The Power of choice architecture to influence change in professional services firms

Exploring ways to affect sustainable change

Change is challenging and even more formidable in professional services firms. It takes two willing and able participants: professionals and organizations. In my last post, I zeroed in on the fast and inevitable pace of change and the individuals' struggles, especially in the professional services domain. I also offered a few tips on accepting and embracing change individually. I received several positive comments from professionals who related to the struggles and the recommended approach. In this post, I'll focus on the responsibility of organizations to enable an appealing and successful change journey by leveraging choice architects.

Choice architecture, as you may know, is a term coined by Richard Thaler and Cass Sunstein in their widely regarded book, "Nudge." The premise is that we all make decisions influenced by the environment, and those who create the background, also known as choice architects, can influence decision-making without forcing pre-defined outcomes. I am a big fan of the concept. It can be compelling in professional services firms, where highly educated and knowledgeable professionals may push back on mandates and change initiatives. They, however, may embrace the opportunity to make their own decisions and follow a change roadmap on their terms. This framework can also be equally valuable in designing client acquisition journeys where clients make choices to fit their requirements and priorities.

The good news is that organizations have a ton of choice architects (we all are!). Inviting professionals to technical training makes you a choice architect. You are a choice architect when you create a feedback form for clients and employees to complete. I suspect you don't fully appreciate the power and responsibility of being a choice architect or leveraging such functions and the choice architecture framework to influence change. I know I need to remember at times!  

The other good news is that the choice architecture frameworks are very effective, even if simplified, as illustrated below. They enable architects to consider how to influence behavior by presenting choices simply and attractively and encourage them to think about how to package options and when and where to offer them. The process takes time and design thinking to map the specific behavior journey. They call for feedback mechanisms to provide real-time views, analysis, opportunities for potential modifications of the various choices, and an incentive system aligned with the journey and the key stakeholders. Technology can enable that process further. More on that in the next post.

For now, please reflect on some of your change priorities, who are your choice architects, and how can you and they embrace the choice architecture framework to influence change in a palatable way. The opportunity is too big to ignore.

So, you think you can't change? Think again.

This one goes to all professionals avoiding and struggling with change.

Let me let you in on a secret – things are not going back the way they used to be! It's time to accept it. I'd recommend that you own it and even embrace it because change as you see it will not stop today or tomorrow. Driven by factors outside of our control, the unprecedented volume and velocity of change we've been experiencing will only continue at an accelerated pace. Your employees are not going back to the office – you need to learn how to manage, grow and develop them in a new setting. Your clients will no longer settle for the legacy approach of transactional services exchange. They are looking for a trustworthy advisor who will proactively offer ideas, advocate for them, and look for ways to create value even when the client doesn't think there are ways to create value. Waiting for things to return to "normal" is no longer an option, so please do yourself a favor and move on. 

For the past 20 + years, I've been working with professional services firms to design and implement a culture of growth, which has meant driving change at all levels. My kindle is stacked with books like "Change or Die," "The Catalyst," "Flying without a net," and many others authored by some of the best and brightest minds. They offer a ton of tested frameworks. I love Alan Deutschman's three step process of a "relate, reframe and repeat," and I have used it successfully many times, for example. I live change. My eight-year-old reminds me that things will not pause for me to prepare for change. The proverbial train keeps going, with or without me. And, same for everyone else, so why not get on it?! 

I also know how difficult change can be for people. And I don't blame them. In his book Alan Deutschman's references how extremely challenging change can be and offers an example that often even when people have the option to change and prevent death, they still struggle. We are talking about change or die – it’s that difficult. Talk about professionals with multiple advanced degrees, especially if they've been successful in the past. Why would they consider change? I can see that, can you? Past success, however, is in no way an indicator of future one, specifically when facts and circumstances change. The universal law of survival is more prevalent today than ever – the human who can adapt, evolve, upskill the fastest are the ones who will grow and succeed. 

So, what do you do about it? To get unstuck, I'd think of it as a long-distance run, not a sprint, and approach it accordingly. Start with your responsibility. Accept that things are going to change and what's today will be different tomorrow, and you need to reframe your thinking. Please acknowledge that you may need help managing this process. Like I suggest above, there’s a ton of great thought leadership to challenge and support you. Carol Dweck’s “Mindset” is a great way to start the process. Other help may come in different shapes and sizes: a team to discuss and support one another, a mentor that's there to listen and provide feedback – find what works for you. All of this calls for reskilling. Some may be technical skills, and some may be soft ones like communication, collaboration, etc. Set goals, and work on them, taking small steps. Focus on learning. Don't get discouraged. There will be a time you fall back on the "old ways of thinking." Recognize that, and consider how else you can approach things. Challenge your assumptions constantly. Celebrate wins and the confidence that comes with them. Bring your team along. Model it for them and work through it together. Change is fun when we drive it as a team. If I can do it, you can too. As we launch into 2022, in place of new resolutions, invest in the one thing that will make you successful in both the short and long-term – develop capacity to change. 

In the next post of this series, I’ll talk about how organizations can support this endeavor.

When the trust is nearly gone, it’s time to change the game

Running a few months behind I finally had a chance to catch up on the 2017 Edelman annual Trust report. Given the current geo-political environment, it’s not a surprise that the 2017 Edelman Trust Barometer reports the lowest trust levels in all four market segments: Business, Government, NGO and Media, since the survey’s inception. This time I paid more attention to the trust earning prescriptions provided by Edelman, because like I said, the results are to be expected. Here are a couple of them.

- Put people in the core of everything. “Adopt inside out approach” and focus on the relationships with employees and clients.

- “Peers are now as credible as experts.” Keep that in mind when selecting spokesmen to relate messages to employees, clients and stakeholders.

- Listen, communicate with context and engage.

I encourage you to read the full report (click here) and consider what the results mean to you and your organization.

YEARN TO LEARN...AND GROW

Adopt a new state of mind to succeed next year, and in the long run

Because I am intrigued by the success stories behind some of the most acclaimed individuals, earlier this year I picked up the highly talked about "Grit: The Power of Passion and Perseverance.” Among the numerous insightful points, the book brought up the importance of never-ending desire to experiment, learn and develop – do / be better. It turns out, these are some of the key traits of highly successful individuals. Sure enough – I see it with the professionals I know. The most accomplished ones are the embodiment of perpetual learning. They avoid complacency at all cost and look forward to understanding or better yet, creating, the next best thing. There’s much more to success of course, but the notion of learning as its cornerstone has come across my reading and work in the past.

Awhile back I wrote a blog post that alongside articles, personal observations and the book: “The Fifth Discipline: The Art And Practice Of The Learning Organization” developed the premise that in order for professional service organizations to evolve they should become learning organizations. In other words, if service firms could figure out how to inspire and scale behavior that applauds inquiry, open-mindedness, challenges existing norms and rewards learning, they would outperform competitors and thrive. As we are about to close the year and embark on a journey of personal and professional resolutions, I thought it’s only fitting to repost this article.

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SYSTEMATIC APPROACH TO BUSINESS GROWTH

I like to challenge my own thinking and so, after writing my last articles, “Creating a Culture of Business Growth” and “For the Greater Good Or Eat What You Kill?” I questioned whether it is necessary to address the full business growth system – strategy, support tools, and skills - in order to make sustainable business growth progress. After all, many firms claim to be successful by focusing on only a select few of those business growth related segments. Or, are they? And how have they defined “success” and more importantly, how will they define it going forward?

