Switching to a subscription model can cause internal resistance

One of the most significant, yet often overlooked, challenges of transitioning to a subscription-based business model is internal resistance from employees. While founders and owners may be excited by the benefits, employees can see the change as a threat to their professional identity and market value.

This resistance often comes from experienced professionals who have built their careers and reputations based on the traditional way of doing business in their industry. Their expertise is often tied to solving complex, unique, one-off problems for clients.

The move to a subscription model often involves:

• Standardization: Creating a repeatable, scalable service or product.
• Systematization: Developing a core methodology and processes that everyone follows.

This can be perceived negatively by some employees:

• They may feel the company is becoming "McConsulting"—devaluing their unique skills in favor of a rigid, one-size-fits-all approach.
• They may believe that working in a standardized environment will hurt their career prospects, as their market value is tied to their ability to handle bespoke challenges.
• Their loyalty may be stronger to their industry and their personal brand within it than to the company itself. They see themselves as "free agents" renting their expertise.

This can lead to outspoken criticism, attempts to undermine the new model, and a "weeding out" process where employees who are not aligned with the new vision eventually leave. While this can be painful in the short term, it ultimately results in a team that is more aligned with the company's long-term goals.