Continued: More! ‘Cooperate with Customers Rather Than Haggle Over Contracts’ — Results from Trying Outcome-Based Fees and Future Challenges
summary
A Japanese software firm describes running a completed client project under a KPI-tied contract that paid by weighted formulas tied to intermediate signals like user-registration and retention metrics, with engineers involved from business design through operations and joint experiments. The outcome was clearer outcome-driven engineering and fewer costly product failures, but frequent pivots caused secondary-metric drift and repeated contract renegotiation; the talk argues that simpler primary outcomes such as revenue-share or equity-for-success are more robust for future outcome-based engagements.
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chapters (8)
- 0:00Introduction
- 6:24What is cooperation?
- 14:58Contract models for cooperation
- 22:47KPI results and challenges
- 32:44Reducing business failure damage
- 38:50Engineer career impact
- 40:18Future challenges and revenue share
- 46:43Conclusion and Q&A
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