The ultimate question comes down to the aspirations of firms and their stakeholders. Are you looking to build organizations for the long run? Or, do you only seek short term success with a measurable self-centered economic benefit? If the latter represents shareholders’ objectives, then the non-systematic, “band-aid” approach - as I call it - might be considered success. However, if the professional services firm leaders are focusing on long term gains, then I am afraid the long and systematic approach to building or enhancing business growth platform is the way to go.

A selective segment approach to business growth might have worked in the past for some firms due to extraordinary external market conditions. Those, blended with the young and entrepreneurial spirit of newly formed organizations often lead to quick success, but is ultimately unsustainable I am afraid. That opportunistic viewpoint takes a linear approach without seeing the full picture, and focuses on a sliver of information and limited events. This approach tends to address symptoms instead of curing problems, identifying trends, and thinking long term. It employs reactive tactics and doesn’t provide fundamental and sustainable systems support to track and measure performance and return on business growth investments. There is no investment in developing skills and sufficient support tools to allow the executioners to utilize the tools that fit them most (“one size fits none” when it comes to business growth tactics) and ultimately, to execute on strategy.

If that’s how you are running your organization, and you consider the last paragraph to be the “right approach” and you do not have strategic long term aspirations then stop reading here. This will be the top of the bell shaped curve for you. Don’t waste your time learning how to develop a systems-based approach to help you build sustainable business growth platform and move your organization up the S - curve.

When I went back to research, looking to rebuff my own systems theory and to find a quick and easy way to help professional services organizations increase the velocity of their business development, one of the sources I reviewed was an old favorite business read: "The Fifth Discipline: The Art And Practice Of The Learning Organization." Reading it was yet again an eye opening experience. Instead of rejecting my theory, the book helped me reaffirm that a systematic way of approaching sustainable business growth is necessary. It provided me with answers of why some of the short term linear approach business development projects work briefly, but not in the long term. More than that, the book gave me possible answers for some of the narcissistic behavior I observed in “For the Greater Good or Eat What You Kill?”, which I determined limits change in professional services firms, and I have been so desperately looking to decipher. Most importantly, the book illustrated that a comprehensive approach to business growth spreads beyond the segments allocated to Marketing, Business Development and Sales. To make a significant and sustainable business growth impact, leaders should employ multidisciplinary approach.

In his book, the accomplished Peter M. Senge, draws on extensive management research and experience to argue that the traditional management approach is not optimal and in order for organizations to survive, continuously adapt, innovate products and services, and overall develop, they should strive to become learning organizations. According to the author, the process of building and running learning organizations rests upon five pillars: systems thinking (the cornerstone), personal mastery, mental models, shared vision, and team learning. And while the majority of examples he uses do not come from professional services firms, I am convinced that applying some or all of the principles from the learning organization model will help firms manage many of the challenges they face, and especially the ones related to business growth.

“Systems thinking is both more challenging and more promising than our normal ways of dealing with problems,” says Senge. I agree. It is about seeing the whole, interrelationships and processes. It helps executives absorb increased amount of information, manage complexity and accelerate change. In business growth terms, it clarifies why when marketing is creating powerful lead generation campaigns, there will be limited if any business growth results if the professionals (or the sales force) are not equipped with the necessary advisory skills, sufficient tools and the system to turn those leads into actual business; why when the professionals bring in new clients, these clients will consider such work commodity and as soon as another service provider comes along with a better value offer they’ll be ready to jump ship, if the organization is not ready to commit the resources to support the new clients beyond technical solutions to build strong relationships and loyalty.

Here is another example of the importance of systems thinking, which will resonate with most leaders of professional services organizations. If a firm doesn’t pursue business growth and provide opportunities for growth for its junior professionals (directors, associates, etc.), after a period of time it faces high chances of losing its talent, which it has invested in developing over the years. The question often asked is: do we invest in attracting, developing and retaining new talent (HR), or do we invest in building a solid business growth engine (Marketing / BD) to provide for business continuity. I’d argue that the real questions here are how to balance those two processes, and what are the forces that increase or decrease their progression.

To adopt a systems thinking method, the author recommends that executives start to approach problems by identifying the source of the issues: what’s the core, not the symptom; the forces that support accelerating or decline growth processes, and the sources that would bring stability and resistance, as well as identifying organizational behavior patterns limiting growth, shifting the burden of blame, and others. I would recommend that firm leaders do the same to build and manage sustainable business development platform.

Mind that, as the name of this principle implies, this is not a one-time event. A comprehensive and systematic approach to organizational development and business growth today must be constantly monitored and calibrated, as a slight adjustment of one segment might skew another. To use an already mentioned example, a series of successful marketing campaigns might generate extraordinary amount of sales leads, which the organization, this time manages to convert in new projects, albeit scarce capacity of execution resources. If the capacity issue is not addressed, in the long run professionals will resist further marketing initiatives of fear of overload. I’ve witnessed a multitude of such vicious circles and how liner approach might bring a short term relief, but not long term solutions. As you see, employing such systems thinking is critical for firms.

The rest of the disciplines of learning organizations outlined in the book are easily discarded by most firms because they are considered soft and hard to measure, and often threaten the established order. Each of them however offers important supplement to the systems thinking principal and are critical for building learning organizations. Before dismissing them, I'd encourage professional services leaders to read on and consider application to their firms, especially the ones of mental models, which among other things, explains why change management exercises and introduction to new business growth systems and programs might fall short of success, and the team learning one, which gives a glimpse of what lays behind the limited success of professional development programs.

Mental Models are generalizations, assumptions, perceptions, patterns of reasoning that influence professionals’ behavior and actions. Mental models can impede and bring to halt important change management exercises. The real challenge is that mental models exist below professionals’ consciousness and as such remain unexamined, hence unchanged. Keeping mental models unchallenged is less risky and comfortable. The opportunity rests with the process of acknowledging and bringing up the current mental models to the surface, testing them and building new ones. For professional services firms that means promoting a culture that calls for collaborative challenging thinking, openness and merit, and skills of reflection and inquiry…a culture that eliminates the “this is how we’ve always got things done” mentality, and asks how well that’s worked in the past and promote “how else” considerations. To create such environment, organizations should discourage reactive and mechanical thinking, accept that there is more than one way to look at complex issues and that different cultures, backgrounds and experiences will influence how professionals see and interpret facts. They should aim to shift professionals’ thinking from winning arguments to finding the best solution and to build safe climate to where professionals feel comfortable to acknowledge reasoning flaws, lack of knowledge or proper factual support. This open-minded approach is especially important to business growth and the rate of success of adopting the processes and tactical tools to support it. Such thinking needs to be encouraged beyond a two day seminar; it needs to be built-in the regular management practices.

The process of aligning and developing the capacity of a team to create the results the team truly desire is defined as Team Learning. It introduces the need to think about complex issues and innovate, the role of other team members, and mastering the process of dialogue and discussion. It brings out the reasoning behind defensive behavior and shifting blame. “Systems thinking is especially prone to evoking defensiveness because its central message that our actions create our reality,” states Senge and again, I agree. Professional services firms are staffed with professionals with multiple advanced degrees, considered experts. They exhibit confidence and believe that they know everything or are expected to know everything, and to protect these beliefs they reject alternative solutions, remain rigid and obscure their ignorance. Such organizations often nurture a culture where to have incomplete or faulty understanding is a sign of weakness, or worse, incompetence. However, it is such defensiveness that is holding professionals back from testing the validity of their reasoning and openness to exploring new solutions for their clients or organizations. This behavior is in the core of “narcissistic behavior,” which as I’ve stated in the past, limits professional services firms’ growth. To break the mold, firms should consider developing a process that calls for reflection, inquiry and dialogue.

