For Most Firms, Alignment Is The Key To Higher Productivity (Not to mention, answers to the most vexing questions)

For every firm wrestling with direction, under performance, growth, market position, diversity and inclusion, compensation systems, how to address succession planning…and the list goes on…there is good news

The shortest distance between today’s challenges and meaningful progress could be as close as organizational alignment.

The downside is that institutional alignment is often the last thing anyone focuses on. When the day-in-day-out realities of running a firm already demand more time than is available, “soft” discussions around aligning work with purpose, mission and vision become low on the priority list.  These conversations have little to do with the actual practice of your profession. What’s more, experience suggests that time spent here rarely produces any immediate results.

Research Begs To Differ

To accept this position is to ignore volumes of organizational development research and case studies over the past twenty-plus years underscoring the fact that institutional alignment is a critical component in highly functioning organizations. Data repeatedly indicates that purpose, direction, mission, and vision are inexorably linked to high productivity, stability, and yes, increased profitability.

In The Aligned Organization, an article for McKinsey & Co.,  Thierry Nautin suggests: “Achieving real alignment, where strategy, goals, and meaningful purpose reinforce one another, gives an organization a major advantage because it has a clearer sense of what to do at any given time, and it can trust people to move in the right direction. The result is an organization that can focus less on deciding what to do—and more on simply doing.”

Less Time Deciding (Translation: Less Time in Meetings)

This alone should be reason to reassess, and at least test the waters of alignment. I have yet to visit with a law firm leadership group whose goal is to spend more time in meetings.

Nautin contends that in the aligned organization, decision making is streamlined because decision making parameters are known, and understood.

Put another way, in the aligned firm there exists a set of core values and guiding principles. These “knowns” provide the basis for a clear vision for what the firm aspires to become.

  • Should we open a new office?
  • Is a merger the way to go?
  • What about lateral pursuits — what should the model look like?
  • What should our policy be on pro bono involvement?
  • Does our comp system need an overhaul?

Name the question. The place where efficient decision-making begins is in the context of alignment. Which decision and what direction are aligned with core values, guiding principles and firm vision?

More Time Doing 

If you’re prepared to invest time on alignment with the goal being a more agile, productive and profitable organization, where do you begin?

There are at least five areas where the identification of guiding principles will serve to create an aligned firm. These areas are:

  • Nature of the Practice
  • Nature of the Platform
  • Compensation System
  • Governance and Succession
  • Work/Life Issues

The uniqueness of some partnerships may call for a greater focus in one or two additional areas; but the firm that is willing to have the (often difficult) conversations around the identification of vision and guiding principles in these five areas is well on its way to being able to articulate much more than a generic website mission statement.

The payoff to an aligned vision is that it provides a framework for strategic execution. It is in this framework that every functional area of a firm realizes its practical connection to the firm’s vision. In this environment silos can be broken down, new leverage realized, and every member of the organization owns a clear connection to the firm’s purpose and future pursuits.

Fig. 1 — The Aligned Firm

Figure 1 above offers a graphic presentation of the Aligned Firm. In our next post we’ll begin to dive deeper, with a discussion of some of the factors that impact the identification of Guiding Principles.

 

Five Keys To Realizing Return On Your Firm’s Business Development Efforts

Does your firm regularly wrestle with measuring return when it comes to business development efforts? If so, you’re far from alone.

At least one reason is that for many firms, the pursuit of new business is not aligned with any overall, longer-than-this-year strategic plan — one that is guided by a set of core principles, and establishes the basis for strategic growth.

There are exceptions, of course; but for the most part, law firms grow by adding lawyers — one or two at a time, through the addition of a group, or by combining with another firm.

In some instances, this approach to growth is in response to a specific need or opportunity. However, much of the time it is linked to the idea that the addition of partners who possess an existing book of business will serve to increase overall revenue.

With a few exceptions, all indicators point to the fact that while adding billable “books” might boost revenue in the short run, an analysis of a three-to-five year window suggests this is not much of a growth strategy. In fact, adding professionals and hoping business comes along:

    • has significant cash flow implications — firms typically experience negative cash flow on lateral hires for the first nine months — often more; and,
    • 24% of lateral hires will leave within 3 years — within 5 years the percentage jumps to nearly 50%.

And for all the headlines made by merger announcements, combinations are costly, dilute profitability at least in the short run, and are often fragile.

Organic Growth Is Even Tougher

Meanwhile, efforts to codify the growth of the pie as the responsibility of every lawyer has barely moved the needle. From key client or industry teams and cross selling initiatives to talk of hunting in packs and outright sales coaching, firms continue to search for and invest in an approach that will deliver organic growth. 

Yet, in spite of significant investment, many firms actually sabotage their efforts from the word go. For many the investments produce negligible return, year after year.

If this sounds all too familiar, here are five ideas found in firms possessing productive and vibrant business development efforts that, in addition to impacting profitability (yes, it is possible), produce measurable rewards in terms of firm culture and stability.

1. Business Development Is About The Future

The growth of a solid practice does not hinge on finding a silver bullet or learning manipulative techniques. Real growth comes from new connections and newly productive relationships. Every real rainmaker I know will tell you the best business — the work most sought after — comes by way of an existing relationship or a referral.

Strong relationships are the byproduct of shared experiences; and these come with time.

Translation? Business development is a long game — an investment in the future. Every time the pursuit of new business is launched with the need and expectation of near-term return, the potential of the effort is compromised from the outset. Every time the decision to scrap a 24-month plan is made based on perceived results at the 12-month mark, it is a decision based on faulty data analysis.

Effective business development is rooted in clear goals, market intelligence, considered strategy, and a commitment to stay the pursuit.

