How are professionals picked in real life
Most professionals assume that referrals come from networking.
They.
Attend conferences.
Join organisations.
Meet people for coffee.
Build their network.
Yet when I look back at my own career, that was not my experience at all.
As Head of Private Client at Simmons & Simmons, I developed a particular expertise around Family Governance and advising international entrepreneurial families.
Much of the work I received came from international entrepreneurs who had had been recommended by a professional who had attended my talks
Very little came from partners within my own firm and what did come in was a bit hit and miss.
The firm had many partners with clients who could have benefited from my expertise.
They knew me personally so why did they so rarely refer work to me.
We were business partners - why did they not refer to me business?
Many openly admitted they did not really understand what I did or when they should introduce me to a client.
The problem was not a lack of relationships.
The problem was that the relationship was largely social rather than business. We met for lunch away days and drinks.
Recently I have been reflecting on this again while trying to sell my apartment.
One of the estate agents observed that much of the business generated in his sector comes from professionals who understand how another professional operates rather than people they have simply met. Like me he cannot remember ever being referred by a professional he had met at a conference.
He also said that when a family engaged their family lawyer for a conveyance it invariably slowed the process down - because this was not their specific area of expertise.
People rarely refer important work because they enjoyed a drink with someone at a conference.
They refer work when they understand where that person fits and how they are likely to perform.
That is a very different thing.
The missing ingredient is not another networking event.
It is helping professionals understand what they do and for whom - i.e. the business angle.
Once you see this, much traditional business development starts to look surprisingly ineffective.
Knowing that someone is an accountant, lawyer, wealth manager or immigration adviser is not enough - I need to know for whom and precisely what.
Referrals occur when professionals understand where another adviser fits into a client's journey, who the client is and how they are likely to contribute.
That understanding normally develops through working together but that could take months if not years and is not under your control.
This is something we have been working on with professionals which is the thinking behind client scenarios.
Rather than asking professionals to talk about themselves, we ask them to contribute to resolving a realistic client concern.
The discussion centres not on the professional but on the client - (the professional is covered by a podcast).
How would the various advisers work together to resolve a client’s scenario?
The result is very different from a traditional networking event.
Professionals begin to understand where others fit into a client matter.
Relationships become grounded in practical business understanding rather than social familiarity.
A wealth manager begins to understand when a specfic immigration adviser becomes relevant.
A lawyer sees where a specific accountant can add value.
A trustee learns when a specific family governance specialist should be involved.
The discussion becomes memorable because it mirrors real life.
In many respects it simulates the experience of working together without exposing a real client to risk of a poor referral.
That is why I believe professional services firms need to think differently about business development.
The objective is not simply to help professionals meet.
It is to help them understand when and why they should work together.
When that happens, referrals become more natural, opportunities are less likely to be missed and professional relationships become more commercially valuable.
If this resonates, perhaps the question is not how many networking events your firm attends each year.
The better question may be:
How effectively does your firm help professionals understand where colleagues and trusted advisers fit into a client's concerns?
If that question is worth exploring, I would be delighted to hear from you.
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