Collaboration: a key ingredient for successful development of professional services organizations?
Earlier in the year, after writing an article about narcissistic behavior in professional services firms (PSF’s), “For the Greater Good or Eat What You Kill”, I promised a piece on the importance of collaboration and the impact it has on the overall development of PSF’s. The subject has been on my mind ever since. Recently though, I experienced a few events which have reinforced my strong belief in the idea. One of them is a meeting with the managing partner of a mid-sized PSF who, much to my pleasant surprise, not only understood the value of collaboration, but was also able to demonstrate the direct and impressive business progress as a result of it. You see, most of the PSF’s I’ve worked with employ the “eat what you kill” mentality. If you’ve read my previous pieces you’d know I believe this mentality has mostly counterproductive effects on the development of PSF’s. My conversation with that managing partner was one of the most positive experiences I’ve had in a while. I can’t help but ask myself what’s different about that firm, its culture and its leadership team that allows them to embrace collaboration and sets them apart from the rest and, in my opinion, makes them “progressive.” That, however, is a different question I’ll leave for another time and perhaps an interview with that managing partner.
Before I move on to the other event that pushed me to write this piece, let me take time to articulate the importance of building a collaborative environment in PSF’s. It encourages learning and development, critical for knowledge-based organizations such as PSF’s, turns knowledge into action, which closes “knowing-doing” gaps, and increases the chances to grow business and succeed in the market place. To elaborate on the latter, PSF’s collaboration provides confidence to existing clients that the firm will provide the necessary resources to support them along with richer 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, and this 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 helps alleviate the burdensome stigma of sales. Working as a part of a team makes that experience less onerous, and promotes best practice sharing, while keeping everyone accountable. Those are all significant factors for successful and sustainable business growth.
The merits of collaboration within PSF’s are countless. The real question is how to build and nurture such collaborative spirit. I discovered an answer that supports my hypothesis in the most unusual place. I recently stumbled upon an article in the Scientific American, from July 2012, titled “Why we help,” and this article provided the final push I needed to write this piece. The author, Martin Nowak, a professor of biology and mathematics at Harvard University, argues that contrary to what the majority of us might think of evolution and the “dog-eat-dog” concept of survival as its underpinning, cooperation is the driving force for evolution. Using the game theory paradox called the “Prisoner’s Dilemma,” the scientist runs a number of simulations to identify five mechanisms for the evolution of cooperators: direct reciprocity (the “tit for tat” concept), special selection (neighbors or friends in social network tend to help each other and develop a snowball effect), kin selection (think “The Godfather”), indirect reciprocity (based on reputation and “pay it forward” principle) and lastly, group selection (for the greater good). Nowak draws on a number of examples from the animal kingdom and makes a surprising conclusion that humankind is the most cooperative species, mainly driven by the principle of indirect reciprocity, or reputation and the ability to tout achievements. So, would that mean a bit of narcissistic thinking, boasting and peer pressure is not only healthy, but necessary for evolution and collaboration? Yes and no. The professor employs game theory again, this time a series of games called “Public Goods Games” designed for multiple players, to demonstrate that when in a group environment, even when starting with good intentions, collaboration often fails. Individuals will often act in a manner where self-benefit, rather than group benefit, becomes the individual’s preferred option, ultimately resulting in a loss for everyone. With further experiments, and to save my faith in the goodness of humanity, the author offers a solution to fostering collaboration: people need to be convinced that there’s a real problem threatening them in order to adopt “for the greater good” behavior and also be publicly praised and pressured in line with the reputation principle. One could see this sort of framework helping in many different kinds of situations – from officials trying to solve the European debt crisis or U.S. fiscal cliff negotiations, to any kind of business organization including PSF’s.
In my previous writing I suggested making the system / organization the star to build and foster collaborative environments instead of promoting and rewarding individual performance. Applying the principles articulated in Nowak’s work, I can now expand and prescribe that PSF’s constantly must demonstrate and communicate the importance of 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.
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
Thursday, December 20, 2012
Monday, December 10, 2012
Got Growth: how to position your organization for strategic growth and business model renewal?
A PaperJam Business Club Workshop | January 15th, 2013 | Luxembourg
Per request, please find the framework of the workshop presentation.
Like most organizations today, you are probably experiencing increased pressure from your clients, demanding high service at lower prices. That, coupled with the global downfall and near future economic uncertainty, incrementally impacts your organization’s profit margins. In addition to these factors, requiring immediate attention, your organization also faces a more fundamental problem: the need for radical business model renewal driven by the changing regulatory environment and the diminishing value of the “Lux Factor”.
So, how do you go about turning these challenges into opportunities? Join the session and learn how to focus and become strategic and efficient in growing your organization’s business, re-energize and enhance your executive team, and prepare to transform your business into less dependent on the “Lux factor”.
During this workshop you and your fellow peer executives will receive a process for developing and executing your growth strategy, frameworks to find and seize growth opportunities for new markets, prospects and business models, an overview of the necessary internal organization and capabilities to support your growth strategy, a checklist for evaluating your organization’s existing growth strategy and related capabilities and a ”no frills attached” ½ day follow-up growth readiness assessment.
For additional details and to join me and my colleague +Marc Sniukas (Doujak Corporate Development), visit: PaperJam Business Club
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
Per request, please find the framework of the workshop presentation.
Got Growth: How to position your organization for Strategic Growth and Business Model Renewal? from Mira Ilieva Leonard
Like most organizations today, you are probably experiencing increased pressure from your clients, demanding high service at lower prices. That, coupled with the global downfall and near future economic uncertainty, incrementally impacts your organization’s profit margins. In addition to these factors, requiring immediate attention, your organization also faces a more fundamental problem: the need for radical business model renewal driven by the changing regulatory environment and the diminishing value of the “Lux Factor”.
So, how do you go about turning these challenges into opportunities? Join the session and learn how to focus and become strategic and efficient in growing your organization’s business, re-energize and enhance your executive team, and prepare to transform your business into less dependent on the “Lux factor”.
During this workshop you and your fellow peer executives will receive a process for developing and executing your growth strategy, frameworks to find and seize growth opportunities for new markets, prospects and business models, an overview of the necessary internal organization and capabilities to support your growth strategy, a checklist for evaluating your organization’s existing growth strategy and related capabilities and a ”no frills attached” ½ day follow-up growth readiness assessment.
For additional details and to join me and my colleague +Marc Sniukas (Doujak Corporate Development), visit: PaperJam Business Club
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
Tuesday, November 20, 2012
Systematic approach to business growth
Is there a quick way to sustainable business growth and organizational development for professional services firms?
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 the challenges they face, and especially the ones related to business growing.
“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, 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 strong organizations. Before dismissing them, I'd encourage professional services leaders to 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 casts light on what's behind the “narcissistic behavior” of professional services organizations, ultimately limiting their growth. Contact me for a full copy of this article, articulating the value of all the principals of learning organizations and their function in professional services environment.
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 systematic interconnected sharing culture - 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
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 the challenges they face, and especially the ones related to business growing.
“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, 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 strong organizations. Before dismissing them, I'd encourage professional services leaders to 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 casts light on what's behind the “narcissistic behavior” of professional services organizations, ultimately limiting their growth. Contact me for a full copy of this article, articulating the value of all the principals of learning organizations and their function in professional services environment.
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 systematic interconnected sharing culture - 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
Friday, November 9, 2012
Enhancing Business Growth Planning For Superior Results
Learn from past growth strategies and close knowing-doing gaps to achieve your business goals
As a new year approaches, most organizations prepare to set their goals for 2013 and draft Marketing and Business Development plans to reflect their renewed aspirations. Progressive organizations ensure that part of that process involves performance evaluation of past plans and close appraisal of what has worked, what hasn’t, and most importantly, why or why not. Let’s focus on the latter as in my experience it is the most constructive part of this practice. To make intelligent and educated decisions about future growth strategies, one must first evaluate the success or failure of past ones by questioning the entire strategy development and delivery chain – from the viability of the adopted strategy, to the selected support tactics and their implementation. Judging end results only is short-sighted, unproductive and insufficient. “It didn’t work - let’s discard it and move on”: it is certainly the easiest and fastest approach to strategy review, and no blame is attached. While there is something to be said about this quick, back of the envelope exercise, I would encourage professionals to dedicate time to go through a thorough cost-benefit analysis, employing objective and tangible metrics.