2. Not Everyone Is A RainMaker

We know this. Yet we continue to try to force the issue.

There is an important reality here. Not everyone possesses the basic skills attendant to rainmaking. An effective (and realistic) firm (or group) strategy recognizes this fact. This is not to suggest that certain partners should be able to opt out. In the healthiest partnership everyone has a role in the growth strategy. However, expecting that every single partner will be equally gifted in every area of responsibility is to set many of your partners up to fail.

This warrants lengthy exploration; however, for example, successful initiatives include research, analysis, and a variety of critical tasks. Partners, it would seem, would strive to construct pursuits in a way that leverages every skill set available. Build a program that involves everyone, but doesn’t expect everyone to do everything.

3. A Focus On Business Development Is Not Punitive

When an emphasis on development is associated only with under-performance, you may as well be saying that a business development assignment is the penalty one will pay missing a mark.

In more instances than I can count, a forced focus on development activities is linked to missing an hourly benchmark or a declining or anemic book of business. Get them a coach to set them on the right path. Bring in a consultant to work with groups that are stagnant. Or adopt the current solution-of-the-month to fix across the board deficiencies.

In one instance, intending to take me into his confidence I’m certain, a Managing Partner let me know that a strident firm naysayer was being named to the Marketing Committee. Implicit in the communication was that, since this wasn’t Compensation, Governance or one of the other “primary” committees, it was a place where the strident voice could be exercised with minimal impact. As a result, meetings of the Marketing Committee were tense and unproductive.

The firm equivalent to a “time-out” isn’t going to turn anyone into an overnight development whiz..

4. Where Programs Flourish, Leaders Participate

Whether an initiative is perceived as punitive will almost always be determined by who opts out. Strong partnerships collaborate on critical solutions, including challenges and opportunities associated with the development of new business.

When firm leaders and/or known rainmakers are not in the middle of growth initiatives two things occur that have negative impact on the overall effort: the message delivered is that the initiative in question doesn’t rise to the highest level of priority; and, the initiative does not benefit from the experience of those with skins on the wall.

If organic growth is a priority, leaders participate.

5. Where Business Development Is Strong, It Is Measured

Inside most law firms there is no question about the need to measure time. It is at the heart of how value is calculated. Alternative billing methodology notwithstanding, to a significant degree productivity is defined in terms of hours worked on billable matters, and the dollar figure attributable to each. Working the requisite number of billable hours is one of a handful of promotion benchmarks.

Yet, some firms are still reticent to employ metrics to gauge progress toward a revenue goal. The management of one firm I consulted went so far as to proudly announce that the firm had never had a budget for business development. Naming targets, establishing goals and tracking progress were unheard of topics. Discussions of such things ran counter to the firm’s professional and collegial culture.

Not coincidentally, the firm’s revenue per lawyer today is virtually the same as it was a decade ago.

A credible growth strategy, it would seem, comes with a definitive set of goals and a clear set of benchmarks against which progress can be defined. And in organizations where growth in profitability is a priority, these things are measured.

By contrast. where the only thing that is measured is hours, the message is clear — do whatever it takes to bill your hours today…before you do anything to build business for tomorrow.

Sabotage or Facilitate?

There are other factors that determine the effectiveness of business development efforts, of course. But the way in which a firm addresses these five areas will have much to do with whether your efforts to grow organically align with a vision that connects to the aspirations of the partnership.

Where to begin?

Business development should be the natural outgrowth of a strategic plan. Most multi-practice firms will, in one way or another, break the pursuit of new business down into group and individual bite-size pieces. The involvement of senior leadership ensures leverage and a unified pursuit.

At the firm level, a strategic plan should identify core principles of the partnership — the nature of the practice the firm aims to build, the platform necessary to support this practice, a roadmap (think 12, 24 & 36 months for starters), compensation, governance, shared aspirations and values. Once identified, these principles provide the cornerstones for a strategic and aligned approach to growth.

Why Your Lateral Hiring Program Under Delivers, And How To Fix It

If your firm is like most, the pursuit of lateral partners is a critical piece of your growth plan, and you invest in it disproportionately. But unless yours is an exception, the effort under-delivers. Consider data highlighted in a January article from ALM, authored by Nicholas Bruch, Michael A. Ellenhorn and Howard Rosenberg.

    • In the past 5 years (2014-2018) there were almost 9,000 lateral moves made within Am Law 200 firms. (This doesn’t count firms with fewer than approximately 200 lawyers that, though not on the registry of America’s 200 largest, rely heavily on lateral hiring as a center piece for growth.)
    • 97% of Am Law 200 firms contributed to that 9,000-moves figure above.
    • According to the authors, “Slightly more than half averaged at least one lateral every two months over that period, and one-quarter averaged at least one-lateral per month. This is the equivalent of a firm completing one sizable acquisition per year.”
    • The estimated value of business moves between Am Law 200 firms (meaning from one Am Law 200 firm over the last 5 years is $17.1 billion. To quote the authors again, “To put that into perspective, Am Law 200 firms grew their revenue by a total of $16.9 billion during that period.”

We should pause to let that last bullet point sink in — the value of business moved within the Am Law 200 lateral market over the past five years eclipsed the value of total revenue growth among the Am Law 200.

What About The Pay Off?

The ALM article goes on to paint a picture you’ve probably already seen. 

    • 24% of lateral partner hires leave within 3 years.
    • Within 5 years, nearly 50% leave.
    • Two-thirds of lateral partner hires fail to produce even 75% of the expected “book.”

“Put simply,” the article posits, “bad hiring decisions are costing law firms (and their partners) significant amounts of money.”