Personal Mastery encourages curiosity and continuous yearning to development. It provides the ultimate employee drive and satisfaction, and in turn, it offers organizations the employees’ continuous organizational contribution and commitment. Professional services firms are knowledge based ones, and continual education is not only encouraged, but required in the form of CLE, CPE, and other courses to retain professional accreditation. Yet, what I find interesting is their general disregard of professionals' personal development. Firms might consider offering alternatives to the traditional career development paths and allowing their professionals to self select what they deem might suit them best. This calls for HR services above and beyond currently employed by firms. Grow people – grow business - grow organizations.

The last principle, Shared Vision, provides a sense of coherence and answers what type of organizations professionals aspire to build. While considered “soft” and often disregarded, it provides focus and energy for learning. Visions are often imposed rather than inspired and aligned with professionals personal visions (hence the issue with compliance vs commitment). They die quickly due to the lack of clarity and communication, or due to shift of focus, driven by the demands of the current reality. They focus on today’s problems rather than tomorrow’s opportunities. If long term organizational growth and development is an objective, encourage building personal visions and weaving them into a common shared vision. LISTEN. Let professionals choose for themselves.

Pressured by economic forces and the evolving model of the professional services industry, firms’ leadership should consider innovative management frameworks. A systematic way of approaching professional services organizations is necessary for their survival, it is critical for their business growth, and inevitable as we live in environment moving towards sharing - open source, social networks, etc. To develop a long term sustainable business growth platforms, firms should learn to utilize such comprehensive approach. They should avoid the temptation to employ quick, short term solutions, addressing individual segments (strategy – systems – skills) of the business growth platform and think how specific changes will impact the entire platform and organization.

Special thanks to the author of “The Fifth Discipline: The Art And Practice Of The Learning Organization” for his extensive research, insight and clearly articulated management frameworks. I would encourage the leaders of professional service firms to pick up a copy of the book and think about applying the principles of the learning organization, beyond the points outlined above.

© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved

SHARE | 2016 EDELMAN TRUST BAROMETER

Edelman has done it again...

The 2016 report is chalk full of valuable insights, as always, especially when it comes to selecting the most trusted spokesmen and communication channels to deliver key messages, and earn the trust of clients, shareholders and employees.

CLICK HERE for details

BE HUMAN, EVEN IF YOUR CAREER DOESN’T DEPEND ON IT

The importance of the human element for professional service providers is increasing

I recently came across Bill Fischer’s article, “The end of expertise” (HBR 2015), which questions the long-term existence of knowledge based organizations in their current form. Threatened by the increasing commoditization of knowledge and perceived expertise, and the low-cost, immediate results driven buyers' behavior, the author argues that soft skills and emotional intelligence are becoming unique differentiators for professionals and their firms. I couldn't agree more. While often undervalued, how you do what you do has always been an essential component of successful and sustainable client-expert advisor relationships.

It is undisputed that technology is disrupting the business of professional services firms. This disruption has been ongoing for the past two decades and it will most likely continue for the foreseeable future. Pricing pressure and changing business models and compensation formulas are some of the most visible immediate results of that turbulence. What it all ultimately means to expert professionals and their futures is yet to be determined…not much has been speculated or prescribed.

After spending incredible amounts of time and resources in the world of academia, professionals embark on a lifelong journey of professional development and practice, yearning to reach the coveted “expert” title. However, more and more professionals are realizing that the “expert” title has lost its luster, and all that goes with it. What are professionals and the firms that employ them do? Well, a few lucky ones, who have enjoyed the full benefits of being called and treated as experts, may retire. Others may have to re-tool themselves.

Based on the widely accepted Maister trustworthiness formula {trust= (credibility + reliability + intimacy) / self-orientation}, Fischer suggests that the variables in the trust building formula that deal with the human aspect of relationships offer the solution to the commoditization of professional services. In other words, employing and mastering the art of soft skills would be the only way for professionals to differentiate themselves and succeed in their careers going forward.

Because I’ve studied and have seen the positive results of professionals employing human skills, the “how you do what you do" has always come forefront in my teaching of professional development tips. I often refer to it as part of the notion of executive presence: how you go about carrying yourself, listening, communicating, etc. Take a deep dive into the concepts with “WHERE IN THE WORLD IS THE NEXT GENERATION OF PROFESSIONAL SERVICES FIRMS’ PARTNERS?”, an oldie but goodie I wrote on the subject about a half a decade ago. Listen to “LEADERSHIP LESSONS FROM MARGARET THATCHER”, an interview with Sir Bernard Ingham, Margaret Thatcher's chief press secretary I curated several years back. It builds upon the frameworks shared in the previous article, especially the one of personal gravitas.

Of course, we can’t talk about soft skills without touching on the subject of problem solving capabilities and its importance for professionals. The ability to ask good questions, realize and release innate assumptions and leniency to assign judgments, synthesize and re-frame points so as to communicate more effectively: all critical for professional and personal development in my view. Content and format will vary based on professionals’ and firms’ needs. Ask for best practices and recommendations.

Technology is great. It supposedly simplifies life and it does for the most part. Most professionals and firms have easily made the decision to invest sizable amounts in improving technology. However, most firms are neglecting to invest in the supposed beneficiaries of that technology. I say: it’s time to invest in the human element. Be human, even if your career doesn’t depend on it.

© 2010-2015 Copyright Mira Ilieva Leonard / iStile All rights reserved

By Mira Ilieva-Leonard | Mira.ilieva-leonard@istile.com

It's all about SALES

Over the past year I've collected, and randomly shared, a number of articles on the subject of sales: organization, process, skills and development. Here's a selection to reinvigorate your sales thinking, actions and results.

What Salespeople Need to Know About the New B2B Landscape: a Gartner study
As the sales process is shifting towards a consultative one in order to stay calibrated with the dynamic buying process, the importance of sales professionals as well as the marketing and thought leadership tools they use is greater than ever. Read on HERE to find out why and what to do about it.

What Top Sales Teams have in Common
High quality of the sales organization, a structured sales process, and accountability of the sale’s team members separates high-performing organizations from average and underperforming sales organizations. For additional criteria and details, read on HERE.

What Makes Great Salespeople
Spending more time with your clients, your colleagues, and your marketing and sales support team, as well as dedicating more quality time to selling, leads to better business growth results. Read HERE for supporting information.

What Separates the Strongest Salespeople from the Weakest
To improve your business growth results, increase the level of your communications skills, bump up your competitive streak, confidently lead your client conversations, stay positive while questioning your clients and their problems, and work with high performing business growth leaders. Click HERE for details.

How to Really Motivate Salespeople
Adopt individualized and simple compensation models, set reasonable goals and experiment with the rewards systems to find the most effective and efficient one for your organization. Click HERE to read more about motivating salespeople.

SHARE | Change and risk management tips for law firms from Managing Partner magazine

"SHARE" is the new format I've selected to post articles, tips, insights, videos, etc. of interest, authored by others

To succeed in a continuously evolving environment, law firms must accept risk management as a business growth enabler, appoint experienced business advisors to their leadership ranks, embrace change management training & establish a culture of readiness for change. See Managing Partner for details: https://lnkd.in/b9pAgQ5

IT TAKES TWO TO TANGO…AND GROW AN ORGANIZATION

The roles of the firm and the professionals in business growth

Professional service providers (lawyers, accountants, consultants, etc.) elect to join firms for many reasons: technical and administrative support, built-in infrastructure, environment of colleagueship and continual education, brand, etc. There are two main components to the partnership model - the partnership and its executive management, on the one hand, and the individual professionals, on the other. The model seems to work in most aspects of the business, but often fails when it comes to business growth, however. When implementing a growth strategy, I often see situations where management blames the individuals, and vice versa, when the firm’s growth goals are not realized. Why is that, and who is really to blame?