In doing so, and prior to drafting a sound future business growth plan, there are a number of key questions one must answer. I’d recommend starting with the strategy itself. Was the growth strategy feasible? Had the organization dedicated the necessary resources and time to properly execute it? Had the organization allowed enough flexibility in the strategy for it to absorb sudden and unavoidable internal and external changes? A critical strategy development criterion is that a strategy is viable and consistent with the internal characteristics of the organization (structure, systems, people and culture), as well as supported by the necessary financial and human resources. These questions here are critical regardless of the outcome of the strategy as their answers provide learning points and a platform to develop not only enhanced future growth strategy, but also other key segments of the organization.
Once the strategy is evaluated, consider whether the firm’s tactics had supported the strategy. Had the organization utilized the proper mix and balance of tactics such as general awareness building (branding, PR), engagement (social media), thought leadership (articles, surveys), and targeted relationship building? What is the ROI on the various initiatives and at what level should the organization continue to invest in them, if at all? The second question begs another more fundamental question: does the organization have the proper measuring mechanisms in place to help executives evaluate the effectiveness of the business growth strategy? Have you ever heard the popular saying “You Can't Manage What You Don't Measure”? It is very true and important in determining the efficiency of the business growth platforms employed. The “new normal,” dictated by economic uncertainty and tighter financial margins, no longer allows professional services executives to make decisions on soft and anecdotal data. Today, if an organization is not equipped with systems to track and measure performance tied to certain financial commitments, the leadership team will struggle to justify business growth spending and obtain budget approvals.
Last but not least, consider what percentage of the past business growth plans had been put in action. The chances are there is a substantial gap between the plan and practice. The “80 / 20 rule” rears its ugly head: unfortunately, most firms see 80 percent planning and 20 percent doing. Because this is where “the rubber hits the road” I would encourage professional services organizations and their executives to ponder the reasons for such discrepancy and look for ways to bridge or decrease the plan–do gap. One of the most frequently encountered reasons for such disconnect in the professional services market is the mismatch between the organizational / professionals’ strengths and weaknesses with the selected strategy delivery tactics. This is something easily amendable but often underestimated. Organizations and professionals have different inclinations and strengths when it comes to business growth; firms must foster and leverage those with well aligned tactics instead of introducing uncomfortable ones, leading to resistance and avoidance of plan implementation.
Other reasons attributable to the lack of action and the development of “the knowing – doing gap” deal with timing (talk happens immediately and actions, leading to results, much later), organizational culture (unconditional acceptance of implicit and inherited mental models), management practices and compensation models. The latter two, especially when expressed by fear inducing management and internal competition policies, are often mistaken for motivation and drivers of action. Organizational development research shows the contrary. Organizations which build and nurture a collaborative environment (not internal competitive one) manage to turn knowledge into action, share best practices and drive growth at a sustainable and fast pace. So, when examining what’s inhibiting implementation of past business growth plans and overall, the organization, reflect on the factors outlined above and most importantly, take immediate actions to close the know-do gaps.
To ensure that a comprehensive overview of past business growth strategies is complete and productive I would recommend that executives identify and address at least 3 points for improvement, perhaps one of each of the stages outlined: strategy, tactics and delivery. Once equipped with the knowledge obtained from the review process the team can then develop a new, and improved, strategic business growth plan. Good luck!
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
As a new year approaches, most organizations prepare to set their goals for 2013 and draft Marketing and Business Development plans to reflect their renewed aspirations. Progressive organizations ensure that part of that process involves performance evaluation of past plans and close appraisal of what has worked, what hasn’t, and most importantly, why or why not. Let’s focus on the latter as in my experience it is the most constructive part of this practice. To make intelligent and educated decisions about future growth strategies, one must first evaluate the success or failure of past ones by questioning the entire strategy development and delivery chain – from the viability of the adopted strategy, to the selected support tactics and their implementation. Judging end results only is short-sighted, unproductive and insufficient. “It didn’t work - let’s discard it and move on”: it is certainly the easiest and fastest approach to strategy review, and no blame is attached. While there is something to be said about this quick, back of the envelope exercise, I would encourage professionals to dedicate time to go through a thorough cost-benefit analysis, employing objective and tangible metrics.
In doing so, and prior to drafting a sound future business growth plan, there are a number of key questions one must answer. I’d recommend starting with the strategy itself. Was the growth strategy feasible? Had the organization dedicated the necessary resources and time to properly execute it? Had the organization allowed enough flexibility in the strategy for it to absorb sudden and unavoidable internal and external changes? A critical strategy development criterion is that a strategy is viable and consistent with the internal characteristics of the organization (structure, systems, people and culture), as well as supported by the necessary financial and human resources. These questions here are critical regardless of the outcome of the strategy as their answers provide learning points and a platform to develop not only enhanced future growth strategy, but also other key segments of the organization.
Once the strategy is evaluated, consider whether the firm’s tactics had supported the strategy. Had the organization utilized the proper mix and balance of tactics such as general awareness building (branding, PR), engagement (social media), thought leadership (articles, surveys), and targeted relationship building? What is the ROI on the various initiatives and at what level should the organization continue to invest in them, if at all? The second question begs another more fundamental question: does the organization have the proper measuring mechanisms in place to help executives evaluate the effectiveness of the business growth strategy? Have you ever heard the popular saying “You Can't Manage What You Don't Measure”? It is very true and important in determining the efficiency of the business growth platforms employed. The “new normal,” dictated by economic uncertainty and tighter financial margins, no longer allows professional services executives to make decisions on soft and anecdotal data. Today, if an organization is not equipped with systems to track and measure performance tied to certain financial commitments, the leadership team will struggle to justify business growth spending and obtain budget approvals.
Last but not least, consider what percentage of the past business growth plans had been put in action. The chances are there is a substantial gap between the plan and practice. The “80 / 20 rule” rears its ugly head: unfortunately, most firms see 80 percent planning and 20 percent doing. Because this is where “the rubber hits the road” I would encourage professional services organizations and their executives to ponder the reasons for such discrepancy and look for ways to bridge or decrease the plan–do gap. One of the most frequently encountered reasons for such disconnect in the professional services market is the mismatch between the organizational / professionals’ strengths and weaknesses with the selected strategy delivery tactics. This is something easily amendable but often underestimated. Organizations and professionals have different inclinations and strengths when it comes to business growth; firms must foster and leverage those with well aligned tactics instead of introducing uncomfortable ones, leading to resistance and avoidance of plan implementation.
Other reasons attributable to the lack of action and the development of “the knowing – doing gap” deal with timing (talk happens immediately and actions, leading to results, much later), organizational culture (unconditional acceptance of implicit and inherited mental models), management practices and compensation models. The latter two, especially when expressed by fear inducing management and internal competition policies, are often mistaken for motivation and drivers of action. Organizational development research shows the contrary. Organizations which build and nurture a collaborative environment (not internal competitive one) manage to turn knowledge into action, share best practices and drive growth at a sustainable and fast pace. So, when examining what’s inhibiting implementation of past business growth plans and overall, the organization, reflect on the factors outlined above and most importantly, take immediate actions to close the know-do gaps.
To ensure that a comprehensive overview of past business growth strategies is complete and productive I would recommend that executives identify and address at least 3 points for improvement, perhaps one of each of the stages outlined: strategy, tactics and delivery. Once equipped with the knowledge obtained from the review process the team can then develop a new, and improved, strategic business growth plan. Good luck!
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
Tuesday, October 16, 2012
To BD or Not To BD?
I recently launched a special series: "Oldies but Goodies" to bring back some of my favorite pieces I've written throughout the years that are still relevant today. Enjoy!
May 2010 USA
To BD or Not to BD = to focus on business development or not? That’s not even a question worth debating when it comes to leading progressive professional services firms (PSF), if you ask me. But let me spell it out: to survive and grow, business development, on a firm, practice and professional level, is not even a choice – it’s a necessity. Instead of my pun on Hamlet’s famous quote, I’d argue the real question at hand is how to go about doing it. After experiencing the recent business slow down, PSF’s seem to agree and are increasingly encouraging business development actions. And, because the question “how to BD” offers many answers, one of the fastest and quick-fix solutions contemplated by firms is hiring BD professionals. That certainly is a solution, however it might not be the most appropriate one depending on the situation at hand. So, for the purposes of this article let’s think of “To BD or Not To BD” as the PSF dilemma of whether to hire in-house BD professionals or find alternative growth solutions. Let the battle of our inner Hamlets commence.