As stark as they must appear to anyone examining strategies for growth and business development, these numbers do not represent new news. Big investments for little-to-no return have been a common theme for law firms and their lateral hiring programs for decades. The ALM article puts a fine point on the reality of today’s increasingly competitive market where revenue growth isn’t easy to come by.

Why Lateral Strategies Fall Short, Or Fail

The authors of the article cited above suggest an overhaul of lateral programs that begins with two changes: reducing firms’ reliance on search firms; and increasing the amount of due diligence devoted to the process.

(Side bar note to Business Development Professionals — if you’re not already, it is time to plug in to your firm’s lateral hiring efforts; business development intel and due diligence are areas where your experience and expertise are assets.)

Any steps taken that result in a more intentional approach to the lateral process should yield a better result. However, we would submit that the place to begin is much more foundational in nature. In short, a lateral strategy produces sub par results (and let’s face it, that’s putting it mildly) for one of two reasons:

    • the firm has no real strategic plan, and therefore no strategy when it comes to growth; or,
    • the actual lateral process does not align with the firm’s strategic plan.

Before you yawn and move on to the next thing in your inbox, this is not a case for a 100-page B-school style paper that does little more than consume hours to create and then gather dust. It is, on the other hand, a suggestion that a few guiding principles will provide a framework that will turn your lateral process into a productive investment.

Five Guiding Principles

Should you add a lateral in a given area of practice? Should you add a practice area? Is it time to seek a lateral in order to seed a new office? What will it cost in terms of compensation? What about your culture? How do you find the right candidate? Will you know the right “fit” when you see it? When should you say ‘no’.

Having an answer to these questions is the difference between a proactive lateral growth initiative, and a “send-us-anyone-with-a-book-of-business” approach — which, for the record, is simply reacting to what the market throws your way.

It has become cliche to say it, but there is no cookie-cutter here. Every firm is a unique partnership, with unique reasons for choosing to practice together. However, with plenty of room to edit and personalize, there are at least five issues around which the most critical decisions in a firm’s life are made — five areas out of which guiding principles emerge. These are:

    • the Nature of the Practice, including a profile of ideal clients and projected pricing;
    • the Nature of the Platform, including aspirations related to size and geography;
    • the Compensation System and related profit goals (and how this aligns with projected pricing);
    • the Work-Life Equation, Core Values, and other matters related to firm culture;
    • Issues of Governance and Succession.

The partnership that explores, zeroes in on and continues to refine the foundational elements in each of these areas has, in practice, a set of guiding principles against which decisions that matter can be made. Taken as a whole, these principles give shape to an aligned strategy for growth.

The Formula For Success

Based on history, most firms are going to sit back, wait for what the market offers in terms of available laterals, and then react — and call it an opportunistic strategy.

And most firms will continue to see more than half of their lateral hires leave within a five year window characterized by a significant lack of productivity — presumably for greener pastures or because the partnership just “wasn’t a fit.”

For the few firms serious about overhauling their approach, the formula is a simple one: get strategic, and become proactive.

The formula is simple; the work is demanding (and apparently distasteful).

History indicates that when issues of revenue growth are the topic, most firms repeatedly turn to the same levers — choosing to focus everything except the value to be derived from a strategic plan that expresses the shared goals and aspirations of a partnership.

Focus on the strategic work, and a roadmap for a lateral process will emerge — one that will shape how and when you choose to partner with recruiters and other referral sources, define productive due diligence, and begin to build a lateral program that provides a measurable return for your efforts.

How will you know this strategic focus is working? The ROI will be clearly manifest in lateral hires who stay…and deliver…becoming long-term producing members of a growing partnership.

The Cultural Disconnect That Kills Productivity

Leverage is an often used buzz word when business conversations focus on productivity, growth and profitability. Oxford Dictionaries define it as the exertion of force by means of a lever.

In practical and slightly less mechanical terms — it is the use of resources at your disposal to change the equation that shapes the your status quo.

Leverage is one of the concepts at the heart of the conversation when professional service firms focus on productivity, growth and profitability. How do we gain it? What must we do to maintain it? What can be done to maximize it?

The application of leverage can move mountains. Misuse it, and you can seriously hurt yourself, to the point of lasting damage.

The principle has worked for centuries as human beings, faced with the need to innovate and improve on process, have explored creative ways to apply the principle.

But leverage has a dark side.

When an organization begins to conflate human resources with levers that can be pushed to the limit, and replaced, the pursuit of leverage can tear at cultural fabric. The erosion of characteristics like creativity, a sense of ownership and personal responsibility results in costly, potentially permanent damage.

Manufactured Tension Between the Bottomline and the Human Resource

Let me underscore that I believe the central motivation and most compelling reason for treating individuals as you’d like for them to treat you is that it is simply the right thing to do.

But for a moment we need to address the rationale offered for viewing certain parts of an organization solely through a leverage-lens: that this is a business, after all.

Great organizations and their leaders understand the business reason to guard against viewing an individual as a commodity that can easily be replaced: it diminishes leverage.

This is not a new idea. HR and organizational development professionals have been telling us for decades that individuals are more productive when they are engaged. (Check this HBR article.) If you need more data, talk to your Human Resources team. Here’s what you’ll hear.

To the degree individuals, departments, divisions or classes of an organization feel disconnected from a shared mission, the organization is sacrificing leverage.

This is the real reason Mission Statements have value. It is not so you have a pithy paragraph to post on your website. Rather, a clear articulation of mission enables each member of a team to embrace a personal piece of the vision. Or — in plain terms — this provides the real reason everyone shows up every day.

A measurable stake in a common pursuit is the real fuel of higher productivity.

