Selling Performance

Abstract

The Functional Service Economy has several distinguishing characteristics:It internalises risks, and the costs of risk and of waste, over the full life cycle of products and systems by accepting full responsibility for performance — a strategy of caring. With this internalisation of all costs, the economic actors produce sustainable profits in a lowcarbon resource-efficient economy.It gives incentives to integrate the ‘Factor Time’ into the economy through an extended performance responsibility.It is based on selling performance (results, utilisation), instead of selling goods.It accepts the challenge that private investment is needed to achieve public development objectives and is crucial to boost growth and prosperity.2