My strategy development projects require me to work with both firm management and its individual professionals. Over the course of the project however, I sometimes find myself working primarily with one or the other. In that role, I get a close view of the dynamics and dysfunctions of this partnership model, especially as it relates to business growth. I hear objections and complaints - some valid ones - about what’s holding back individual and firm business growth. Instead of playing a mediator or defender, I spend a considerable time explaining the business growth roles of the firm and its professionals. So, I decided to take a few minutes and spell it out: it takes two to tango. In order for organizations to experience sustainable and smart business growth, both parties – the firm and its technical professionals - should accept their business growth responsibilities and work to deliver them.

It starts with the visible disconnect between a firm strategic direction and the one of its individual practitioners…it is a recurring case, unfortunately. Firms should take individual professionals’ business growth goals and activities into consideration when developing strategic development plans. In addition to looking outwards for market trends and competitive analysis, annual retreats should become a series of strategic conversations of how partners see growing their practices over the short term, how such objectives are within the realm of the firm’s aspirations, and how the firm can support them.

Firms tend to load the marketing budget with awareness building activities and internal marketing communication. Instead, they should invest in building internal business growth organizations that reaches beyond branding activities, and cover all steps of the business growth process. They should take a comprehensive view and ensure that this internal platform offers adequate support during the awareness building, education, sales and loyalty phases. They should provide marketing and business development resources and tools, and I am not referring to the basic websites and brochures. The firm should be able to provide thought leadership materials, target intelligence, client data, and facilitate opportunities for the professionals to engage with clients, prospects and referral sources so that they can build meaningful relationships. Firms should adopt and manage systems and processes to help track and measure business growth activities, for more efficient and effective i.e. smart growth. Most importantly, firms should equip professionals with the skills how to best use all of the above. In my professional experience, firms, which have aligned their development inspirations with that of its professionals, have invested and built internal growth engines, see considerable growth results.

Professionals tend to set business growth goals based on anecdotal information (often not due to the lack of actual data) and without regard on how they might achieve them. They should take a more strategic approach and create simple business growth plans (no more than 1-2 pages long), inclusive of measurable goals and specific tactics on how they might reach their objectives. They should get to know and utilize the tools, resources and systems provided by the firm – they are in place for them to use. Equally to their continual thirst for technical knowledge, they should strive to enhance their business growth planning and implementation skills. If professionals take advantage and leverage the full support of the firm, only then can they point elsewhere for poor business growth results.

Firm leaders, professionals, keep in mind for the next round of annual reviews: "it takes two tango". Look inwards and evaluate how you are delivering on your business growth responsibilities before shifting blame and looking for alternative business growth opportunities.

© 2010-2015 Copyright Mira Ilieva Leonard / iStile All rights reserved

By Mira Ilieva-Leonard | Mira.ilieva-leonard@istile.com

COLLABORATE TO INCREASE BUSINESS GROWTH: PART III

Practical tips for unlocking the potential of collaboration

In Part I of the series on collaboration I made the argument that professional services organizations should strive to encourage collaboration, because it leads to business growth. In Part II, I discussed the major obstacles to collaboration, and hinted on how to overcome them. In this last segment, I will take a prescriptive approach, and outline specific measures to unlocking the potential of collaboration. As in the past, I’ll also refer to the Harvard Business Review (HBR) article and study, titled “When senior managers won’t collaborate”, and some of my past writing on the subject.

A collaborative culture must originate with the leadership team. Leaders should consider and explore a firm development strategy with collaboration as a core attribute, or even as a sustainable competitive advantage. Take an all-encompassing approach: from recruiting and retaining talent, to growing the firm and boasting team performance. Demonstrate and communicate the importance of collaborating and growing the organization and the danger of not doing so to the business; become vocal in celebrating client development accomplishments and equally so to learn from failures; and nurture an environment where experimenting with innovative ideas is welcomed.

Leaders should define an organizational structure and compensation models that foster sharing and cooperation, again spreading throughout the firm: back office operations, technical and client facing practitioners. Employ tools and systems that encourage communication, knowledge sharing and transparency, which are some of the key components of collaboration. Establish functions and recruit / develop professionals who not only understand the value of collaboration, but have the necessary skills to build and cultivate collaborative culture. Focus on the system not the individual superstar performance. Set firm-based, common goals, which benefit the firm as a whole rather than the individual performer. For the greater good.

Leadership must adopt a “systems thinking” way to managing professional services organizations. To do so, approach problems by identifying the source of the issues: what’s the core, not the symptom. Employ all disciplines of the systems thinking theory (refer to my past article, "Systematic approach to business growth"), especially the ones of “mental models”, which among other things, explains why change management exercises and introduction to new business growth systems and programs might fail; and the “team learning” one, which casts light on what's behind the “narcissistic behavior” of professional services organizations, ultimately holding back collaboration and limiting business growth.

To my delight, the HBR survey offers professional services organizations tips similar to my prescriptions. It encourages leaders to walk the talk and show first hand by collaborating with others. Create opportunities for the team to connect and build trust. Resist the temptation to bring in rainmakers, but look for individuals with demonstrated collaborative experience. Celebrate team wins. Re-consider the compensation scheme of the firm and question how much weigh is attributed to collaboration, if any. I’ve seen some of this already take place in a few progressive organizations, where collaboration has become a factor in the compensation formula. Build a collaborative culture by tracking and rewarding non-billable collaborative initiatives such as mentoring. Enhance the knowledge sharing culture. Encourage regular workshops and secondment programs, and utilize communication technology and tools to share best practices. Develop teams to lead the way. Build collaboration in the firms’ development strategies.

The HBR survey takes a segmented approach, and in addition to the above-mentioned recommendations geared towards organizations and their leaders, it also speaks directly to individual practitioners. It recommends to professionals to be persistent. Select to collaborate with a firm influencer / rainmaker. Be fair to teammates. Communicate often and openly, and deliver on promises.

Organizational development research, as also confirmed by the HBR study, shows that organizations which build and nurture a collaborative environment manage to turn knowledge into action, share best practices and drive growth at a sustainable and fast pace. So, when examining what’s inhibiting organizational development and growth, reflect on the factors outlined above and most importantly, take immediate actions to close the know-do gaps and create collaborative culture.

For a copy of the HBR article visit: https://hbr.org/2015/03/when-senior-managers-wont-collaborate?utm_content=buffer98a13&utm_medium=social&utm_source=linkedin.com&utm_campaign=buffer

© 2010-2015 Copyright Mira Ilieva Leonard / iStile All rights reserved

By Mira Ilieva-Leonard | Mira.ilieva-leonard@istile.com

COLLABORATE TO INCREASE BUSINESS GROWTH: PART II

Why is it so difficult for collaboration to work?

Last month I launched a three-part article on the subject of collaboration. The piece is based on my past and current research and observations, and follows a recently released Harvard Business Review (HBR) study. In Part I, I and the author of the HBR article, made the case for collaboration in professional services firms and the direct correlation to business growth. In this segment, I will focus on the challenges of making collaboration work.

The study and I are in agreement: the key factors preventing professional organizations from taking full advantage of collaboration are organizational structure, compensation model and culture.