In my experience working with PSF’s of different shapes, sizes and cultures, I’ve had the opportunity to see when bringing in BD professionals is successful and when it fails. And so, before sharing my thoughts and weighing the pro’s and con’s of hiring BD professionals, please consider the following questions… Does the culture of the firm allow for BD professionals? How would your current and prospective clients feel if they were approached by BD professionals representing the firm? Would the technical professionals accept and leverage the skills and actions of that professional or carry on doing things they've always done, which might not necessarily be the most efficient or effective, or worse yet, sit back and relax because the burden no longer lies with them? These are all significant questions, not necessarily pertaining to the growth of the PSF, but to the organizational cultural domain that is just as significant to the firm’s survival. Reflect on these and other similar culture and client related issues before moving forward, I beg thee.
Now, when the firm culture is built to accept and utilize client development professionals, bringing them on board, with the proper expectations, can be a powerful growth solution. One of my business partners likes to say that ”client development is both an individual and a team discipline” and I agree. BD professionals can “hunt” and at the same time offer leverage to the technical professional service providers (i.e. lawyers, accountants, consultants, etc.) by supporting their individual client development actions. Prospect and referral identification and research, as well as relationship building, at both strategic and tactical levels, customarily require unknown or untapped skills for many technical professionals. The right BD executive will act as a mentor and strive to enhance the talents of the technical professionals, amplifying the impact of their collaborative client development efforts. On a micro level, they will also support the proposal process: from scoping to presenting along with the technical professionals, and working along the marketing team on the presentations, in between. Because when it comes to PSF’s, the professionals are the embodiment of the firms’ brands, the proper BD executives will have the executive presence and gravitas to do just that. And so, on a macro level they will also represent the firm in the community, help build and enhance the brand and goodwill and most importantly develop strategic to growth relationships.
I don’t know about you, but I almost convinced myself that hiring BD professionals (the right ones) is the way to go…well, “almost” and the “right” being the operative words here. Before jumping ahead, a few additional to the culture concerns to keep in mind…The economic downfall has purged many PSF’s of excess and unaccounted for spending, making them more efficient and effective. Why should business development and marketing be treated any other way? So, before casting a vote on BD professionals, ask yourself whether the firm is fully utilizing the resources at hand as well as providing the necessary support systems, tools and skills. Audit the firms’ business development organization to identify any opportunities for enhancement or repurpose. The chances are if you look for improvement and leverage you will find it. When you can say - with a certainty - that all of the PSF’s internal client development resources have been tapped in and exhausted, only then would I recommend considering additional growth alternatives such as hiring BD professionals. Even then, keep in mind that ultimately buyers of PSF services buy the people who will do the actual work. In other words, having BD professionals on staff shouldn’t release the technical experts from their own BD responsibilities, nor the firm from its responsibilities to provide them with the proper support tools, systems and skills programs. However, that often is the case, and it brings a whole new set of growth challenges.
To BD or not to BD – that is the question: whether to grow the PSF with the help of BD professionals on staff. That’s your prerogative, dear reader – I only hope my comments encouraged you to consider the full complexity of the situation; one, which might call for support from experts on creating superior, lasting, predictable client development results for professional service firms.
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
May 2010 USA
To BD or Not to BD = to focus on business development or not? That’s not even a question worth debating when it comes to leading progressive professional services firms (PSF), if you ask me. But let me spell it out: to survive and grow, business development, on a firm, practice and professional level, is not even a choice – it’s a necessity. Instead of my pun on Hamlet’s famous quote, I’d argue the real question at hand is how to go about doing it. After experiencing the recent business slow down, PSF’s seem to agree and are increasingly encouraging business development actions. And, because the question “how to BD” offers many answers, one of the fastest and quick-fix solutions contemplated by firms is hiring BD professionals. That certainly is a solution, however it might not be the most appropriate one depending on the situation at hand. So, for the purposes of this article let’s think of “To BD or Not To BD” as the PSF dilemma of whether to hire in-house BD professionals or find alternative growth solutions. Let the battle of our inner Hamlets commence.
In my experience working with PSF’s of different shapes, sizes and cultures, I’ve had the opportunity to see when bringing in BD professionals is successful and when it fails. And so, before sharing my thoughts and weighing the pro’s and con’s of hiring BD professionals, please consider the following questions… Does the culture of the firm allow for BD professionals? How would your current and prospective clients feel if they were approached by BD professionals representing the firm? Would the technical professionals accept and leverage the skills and actions of that professional or carry on doing things they've always done, which might not necessarily be the most efficient or effective, or worse yet, sit back and relax because the burden no longer lies with them? These are all significant questions, not necessarily pertaining to the growth of the PSF, but to the organizational cultural domain that is just as significant to the firm’s survival. Reflect on these and other similar culture and client related issues before moving forward, I beg thee.
Now, when the firm culture is built to accept and utilize client development professionals, bringing them on board, with the proper expectations, can be a powerful growth solution. One of my business partners likes to say that ”client development is both an individual and a team discipline” and I agree. BD professionals can “hunt” and at the same time offer leverage to the technical professional service providers (i.e. lawyers, accountants, consultants, etc.) by supporting their individual client development actions. Prospect and referral identification and research, as well as relationship building, at both strategic and tactical levels, customarily require unknown or untapped skills for many technical professionals. The right BD executive will act as a mentor and strive to enhance the talents of the technical professionals, amplifying the impact of their collaborative client development efforts. On a micro level, they will also support the proposal process: from scoping to presenting along with the technical professionals, and working along the marketing team on the presentations, in between. Because when it comes to PSF’s, the professionals are the embodiment of the firms’ brands, the proper BD executives will have the executive presence and gravitas to do just that. And so, on a macro level they will also represent the firm in the community, help build and enhance the brand and goodwill and most importantly develop strategic to growth relationships.
I don’t know about you, but I almost convinced myself that hiring BD professionals (the right ones) is the way to go…well, “almost” and the “right” being the operative words here. Before jumping ahead, a few additional to the culture concerns to keep in mind…The economic downfall has purged many PSF’s of excess and unaccounted for spending, making them more efficient and effective. Why should business development and marketing be treated any other way? So, before casting a vote on BD professionals, ask yourself whether the firm is fully utilizing the resources at hand as well as providing the necessary support systems, tools and skills. Audit the firms’ business development organization to identify any opportunities for enhancement or repurpose. The chances are if you look for improvement and leverage you will find it. When you can say - with a certainty - that all of the PSF’s internal client development resources have been tapped in and exhausted, only then would I recommend considering additional growth alternatives such as hiring BD professionals. Even then, keep in mind that ultimately buyers of PSF services buy the people who will do the actual work. In other words, having BD professionals on staff shouldn’t release the technical experts from their own BD responsibilities, nor the firm from its responsibilities to provide them with the proper support tools, systems and skills programs. However, that often is the case, and it brings a whole new set of growth challenges.
To BD or not to BD – that is the question: whether to grow the PSF with the help of BD professionals on staff. That’s your prerogative, dear reader – I only hope my comments encouraged you to consider the full complexity of the situation; one, which might call for support from experts on creating superior, lasting, predictable client development results for professional service firms.
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
Thursday, October 4, 2012
Effective Client-Adviser Relationships, an FT Survey Findings 2012
Finally the notion of client-adviser relationships and its importance for the professional services industry is gaining international press. For the second consecutive year, the Financial Times (“FT”) has performed a survey sampling executive-level clients and professional service providers including law, accounting, and consulting firms. Because of my hands-on organizational development experience with services firms and overall close observation of the industry, the results do not come as a surprise to me. In fact, they support my personal remarks and recommendations. Here are the four key points spelled out by FT in its 2012 report and my thoughts.
Contribution of management
FT: The impression of whether a firm is well managed is important to clients. Sharpening internal attitudes towards clients and developing C-suite level relationships through regular dialogue are key priorities for management.
Mira Ilieva Leonard (“MIL”): When your house is not in order even your friends stay away. The same applies for professional service firms and their clients. Clients recognize when firms are experiencing turbulent internal dynamics and will stay away in anticipation of the negative effects on the management of their projects. While having the shareholders involved in the firm on a daily basis provides many challenges such as reaching consensus, etc., professional service providers should learn to overcome them and manage their firms as true corporations. In addition to building their brands, firms should focus on defining their key expertise, growing client adviser relationships at executive level and developing a consistent and collaborative client-centric culture.