Take The Law Firm Downtown

For decades the leverage model has been at the heart of how many law firms have delivered their professional service. Inexperienced (and typically young) lawyers in need of real-world experience are engaged by more seasoned attorneys to accomplish tasks demanding lots of time, but not much experience.

With this model, the inexperienced gain on-the-job-training, while making it possible for more senior lawyers to offer their extensive experience to additional clients…which puts more young associates to work…and so it goes.

The glitch comes when younger lawyers begin to believe the firm sees them as little more than replaceable levers in a process. Detached from mission, the younger lawyers seek greener pastures. The cost comes not only in the loss of the resource, but in the absence of the organic development of experience. The sum is the erosion of culture.

While this is perhaps the most visible area where a firm’s culture can result in a costly loss of leverage, it is not the only one. Consider two timely and relevant challenges.

Diversity and Inclusion

For more than two generations the absence of diversity has robbed the legal space of the strength that comes with the perspectives and experiences of an inclusive culture. And while a handful of firms are showing signs of a change in attitude, board rooms heavily weighted with 60+ year-old white men still shape the daily operations of the industry.

Then There Is The Business Side of Things

The bifurcation of a firm — those who attended law school on one side, and everyone else on the other — limits the degree to which the experience and skill sets of all can be leveraged. When this division results in the separation of those experienced in the disciplines of business from the decisions central to how the business runs, the levers of leverage are, in effect, untouched.

Keys To Regaining Leverage

Examples, good and bad, can fill volumes; and the subject warrants far more attention than one article can deliver. But in the interest of conversations that give rise to creative thinking, here are 4 ideas on ways to realize greater leverage in any organization.

1. Be Clear About Why You Do What You Do

You can call it soft and scoff at the idea that an understood and shared mission makes a difference; but I hope you’re in the mood to struggle with cultural disconnect. Great organizations are made up of individuals who buy into the mission, and are clear about why today’s work matters. If your entire team doesn’t know how the work of today connects to the reason you exist, you’re losing leverage.

2. Be Inclusive

Sure…you’re talking about it. Everyone is. But if you’re talking about inclusion because it is the hot topic of the moment, you’re missing the point. Two points, really. The business reason this is an important conversation is that it embraces the broadest perspective and the richest experience inside your firm. It is the way an organization ensures it is approaching a conversation, an opportunity or a challenge with every tool it has access to.

Then there is the fact that it is the right thing to do.

3.Turn Your Team Loose

If you have a team, you likely assembled the various players for a reason. Allow and expect them to perform the jobs for which they were hired. If you don’t, you’ll lose the best of the group. (Side note: if you’re repeatedly searching for “the right fit” in key roles you may not be clear about overall strategy, making it difficult to engage the human resources aligned with your goals.)

4. Treat Your Human Resources Like Human Beings

There are clear business reasons to support and encourage every member of your organization. The most compelling is that the greatest source for creativity and innovation you need to win in today’s market is your team or tribe.

Treat individuals like commodities, and don’t be surprised when you sacrifice leverage at every turn.

But inasmuch as it may seem a forgotten value, it is worth repeating: the greatest return on personal interactions, wherever they might present themselves, is realized when we find a way to pause…and treat others the way we would like to be treated. Why the note to pause? Because we must first see others the way we wish to be seen.

A Moment of Silence For the Death of Dialogue

I remember when we used to be able to disagree with each other.

We could have a debate, and go home friends. We could work alongside others, and even build a community with folks with whom we shared differing views.

Things weren’t perfect, for sure; but it wasn’t unheard of for diverse groups to manage to identify common ground, and get things done.

I remember when collaboration and consensus were positives.

Those were the days.

Or maybe it was all smoke and mirrors…or a product of good-old-days syndrome.

Today is certainly seems like dialogue is dead. Compromise is a dirty word. Peacemakers are more likely to be seen as soft, than as leaders or facilitators of progress.

Hyperbole and name-calling pass for telling it like it is. Give-and-take is wasted breath. Cranking up the volume, and soundbites scripted for the talk-show circuit masquerade as discourse.

When was the last time you heard (or participated in) a calm and reasoned debate around deeply held perspectives. How did it end?

The Sounds of Dialogue

If you’re lucky, you’ve been around someone who modeled the adventure of dialogue.  It might have been a parent, teacher or mentor. For these accomplished few, canned positions rarely suffice. Their conversations are interesting — even compelling. They are likely characterized by listening, and real give-and-take.

In real dialogue there isn’t a winner. There are explorers. Students. Bridge-builders.

If it isn’t dead, the art is fading fast.

These days it’s about nailing the soundbite; sticking to the talking points no matter what the question might be; tearing down in favor of building; being audacious in 140 characters; or going viral.

It’s about the highlight reel and a WOW moment. It is antagonism posing for discourse. It’s about a headline, a spotlight, or a reality gig.

It is about making my point and winning the moment. Without respect to implications on the next opportunity, it is about laying claim, and staking territory.

And before we know it, we’ve gone a day…or a week…or a month without engaging in a single real piece of dialogue.

Little by little, have we forgotten what it sounds like?

It isn’t how-was-your-day-mine-was-okay stuff. It is more than comparing vacation itineraries or updating Facebook or Insta status.

Dialogue requires empathy. It should be an adventure.

If we care about more than attention…if our quest is about more than self-promotion..if the goal is meaningful movement…we must find a way to rescue dialogue from the brink of extinction.

Where and how to begin? Step away from the podium. Spend some time listening — not for ways to shoot holes in what you hear; but in a search for common ground…for shared aspirations. This is where dialogue begins.

Unless we rediscover the art, very little of real consequence will change — whether the venue is personal, professional, social or political.

Will we disagree. Certainly. But we might discover that those faint memories of when we could disagree and debate and walk away with self respect and friendship in tact are not a figment of our imagination at all. Those were the good ole days.