While in several of my articles I discuss narcissistic or hyped self-preservation behavior and the lack of common strategic goals and systems in professional services firms as the main roadblocks to building a healthy collaborative environment, the compensation models and culture are just as critical for that. I’ve especially emphasized on those in my piece based on the collapse on Dewey & LaBouef. The Dewey & LaBouef case clearly demonstrates that a compensation model, mainly incentivizing rainmaking can encourage wrong behaviors and be counterproductive. Similarly, a culture allowing for a digression from the clearly defined traditional firms’ values of loyalty and collegiality, often has a hefty price.

The HBR survey notes that organizational structure, compensation systems and culture in professional services firms favor individualistic approach. Most firms still value rainmakers higher. From professionals’ standpoint that’s not a bad thing, as professionals’ security is tied to their client relationships. External recognition from professional organization rankings further influences professionals and pushes them to focus on individual performance. The last notable obstacle to collaboration, according to the survey is the lack of collaboration skills. I concur. The skills in reference here are such that go beyond the usual delegation of work to junior professionals; these skills support an advisory approach to client management of asking questions, which benefit the client, and having client conversations that reach outside of the comfortable technical points and are actual business dialogues. These collaborative skills encourage giving and receiving team member feedback, allowing both jr. and sr. level professionals to contribute and learn from one another. These are the skills that most professional service providers are not equipped with…

So, what can you do about it?

After a careful study of the characters, the various circumstances and the storyline of the events, leading to the bankruptcy of Dewey & LaBoeuf, in The New Yorker piece, “The Collapse”, James B. Stewart concludes that “cooperation and mutual respect” is at the heart of successful professional services firms. That’s the culture that successful firms foster and Dewey & LaBoeuf blatantly ignored, according to Stewart. In some of my other articles I refer to that as collaboration and encourage organizations to reward it, because it provides for learning, best practice sharing, better solutions design and a team client approach…for the greater good.

Stay tuned for the last segment of this series, which will take a prescriptive approach and will outline tangible points to inspire collaboration(CLICK HERE).

For a copy of the HBR article visit: https://hbr.org/2015/03/when-senior-managers-wont-collaborate?utm_content=buffer98a13&utm_medium=social&utm_source=linkedin.com&utm_campaign=buffer

© 2010-2015 Copyright Mira Ilieva Leonard / iStile All rights reserved

By Mira Ilieva-Leonard | Mira.ilieva-leonard@istile.com

COLLABORATE TO INCREASE BUSINESS GROWTH: PART I

HBR study confirms that collaboration in professional services firms leads to financial rewards

Nearly 3 years ago I launched a series of articles on the subject of collaboration among professionals from professional services firms (law, accounting, tax, consulting, etc.). I wrote about the importance of collaboration to firms’ organizational development and business growth, the reasons behind the visible resistance to it, and how to overcome such resistance and take full advantage of collaboration. Even though some of my blog entries might be considered polarizing, the theme of collaboration has repeatedly appeared in many of my articles. I am glad to see the findings and statistics of a recently released HBR study on collaboration validate my hypothesis and emphasize the importance of collaboration to professional services firms.

As a result of examining collaborative behavior of professional services firms over the past couple of years, Professor Gardner (a lecturer at the Harvard Law School) recently released her findings in an HBR article, titled “When senior managers won’t collaborate.” The key sentiment of it is in line with much of my beliefs: when professionals work together to collaborate everybody wins!

Why collaborate? In my “One for all, all for one" article of December 2012, I spelled out the benefits of collaboration. Collaboration encourages learning and development (critical for knowledge-based organizations such as PSFs), turns knowledge into action (which closes “knowing-doing” gaps), and increases the opportunities to grow business and succeed in the market place. Collaboration in PSFs provides confidence to existing clients that the firm will provide the necessary resources to support them and provide fresh ideas and solutions; for new clients, collaboration means a stronger and deeper team and higher chances for both the client and the advisor to identify someone to connect with and build trust which builds stronger, better relationships between clients and advisors…after all, people like to work with people who they like and trust. When it comes to client development, collaboration alleviates the burdensome stigma of sales. Working as a part of a team makes that experience less onerous, and promotes best practices sharing, while keeping everyone accountable.

Equipped with statistics and historical financial data, the HBR study backs up my words and demonstrates direct financial benefits of collaboration to the firm. When professionals collaborate, it results in the involvement of more practice areas, creates higher margin work, and institutionalizes client relationships. Thus, it becomes harder to replace an entire team of advisors and it becomes equally difficult for a departing partner to walk away with a client.

The HBR study goes on to outline the benefits to professionals as well. When team members get to know one another they become more likely to refer work among themselves. I often tell my clients: you have to work as hard to develop relationships with your internal partners as with external referral sources; they need to know you and trust you before they put their reputation on the line for you. The study has made an interesting observation here: collaborative professionals benefit from a steady stream of business even during slow periods due to their diversified skills, which further allows professionals to work on a variety of projects, and continue to collaborate. Collaboration creates a very beneficial feedback loop.

If the benefits are so overwhelmingly clear, why is it so difficult for collaboration to work in professional services firms? Stay tuned for my next article on the subject, which will examine the roadblocks to building and managing collaborative environment (CLICK HERE).

For a copy of the HBR article, click HERE.

© 2010-2015 Copyright Mira Ilieva Leonard / iStile All rights reserved

By Mira Ilieva-Leonard | Mira.ilieva-leonard@istile.com

THE PROFESSIONAL NETWORKS MODEL: EVOLVING TO STAY RELEVANT?

A series of questions and recommendations from the leading minds in the field

Professional networks have become the norm when it comes to connecting independent professional services firms in order for them to better serve clients and offer global solutions. As I indicated in my article “Making Professional Networks Work” when both the member firms and the network have shared objectives, long-term commitments, and clear expectations, that formula can be extremely powerful. However, that’s easier said than done! Many member firms I’ve worked with are struggling to justify their network involvement and investment, and are increasingly questioning the validity of the network model.

During my extensive experience with networks and their member firms, I’ve had the privilege to collaborate with a number of forward thinking network leaders. James Mendelssohn is certainly one of them. James is a Chairman of one such network, MSI Global Alliance (MSI) and a highly sought-after consultant focused on network management and leadership issues with Firm Management Associates. I was thrilled when James recently agreed to share some of the content he’s developing - alongside Quentin Vaile, former head of the international network at the UK law firm Berwin Leighton Paisner - on the future model of professional networks. Below, please find the first several articles of the series. I hope that you will find their thoughts and recommendations of interest and will follow their writings, as this blog will.

“PROFESSIONAL SERVICES NETWORKS – A VIABLE BUSINESS MODEL FOR THE FUTURE?”

This is the first in a series of blogs that will look at the world of professional services networks; their future; different business models that can be followed to ensure their success; and what member firms need to do to capitalise on their membership of such networks.

There are some strong networks out there, and others that are struggling. There are some good member firms of networks, and others that are members for entirely the wrong reasons or with totally unrealistic expectations. We’ll be looking at all of this, and we won’t be pulling our punches. Some may find our comments uncomfortable and will undoubtedly stick their heads (even further) into the sand. Others, I hope, will accept them in the spirit with which they are offered and consider changes that may lead to the long-term sustainability of their organisations.

For the full article, click HERE.

“DO PROFESSIONAL SERVICES NETWORKS HAVE A FUTURE?”

The professional services world is changing – and probably faster today than at any time in the past. The principal reasons for this are twofold; and these converging pressures create the perfect storm for change. First, client needs are changing. One in five SMEs in the UK now trades overseas. And if you discount the high number of very small traders who are never going to look beyond these shores, then the proportion is clearly much higher amongst those businesses that many professional services firms would consider to be prime targets. Demand from clients for their advisers to be able to respond to an international enquiry has never been higher. Secondly, the professions are changing. Of course, the professions are always changing, but the pace of change within the professions at a local and national level is now having a very marked impact on the way in which firms are able to service their clients overseas.

