The Traditional Model is Broken
The billable hour has been the foundation of consulting for decades, but it's fundamentally misaligned with what clients actually need from AI transformation partners.
Here's the problem: the billable hour rewards activity, not results.
When your success is measured by hours worked rather than business outcomes delivered, the incentives are all wrong. Consultants are motivated to:
- • Spend more time on projects, not less
- • Create complexity rather than simplicity
- • Focus on deliverables rather than results
- • Maintain dependency rather than building capability
The Outcome-Based Alternative
At Ultrathink, we've flipped this model on its head. Our success is directly tied to your business outcomes because that's the only thing that actually matters.
Phase 1: The Production Blueprint (Fixed Fee)
We start with a fixed-scope engagement to build a validated business case, a working prototype, and a concrete technical roadmap. This gives you absolute clarity before making a larger investment.
Phase 2: Outcome Partnership (Hybrid Fee)
We then build and manage the full solution with a fee structure tied directly to the business KPIs we defined in Phase 1—whether that's person-hours saved, cases resolved, or revenue gained.
Why This Works Better
For Clients:
- ✓ De-risked investment with clear ROI
- ✓ Aligned incentives with your business goals
- ✓ Focus on results, not hours
- ✓ True partnership, not vendor relationship
For Us:
- ✓ Motivated to deliver maximum value
- ✓ Focused on sustainable, long-term solutions
- ✓ Invested in your success
- ✓ Rewarded for efficiency and innovation
The Bottom Line
The billable hour is dead because it doesn't serve anyone's interests in the long term. In an AI transformation, what matters is whether you're actually getting measurable business value, not how many hours were spent getting there.
Our outcome-based model ensures we're both working toward the same goal: your success.
This is the first in a series of articles about our partnership model and why we believe it's the future of AI consulting. Stay tuned for more insights from the front lines of AI transformation.