Around Corners and Beyond Barriers: The Vision That Enables Innovation

In 2001 Erik Weihenmayer reached the peak of Mount Everest — an impressive feat in-and-of itself. But one thing should be noted: Erik is blind. I first learned of his story several years ago, and was reminded of it thanks to a recent story on NBC’s Today Show.

But Everest is only part of the story.

In 2005 Erik became the first blind climber, and 1 of only 150 total climbers to have completed the Seven Summits. He has scaled the Nose of El Capitan in Yosemite, ascended Losar, a 2700-foot vertical ice face in the Himalayas, and kayaked the treacherous whitewaters of the 277-miles of the Grand Canyon.

Did I mention that Erik is blind?

In 2005, he co-founded No Barriers, a nonprofit organization with a most appropriate brand tagline, “What’s within you is stronger than what’s in your way.”

Individuals who inspire us — those we might be persuaded to follow — possess a unique perspective.

When eulogizing his fallen brother Robert, Ted Kennedy referred to Robert’s own explanation for the way he saw the world — “Some men see things as they are and say Why. I dream things that never were, and say Why Not.” 

This is vision of the highest order. It is the ability to see through barriers — even the barrier of the unknown. It’s the way we see the world when unobscured by fear, synicism or out-right self- interest.

Without respect to title or station…in offices and homes, at work or play…the women and men who inspire us to listen and follow have this view of things.

Even if you’re not at the peak of a mountain, you can tell you’re in this rare air because a lot less time is spent focusing on all that is wrong. Things are seen through the imagination — the mind’s eye.  Reasoning around why not is an organic response…even in the face of unimaginable challenge.

This is the perspective of leadership — and it is where creative thinking and innovation find footing. In this environment, we have a shot at discovering real solutions.

It’s not that leaders ignore problems or challenges. It is that leadership embraces a perspective that transcends what is staring it in the face.

Not all the time. Not in every situation. And certainly not to an elite few. At times a leader’s way of seeing things comes in an awkward instant to the most unexpected among us. (Every parent knows what this is about.)

It is this transcendent brand of vision that sees around roadblocks…and charts the course for great human adventures — in moments on Everest, no doubt; but more to the point, wherever a path is chosen and a first step taken — at home, in your office, anywhere.

It may be human nature to spend most of our time on the realities we face. If my boss would change this…if my partner would fix that…if the others on the Board just knew what I know…if we didn’t have to contend with all of these old dinosaur ideas, we could accomplish so much more. 

We analyze all that is wrong…pontificating on why we’re in the fix we’re in. And before we know it, the meeting is over…the month has closed…another down-quarter has passed. The kids are grown…and gone.  Why did so much conspire against our dreams? When did we relinquish leadership, and decide to follow the fearful and vision-less?

The poet T.E. Lawrence describes two types of dreamers. He said…”All men dream, but not equally. Those who dream by night in the dusty recesses of their minds, wake in the day to find that it was vanity: but the dreamers of the day are dangerous…for they may act on their dreams with open eyes, to make them possible.”

Leadership — the kind that inspires a team to address the impossible — spends less time wandering around the dusty recesses of the same old conversations.

Leaders envision possibilities.

And wherever we might have dreams — of relationships that endure, of fairness and inclusion, of transformative creativity and innovation, of scaling the most formidable challenges we might face — there echoes a resounding call for this kind of vision.

Is Your Target Dozing While You’re Pitching? | Building A Biz Dev Plan – Part 7

Finally! The firm I was working with had been invited to make a pitch to a target we’d been pursuing for a couple of years. But the knee-jerk reaction was — wait for it — to make a list of every professional that should be included in the in-person pitch — 13 firm partners…representing each of the practice areas in which we believed we could serve the potential client.

Thirteen of us. Two individuals would be present on the client’s side of the table.

The pitch was, after all, about us. Right? Wrong.

This is where our pitches and presentations often come off the rails.

Don’t get me wrong — it is not necessarily the number of individuals…though have you been on the receiving end of one of those pitches? The math alone should dissuade us. If we lead off with each of the 13 doing a 3-minute self-introduction we’ve consumed 39 minutes. To what end? Reiterating information that is (hopefully) easily accessible on the firm’s website? Surely there is a better use of precious presentation time.

But the problem doesn’t begin with the number of partners engaged in a presentation. If you’re following along in our series on Building a Business Development Plan, you know that preparation for a pitch begins as soon as you’ve identified a strategic target.  For the seventh installment in our series, let’s explore some aspects of pitch prep and execution.

Pitching Begins With Listening

(We should stipulate that there will be plenty of one-off presentations to come along that must be handled on-the-fly. And while most, if not all of the principles outline here apply to any effective communication, our focus in this post is pitches that are the result of strategic business development pursuits.)

A characteristic of any successful presentation, not to mention an out-right solicitation for work, is the degree to which the target feels as though we’ve identified and spoken directly to specific questions, issues or needs they are facing.

What must be done to realize this high bar? Begin with a pitch process built on two principles:

  • Listening always precedes pitching; and,
  • Every presentation (or conversation) is about your target (versus being about you).

Few professional service providers I meet will argue with the spirit of these principles. Yet, when opportunities arise the temptation to present every possible qualification (sometimes reaching back a dozen years or more) along with any conceivably applicable capability is often too great to resist.

No doubt one driver here is the we-only-have-one-shot view of the business development process. Go in loaded, and touch every possible point of connection. But when an in-person pitch or presentation resembles your firm’s capabilities brochure or website description, it will seldom qualify as a strategic presentation. And it will fail to differentiate you in any positive way.