If you take these two factors within the context of many people, in both their personal and business lives, believing that big is not always best (just look at the shift in retailing patterns over recent years), then the need both for networks to look critically at themselves, and also for those firms that either within a network or considering joining one, to review their motivation, and see whether their objectives are being met, has never been stronger.

For the full article, click HERE.

“CHANGING THE MODEL OF PROFESSIONAL SERVICES NETWORKS – ONE FIRM, ONE VOTE”

‘Partnership is not a great management approach at a single office level. And when you translate that into the international arena, it is a disaster. Democracy within the typical network business model is all very well in theory, but in practice …’ That comment from my previous blog certainly struck a chord, and so for the next few blogs, I plan to focus on various aspects of network governance where democracy sometimes emerges … but not always with the desired results.

With many networks set up as membership organisations, the concept of member participation in the governance process is often embodied in the constitution. Indeed, I know of one network where each member firm, whatever their size, gets one vote on each important decision. And, if the network wishes to appoint a new member firm, then 75% of the membership has to vote in favour. Very democratic, perhaps, but a complete nightmare. Not just because of the administrative problem of trying to get that number of firms to actually vote, but it totally undermines the position of the team whose task it is to appoint new members. What do people from the other side of the world know about a particular firm that someone who has visited and reviewed that firm do not?

For the full article, click HERE.

CHANGING THE MODEL OF PROFESSIONAL SERVICES NETWORKS – WHO SITS ON YOUR BOARD?

The ‘one firm, one vote’ concept, still adopted by many groups (largely because of their inability to change rather than a belief that this is a good model for any other than the smallest firms), may appear to be democratic, but in reality it simply hinders the logical decision-making process. Some groups have managed to vest the management of the group to a small Board of Directors, and they will normally have significant powers, with only key issues being put to the membership as a whole. And therein lies the problem. Or, in fact, two problems.

First, while day-to-day management becomes more efficient, fundamental issues of change remain within the domain of the membership as a whole, with all their diverse interests. Turkeys don’t vote for Christmas, and member firms in membership organisations are primarily driven by the interests of their particular firm, rather than the organisation as a whole. That’s fine if votes on key issues are decided by a simple majority, but I know of at least one large network that requires a 75% majority on any decision of substance.

Secondly, it is fine to vest management in a Board of Directors, but who sits on that Board? Well, almost without exception, the Board comprises senior partners from a number of the larger member firms, together with the senior employee, normally the Chief Executive or Executive Director. Whilst these are normally, I am sure, worthy men and women, there is absolutely no doubt that the most important thing in their business lives will be their own firm, and not the membership organisation of which their firm is a member. So unless the situation is well managed, there is an inevitable conflict of interests.
…
The more ‘corporate’ the structure can become, with directors who really distinguish between their different roles, the more likely it is that the network will succeed and flourish.

For the complete article, click HERE.

© 2010-2015 Copyright Mira Ilieva Leonard / iStile All rights reserved

By Mira Ilieva-Leonard | Mira.ilieva-leonard@istile.com

Who Do You Trust When the Trust Is Gone | Edelman Trust Barometer 2015

What does it mean to your organization and what you should do about it?

Trust is at the core of any interpersonal relationship. Politicians campaign to capture their constituents’ trust and voting power. Consumer brands strive to earn their consumers’ trust and become the product / brand of choice. Service firms work hard to establish themselves and their professionals as “trusted advisers” and “partners.” Trust can be very fragile, and once earned can be easily lost no matter how much time and money were spent earning it.

As has become my custom, here’s a brief overview of the recently released 2015 edition of the Edelman Trust Barometer and my interpretation of the findings.

The bottom line of the 2015 Trust Barometer: trust is on the decline, yet again. Studying four main segments: NGO’s, business, media and government, government is the only institution with a slight uptick in trust (hard to believe, right?).

Overall trust in the media is on the decline. Search engines are the most trusted and the first choice of locating general information. Content is more trusted if it is created by the subject matter experts, as opposed to journalists. Not surprisingly, business references coming from family members or friends are the most trusted. Marketing professionals take note: revisit and potentially increase your spending on SEO’s, raise authentic authorship content and review testimonials to include some of trusted referral sources.

Businesses are losing trust for the first time after the Great Depression – perhaps an indicator that the recovery we’ve been seeing is slowing down. The survey outlines four factors that impact trust in business: industry, enterprise type, country of origin and leadership.

Technology remains the most trusted industry, yet with the numerous security breaches, hacking stories, etc. trust is decreasing both for the technology products and the industry overall. Don’t take it for granted: continue to ensure your clients and shareholders of the security of their information, reinforce the value of your products / services and their positive benefit to society (see more on that below).

BRICs are still among the most distrusted countries of business origin, while Sweden, Canada, Germany and Swiss are the most trusted (well, at least until the most recent Swiss HSBC banking scandal). Family-owned businesses in the developed countries are the most trusted ones, while big businesses are trust leaders in developing countries. The reputational risk closely tied to where you and your clients do business is still very much alive. Think of the healthy longevity of LuxLeaks, SwissLeaks and other tax related headlines in the international media. I hope that these finding will encourage you to review your current geographic development strategy and adjust it accordingly.

Academics, industry experts and technical experts remain the most credible spokespeople. In most cases, CEOs are not viewed as credible spokespeople, though that again varies between developed and developing countries. Another question to marketers: who is addressing your clients? Consider raising the profiles of technical experts, and partnering with academic institutions to validate your thought leadership.

One of the most interesting findings of this year’s study is that rapid implementation of technology seems to depress trust and directly influences trust in innovation overall. The continuous stream of newly minted technology millionaires presents innovation as being driven by greed and not necessarily good for society. Then again, trust in innovation is far higher in the developing world than in the developed one, as the "developing markets are more open to change." Organizations that see innovation as critical to their competitiveness need to recognize that consumers fear the unknown and should emphasize education during the sales process. Transparence and third-party validation, perhaps by academic institutions and NGO’s, are essential for earning credibility and trust.

“Knowledge and understanding beget trust”. Edelman has identified integrity, engagement, products and services, purpose and operations as the key ingredients in building trust. Integrity is the leading criterion, closely followed by engagement, both of which encompass activities such as “ethical business practice, taking responsibility to address issues, having transparent and open business practices, listening to clients’ needs and feedback, treating employees well, placing clients ahead of profit, and communicating frequently on the state of the business.” So what does this mean to you? Be transparent. Communicate with your stakeholders and clients often and with purpose. Connect with academic institutions. Get involved in solving the problems of the community. Work to earn and keep the trust of your key constituents.

Trust matters. Clients purchase products/services from companies they trust. Keep in mind that now, more than ever, clients/consumers are vocal. They will recommend organizations they trust and equally, share criticism of the ones they distrust.

For a copy of the 2015 Edelman Trust Barometer visit: http://www.edelman.com/insights/intellectual-property/2015-edelman-trust-barometer/trust-and-innovation-edelman-trust-barometer/executive-summary/

© 2010-2015 Copyright Mira Ilieva Leonard / iStile All rights reserved

By Mira Ilieva-Leonard | Mira.ilieva-leonard@istile.com

POSITION YOUR CLIENTS CENTER STAGE FOR A WINNING GROWTH STRATEGY

"What business are you really in?"

Tis the season when marketers and firm leaders dive deep into excel and power point exercises, as they conduct year-end performance reviews and look ahead towards 2015 planning. I wonder how many will stop for a moment and ask: “what business are we really in?” and take a different approach to short and long term strategy development.

