Hourly billing hates Productivity
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
Hourly billing hates Productivity!