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high-stakes commercial litigation. Despite its extensive supply of
human capital and singular focus, Firm Z is profitable and successful.
Firm Z’s success originates and is in large part attributable to its ability to differentiate itself from its competition and focus on a specific segment of the marketplace.
• Marketing and developing business are not easy tasks, and in fact, are one of the most difficult tasks faced by the professional services firm.
As a result, a great deal of diligence, perseverance, and discipline is required to do both well. The firm should set specific expectations and well-defined goals to ensure the diligent pursuit of developing business for the firm and furthering its reputation. An effective tool to ensure the appropriate level of effort in the pursuit of business is to require professional staff to attend regular marketing meetings. Each meeting should focus on the firm’s goals and the means by which those goals can most efficiently be obtained. In addition to defining the firm’s target market, the participants should discuss their network and marketing
ideas. The meeting should begin with a brainstorming session and end with the allocation of specific business development or sales-oriented assignments. The assignments can range from entertaining an existing or potential client to speaking at a forum or symposium attended by existing or potential clients. It is imperative to provide direction and make each person accountable for his or her actions or, as the case may be, failure to act. Peer pressure as a form of accountability is a powerful tool that should be incorporated into the firms approach.
A large Houston-based law firm focuses a great deal of its market-
ing efforts on its partners. The firms sales volume is, therefore, reliant on the diligence of its partners. Every month, each practice area holds a marketing session. After the partners discuss their ideas and identify their current network, each partner is given an assignment. There are no quantifiable penalties for failing to complete your assignment.
However, the desire to succeed and the fear of letting down partners and peers significantly outweigh the inertia that professionals must overcome to market the firm and develop business.
Conversely, a mid-size accounting firm in Seattle uses the “carrot”
as opposed to the stick. This firm has instituted a series of incentives to encourage its professionals to market the firm and develop business.
For example, the firm awards two round-trip tickets to the professional who brings in the most new business in a given quarter. Further, the firm shares fees with the professional(s) responsible for originating every client. Significant accomplishments can result from ensuring that the incentives of the firm and its human capital are aligned.
• Managers or the management committee of a firm must understand the boundaries of the firm’s human capital. Certain members of the team
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will not be well suited nor have the desire or aptitude to market the firm or develop business. For example, an accountant may be able to perform his or her work functions proficiently but have no desire and little ability to market the firm or develop business. However, so long as the decision makers understand that every team has its utility players and that certain professional staff are not well suited for developing business, this obstacle can be overcome.
The inherent inefficiencies of the partner model, while oftentimes outweighed by the benefits, should be evaluated by the firm. Many professional services firms adhering to this model are concerned that their human capital will, at the expense of servicing their clients and driving revenue, spend too much time marketing the firm and developing business.
While you can never lose sight of the fact that the firm drives revenue and succeeds as a result of the work effort put forth by its personnel, you have to complement those efforts with a diligent marketing and business development strategy. If the firm does not continuously build on its existing relationships and work to develop new relationships, it will eventually col-lapse. Successful professional services firms are able to maintain a constant f low of new business.
TECHNIQUES ASSOCIATED WITH THE PARTNER MODEL.
Two central
techniques are used to develop business and drive revenue with the partner model. The first technique focuses on the firms ability to demonstrate expertise in specific practice areas. This technique concentrates on the exhibition of substantive, relevant proficiencies of interest to clients.
The second technique focuses on your ability to develop relationships as a means of driving business. The relationship approach is controversial in that some believe it the most efficient way to develop business while others question its effectiveness. However, most professionals would agree that clients typically hire firms or specific professionals that they like and trust. The techniques are complementary and not mutually exclusive, and in fact, work best together.
Developing Business by Demonstrating
Your Expertise and Competency
As with any marketing effort, it is critical to define the target market before implementing any strategy. After defining the target market, there are several ways to ensure that potential clients understand the focus of the firms expertise and services, including:
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• It is important to write well and often. People believe what they read and recognize authors as authorities on a given topic. Further, writing is an effective means by which you can display your analytical skills.
Publishing an article on a specific area or focus of your practice allows you to build your reputation as an expert in that field. Additionally, writing an article and publishing it in a reputable venue, such as an academic journal or industry publication, provides instant credibility with the audience.
It is important, as we have discussed, to focus business develop-
ment efforts on the target market. It is most efficient, and a better use of resources, to publish in the trade journals or periodicals most often read and relied on by existing and potential clients in the target market. Establishing expertise within the target market builds reputation and leads to more business. However, many professionals argue that
there is an additional tangible benefit to publishing in journals and periodicals within the profession. By establishing the firm as an expert or an authority on a given topic, the firm is in a position to receive referrals from peers when issues arise within the specific area of
expertise.
• In addition to writing, members of the firm can enhance the reputation of the firm by speaking on issues central to the firm’s expertise.
Most people are uncomfortable speaking in public, and therefore such opportunities are well suited to separate the firm from the competition. However, as with every technique discussed in this chapter, the firm should focus its efforts on the target market. It is more productive to speak to a room full of potential clients than to a room of existing and potential competitors. Being in front of the target market and speaking on issues important to the audience, makes the firm a reliable and respected authority on the topic. Secondarily, it helps establish expertise in a unique area of practice, and puts the firm in position to receive referrals from others in the profession.
• Market your proficiencies and assist your clients and prospective clients by offering periodic seminars or discussion groups wherein recent developments or important areas of the profession are discussed.
Rather than arranging to speak at a function organized by another (possibly competitive) group, you may consider hosting round-table discussions or seminars at your offices. A large accounting firm in the
Southwest believes in this marketing strategy. In fact, this particular firm invites all of its clients as well as many prospective clients to monthly luncheons where its members discuss recent developments in
the accounting profession. By providing a forum for the free exchange of ideas and the presentation of recent developments affecting its
clients, the firm is able to assist the community while developing its
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reputation, securing its existing client base, and developing new clients who become aware of the firm’s competency based on their participation in the discussion groups. It is important to stay in front of existing and potential clients and to continually remind them of your services, reputation, competency, and abilities.
• Publishing periodic newsletters is another way to provide clients and prospective clients with valuable information while displaying the
firm’s competency and focus. Remember, it is critical to continually develop the firm’s reputation within the target market. Further, and more specifically, it is important to keep the firm’s reputation in the forefront of clients’ and prospective clients’ minds.
• An additional technique is to help clients and prospective clients by assisting them with their business. By sponsoring an activity that brings together clients and prospective clients who can work with or assist one another, you become known as a facilitator. If you can help your clients and prospective clients accomplish deals and drive business, they will likely want to help by giving you their business. A large consulting firm in the Southeast exemplifies this strategy by sponsoring an annual retreat attended by bankers and business owners. The synergies of this connection are obvious, and the firm has experienced a great deal of success in pairing up its clients and prospective clients.