On the other hand, winning pitches begin with intentional listening. Ideally, as noted above, this begins the moment you’ve identified a target — with in-depth market research. Here are components of a brand of research that will help you create a pitch that connects.

  • What outside forces might be impacting the current operations of your target? What are the long-term implcations?
  • What does the competitive landscape look like for your target — short-term and long-term?
  • Is the target’s industry experiencing growth, contraction or some other consequential change?
  • Have there been recent changes in governance, leadership, or other key personnel? (Or rumors of change?)
  • Do existing or pending regulatory realities threaten or otherwise impact operation?
  • Might expansion or acquisition be in the cards?
  • Are there political or social issues that might impact your target’s business?
  • Where do you have existing relationships with decision-makers and potential coaches?
  • What are the implications of an expanded relationship map?

Effective market research will not only provide some idea of the big-picture realities your target is facing, it should point you toward valuable coaching resources. We’ve written at some length about the value coaches play in strategic business development. And the right coach is invaluable when it comes to crafting a pitch — providing insight on everything from who should be in the room, to notes on specific issues for which your target is searching for a solution.

This strategic quest for info and intel is the single exercise that will most likely enable you to create a pitch that hits the bull-eye for one reason: it will inform and shape the creation of a solution — facilitating a pitch that connects.

Shortcut the listening process because you believe two things: 1) that your target simply needs the expertise you bring to the table; and 2) that the presentation of your credentials is all the pitch you need, and don’t be surprised when you are treated like just another service provider.

Successful Pitches Hit A Unique Sweet Spot

The Business section of a national law firm had been pursuing a Fortune 50 company for some times…to no avail.

(Recounting this in a couple of paragraphs does not do justice to the process; but we all know that no significant win comes easy or happens overnight…correct?)

With that disclaimer, intentional listening (in all of its forms) led to an awareness that the target in question faced significant challenges in an aspect of human resources that did not made it to the attention of the company’s legal department (where most law firm pitches are made). However, it happened to ba an area in which the firm had significant experience.

The appropriate practice groups went to work to fully understand the company’s challenge, and subsequently develop a unique solution. The team not only earned the opportunity to pitch the coveted target; the firm won the business, and began a lengthy, productive relationship with a new client.

Want to open new doors and create pitches that win coveted business? Do the kind of listening that makes it possible to proactively address a specific need, and deliver a solution.

Don’t Wing It

You’re a professional. You’re articulate and good on your feet. And you know this stuff like the back of your hand.

But when it comes to making a pitch, please don’t wing it.

Successful pitches are carefully prepared. Maybe even — stick with me here — maybe even rehearsed.

Especially if you’re parading a group of professionals before a target.

Preparation is essential if you hope to get the most out of the time allotted, and cover the important bases.

When the firm I was working with had the opportunity noted at the top of this post, we managed to trim the group down to eight — still far too many.

The General Counsel for the prospective client had scheduled the pitch for one hour. The first 35-minutes were consumed as our team did introductions that covered highlights of individual experience as well as relevant qualifications of each of the eight practice areas represented. And as impressive as it was, every bit of it should have been on the firm’s website; and all of which would be included in a follow up package.

We did not win the work. Our pitch undoubtedly sounded much like the pitch made by a dozen other firms hoping for a working relationship — deep experience, deep bench, we only hire the best, and…oh yes, we’re client centered.

Pitches that differentiate and set you up to win the work you want most are about the target.

Who Is Really The Smartest One In The Room?

At some point, given the right topic, almost everyone will have a moment worth sharing.

The challenge, at least as it relates to productive dialogue, is that many of us believe the frequency and scope of our insight is so grand as to warrant the lion’s share of attention in any given room.

But when was the last time we engaged in an interaction where the objective of everyone in the room was to listen, intent on learning? On finding the building blocks for better conversations?

If you’ve been in a room like this it probably left a mark. There is dynamism there. When gaining insight is the goal, ideas flow freely. Maybe even new ideas. Solutions emerge more quickly.

But rooms where listening dominates are scarce. After all, territory must be staked. Turf marked.

An Idea

Pick the most stressful or contentious interaction you’ll face in coming days. What might change if the objective were to listen? No immediate agendas. No winning or losing.

To be sure, there are plenty of reasons not to go down this road. Where’s the practicality? Someone has to lead. I’m expected to come to the table with a point-of-view, experience and expertise.

If you want to introduce a rare dynamic into difficult conversations, try being a point of listening rather than worrying about sharing your point of view. Unless you’re in unusual company, no one really hears — or gets — your point of view anyway. Not because it isn’t brilliant; but because while you’re talking most everyone else is only half-listening, while formulating a response.

(Double down on the above paragraph if the objective of the one doing most of the talking is to convince, convert, defend or distract.)

And if the fear is that failing to own a room displays weakness or affords unfair advantage to another’s point of view, consider the possibility that minimal progress will be realized in a room where the primary concern is winning the moment.

Real listening is an intentional and difficult act. It stems from a commitment to learn, and the relentless search for a bridge that connects all parties…even over enormous chasms.

When I believe my insight is ultimate, and that the room is best served when I broadcast my point of view, I should not be surprised when the only ones paying attention are those who share my perspective…and nothing changes.

There is rarely a shortage of talk. But when the talk accomplishes little, there may be a shortage of intentional listening.

In relationships with family, co-workers, friend or foe, perhaps the key to the change and progress we seek lies in having the courage and discipline to listen…to find the elements necessary to build a bridge to on-going conversation.

If It Isn’t A Top Priority, Don’t Lose Much Sleep Over Business Development

How important is business development to you?

Years ago I was being interviewed for the senior business development and marketing position in a law firm, and was on a video conference with a handful of firm leaders. Two things about the experience impressed me…and I don’t mean in a good way.

