Accounting Quote by Robert Pozen
“You have various institutions like law firms and accounting firms which bill by the hour. I'm really against that. You have an incentive to go slowly, be there as long as possible, to over-research things and over-staff.”
About This Quote
Hourly billing creates incentives for inefficiency and overstaffing, compromising value for clients.
In simple terms: Hourly rates can encourage wasteful work.
Key Takeaway
Seek value‑based pricing to align incentives.
Themes
business ethics
pricing
efficiency
Mood
critical
analytical
Type
advisory
business
When to use this quote
- business
- law
- consulting
- management
Key Concepts
incentive structures
client value
professional standards
Questions to Reflect On
- What alternatives improve fairness?
- How to balance thoroughness with speed?
A Different Perspective
Hourly billing can lead to client mistrust.
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