How we work

We’ll publish our own picture here soon, below summarizes our current practice.

What do we measure?

We measure:

How do we finance the home?

To cover our costs, every partner pays a fixed fee per month + % fee of their revenue. These fees are intended only to cover the verseworks operational costs.

Why a fixed + variable fee? If we only had a fixed fee, consultants on the bench would quickly run out of money. And if we had only a variable fee, we might have trouble covering our fixed costs if many consultants are on the bench. With a fixed + variable fee, we get a nice balance that matches the fact that our costs are also fixed + variable. Swedish people apparently call this solution lagom – as in, nobody is totally happy and nobody is totally disappointed ;-)

We also have a ceiling, to limit the total fee a consultant pays to verseworks per year (variable + fixed). Some consultants earn a lot more than others and we don’t want them to leave just because verseworks gets too expensive.

See Economic model for concrete examples.

What do we do with the money?

This picture sums it up:

What do we do with the money

The guiding principles are:

Why don’t we try to build financial value? If verseworks has a big pile of money, that creates a financial incentive to own the company, and increases the risk of conflict as the “value” of the company goes up and down. If we keep the company lean, with only a small liquidity buffer, then we don’t need to argue about who owns what.

See Economic model and Ownership model for more details on how money flows through the system.

How many do we want to be?

For more see Recruiting.

How do we run the company?

For more info, see How we make decisions.

How do we differentiate?

How are we different from a typical consulting company?

How are we different from a typical network of independents?

Further reading

Henrik Kniberg has written a blog article about how a similar company, Crisp, works. It describes some of the history behind the model.

How we work -