  • At various times during the (exhaustive) 30-minute conversation every one of the interviewers had to divert attention in order to deal with a presumably time sensitive issue on their smartphone; and,
  • At one point I realized the managing partner (who was in a location by himself) was snoring. No kidding. Sawing logs.

I left the video conference in awe over how compelling I must have been.

There could have been any number of good reasons for the divided attention and general lack of interest. To be fair, I simply may have failed to earn their attention. Or, perhaps there were urgent emails from clients, a family emergency. An all-nighter prepping for a trial.

In any case the experience suggested that the ideas and issues related to the firm’s business development and marketing direction were not a priority for those five leaders…even for that 30-minute time frame.

As many shake off the effects of diving head-first into a new year, it seems appropriate to break from our series of posts on building an effective plan in order to discuss the one thing that will have more to do with business development success or failure than all the planning advice of every consultant on the planet.

(Side bar: the fact that I went back-and-forth on the use of the word “failure” in the above paragraph is indicative of the problematic way many professional firms tend to address business development and sales; but that is fodder for another conversation.)

The critical success factor? The degree to which business development is a top priority.

Not one more item on a “to-do” list. Not something you do when you can find the time or get around to it. Not that thing you turn to in desperation when the absence of work forces it.

Not your only priority, certainly. But a discipline and focus that warrants and receives your highest level of attention.

Site all the obstacles if you must. Not enough hours in a day…the hours are non-billable…it’s not in your personality…selling is distasteful or unprofessional…and so on.

Those who ultimately win more pitches, close more deals than the competition, develop broader and deeper working relationships with the clients we all covet, and yes, those who make it rain when others fear drought, do so because they prioritize business development.

(Another side bar: the line of thinking that equates “non-billable” with “non-productive” is twisted and destructive, and one of the reasons the rank-and-file in many firms find it difficult to prioritize business development activities.) 

Is business development in a professional service firm without challenges? Certainly not. Is prioritizing biz dev and sales easy? Often far from it. But the individuals and firms who repeatedly find themselves without a clue as to where the next client will come from, or searching for what can be cut in order to reach budget likely have one thing in common: business development does not occupy priority status.

Forget for a moment that we’re talking about the pursuit of new business. What does a top priority look like?

  • It bares the unmistakable imprint of our most valued investments. Though this certainly implies the allocation of adequate budget, it is far more than simply throwing money at something. A priority is known by the degree to which it receives the time and attention of leadership.
  • It captures the imagination. A top priority defies relegation to afterthought. Rather, it is the target of relentless pursuit, undivided attention, and creative innovation.
  • It factors into the framework of foundational moments. When, where and how to go-to-market…expansion…contraction…innovation…succession — our top priorities are part-and-parcel to consequential conversations.

By the same token, the things about which we care the least are easy to spot.

  • Low priorities might occupy a spot on the agenda; but we give them serious time and consideration only when external circumstances force the issue.
  • Lower priorities rarely factor into strategic considerations. They are fungible.

Where Does Business Development Rank For You?

Back to where this conversation began. I have both benefited from and seen coaching change the game for professionals seeking to improve business development and sales skills.

I’ve seen immeasurable value derived from a team of marketing and business development professionals. Given appropriate support, tools and resources such a team can facilitate and lead initiatives that consistently deliver double-digit revenue growth.

But with one or two exceptions where simply being in the right place at the right time masks a multitude of deficiencies, I have not seen an individual or a firm achieve consistent measurable business development success — never mind really making it rain — apart from raising business development and sales to levels of the highest priority

Our series on Building a Business Development Plan grows out of decades of experience, and is offered because we’ve seen the strategy work. (We’ll pick up where we left off with our next post.) But anyone who grudgingly turns to business development once a month in hopes of filling a pipeline, is going to be sorely disappointed, no matter how seasoned advice.

Anyone still looking for the silver bullet that minimizes the need for your time, attention, and energy while delivering  revenue growth is engaged in a quest without end.

But for a few, the tools, tactical direction and creative energy brought to the challenge by experienced marketing, business development and sales professionals provides unique leverage — delivering the kind of return only realized when priorities and investments are intentionally aligned.

How Long Does It Take To Develop Trust? | Building A Business Development Plan, Part 6

You’ve probably heard some variation of the joke where a significant other, weary of repeatedly being asked to profess love, announces “I’ve told you that I love you. I’ll let you know when and if that changes.”

Humorous to some…maybe. But I doubt this is an effective relationship strategy.

Yet, in many ways this captures the way we approach the relationships we seek to cultivate through our business development efforts — announce bona fides, make our pitch (sort of)…and then wait for the phone to ring.

It is conceivable that in a market long gone, this approach might have worked . Maybe. When things were less crowded and less competitive…when a business could be built on a handshake. Maybe.

Today anyone hoping to win the trust of a potential client with a couple of emails, a pitch that is little more than the “we-hire-the-best-people-and-do-the-best work” presentation being made by everybody else, is likely to struggle mightily for any market share.

For the professional service provider seeking trusted advisor status, rewarding business development seeks to create a working relationship with a prospect.

Joking aside, in any other context we understand that productive relationships are not built overnight. They require focus and attention. Yet, we continue to see professional service providers go to the marketplace announcing a case for a working relationship…and then walk away believing their business development work is done.

This disconnect brings us to the sixth in our series on Building A Business Development Plan — a component that most planning efforts simply overlook — sustaining the pursuit.

You may excel at everything we’ve discussed up to this point — you have a solid strategic foundation, have identified specific targets, tended to the health of your professional network, created visibility and delivered value via your initial marketing and BD. But unless you sustain the value of these efforts over time, your biz dev initiative is likely to come up short. It certainly isn’t going to provide maximum return on your investment.