Nearly 55 years ago, Theodore Levitt, a professor at Harvard Business School, articulated the importance of businesses focusing on clients’ needs in an article titled “Marketing Myopia,” which is a Harvard Business Review (HBR) favorite. He posed the question “what business are we really in” and provided a number of case studies, illustrating the peril facing organizations, which have ignored that question. I was recently reminded of this timeless concept not only by re-reading the re-published article, but also because I am beginning to see it more often in professional services firms in the form of marketing officers and firm leadership working together for the benefit of the client. It’s about time, one might say.

Thanks to this “clients first” concept, professional services marketing functions are enjoying a renaissance period. Professional services firms are recognizing the importance of “client centric approach” to their businesses, and thus their business growth strategies, and with that they are changing their historical definitions of marketing to encompass a more strategic and intelligent function. On their end, marketers are doing their part in raising their profiles by utilizing client data and analytics to drive growth and demonstrate their value in terms of dollars and cents. It’s a push - pull process that is leading the way and changing internal growth organizations. This trend is highlighted by the increasing tenure of CMO’s, according to leading executive search firms.

“An industry begins with the customer and his / her needs, not with a patent, a raw material, or a selling skill,” writes Levitt in the aforementioned article. Let that be a reminder that now that the marketing and strategy functions are finally working alongside, it is important to stay focused on what brought them together: the client. While it’s easy to get distracted by budgets, operations and tactics of delivering strategy and business growth plans, put your clients’ agenda first this year.

Consider changing your annual strategic planning process. Facilitate a session to answer the question “what business are we really in,” as well as how have your clients and their needs changed, and whether your business is still in line with them. Put aside the internal political minutiae. Shift your focus from developing new services or re-packaging existing ones to your clients. Expand the scope of the process to include a wider input pool: internal professionals across functions and external industry leaders, and most importantly, your clients. Think innovation, not preservation. Be prepared to reallocate resources in your budgets. And last but not least, make it a dynamic strategic planning / review process that takes place throughout the year.

If all else fails, at least go back through your client satisfaction surveys / interviews and outline just one additional initiative that you are going to undertake in 2015, which will focus on your clients’ needs. It might just help you outpace your competition and re-define your market.

By Mira Ilieva-Leonard Mira.ilieva-leonard@istile.com

© 2010-2014 Copyright Mira Ilieva Leonard / iStile All rights reserved

THE POWER OF TECHNOLOGY IN GROWING PROFESSIONAL SERVICES

How to make the most out of technology tools

Technology can and should be used to offer leverage and amplify the business growth efforts of professional services firms, both at the firm and individual practice level. As with anything else, before selecting which tools to use it is critical to have clear strategy, defined key performing indicators (KPIs) and realistic expectations in mind. Below is a list of the most popular technology tools with professional services firms (PSFs), some of their features, pros and cons as well as general best practices. Note that each of them might support different or several segments of the sales process (e.g. Lead generation, engagement, etc.) and offer different ROI when evaluated individually.

Email marketing is one of the most well established technologies in the PSF market. E-mail is still a very powerful tool notwithstanding its overuse in the marketplace, and dismissal by many BD professionals. When coupled with analytics, it can be a marketer’s go-to technology platform. However, if not structured properly, email marketing can often provide a one-way communication, with limited opportunities for dialogue with the audience. To make the most out of email marketing, try to launch a dialogue with the readers, strive to have compelling and relevant content, and focus the communication to the right audience with the right packaging.

Blogs have become very popular with PSFs because they offer very easy publication capabilities for individual professionals and content focus (e.g. industry, specific technical point, etc.). A blog can also be viewed as a bit more engaging than the one way broadcasting of emails because it invites feedback through reader comment sections. As such, it might be considered “higher” on the client acquisition value chain. The biggest challenge with blogs is following a diligent and disciplined approach to content creation. To make the most of blogs, the creator must develop a content schedule and distribution strategy regardless of whether the blog is powered by individual technical professional or marketing and knowledge teams.

Driven by easy access, low entry cost and an army of young marketing professionals very comfortable with the medium, Social Media has received a lot of attention with PSFs, undeservingly so, some might say. Not all social media tools are created equal. LinkedIn, Twitter, Google +, and others offer different value to marketing and business growth of professional services firms. I can’t emphasize enough the importance of having a clear understanding of the tools and a strategy in place on how to use them. Based on your objective, LinkedIn, for example, can be used in many different ways, e.g. as a mass communication platform, intelligence gathering tool, engagement facilitation portal with existing and prospective connections (note that there’s a difference between connections and contacts), etc. We can apply similar reasoning to Twitter; are you broadcasting or listening, and why? How do you use these tools and why?

Customer Relationship Management (CRM) has become one of the most dreaded three letter words in professional service firms, so much so that some firms have tried to use different acronyms. In many cases CRMs have become synonyms for expensive and often unsuccessful change management exercises. This “infamy” is unfortunate. CRMs offer key functionality for smart business growth such as targeting and segmentation, and have great success stories for collaboration, cross-sell and client service efficiency, as evidenced by the 2013 “Managing Client Relationships” report, produced by the Managing Partners’ Forum and their partners (you can find a copy of the full report here) The challenges presented with CRMs are many. They include data collection, input and upkeep – which can be time consuming and require discipline, adoption and utilization – which require training and firm-wide buy-in, or what typically occurs is the CRM is limited to a few administrative functions which vastly underutilize the capabilities of the system. In order for CRMs to be successful and offer positive ROI they require big percentages of firm wide use. With that in mind, having a clear strategy and reasonable expectations must be at the forefront of CRM implementation projects. This requires cross-functional collaboration between C-level Management, Marketing, IT and HR.

Marketing Automation is the latest trend in technology tools designed to impact the top line. To a big extent, marketing automation ties all of the above-mentioned tools together plus SEO’s and analytics. A few PSFs are venturing and experimenting with this tool, but the jury is still out. The main question to consider is whether PSFs can generate enough relevant content to constantly feed the marketing automation machine and get a reasonable ROI on the investment in the system and its support personnel. Marketing and knowledge teams, assisted by technical professionals, will need to work together to map the client acquisition journey (to use product marketing terminology) and develop appropriate content. They will also need to keep in mind that the decision buying process might be different for different services and clients.

There are of course other technology tools such Websites & Content Management Systems (CMS), Search Engine Optimization, Big Data & Analytics, etc. that I will not cover now because of the questionable nature of their direct impact to business growth, at least as of this writing. Websites & CMS are mainly seen as informative and credibility building tools rather than drivers of business growth. Only a select few firms thus far are undergoing investments in Big Data & Analytics, i.e., mining and analyzing the data available to them to provide data to assist studying buyers’ behavior and for productizing services. And most importantly, even fewer still are taking the next step and acting on the data analysis. The business growth opportunity with Big Data is here, but it is not fully understood by professional services firms yet.

There’s no doubt that technology tools offer business growth leverage at both individual and firm levels. If there’s one key takeaway from this brief piece is that these tools are only as valuable as the strategy of their use. Those who don’t “think it through” before trying to implement these tools may find a lot of frustrated professionals and low adoption rates within their firms. So, before jumping on the next technology trend ask yourself why, what you expect to achieve, how you are going to use it, and if you have the time and resources to dedicate to it.

© 2010-2014 Copyright Mira Ilieva Leonard / iStile All rights reserved

By Mira Ilieva-Leonard Mira.ilieva-leonard@istile.com

Clients changing the business of law

How are firms dealing with it and what it all means in practice?

