More of the same or something new?
Most professionals understand that winning new business matters.
But most professionals believe that traditional networking produces a poor return on investment and that 80% of the work produces only 20% of the profit. Is this your opinion as well?
If so should you not be asking how to make business development more effective?
Should you not be getting clear guidelines on what else you should be doing?
Furthermore what are the objective measurements of success? How does they affect you or your colleagues personally?
When I was appointed Head of the Simmons & Simmons Private Client Group, I was given a very clear objective: if I did not achieve a City level of profit within two years, I would need to look for my future elsewhere.
That certainly concentrated the mind.
But I wasn't given a mentor, manual or guidance about how to achieve it.
I worked it out. My practice became profitable, my remuneration increased and so did my bonuses. On two separate occasions, I was told that clients I had introduced to other departments had made a significant contribution to their profitability. Indeed, I was congratulated on introducing what I was told was one of the most profitable clients the firm had ever had.
But there was something I never really understood.
Precisely what was I being rewarded for?
Was it the profitability of my own practice? Clients I had introduced? Work referred to other departments? Fees billed? Fees collected? Or simply a subjective assessment that I was doing a good job?
That was some time ago. I am sure much has changed in the way professional firms manage and reward their people.
But has everything changed?
What does winning good business actually mean?
Professionals are constantly encouraged to develop business.
They attend conferences, lunches and networking events. They write business plans. They are encouraged to build their profiles, develop contacts and, increasingly, use social media.
But before embarking on all that activity, surely there are some more fundamental questions.
What clients and work does the firm actually want?
What constitutes good-quality business?
And how will a professional know whether their efforts have been successful?
More clients and more fees do not necessarily mean greater profitability.
A substantial client may generate impressive fees but require significant discounts, considerable amounts of unbilled time and lengthy payment periods.
Another client may initially generate relatively modest fees but develop into a valuable relationship involving several departments over many years.
Which is the better client?
And does everyone in the firm understand the answer?
Are the objectives clear?
This is where I have become increasingly interested.
Through my own experience, conversations with professionals and the development of Client-Centric, I have identified nine areas where I think there may be a disconnect between what professional firms want to achieve and what their professionals understand they are expected to do.
I am not going to set out all nine here because I would first like to discover whether the gaps I have identified are the same ones professionals experience today.
But let me give you a flavour.
Does everyone in the firm understand what constitutes good-quality business?
Are professionals encouraged to identify opportunities for their colleagues as well as themselves?
And does anyone objectively measure whether all the time spent networking and developing relationships actually produces worthwhile results?
These questions matter because winning business should not be an activity undertaken in isolation or in exactly the same way as others do it if not very effective.
Better client service - better business
One of the things I learned from my own experience was that introducing a client to another department was not simply a commercial opportunity.
It could also be the right thing for the client.
A client rarely has needs that fit conveniently within the boundaries of one professional specialism.
An entrepreneur selling a business, for example, may need corporate, tax, investment, banking, trust, succession and perhaps relocation advice.
Understanding those wider needs allows the professional to serve the client better.
It also creates opportunities for colleagues and for trusted professionals outside the firm.
That is why I believe better client service, stronger professional relationships and greater profitability can reinforce one another.
But only if professionals understand what they are trying to achieve.
Is networking enough?
There is no shortage of advice telling professionals they should network.
But meeting more people is not necessarily the answer.
Surely the better question is: which relationships are worth developing and why?
If you know the clients you most want to advise and the problems you particularly enjoy solving, you can begin identifying other professionals who advise similar clients but offer complementary expertise.
That gives the relationship a purpose.
It is one of the principles behind Client-Centric: start with the client and the work, rather than with the event or the networking opportunity.
May I ask your opinion?
My experience at Simmons & Simmons was a long time ago and I do not want to assume that the challenges I encountered then remain the challenges professionals face today.
So I would genuinely like to hear from you.
I have identified nine areas where I think there may be a gap between a firm's ambition to win good-quality business and the guidance its professionals receive about how to achieve it.
But I don't yet know whether I am right.
Whether you are part of the management team, a head of department, an aspiring partner or a rising star, I would be interested to know how your firm approaches these issues.
Do the questions I have raised resonate with you?
And are there other issues I have missed?
If you would be willing to share your experience, I would welcome a half-hour conversation. I would be equally happy to share the nine areas I have identified and hear where you think I have got it right — or wrong.
Sometimes the most useful place to start is not with the answers, but with the right questions.
What do you think?
Call me on 07979 188 288