Knowledge and commercial awareness
FT: Advisers need to really get under the skin of their clients’ business. Clients want advisers to provide a more commercially-savvy view of future risks and external benchmarks.
MIL: Clients are no longer expecting only a technical conversation. They want to know that their advisers understand all aspects of their business and industry, and the challenges and opportunities presented. They anticipate that their advisers can share benchmarking data and industry best practices. Professional services firms should invest in expanding their client intelligence capabilities and knowledge. Firms should equip their professionals with the skills, tools and systems to build this into a continuous process.
Added-value services
FT: Account planning and client feedback are the added-value extras that clients find most beneficial. Clients actively encourage firms to invest further in these areas.
MIL: As I mentioned in my previous post, “What can Professional Services Firms learn from the on-line gaming industry when it comes to retaining and growing client relationships?”, professional services firms need to recognize and embrace the value of feedback mechanisms and insightful thought leadership materials. FT’s reaches the same conclusion supported by data from the clients themselves. Firms must work to overcome their fear of negative feedback and get in-front of clients. Developing insightful thought leadership materials takes time and the right resources, yet again this is what clients demand now.
Supporting people
FT: Although advisers are appraised on their client service and commerciality, fewer are given adequate training and support to deliver on these competencies. Further investment in project management tools and protocols is welcomed by advisers to help deliver more profitable client service.
MIL: Some progressive professional services firms are recognizing the skills gaps and are making efforts to fill them by bringing specialists either on board or as of counsel. Others are building advisory curriculums with emphasis equal to their in-house technical training programs. These are a select few. Most firms are still undervaluing the importance of such skills and tools and are taking a haphazard approach to the issue. They are the ones that are going to find themselves in trouble in the long run.
The FT report is a must read for Managing Partners of professional services firms. Please contact me if you think your firm would benefit from implementing some of these concepts into its business strategy and culture.
Download the full FT report here.
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
Contribution of management
FT: The impression of whether a firm is well managed is important to clients. Sharpening internal attitudes towards clients and developing C-suite level relationships through regular dialogue are key priorities for management.
Mira Ilieva Leonard (“MIL”): When your house is not in order even your friends stay away. The same applies for professional service firms and their clients. Clients recognize when firms are experiencing turbulent internal dynamics and will stay away in anticipation of the negative effects on the management of their projects. While having the shareholders involved in the firm on a daily basis provides many challenges such as reaching consensus, etc., professional service providers should learn to overcome them and manage their firms as true corporations. In addition to building their brands, firms should focus on defining their key expertise, growing client adviser relationships at executive level and developing a consistent and collaborative client-centric culture.
Knowledge and commercial awareness
FT: Advisers need to really get under the skin of their clients’ business. Clients want advisers to provide a more commercially-savvy view of future risks and external benchmarks.
MIL: Clients are no longer expecting only a technical conversation. They want to know that their advisers understand all aspects of their business and industry, and the challenges and opportunities presented. They anticipate that their advisers can share benchmarking data and industry best practices. Professional services firms should invest in expanding their client intelligence capabilities and knowledge. Firms should equip their professionals with the skills, tools and systems to build this into a continuous process.
Added-value services
FT: Account planning and client feedback are the added-value extras that clients find most beneficial. Clients actively encourage firms to invest further in these areas.
MIL: As I mentioned in my previous post, “What can Professional Services Firms learn from the on-line gaming industry when it comes to retaining and growing client relationships?”, professional services firms need to recognize and embrace the value of feedback mechanisms and insightful thought leadership materials. FT’s reaches the same conclusion supported by data from the clients themselves. Firms must work to overcome their fear of negative feedback and get in-front of clients. Developing insightful thought leadership materials takes time and the right resources, yet again this is what clients demand now.
Supporting people
FT: Although advisers are appraised on their client service and commerciality, fewer are given adequate training and support to deliver on these competencies. Further investment in project management tools and protocols is welcomed by advisers to help deliver more profitable client service.
MIL: Some progressive professional services firms are recognizing the skills gaps and are making efforts to fill them by bringing specialists either on board or as of counsel. Others are building advisory curriculums with emphasis equal to their in-house technical training programs. These are a select few. Most firms are still undervaluing the importance of such skills and tools and are taking a haphazard approach to the issue. They are the ones that are going to find themselves in trouble in the long run.
The FT report is a must read for Managing Partners of professional services firms. Please contact me if you think your firm would benefit from implementing some of these concepts into its business strategy and culture.
Download the full FT report here.
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
Wednesday, October 3, 2012
GAMIFICATION FOR PROFESSIONAL SERVICES FIRMS
What Professional Services Firms can learn from the on-line gaming industry when it comes to retaining and growing client relationships
It may appear that the on-line gaming and professional services industries do not have much, if anything, in common. However, when it comes to attracting and retaining clients, professional services firms can apply the main principles behind the concept of “gamification” (“applying gaming principles to non-game applications and processes, in order to encourage people to adopt them, or to influence how they are used” according to Wikipedia). In fact, such a strategy might be just what that industry needs today to build and preserve client relationships and alleviate pressures related to cost, quality and overall management.
Let me outline some of the gamification principles, and my recommended applications to professional services firms, as discussed during a recent event held by the American Chamber of Commerce in Luxembourg titled: “Game on! Business Growth Lessons from the Gaming Revolution.”
Competence This principle helps define the ultimate objective then breaks it down into long-term and short-term goals and actionable tasks (or “levels,” in gaming language). Projects serviced by professional services firms are very often complex and require long sales cycles. Professional service firms might consider breaking the big monster of a project into smaller, less cost-prohibitive, less risky and easily digestible phases. This will help avoid getting stuck in the complex services buying decision making process, chasing multiple decision makers and sourcing from various budgets to launch the project. Once in progress, this approach will also help with the project management of the assignment.
Engagement Gamers see this principle in action by the constant and helpful communication with game providers…“helpful” being the operative word here. How are you, professional service providers, engaging your prospects and clients? How is the content you share with them of value to them (not you)? Does it educate them and help them remove frustration? Professional services firms are becoming content producing machines. In fact, I frequently ask my clients (law, accounting, advisory firms, etc.) whether they consider themselves in the information dissemination business. What business are you in? If the thought leadership materials you share with your prospects and clients don’t provide insights and answer “so what,” then you are, and you are at risk of losing their interest.
Flow This principle is closely connected to the “engagement” one and in gaming terms “being in the flow” means moving onwards in the game. Gaming companies facilitate this process by educating gamers on how to overcome challenges by providing tips and encouraging them to move on to the next level. Professional service providers often struggle to recognize when there is a gap between clients’ expectations and their processes and deliverables. One way to avoid falling in that trap is to apply “in the flow” gaming principles. Firms can do so by educating clients of their client “on-boarding” and project management processes, setting the right expectations and constantly communicating project progress. The latter is so simple and important and yet is so frequently underestimated and rarely performed. Professional service providers should also constantly consider how to innovate services and re-engineer their service delivery methodology to keep their clients “in the flow” and set themselves apart from the competition.
Autonomy As it implies, in the gaming world the principle of autonomy is the process of empowering gamers to select the pre-defined by the game paths to follow. I have often said “one size fits none” when it comes to professional services firms, their professionals, and their clients. Professional service firms should embrace this principle of guided experience and when possible, give clients options by providing several alternatives that would solve the clients’ problems, the benefits and consequences of each, and let them decide which one to take. The client’s involvement in the decision making process increases the client’s sense of ownership, and the likelihood of long term success of the project. After all, people feel much more strongly about the choices they make opposed to the ones made by others on their behalf.
Relatedness This principle of communities of like-minded individuals going through a shared experience is very powerful and explicit in the gaming industry. Players team up usually in a virtual world online, to achieve shared objectives and create opportunities for mutual benefit. These ideas are increasingly receiving attention across other industries. Professional services firms have began to apply this principle by creating alumni groups, specialty subjects internal forums, etc. I would recommend that they take this concept to the next level and provide platforms for their clients to connect and learn from each other, and even act as mentors in some cases. Firms will be surprised of the amount of knowledge and the goodwill they will build and receive from their clients.
