The Economist Phase Lab (Black Belt)
Financial Mastery | Weeks 9-12
You cannot be a strategic partner if you cannot prove ROI. In this final phase, you will master the economics of value, learning to translate technical wins into hard currency to defend the renewal.
Lab 1: The TCI / TVO Workshop
Objective: Audit a real account to calculate Total Cost of Investment (TCI) vs. Total Value of Ownership (TVO).
1
The Ledger (TCI): Calculate the customer's full spend over 3 years. Include license fees, implementation costs, internal training hours, and support overhead.
2
The Returns (TVO): Quantify the outcomes. Don't just list "time saved." Convert that time into FTE salary savings. Calculate revenue acceleration and risk mitigation in actual dollars.
3
The Decoupling Point: Graph the two lines. Identify the exact month where Value exceeded Cost. This is your "Profit Date."
Pass Criteria
- Financial Model: Submit a spreadsheet showing the 3-year TCI/TVO projection.
- Data Integrity: All value assumptions must be cited with customer data (no guessing).
- The Narrative: Create a "One-Pager" designed for a CFO that summarizes the ROI in under 30 seconds.
Lab 2: The Anchor War Simulation
Objective: Defend a flat renewal against a hostile Procurement Officer using only your TVO data.
1
The Threat: You receive an email: "Budget cuts. We need a 20% discount to renew, or we look at competitors."
2
The Anchor: Prepare your counter-proposal. You will not offer a discount. You will instead "Anchor" on the $2M in value you proved in Lab 1.
3
The War Room: Live roleplay negotiation. A senior leader will play the aggressive Procurement Officer. You must hold the line without losing the relationship.
Pass Criteria
- Price Defense: Renewal signed at 0% discount (or upsell).
- Emotional Control: Candidate maintained composure during "hostile" questioning.
- Value Pivot: Successfully pivoted the conversation from "Price" to "Value" at least 3 times.