you believe it should be, improving on all of the above competitive advantages may be in order. You will find that as you become more competitive, you will reach a point where a trade-off will be required between being better in one or another area. This will ultimately set you apart from your competition.

Off Target

When Target came to Canada in 2011, not only were consumers surprised that the retailer opened up over one hundred stores across the country, but so was the business community. To do such a “big bang” approach, you either know what you’re doing or you’re taking a major risk. Unfortunately for Target, its major risk did not pay off.

Target’s biggest failing was in not piloting its entry to Canada with one or two stores before launching full scale. Any project manager worth their trade will tell you that starting small and building up when it makes sense to do so is the best guarantee of success.

In addition to missing the mark with their full-scale roll-out across Canada, Target missed out on the basics of operations management. For one thing, their demand forecasting appears to have been a dismal failure. If they had forecast properly, they would have learned that Canadians preferred the U.S.-type Target stores and not reincarnations of Zellers.

Target also missed out on strategic capacity planning as well as facility layout design. Their inventory systems management was absent, to say the least. This also speaks to their lack of adequate supply chain management. When inventory is scant (as it was at Canadian Target stores), one might reasonably presume that the retailer was using some type of customized just-in-time fulfillment. However, this, too, appears to not have been part of Target’s strategy.

A material requirements planning or enterprise resource planning software would have helped Target manage its stocks and stores. However, we can see that even if Target had such a system, it, too, failed them.

And what about quality? Quality and price are generally prominent factors for consumers. Integrating quality into every element of an operation allows an organization to reduce its prices while still remaining profitable. Clearly, quality does not appear to have been a high priority for Target.

While one can hypothesize about Target’s demise in Canada, it provides little comfort to Target employees. As well, the company itself is now targeted (pardon the pun) as a losing venture:  At least, in Canada.

One thing is certain, though: Target really did miss its mark!

Types of Clients

Let’s face it. There are clients and then there are clients. The great clients (or customers) are those that are ready, willing, and able to work with experts to achieve organizational efficiencies.

And then there are clients who fall short on anything from initial meeting to following through with an expert’s recommendations – these latter clients are wasting not only the expert’s time, but their own, as well.

As experts in our various fields of work, we have all run into a variety of clients. Here are some of the more common types – if you’re a client, maybe you see yourself in one or more of these descriptions: 

Bargainers. These clients want everything you’re proposing, but they can’t pay for it. Or maybe they’re doing the project “under the table,” and don’t want to ask the “real boss” to pay for it. Solution: If the client does not have the money for the full project scope, downgrade the scope – phase the project into manageable chunks.

Naysayers. These clients just can’t believe the project will take six months to complete. Certainly they can do it in a fraction of the time. Solution: Explain why the project will take as long as it will (perhaps a timeline depicting steps is helpful here); if the client does not believe you, suggest a mix of internal and external resources to complete the project faster. Client is still a non-believer? Walk away.

Stealth Implementers. They insist that no one else from their organization needs to be involved in the project. Just do it. Solution: Stress (and demonstrate with examples) how involving others in the organization will greatly enhance the success of this project as well as change management when implementation occurs. 

Self-Made Experts. These clients believe they can do exactly what you’re proposing without you, so why are you charging them so much? Why don’t you just tell them the steps that you would take and then leave them to it? Solution: Walk away.

Call 9-1-1. These clients think everything is an emergency. They need your proposal “yesterday” and the work is required within the next month. However, when you give them your proposal, you don’t hear from them for six weeks. Solution: Develop a project timetable and meet each deadline. Build in “slack” time for all steps involving client input.

Weekend Schmeekend. This is the client that sends you e-mail at all hours of the day and night. Weekends are for working. There is no such thing as work-life balance. Solution: Say no when appropriate. Just because the client works all hours does not mean everyone else needs to, as well!

Committee Monger. The client who believes everything needs to be decided by committee. The end result? Everything gets decided by committee, no one takes responsibility for decisions, and decisions take much longer. Solution: Ensure that there is one “point” person (typically a Project Champion) that will sign-off on all deliverables.

Wordsmithers. You know the ones that review your work and almost re-write the entire content? Solution: Set a time limit for review and stress that only key content requires review. Provide an example. Or hand out the report ahead of time and then convene as a group to review the feedback.

In the end, it’s up to the expert to determine whether they are able to work with the client. If the decision is to fire the client, provide them with the name of another expert – even if it is a competitor. You’ll be glad you did!

Value and Billable Hours

Why do companies and individuals still insist on billing for services “by the hour?” If you are tracking billable hours, you are not being efficient. And, even worse, you are not providing the best possible service to your customers.

When companies focus on billable hours, it may be to the exclusion of other important activities, like building capacity to better serve customers.  

However, this is a Catch-22 situation:  As you build capacity to better serve your customers, you are not able to bill for your time. Then when you use this new capacity to serve customers, you discover that it takes you less time to provide the same service. If you are billing by the hour and you are very efficient, you are unable to earn as much as someone who is less efficient providing the same service.

This is why billing based on the value of service being provided makes so much more sense. Why wouldn’t your customer want to pay you the same (or more) for a service that you can deliver in less time?  

According to Canadian statistics, the amount of time spent at work is decreasing. This is also the case in the United States. Does this mean that “billing-by-the-hour companies” are earning less? Perhaps, but it might be that these same companies are realizing that it is more economical (and profitable) to bill for value rather than hours. 

The secret to creating value for both parties (the company or person providing the service and the company or person receiving the service) is to focus on outcomes rather than inputs. How much time it takes to create a widget or develop a plan is irrelevant to the value the widget or plan provides to the customer.  

In Lean Six Sigma terms, we want to go beyond just meeting our customer’s needs and wants – we want to be sure our customer is delighted with the product or service they purchase from us. This is value. And it has nothing to do with money.

If customers are delighted with the service provided by your staff, they will pay your asking price to continue to receive this value. It is irrelevant to the delighted customer that it cost you $100 to produce the widget, but they pay you $1,000 for the same widget.

In addition, fixed fees (i.e., value-based fees) have the advantage of using up less administrative time for both sides. There is no need to track hours unless the provider of the service wishes to do so. This improves efficiency for both sides.

In the words of Alan Weiss, “No one cares, really, about how good you are. Clients care about how good they are going to be when you’re done with them.”  And that, really, is the ultimate goal of any service or product.