Feedback Within the games, players typically strive for awards and achievements, while the game makers repeatedly ask for customer feedback through reviews. Each side is getting feedback as to how they are playing the game (or the quality of the game being provided). This is the feedback principle. And, it provides motivation and builds loyalty. Professional services firms have a long way to go to catch up with the gaming and consumer product industries when it comes to implementing and utilizing feedback mechanisms. Most firms are not comfortable to even distribute basic client satisfaction surveys because of their fear of negative feedback. This is no longer acceptable, especially given the current ominous economic environment. The American Bar Association Journal recently shared a survey outlining the top four reasons clients have left law firms over the last year: cost, lack of expertise, poor service and departure of key professionals. Professional services firms are missing huge opportunities to retain clients and build stronger relationships. They should get in-front of their clients before it is too late, listen and take actions to remedy negative points.
Many professional service firms are becoming dinosaurs because they are not adapting to a more competitive environment by implementing basic customer satisfaction and client retention principles. It is interesting to see how the progressive firms are re-engineering their business models to move onwards, and equally disturbing to watch other firms continue to ignore reality and fall even further behind. I hope my thoughts will provide more than just wishful thinking, but also strike a chord and encourage action. Which one of the above principles will you adopt today?
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
It may appear that the on-line gaming and professional services industries do not have much, if anything, in common. However, when it comes to attracting and retaining clients, professional services firms can apply the main principles behind the concept of “gamification” (“applying gaming principles to non-game applications and processes, in order to encourage people to adopt them, or to influence how they are used” according to Wikipedia). In fact, such a strategy might be just what that industry needs today to build and preserve client relationships and alleviate pressures related to cost, quality and overall management.
Let me outline some of the gamification principles, and my recommended applications to professional services firms, as discussed during a recent event held by the American Chamber of Commerce in Luxembourg titled: “Game on! Business Growth Lessons from the Gaming Revolution.”
Competence This principle helps define the ultimate objective then breaks it down into long-term and short-term goals and actionable tasks (or “levels,” in gaming language). Projects serviced by professional services firms are very often complex and require long sales cycles. Professional service firms might consider breaking the big monster of a project into smaller, less cost-prohibitive, less risky and easily digestible phases. This will help avoid getting stuck in the complex services buying decision making process, chasing multiple decision makers and sourcing from various budgets to launch the project. Once in progress, this approach will also help with the project management of the assignment.
Engagement Gamers see this principle in action by the constant and helpful communication with game providers…“helpful” being the operative word here. How are you, professional service providers, engaging your prospects and clients? How is the content you share with them of value to them (not you)? Does it educate them and help them remove frustration? Professional services firms are becoming content producing machines. In fact, I frequently ask my clients (law, accounting, advisory firms, etc.) whether they consider themselves in the information dissemination business. What business are you in? If the thought leadership materials you share with your prospects and clients don’t provide insights and answer “so what,” then you are, and you are at risk of losing their interest.
Flow This principle is closely connected to the “engagement” one and in gaming terms “being in the flow” means moving onwards in the game. Gaming companies facilitate this process by educating gamers on how to overcome challenges by providing tips and encouraging them to move on to the next level. Professional service providers often struggle to recognize when there is a gap between clients’ expectations and their processes and deliverables. One way to avoid falling in that trap is to apply “in the flow” gaming principles. Firms can do so by educating clients of their client “on-boarding” and project management processes, setting the right expectations and constantly communicating project progress. The latter is so simple and important and yet is so frequently underestimated and rarely performed. Professional service providers should also constantly consider how to innovate services and re-engineer their service delivery methodology to keep their clients “in the flow” and set themselves apart from the competition.
Autonomy As it implies, in the gaming world the principle of autonomy is the process of empowering gamers to select the pre-defined by the game paths to follow. I have often said “one size fits none” when it comes to professional services firms, their professionals, and their clients. Professional service firms should embrace this principle of guided experience and when possible, give clients options by providing several alternatives that would solve the clients’ problems, the benefits and consequences of each, and let them decide which one to take. The client’s involvement in the decision making process increases the client’s sense of ownership, and the likelihood of long term success of the project. After all, people feel much more strongly about the choices they make opposed to the ones made by others on their behalf.
Relatedness This principle of communities of like-minded individuals going through a shared experience is very powerful and explicit in the gaming industry. Players team up usually in a virtual world online, to achieve shared objectives and create opportunities for mutual benefit. These ideas are increasingly receiving attention across other industries. Professional services firms have began to apply this principle by creating alumni groups, specialty subjects internal forums, etc. I would recommend that they take this concept to the next level and provide platforms for their clients to connect and learn from each other, and even act as mentors in some cases. Firms will be surprised of the amount of knowledge and the goodwill they will build and receive from their clients.
Feedback Within the games, players typically strive for awards and achievements, while the game makers repeatedly ask for customer feedback through reviews. Each side is getting feedback as to how they are playing the game (or the quality of the game being provided). This is the feedback principle. And, it provides motivation and builds loyalty. Professional services firms have a long way to go to catch up with the gaming and consumer product industries when it comes to implementing and utilizing feedback mechanisms. Most firms are not comfortable to even distribute basic client satisfaction surveys because of their fear of negative feedback. This is no longer acceptable, especially given the current ominous economic environment. The American Bar Association Journal recently shared a survey outlining the top four reasons clients have left law firms over the last year: cost, lack of expertise, poor service and departure of key professionals. Professional services firms are missing huge opportunities to retain clients and build stronger relationships. They should get in-front of their clients before it is too late, listen and take actions to remedy negative points.
Many professional service firms are becoming dinosaurs because they are not adapting to a more competitive environment by implementing basic customer satisfaction and client retention principles. It is interesting to see how the progressive firms are re-engineering their business models to move onwards, and equally disturbing to watch other firms continue to ignore reality and fall even further behind. I hope my thoughts will provide more than just wishful thinking, but also strike a chord and encourage action. Which one of the above principles will you adopt today?
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
Thursday, September 13, 2012
Where In The World Is The Next Generation Of PSF Partners?
Now that I've committed to make time for thought leadership, I am launching a special series: "Oldies but Goodies". It brings back some of my favorite pieces I've written throughout the years that are still relevant today. Enjoy!
March 2010 USA
You know how there are some people that you just can’t help but notice when they walk in a room? They tend to carry a certain air of gravitas, walk taller, speak louder (not shouting) with confidence and command immediate respect – present themselves as a proper executive. Where are these people now? I see fewer and fewer of them in the professional circles these days and most tend to be of what I’d call “old school”. Is the notion of “executive presence” extinct? And if that’s the case, what will the next generation of leadership look like?
Executive presence has always been an unwritten requirement for advancement in a professional services firm. But, now it may be unwritten, unspoken and unnoticed altogether. Living in a quick service society, especially in the US, the younger professionals we work with today appear to approach their professional life and how they present themselves in an extremely casual way. It starts with the way they dress, their preferred methods of communication and language, and most importantly, their pride-in-presentation and confidence (or the lack of both). Is this a function of the Millennium, Gen X, Y, Z (can’t keep track of them anymore) overall breeding or something else? Does this mean that the next wave of Managing Directors will text message their teams and clients instead of writing letters or meeting in-person, change the dress code to “no jacket required” at all times, and…?
Call me old fashioned, but I believe we should bring “executive presence”- and the professionalism it implies - back. We need to groom the next generation of leadership so that they are not only a generation of competent technicians but also advisors that capture their clients’ and colleagues’ confidence. I am glad to report that I am not the only one who has noticed this disturbing trend. Managing Partners and Directors are increasingly bringing the matter up during our conversations on how to elevate their professional force and make them better advisors, client cultivators and leaders. And, it all starts with executive presence. So, what do we do about it? In my experience it takes work on both sides of the equation – current and future leadership – to make a real impact. Here’s what I’ve seen work and might stimulate thinking:
Confidence comes with knowing what one stands for and having the internal strength (ego) to defend that position. Managing partners need to encourage their fresh workforce to start identifying specializations and define their professional claim to fame early in their careers. Professionals who know what they are or aspire to be “famous for” tend to carry themselves with a higher degree of confidence. Up and coming partners need to find the balance between improving their technical skills while serving senior partners and navigating internal politics. A lot of this has to do with the ability to establish and maintain peer-to-peer rapport – both with clients and colleagues – and to assert ones’ point of view with conviction yet patience and poise. Be mindful of each interaction and prepare ahead of time. I often hear from our younger clients that they tend to step back and let the senior professionals run meetings. While that’s most natural because the senior professionals most likely have the experience and perhaps the client relationship, I always encourage them to step up. It starts with a brief conversation with the rest of the colleagues ahead of time defining each one’s role during the meeting. Senior partners need to allow the junior partners equal “airtime”, encourage them to participate if not lead the meeting, become mentors and think of how this sharing of airtime supports the succession of the firm’s leadership and sustenance of its value.
