How do you differentiate a law firm?
What makes an ad agency relevant?
How can you tell one accounting firm from another?
Can brand-building really help a consulting firm win more business?
Professional services take away problems and capture benefits. This is why they exist. This applies to law firms, consultancies, advertising agencies, architects, wealth management or private banking services, creative agencies, and accounting firms. If they do it right they are rewarded with long-term, mutually beneficial relationships.
Professional services are fascinating. Tom Peters, management consultant and author, has said, “The professional service firm – with its obsession with clients and projects – must be the new organization model.” Yet, professional services are tough businesses to brand because the promise is intangible and requires a leap-of-faith purchase.
Professional Service Essence
Whether it be a consulting, accounting, advertising or architecture firm, common characteristics apply. Each involves a specialty that demands highly talented people (who can be highly demanding). Most firms pursue deliver services that are repeatable and trainable to efficiently and effectively grow revenue. And though these services are offered to a variety of clients, they must be delivered in a customized way demanding high levels of face-to-face interaction.
The essence of professional services is that they prepare clients for the future, preempt the undesirable, control what can be controlled, and identify new opportunities.
Because of these commonalities, firms tend to share the same business model. They rely on leverage in organizational design for profitability, structure and process, and career path strategies.
In terms of business development, they become hunter or farmer. Then they endlessly debate how best to go-to-market and usually arrive at an unnecessarily complex matrix involving a combination of service, geography, industry, and/or client segmentation. They bore the market because they are talking to themselves.
The vast majority of firms are too flexible when it comes to strategic positioning. They react to any new opportunity or chase any expression of interest from a prospect, making them quite willing to deviate from “strategy.” They are known to chase fads. Or they bluntly apply defined service offerings to a broad range of client business problems, epitomizing the maxim, “If you only have a hammer, everything looks like a nail.”