Rolls-Royce

British aerospace company that pioneered 'Power by the Hour' (PbH) - a revolutionary outcome-based service model representing organizational mutualism at scale. With £12 billion in revenue (2023), Rolls-Royce transformed adversarial supplier-customer dynamics into aligned partnerships.

Under PbH, Rolls-Royce retains engine ownership while airlines pay based on actual usage (per flight hour or thrust hour). Rolls-Royce bears all ownership risks, maintenance costs, and reliability obligations. This aligns incentives - Rolls-Royce benefits from reliability, fuel efficiency, and operational support because they bear the costs of failures.

The model originated in 1962 when Bristol Siddeley (later merged into Rolls-Royce) proposed that operators pay for hours flown rather than purchasing engines outright, fundamentally realigning interests around operational success.