Professional service providers are hired by clients for their advisory and leadership skills. Clients look for outside help, a comprehensive view of the situation and direction on how to go about solving a problem, hence leadership influence. And, in order to get a full view of the situation, professionals ought to understand it first and even before that earn the trust of their colleagues and clients so as to gain a better understanding. The latter takes time and patience which is not something junior professionals have in abundance. Yet, there are ways to get there – put oneself in place of the person across the table from you, listen actively and genuinely, demonstrate emotional intelligence. Remember the person I mentioned earlier in this article? The one that everyone notices when he or she walks in the room? That person can be either a completely arrogant jerk or someone that everyone’s attracted to because of the friendly and reasonable nature of his or her personality. Be the latter one! Radiate positive charisma and you’ll be able to lead both colleagues and clients.
So far, I’ve spoken only of what takes place between the ears of young professionals. How a professional’s thinking manifests in verbal and physical presence is equally important. I was recently in Europe for client visits and was reminded of all the small, external items that add up to make an impact. Most of the professionals I met had excellent command of their tone and language (mind you, they spoke at least three languages each), were always dressed a level up (even in casual situations) and seemed genuinely interested in conversations (made eye contact and smiled). It certainly made me feel I was working with an extremely high caliber of professionals – I am sure their colleagues and clients feel the same way as well. So, dear junior professionals, pay close attention to how you dress and carry yourself. If you’d like to move up to the next level in your career, distance yourself from the current casual fad. Communicate in a crisp and concise manner – sometimes, even, face to face rather than by Twitter - dress up (even on casual Friday’s) and build up the internal confidence to embrace stillness and eye contact.
Is there something to this or do we need not worry about executive presence? Is the power of a quick serve cultural trend too strong to overcome? Even if that’s the case, perhaps that allows you more opportunity - dear future leadership – to dramatically stand above your casual crowd of competitors – with a level of professionalism in thought, words and appearance that allows you to claim impact and influence.
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
March 2010 USA
You know how there are some people that you just can’t help but notice when they walk in a room? They tend to carry a certain air of gravitas, walk taller, speak louder (not shouting) with confidence and command immediate respect – present themselves as a proper executive. Where are these people now? I see fewer and fewer of them in the professional circles these days and most tend to be of what I’d call “old school”. Is the notion of “executive presence” extinct? And if that’s the case, what will the next generation of leadership look like?
Executive presence has always been an unwritten requirement for advancement in a professional services firm. But, now it may be unwritten, unspoken and unnoticed altogether. Living in a quick service society, especially in the US, the younger professionals we work with today appear to approach their professional life and how they present themselves in an extremely casual way. It starts with the way they dress, their preferred methods of communication and language, and most importantly, their pride-in-presentation and confidence (or the lack of both). Is this a function of the Millennium, Gen X, Y, Z (can’t keep track of them anymore) overall breeding or something else? Does this mean that the next wave of Managing Directors will text message their teams and clients instead of writing letters or meeting in-person, change the dress code to “no jacket required” at all times, and…?
Call me old fashioned, but I believe we should bring “executive presence”- and the professionalism it implies - back. We need to groom the next generation of leadership so that they are not only a generation of competent technicians but also advisors that capture their clients’ and colleagues’ confidence. I am glad to report that I am not the only one who has noticed this disturbing trend. Managing Partners and Directors are increasingly bringing the matter up during our conversations on how to elevate their professional force and make them better advisors, client cultivators and leaders. And, it all starts with executive presence. So, what do we do about it? In my experience it takes work on both sides of the equation – current and future leadership – to make a real impact. Here’s what I’ve seen work and might stimulate thinking:
Confidence comes with knowing what one stands for and having the internal strength (ego) to defend that position. Managing partners need to encourage their fresh workforce to start identifying specializations and define their professional claim to fame early in their careers. Professionals who know what they are or aspire to be “famous for” tend to carry themselves with a higher degree of confidence. Up and coming partners need to find the balance between improving their technical skills while serving senior partners and navigating internal politics. A lot of this has to do with the ability to establish and maintain peer-to-peer rapport – both with clients and colleagues – and to assert ones’ point of view with conviction yet patience and poise. Be mindful of each interaction and prepare ahead of time. I often hear from our younger clients that they tend to step back and let the senior professionals run meetings. While that’s most natural because the senior professionals most likely have the experience and perhaps the client relationship, I always encourage them to step up. It starts with a brief conversation with the rest of the colleagues ahead of time defining each one’s role during the meeting. Senior partners need to allow the junior partners equal “airtime”, encourage them to participate if not lead the meeting, become mentors and think of how this sharing of airtime supports the succession of the firm’s leadership and sustenance of its value.
Professional service providers are hired by clients for their advisory and leadership skills. Clients look for outside help, a comprehensive view of the situation and direction on how to go about solving a problem, hence leadership influence. And, in order to get a full view of the situation, professionals ought to understand it first and even before that earn the trust of their colleagues and clients so as to gain a better understanding. The latter takes time and patience which is not something junior professionals have in abundance. Yet, there are ways to get there – put oneself in place of the person across the table from you, listen actively and genuinely, demonstrate emotional intelligence. Remember the person I mentioned earlier in this article? The one that everyone notices when he or she walks in the room? That person can be either a completely arrogant jerk or someone that everyone’s attracted to because of the friendly and reasonable nature of his or her personality. Be the latter one! Radiate positive charisma and you’ll be able to lead both colleagues and clients.
So far, I’ve spoken only of what takes place between the ears of young professionals. How a professional’s thinking manifests in verbal and physical presence is equally important. I was recently in Europe for client visits and was reminded of all the small, external items that add up to make an impact. Most of the professionals I met had excellent command of their tone and language (mind you, they spoke at least three languages each), were always dressed a level up (even in casual situations) and seemed genuinely interested in conversations (made eye contact and smiled). It certainly made me feel I was working with an extremely high caliber of professionals – I am sure their colleagues and clients feel the same way as well. So, dear junior professionals, pay close attention to how you dress and carry yourself. If you’d like to move up to the next level in your career, distance yourself from the current casual fad. Communicate in a crisp and concise manner – sometimes, even, face to face rather than by Twitter - dress up (even on casual Friday’s) and build up the internal confidence to embrace stillness and eye contact.
Is there something to this or do we need not worry about executive presence? Is the power of a quick serve cultural trend too strong to overcome? Even if that’s the case, perhaps that allows you more opportunity - dear future leadership – to dramatically stand above your casual crowd of competitors – with a level of professionalism in thought, words and appearance that allows you to claim impact and influence.
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
Monday, May 28, 2012
For the greater good or eat what you kill?
My reflection on what's influencing human behavior in professional services firms...
I love professional services organizations. I’ve dedicated my professional career to working IN or ON professional services organizations. They employ highly educated and accomplished professionals: some of the brightest people I’ve ever encountered, whom I look up to and learn from… that’s the reason I am fascinated by them.
The recent collapse of Dewey & LeBoeuf brought up a question I’ve been struggling throughout the years: why is it that smart organizations fail or can’t seem to advance beyond a certain point or at a faster pace?
Timing is an interesting thing. I was rereading some of Malcolm Gladwell’s articles for the New Yorker magazine, when I ran into the “Talent Myth,” which contains his observations on talent and organizations. I need to open a bracket here and thank Gladwell for his brilliant research and writing. I can only aspire one day to be half as articulate and elegant in presenting my thoughts as he is. In his piece, Gladwell talks about “narcissistic organization” and among many other sources draws upon an essay, written by Robert Hogan, Robert Raskin, and Dan Fazzini called "The Dark Side of Charisma.” Both the essay and Gladwell’s article talk about three types of managers, whom on the surface seem like the perfect leaders but when studied closer represent real danger to organizations. The authors refer to them as the “High Likability Floater”, the “Homme de Ressentiment” and the “Narcissist.” The latter one grabbed my attention. The authors define narcissists as ones who “resist accepting suggestions, thinking it will make them appear weak, and they don't believe that others have anything useful to tell them.” “Narcissists are biased to take more credit for success than is legitimate and are biased to avoid acknowledging responsibility for their failures and shortcomings for the same reasons that they claim more success than is their due." If organizations and management profiling is of interest, I’d highly recommend that you look up the sources of my inspiration and read more.
