Value Capture Gap

The chart plots four stages from left to right by how value is defined - effort on the left, outcome on the right - and bottom to top by how much value you capture. Point 1 is broad services with custom scopes and thin returns; points 2 and 3 add expertise but are still sold as effort; point 4 is codified, outcome-priced work that grows without adding staff. A gap sits between 3 and 4 called "the redefinition gap," with a red box marking where most agencies live. The problem isn't your price - it's that the offer is still measured in effort, and only changing how value is defined moves you up.