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Professional firms fall into two camps: the ones that compete with themselves and the ones that compete to meet client needs.

What is the focus of your professional firm?

A lot of people answer the question by saying, ”We are a top-tier firm”, “We are the top consultants”, “We are the best architects”, “We are the best systems integrators”.

Others focus on the message and delivery of “We are committed to meeting client needs.”

Which one rides out an economic down-turn better?

Here is an article from Business Week the other week about Top-Tier law firms in crisis.

Reduced deal flow contributes to price sensitivity and law firms

I saw it in 1987.  I saw it in 2001.  We’re seeing it again.

Let’s first acknowledge we are not just talking about law firms.  They do tend to be more insular and less business minded, like any technocracy.  But the pitfalls of price sensitivity happens in consultancies and other services businesses in similar ways.

1. Technical Mastery: When a firm tries to define itself as blue chip… “We are the ‘premier law firm’, we hire only the brightest legal minds”… they are really saying “Our strategy is technical excellence.  We hope our clients like it because that is what we charge the big bucks for”.

2. “Add Business Value”: When a firm says “We are great lawyers and we are committed to bringing specific and demonstrable value to our business clients” what they are saying is that they are commited to: a) Relevance - that is, what does the client need in this situation? b) Tailoring - or how do we translate our technical mastery into their context and needs?  If we do not enable their business, we have not done our job and finally c) Results - specifically delivering value to the client in their terms.

Good business solutions are not always the “best” antiseptic solutions from the lab (that is - technically perfect). Technocrats don’t value “dirty” but effective solutions.  Business clients do.

Who has the strongest play right now?

The Technical Mastery Play: Strong enough during good markets but subject to price compression when the chips are down.  Deal flow goes down, excess capacity among competitors goes up and prices get trashed.  Technique loses with increased emphasis on business results.  Voila - you are now a commodity!

The “Add Business Value” Play: No one is immune to intense economic buffering.  Creating relationships, loyalty, consistent value and a firm, confident hand in a crisis keeps a much more centered path in a crisis.

How do you want to play?

You don’t need to be a golfer to know about Tiger Woods. Three year old swinging a golf club, a guy everyone describes as a raw talent, a young phenom… as a “natural”.

He broke on the pro scene - I can’t believe it’s been this long -12 years ago. He was 21. He had been stalking the majors for several years with outstanding performance in the NCAA.  http://en.wikipedia.org/wiki/Tiger_Woods#1996.E2.80.9398:_Early_years_and_first_major_win.

What is the secret? And there is one…

He is no raw talent. He works harder and differently than anyone else.

Like… Michael Jordan, Wayne Gretzky, Lance Armstrong… how many sports, movie and music heroes do we have that we look at it in awe and then if we dig down, the real secret is that they practice more… and differently.

Why am I writing about this now?  I get so confused that business leaders and professionals armchair quarterback, attend great concerts, spend a lot of money and time getting better on the ski hill, the golf course…  AND THEY DON’T PRACTICE TO GET BETTER AT THEIR AREA OF EXPERTISE!!!!

Someone finally wrote about it in a major business magazine… FORTUNE magazine October 27, 2008 “Why Talent Is Over-Rated” http://money.cnn.com/2008/10/21/magazines/fortune/talent_colvin.fortune/index.htm.

Talent Article

“Whenever you speak to someone, you are presuming the two of you have a certain degree of familiarity - which your words might alter. So every sentence has to do two things at once: convey message and continue to negotiate that relationship.” Steven Pinker  pinker.wjh.harvard.edu/

I read a fascinating blog on Ode’s reader blog site on Indirect Speech (here). It got me to thinking about the delicate dance we do in a client relationship every time we engage and interact. For instance, it would be very odd to directly say tell your business clients “I care about you” directly, particularly in a business meeting. It’s just not done. However, clients really need us to care about them and they want to know that we do. Regularly and consistently. So we need to “say it without saying it” in as many ways as we can. We need to convey the message “I care” as we also progress the relationship if we are to build an ongoing business relationship for the long term.

Breadcrumbs to unstated expectations of us

For instance, a client might say “We’ve been having a lot of trouble with the new software and we’d like you to have a look and see if we implemented it correctly” but underneath they are feeling out how much we are committed to them post-sale, how important they are in our client roster, and how responsive we’ll be to their needs. We do more than solve these small detail issues; we’re creating a trail of breadcrumbs that lead our clients safely to their goals.

Breadcrumbs that demonstrate your commitment to add value

How often do you ask your client something like “How is that new referral I introduced you to working out?” and when we do, we are saying “I am keen to give you value beyond the transaction. Your business success is important to me”.

Deep listening is so much a part of client relationships. It’s hearing what they say and hearing what they don’t say and taking small risks within the conversation to explore the deeper territory of the relationship.  It’s understanding that clients have emotional needs, and they need those needs met in indirect ways. When we can meet those needs we continue building the bridge forward together.

How often do you scan for the subtle clues?  How often do you scan your behavior…is it engaged? Are you interested? Are you interesting?

It’s to easy to let those unstated questions or expectations sail past like ships in the night.

Putting It Out There In Tough Markets

There’s a lot of noise and fear - understandably - with bad economic news. It’s tempting to act like a hunted rabbit and freeze until the danger passes. It’s a natural instinct. There are a lot of people and businesses in survival mode…waiting, frozen, hoping.

Then there are a few taking their business future into their own hands.

In a recent Business Week article (Oct 18) there was a short but enlightening article called “Pink Slip Special” about a Chicago bar in Wicker Park called Fifty/50 that are giving 50% off and a free shot to recent layoffs and anyone who has been served foreclosure papers this year.  The article quotes co-owner Greg Mohr as saying “If we’re here for them now, we’ll make some good customers.”

That’s the mindset needed now…how can we be valuable now and remembered later?

We all need to get out in front of this market and re-think marketing ourselves and our services, either as valued advice for navigating the storm, or - like Fifty/50 - making a safe haven to weather it out. Both will be rewarded for their confident strides outside (it’s just a little stormy…put on a rainslicker!), rather than huddling with the masses under a leaky roof.

Send us your ideas - or clippings of businesses - that are putting it out there.

Given that you are all aware of the current economic concerns (stated mildly), it seems that it would be most valuable to the selling professionals who read this blog to focus it on “client service in uncertain economies”.

What do we mean by “share the power”?

We have learned through our primary research with your clients and buyers, that they gets lots of “tell”, “push” and “pitch” behavior. So much so that anti-pitch behavior stands out. And working from a solid understanding of client needs is the most common valued form of sales and relationship behavior.

Believe me, there will be a lot of pushing and pitching going on in the next few months as the natural anxiety… economic crisis, recession, downward spiral, the end of stock picking… has people running for sales.

Here is the playbook: focus on value!
There will be provider businesses that are hurt and have to magnify short term revenue. There will be client businesses in pain.

Rule of thumb:
1. Don’t assume
2. Set your own emotions aside
3. Hear carefully and demonstrate precise listening
4. Document to demonstrate their priorities and recap them using “Know Your Client Warm”
5. Demonstrate how their needs are the starting point to build solutions
6. Keep them in the drivers’ seat

Deep listening and clearly documented needs make a big difference. Clients will appreciate having someone calm and focused in their corner as they fight their way through. Sports fans will recall Vince Lombardi reminding his teams high stakes situations, “Gentlemen, this is a football”.

Plant that block. Open that hole in the line. Make that hand off fumble proof. Give the client confidence in following your plays.

Work on polished execution of the fundamentals. Do Something Valuable.