Is this narcissistic behavior self-confidence gone bad? After all, confidence is expected from professional service provides, who are hired for their breath and depth of expertise and experience and a level of certitude to comfort clients is natural. I am afraid it’s much more, as narcissistic managers are not only limiting themselves and ignoring new ideas and better ways of doing business, but also fuel negative performance across the firm, especially with the impressionable next generation of leaders and encourages more of the same…a vicious circle. In business development terms, as that's my domain, narcissist managers are the ones who go to market alone, have it all figured out, don’t need the firm’s support with content or connections, and would never admit that a failure might be due to some of their actions. Sound familiar?
Is this my answer? Would such narcissistic behavior be so powerful to lead professional services organizations to ignore toxic conduct and spiral downwards? In the past, I’ve always argued that the compensation model of professional services organizations was feeding the constant pull towards “eat what you kill” mentality instead of fostering a spirit of “for the greater good” – this is what often holds back firms. It now appears that might not be the only reason. The narcissist factor, let’s call it that, would also explain why the business growth skills programs so many professional services firms run have limited and short spanned success. If my answer to why intelligent organizations such as professional services firms fail or get stuck is a combination of the typical compensation model and narcissistic behavior, then what’s the solution?
In full disclosure, I am an admirer of Adam Smith and believe that society and organizations should encourage and compensate those who are willing to take on higher risks, work harder and come up with and implement extraordinary ideas. At the same time, I recognize that when encouraged, or rather when unharnessed by a positive common goal, such actions can lead to destruction. This in essence is the fundamental issue at hand here. Professional services organizations are complex networks of brilliant people, many of whom display narcissistic behavior which is often magnified by the firm’s compensation models. When these organizations are disconnected due to the lack of common strategic goals and systems, they crumble.
When talking about growing professional services firms I emphasize the importance of strategy, systems and skills. It now appears those are vital beyond business growth – their alignment is not only necessary for the development of organizations, but for the organizations’ survival. Firms who strive to endure and moreover, move forward at a significant velocity, should focus on the system not the individual superstar performance. One size fits none. Goals and systems are diverse and vary from one professional services organization to another. However, in the long term, none of this will work if the organization is not working towards a firm-based, common goal which benefits the firm as a whole rather than the individual performer. And, this culture must originate with the leadership team. When it comes to business growth, organizations should encourage and reward collaborative approach, which provides for learning, best practice sharing, better solutions design and a team client approach…for the greater good.
I will elaborate on the merits of collaborative business growth approach in my next post…”one for all - all for one.”
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
I love professional services organizations. I’ve dedicated my professional career to working IN or ON professional services organizations. They employ highly educated and accomplished professionals: some of the brightest people I’ve ever encountered, whom I look up to and learn from… that’s the reason I am fascinated by them.
The recent collapse of Dewey & LeBoeuf brought up a question I’ve been struggling throughout the years: why is it that smart organizations fail or can’t seem to advance beyond a certain point or at a faster pace?
Timing is an interesting thing. I was rereading some of Malcolm Gladwell’s articles for the New Yorker magazine, when I ran into the “Talent Myth,” which contains his observations on talent and organizations. I need to open a bracket here and thank Gladwell for his brilliant research and writing. I can only aspire one day to be half as articulate and elegant in presenting my thoughts as he is. In his piece, Gladwell talks about “narcissistic organization” and among many other sources draws upon an essay, written by Robert Hogan, Robert Raskin, and Dan Fazzini called "The Dark Side of Charisma.” Both the essay and Gladwell’s article talk about three types of managers, whom on the surface seem like the perfect leaders but when studied closer represent real danger to organizations. The authors refer to them as the “High Likability Floater”, the “Homme de Ressentiment” and the “Narcissist.” The latter one grabbed my attention. The authors define narcissists as ones who “resist accepting suggestions, thinking it will make them appear weak, and they don't believe that others have anything useful to tell them.” “Narcissists are biased to take more credit for success than is legitimate and are biased to avoid acknowledging responsibility for their failures and shortcomings for the same reasons that they claim more success than is their due." If organizations and management profiling is of interest, I’d highly recommend that you look up the sources of my inspiration and read more.
Is this narcissistic behavior self-confidence gone bad? After all, confidence is expected from professional service provides, who are hired for their breath and depth of expertise and experience and a level of certitude to comfort clients is natural. I am afraid it’s much more, as narcissistic managers are not only limiting themselves and ignoring new ideas and better ways of doing business, but also fuel negative performance across the firm, especially with the impressionable next generation of leaders and encourages more of the same…a vicious circle. In business development terms, as that's my domain, narcissist managers are the ones who go to market alone, have it all figured out, don’t need the firm’s support with content or connections, and would never admit that a failure might be due to some of their actions. Sound familiar?
Is this my answer? Would such narcissistic behavior be so powerful to lead professional services organizations to ignore toxic conduct and spiral downwards? In the past, I’ve always argued that the compensation model of professional services organizations was feeding the constant pull towards “eat what you kill” mentality instead of fostering a spirit of “for the greater good” – this is what often holds back firms. It now appears that might not be the only reason. The narcissist factor, let’s call it that, would also explain why the business growth skills programs so many professional services firms run have limited and short spanned success. If my answer to why intelligent organizations such as professional services firms fail or get stuck is a combination of the typical compensation model and narcissistic behavior, then what’s the solution?
In full disclosure, I am an admirer of Adam Smith and believe that society and organizations should encourage and compensate those who are willing to take on higher risks, work harder and come up with and implement extraordinary ideas. At the same time, I recognize that when encouraged, or rather when unharnessed by a positive common goal, such actions can lead to destruction. This in essence is the fundamental issue at hand here. Professional services organizations are complex networks of brilliant people, many of whom display narcissistic behavior which is often magnified by the firm’s compensation models. When these organizations are disconnected due to the lack of common strategic goals and systems, they crumble.
When talking about growing professional services firms I emphasize the importance of strategy, systems and skills. It now appears those are vital beyond business growth – their alignment is not only necessary for the development of organizations, but for the organizations’ survival. Firms who strive to endure and moreover, move forward at a significant velocity, should focus on the system not the individual superstar performance. One size fits none. Goals and systems are diverse and vary from one professional services organization to another. However, in the long term, none of this will work if the organization is not working towards a firm-based, common goal which benefits the firm as a whole rather than the individual performer. And, this culture must originate with the leadership team. When it comes to business growth, organizations should encourage and reward collaborative approach, which provides for learning, best practice sharing, better solutions design and a team client approach…for the greater good.
I will elaborate on the merits of collaborative business growth approach in my next post…”one for all - all for one.”
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
"Creating a culture of business growth" for PSMG
After taking unnecessary time off from writing about my experience and expertise in growing professing services firms, here is a preview of my upcoming piece for the publication of the Professional Service Marketing Group (PSMG).
May/June 2012 PSMG 33
In times of tight budgets, scarce human resources and market uncertainty one might argue that it is difficult to talk about building a culture of growth. Many professional services firms claim that it is time to think of survival; growth will follow as soon as clients regain their market stability and begin to grow. I would argue the opposite. It is time now, more than ever,to think about building or re-building the firm culture of growth to ensure progression
and successful positioning in the professional services market landscape in the future.
A growth strategy which is dependent on the firm’s clients’ growth will result in no growth at all when clients aren’t growing themselves. Thus, the firm risks being left behind by its competitors. Most clients are currently not growing or growing at a very slow rate. That, coupled with the abnormal client churn rate – clients are struggling to a point they are willing to forgo advisory services for low cost, commodity solutions – leads to a net negative client growth rate.
“Old school” marketing is no longer enough. Clients expect more – it is no longer sufficient that the firm tells them how great it is, what services it provides and how well it goes about doing that. That’s a given. Clients expect that the firm and its practitioners understand the relevant-to them business and functional issues, as well as industry and market trends. This calls for a high level of intelligence and constant education – technical and advisory.
Professional services firms are getting smarter and more aggressive. They are looking for better ways to engage with prospects and are willing to reduce their overall economic benefit just to launch an engagement. Beware of the threats and opportunities that come with such behavior. Loyalty is constantly tested. Client relationships are always up for grabs.