I was recently invited to moderate a panel of law firm CFO’s for the Southeastern Chapter of the Legal Marketing Association, titled “The Evolution of Law Firm Finance and Its Impact on Business Development.” The panel considered the following circumstances and how they have impacted the business of law. As a result of the recent recession law firms are undergoing overwhelming change. Many of them are retooling their financial strategies by adopting alternative pricing methods, shifting operational financing, improving vendor management, and most importantly, how they go about attracting, serving, and retaining top clients. In other words, firms are modifying their way of doing business to better align with the demands of corporate America. So what does that mean for the industry in practice?

Below please find some of the key takeaways from the conversation along with my personal observations. A side note: in my experience this trend is not limited to law firms and is evident across the professional services industries. Many of the points brought up during the conversation are applicable to professionals offering consulting, accounting, and other business services.

The fact that clients today are expecting the same high quality services for lower cost worries some professionals, but hasn’t persuaded them to change their pricing model. Some cling to the notion that this is only a fad and “the good old days” of buyers’ flexible budgets will return. If neither are willing to change their thinking, both groups will soon become industry laggards.

This shift from a revenue- to a cost- based law firm business, where “profit” is the name of the game is clear. It presents many opportunities for firms ready to improve performance and leverage efficiency. However, the transition is not easy, which makes the hesitation of the above-mentioned laggards understandable. It necessitates a “one size fits none” mentality, where firms must take a segmented positioning attitude for various practices and partners, and learn both the consultative and commodity approaches of selling legal services. It requires applying new staffing and project management models, such as “the pyramid” staffing model for consulting and other deep expertise services, and / or “the diamond” model for highly leveraged, packaged services. It also calls for new skill sets: project management, financial understanding, change management, collaborative skills; and new tools: financial dashboards, collaborative index, etc.

Marketers and Billable Professionals: CFOs are your new best friends. In order to succeed in this environment, marketers and billable professionals will need to understand the business of the firm and the various individual practices. In addition to joining forces on addressing RFP’s, they will need to work with CFO’s to package services: define how to sell and deliver them in order to keep healthy profit margins, and create business models to stay competitive and win business. They will need to communicate often to identify where the systems and processes can be improved to serve clients better. They will need to track Marketing/BD spending and measure ROI, to better evaluate business growth initiatives and create more accurate budgets. Ultimately, they need to align their agendas to champion change to create and employ the supporting systems, skills and processes.

The CFO’s sitting next to me for this session might be some of the most progressive ones I’ve encountered. I was delighted to hear them speak about changing behavior, collaboration, and building a different type of organizational culture. They understood what it would take to make the transition: to meet their clients’ expectations and remain relevant.

The bottom line: change is upon us and instead of wasting time and energy fighting it, embrace it. Accept that with the new business model new compensation structures are afoot and necessary to change behavior and overall firm culture. Adopt new KPI’s (key performing indicators) such as team profitability, cross selling, and collaboration. Understand that "not all clients are created equal;” approach them and structure delivery accordingly.

It is indeed a transformative period for the legal and other business services industries. Progressive firms that will act upon this shift quickly, and put the wheels of change in motion, will stand out. Will you join them? At iStile, we work with firms to help them take advantage of such opportunities by structuring and implementing the necessary systems and equipping the management team and professionals with the necessary skills.

By Mira Ilieva-Leonard Mira.ilieva-leonard@istile.com

© 2010-2014 Copyright Mira Ilieva Leonard / iStile All rights reserved

GOT CHANGE?

Practical tips on introducing and successfully implementing new ideas, processes, etc…

For the past several years I’ve spent the majority of my time in Europe, which I discovered uses an extraordinary amount of change (coins). “Change” –whether used to mean “coins” or “transition” - is not popular nor convenient (it is heavy and bulky); it is necessary (from the most trivial to the most unexpected activities), and it is everywhere, and ultimately becomes part of one’s normal life. In many respects, Europeans pride themselves on their resistance to change through preservation of culture and traditions – and they continue to use coins for most transactions. Yet, Europe is also a symbol of political and economic change as it seeks to break down national borders and create a single currency. . . Notwithstanding the images of 1000 year old castles, and clinging to traditions, in many respects they are much more advanced than the “innovators” on this side of the Atlantic Ocean. I can’t help but think that if Europeans can resist change, and at the same time embrace it as political and economic borders begin to erode, then we need to carefully identify why some change can take hold, while other is impossible to implement.

Why is it so difficult for some kinds of behavior change to take hold? How do we reduce the amount of time fighting change and ensure high adoption rates?

In my function I often act as a change agent (I have mixed feelings about the term) and while I personally enjoy change (I thrive on it really), I am puzzled by how others behave when they are exposed to it. Because of that I’ve spent a good bit of time reading and studying change: behavioral change, change management, how to present change to increase its adoption rate, why it’s hard to change people, how to reset your brain, the latter two coming from articles and books such as: “Change or Die”, Alan Deutschman (#changeordie) and “Driving Change”, Mike Brewster (#drivingchange). They all explain that change and the perceived discomfort and the uncertainty it brings are scary for most people.

“Sixty percent of change initiatives result in failure. Change is always very hard, so choose your battles and focus your efforts…lawyers are typically more resistant to change than most,” claims a recent article in Managing Partner, a UK based publication catering to the legal industry, June 2014. I am not surprised with this number. In fact, my anecdotal research would claim that the number of failed change activities is even higher and closer to seventy-five percent across professional services organizations (law, accounting, advisory, etc.), my field of expertise.

Is it necessary to change? And, why are we trying so hard and over and over again to change people? For organizations to evolve, do we need to change? Should we just adopt the Darwin’s model and let organizations prone to change survive and let others become obsolete? Change is good and necessary. Placidity is stifling and brings conformity. The real question in my opinion is what are we really changing when we talk about altering organizations: people or their behavior? An article in the June, 2014 issue of Scientific American, titled “Good Habits, Bad Habits” talks about the complex process of building and re-programming habitual behavior. It turns out, what it appears to be a simple act of automatic behavior is not as simple after all. Multiple parts of the human brain are involved when building habits and almost as many once the habit is imprinted and is processed. Given that the majority of our daily existence is a series of habitual acts, which once laid down employ chunks of neural activity, it’s no surprise it’s so difficult to change human behavior.

All of the materials I’ve come across on the subject also talk about how to go about managing change –the traditional model of denial, the one of co-creation...There are some great frameworks to assist you in the process. Before you evaluate them and select which ones to employ I would suggest you gauge the adaptability of the organization / people. You can do so by looking at past performance, use structured assessment tests, etc. From my practical experience, openness to change equals desire to learn, so that’s usually my first clue. The organizations and professionals I’ve worked with and have had the highest rate of change management success are ones with obvious and exemplary attitude towards learning. I am referring to general curiosity and aptitude to absorb knowledge: industry and technically related, or even just generic (including pop culture, sports, etc.).

Once you have a sense of how challenging your change management task might be, multiply it by two as well as the project time and resources, and the chances are that you’ll still underestimate its complexity. Here are a few practical pointers to keep in mind through the process:

- Break the project down to small, digestible work streams.

- Articulate benefits – overall and individual (mind you that those might vary for different audiences).

- Provide a support system and tools.

- Let people process it at their own rate.

- Celebrate small wins.

- Have a failsafe plan (or a few).

- Provide constant cues and rewards in effort to build new habits.

- Equip yourself and the change management team with patience.

Progress and change are inevitable. For a sustainable change to take hold it takes time and perseverance – it’s a marathon, not a sprint. And for our European friends and their paradox – well, how it all plays out with the EU and euro in the long term will be the ultimate test of their ability to deal with change. Good luck!

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