Transitioning to Outcome-Based Business Models PPT

This PPT slide, part of the 28-slide Vested Outsourcing PowerPoint presentation, outlines a key principle of Vested Outsourcing, focusing on the transition from traditional transaction-based business models to outcome-based models. The text emphasizes the need for a shift in how service providers are compensated. In a transaction-based model, providers are paid for the number of tasks they complete, which can lead to a lack of innovation and efficiency. Conversely, an outcome-based model ties compensation directly to the achievement of specific, predefined results. This alignment encourages providers to work more creatively and efficiently, ultimately driving better business results.

The slide also highlights the importance of aligning the goals of both the client and the service provider. By focusing on the overall success of a project rather than individual tasks, this approach fosters collaboration and innovation. Providers are incentivized to explore new methods and strategies to meet or exceed the agreed-upon outcomes.

An example provided illustrates this principle in action. Procter & Gamble (P&G) partnered with Jones Lang LaSalle (JLL) to manage its global facilities. Instead of a contract based on individual tasks, the agreement focused on outcomes like reducing total facility costs and enhancing employee satisfaction. This partnership resulted in a significant 20% reduction in annual operating costs and improved workplace efficiency.

Overall, the slide presents a compelling case for adopting an outcome-based model, highlighting its potential to drive strategic alignment and innovation in business partnerships.

This slide is part of the Vested Outsourcing PowerPoint presentation.

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