blog

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?

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.