A new generation of professionals and clients expect to engage with progressive organizations. Such firms are defined as transparent, and are engaged in multiple ways of communication with clients and employees, welcoming constant feedback. The new generation of professionals expects to live the brand, meaning that they demand social corporate responsibility, active community involvement and leading edge social media engagement.
The current state of the market offers a multitude of opportunities. The cost cutting trends are opening white spaces in terms of service quality, new service offerings, and improved ways to deliver existing services. That, along with the greater availability of billable professionals to employ new projects,further supports that indeed now is a good time to dedicate to building a culture of growth.
In my professional experience, in order to successfully build a culture of growth one must ensure that the business growth strategy, systems, support tools and skills are aligned and closely connected. Addressing one without the others is as if you are to place a band-aid on a knee cut, without caring for a broken leg or a serious heart problem.
STRATEGY
Start with the business strategy of the firm. Work with the executive team to define clear short and long term strategies, taking into consideration clients needs, market forces and current and future service offerings. Have a clear understanding of what clients and markets are most important for the firm (near and long term), and then define how,when and at what cost will the firm work to attract and retain them. Marketing and business development leaders often struggle at this level due to the gap between them and the executive teams. In mature professional services markets (like the US) that gap is closing as firm management increasingly understands the value of those functions being aligned with them and is open to include them in strategic development discussions. In other markets,such as mainland Europe, where the business growth functions are still narrowly defined as general branding, communication and internal marketing, the disconnect between the business strategy of the firm and the marketing and business development tactics is often clearly evident. Bigger yet is the gap in particular markets, where up to recently marketing and business development functions were ‘nice to have’ but not ‘a must have’.
SYSTEMS / SUPPORT TOOLS
Once a clear business growth strategy is outlined,one must ensure that the support systems, processes, and tools are in place and running smoothly. If not, a fundamental exercise of design or re-design and implementation of such processes is necessary. Systems like Enterprise Resource Planning (ERP), which connect across functions – marketing, accounting, and IT– guarantee that the business growth tactics support the business growth strategy. Such systems also track and measure business growth performance, allowing for timely tactical adjustments, when needed. Additional processes that should also be considered are those that connect and run through the entire client engagement process: from the identification of a prospect through the education, sale, and client retention. Mature professional services markets widely utilize Customer Relationship Management (CRM) to support their strategic development. Newly exposed to marketing of professionals services markets and professional services firms alike are still early adopters of such tools and are often building them in-house. A secondary benefit to such systems is that they often help break organizational silos and increase communication flow within practice areas and departments. Building and living a culture of growth is a firmwide exercise. It includes back and front office functions.
SKILLS
Even if all of the above are in line, if professionals are not aware of the support available to them and equipped for business growth, the project of building a culture of growth will have limited buy in and success. I recommend that firms provide professionals and their support staff with the proper skills by investing in training programs and dedicated in-house professionals. Again, having observed mature professional service markets, I notice that most firms there have already invested in professional staff, expected solely to guide, monitor and act as coaches to professionals. Other markets and firms are still experimenting with the idea by bringing in third party providers. In most cases, that’s executed in an inconsistent manner leading to limited success.
Building a sustainable culture of growth is a necessity for any progressive professional services firm and can be accomplished by following a practical formula: Business Growth = [(Strategy + Systems + Skills) Resources] over Time. To ensure success, I would add focus, patience and firmwide understanding of the importance of the project for the overall health and longevity of the firm.
At the time of the writing of this article, Mira Ilieva-Leonard lead Marketing and Business Development at ATOZ Luxembourg, a high-end tax advisory services firm. Prior to joining ATOZ, Mira was a Partner with a US based consultancy working exclusively with professional services firms to help them grow in a sustainable and predictable way.
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
May/June 2012 PSMG 33
A growth strategy which is dependent on the firm’s clients’ growth will result in no growth at all when clients aren’t growing themselves. Thus, the firm risks being left behind by its competitors. Most clients are currently not growing or growing at a very slow rate. That, coupled with the abnormal client churn rate – clients are struggling to a point they are willing to forgo advisory services for low cost, commodity solutions – leads to a net negative client growth rate.
“Old school” marketing is no longer enough. Clients expect more – it is no longer sufficient that the firm tells them how great it is, what services it provides and how well it goes about doing that. That’s a given. Clients expect that the firm and its practitioners understand the relevant-to them business and functional issues, as well as industry and market trends. This calls for a high level of intelligence and constant education – technical and advisory.
Professional services firms are getting smarter and more aggressive. They are looking for better ways to engage with prospects and are willing to reduce their overall economic benefit just to launch an engagement. Beware of the threats and opportunities that come with such behavior. Loyalty is constantly tested. Client relationships are always up for grabs.
A new generation of professionals and clients expect to engage with progressive organizations. Such firms are defined as transparent, and are engaged in multiple ways of communication with clients and employees, welcoming constant feedback. The new generation of professionals expects to live the brand, meaning that they demand social corporate responsibility, active community involvement and leading edge social media engagement.
The current state of the market offers a multitude of opportunities. The cost cutting trends are opening white spaces in terms of service quality, new service offerings, and improved ways to deliver existing services. That, along with the greater availability of billable professionals to employ new projects,further supports that indeed now is a good time to dedicate to building a culture of growth.
In my professional experience, in order to successfully build a culture of growth one must ensure that the business growth strategy, systems, support tools and skills are aligned and closely connected. Addressing one without the others is as if you are to place a band-aid on a knee cut, without caring for a broken leg or a serious heart problem.
STRATEGY
Start with the business strategy of the firm. Work with the executive team to define clear short and long term strategies, taking into consideration clients needs, market forces and current and future service offerings. Have a clear understanding of what clients and markets are most important for the firm (near and long term), and then define how,when and at what cost will the firm work to attract and retain them. Marketing and business development leaders often struggle at this level due to the gap between them and the executive teams. In mature professional services markets (like the US) that gap is closing as firm management increasingly understands the value of those functions being aligned with them and is open to include them in strategic development discussions. In other markets,such as mainland Europe, where the business growth functions are still narrowly defined as general branding, communication and internal marketing, the disconnect between the business strategy of the firm and the marketing and business development tactics is often clearly evident. Bigger yet is the gap in particular markets, where up to recently marketing and business development functions were ‘nice to have’ but not ‘a must have’.
SYSTEMS / SUPPORT TOOLS
Once a clear business growth strategy is outlined,one must ensure that the support systems, processes, and tools are in place and running smoothly. If not, a fundamental exercise of design or re-design and implementation of such processes is necessary. Systems like Enterprise Resource Planning (ERP), which connect across functions – marketing, accounting, and IT– guarantee that the business growth tactics support the business growth strategy. Such systems also track and measure business growth performance, allowing for timely tactical adjustments, when needed. Additional processes that should also be considered are those that connect and run through the entire client engagement process: from the identification of a prospect through the education, sale, and client retention. Mature professional services markets widely utilize Customer Relationship Management (CRM) to support their strategic development. Newly exposed to marketing of professionals services markets and professional services firms alike are still early adopters of such tools and are often building them in-house. A secondary benefit to such systems is that they often help break organizational silos and increase communication flow within practice areas and departments. Building and living a culture of growth is a firmwide exercise. It includes back and front office functions.
SKILLS
Even if all of the above are in line, if professionals are not aware of the support available to them and equipped for business growth, the project of building a culture of growth will have limited buy in and success. I recommend that firms provide professionals and their support staff with the proper skills by investing in training programs and dedicated in-house professionals. Again, having observed mature professional service markets, I notice that most firms there have already invested in professional staff, expected solely to guide, monitor and act as coaches to professionals. Other markets and firms are still experimenting with the idea by bringing in third party providers. In most cases, that’s executed in an inconsistent manner leading to limited success.
Building a sustainable culture of growth is a necessity for any progressive professional services firm and can be accomplished by following a practical formula: Business Growth = [(Strategy + Systems + Skills) Resources] over Time. To ensure success, I would add focus, patience and firmwide understanding of the importance of the project for the overall health and longevity of the firm.
At the time of the writing of this article, Mira Ilieva-Leonard lead Marketing and Business Development at ATOZ Luxembourg, a high-end tax advisory services firm. Prior to joining ATOZ, Mira was a Partner with a US based consultancy working exclusively with professional services firms to help them grow in a sustainable and predictable way.
© 2010-2013 Copyright Mira Ilieva Leonard / iStile All rights reserved
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