Conceptual Agreement with A Buyer
An OBJECTIVE is a business outcome that improves the buyer’s condition. It is never a deliverable.
A METRIC is a measure or indicator of progress and success. It must be identifiable by the buyer and you. There should be at least one metric and preferably more for each objective.
VALUE is the various impact of the objectives. An objective of “increased profit” can yield value including higher margins, more money to reinvest in the business, ability to attract more investors, ability to attract more talent, and so on. Ideally, each objectives should generate several value statements.
With this framework, fees can be viewed in the context of ROI based on the value. If you achieve conceptual agreement with a true buyer prior to your proposal on objectives, measures, and value, you will close at least 60% of your proposals at high fees; and if you provide options with escalating value and fees, you will close at least 80% at very high fees.
You can read about this framework in detail in almost any of my books, or hear about them on many of my downloads, and practice them in most of my workshops.
© Alan Weiss 2011. All rights reserved.