The Sustain Principle

This phase of the planning process addresses the value to be derived by leveraging the time and energy invested thus far. Put another way, this is about focusing on ways in which you can build on your initial efforts. Specifically, this portion of your planning should focus on activities that:

  • Sustain and enhance your detecting efforts;
  • Increase your target’s awareness of your relevance in the marketplace; and,
  • Continue to make valuable contributions to your target.

The difference between rainmakers and those who continually find themselves as the runner-up, is often the difference between a series of one-off so-called campaigns, compared to the focus necessary to sustain strategic efforts in these three areas. So here’s a quick look at each.

Detecting (After The Thrill Is Gone)

The fact is that if you don’t love business development, maintaining focus on a single target for an extended period of time does not come easy. It is tempting to spot an area of potential need, and rush in with a pitch. It’s one thing if the need relates to a burning platform of some type; but trusted advisor status is most often earned in the context of building and maintaining a working relationship.

And a working relationship takes time to develop.

Practically speaking, this means your business development plan must include a sustained focus on your role as a detector (as discussed in Part 5) — of influential relationships, consequential market or organizational movements, and ways in which the experience you, your firm and/or your connections possess might prove relevant to a working relationship with your target.

Ideally, thanks to the work you began earlier in your pursuit, you’ll have a methodology and even an infrastructure in place for this detecting effort. It will build around industry, market, company and executive research.

To leverage your time, find regular ways to tap the information and skillsets of your business development and research team as well as your coaching network.

Staying plugged into this detecting role is critical to sustaining meaningful visibility and building a solution that is relevant and resonates with your target. It is, as much as anything else, a mindset — a determination to listen, learn and digest everything you can find about your target. This is the lifeblood of a successful pursuit.

Creating Increased Awareness

A frequent question from professional service providers goes like this: “How often should I reach out to a target? When does it begin to feel like stalking, or get creepy?”

A bit more conversation often reveals that this line of questioning is closely associated with the “I sent them an email with links to our website, and I’ve been watching (fill-in-the-industry-monitoring-service)” approach to client development.

We’ve all been on the receiving end of those once-a-week (or worse) telemarketer calls. And daily marketing emails are not typically the path to a productive professional service engagement.

But neither does meeting at a conference, sending a generic email and (sort of) maintaining a website bio usually lay the foundation for a strong relationship. It is certainly not the recipe for making it rain.

So how does one maintain visibility without stalking? First, let’s stipulate that writing those big sponsorship checks might work. Might. The more every competitor in the market is writing the same check, the less likely it is anyone but the one writing the largest check will create any meaningful awareness.

A more strategic approach begins with the step noted above — doing the work related to detecting. The more you know and understand here, the easier it should be to decide when and where to plug in. Unless your budget is not a concern, you’re gong to want to find a strategic way to respond to these “opportunities.”

Without respect to the check you might write, personal involvement speaks volumes. A good coaching network can be the key to identifying the organization(s) in which you should become involved — professional, charitable, and even at the personal level. Identify a shared interest and not only will it will be much easier to maintain visibility, you’ll have an opportunity to collaborate in pursuit of a common goal…giving your target a taste of what it is like to work with you.

A visibility calendar can include a wide-ranging menu of items from which to choose — from holiday greetings and firm “alerts” to personal good wishes or congratulatory notes; from unique “VIP” events to an invitation to speak to your firm’s relevant industry group; from distribution of your thought leadership to strategic requests for the thought leadership of your target. The list is limited only by the creativity you and your marketing/business development team bring to the task.

And yes, it is conceivable that an ad or sponsorship might have a place here. But unless you’re prepared to spend at least 5-figures, don’t count on moving the visibility needle with these conventional tools. 

Deliver Value (yes, more)

In Part 5 we explore ways in which a business development pursuit should actually deliver value. And, at the risk of being that preverbal broken record, your work as a detector should informing not only your early pursuit efforts, but ways in which to keep the value coming. (If it is not, consider two possibilities: one, your detecting focus needs some work; and/or two, this may not be a good primary target.)

The more mature your pursuit, the more likely the awareness and visibility efforts discussed above will present opportunities to deliver measurable value.

At the same time, high level strategic targets warrant a specific focus on unique issues. Whether industry, market or company specific, the degree to which you are aware of and able to address consequential movement is the degree to which you will begin to differentiate yourself from the competition.

It is not unusual for professionals to fear that a) they might be giving too much away (or even revealing proprietary secrets); or b) the value offered may create professional liability. These are clearly concerns that must be addressed; however, where issues of liability can be managed, activities that provide real value almost always serve to change the business development conversation.

Somewhat predictable value offerings include continuing professional education curricula, white papers, and even research projects. One accounting firm we’ve worked with focuses on “whiteboard collaboration sessions” in which service provider and target jointly explore the creation of a solution to a pressing issue.

Once again, the more mature a pursuit, the more likely you will find ways to collaborate with your target…providing a glimpse of what a working relationship with you/your firm actually consists of. In a highly competitive marketplace, the return on an investment in this “give-a-glimpse” strategy can dwarf the return on every other marketing or business development tactic.

How Long Do You Keep This Up?

Some professional service organizations have been tracking strategic business development efforts for long enough to be able to project the duration — from target identification to winning or losing — of a pursuit. This experience helps with budget forecasts, and provides a basis for the realistic evaluation of ROI. 

For those just beginning to explore the science, the pursuit of a wholly new working relationship will require a significant amount of time. We suggest planning for eighteen to thirty-six months. In fortunate situations where a relationship predates a pursuit, the sales cycle can be considerably shorter. in any case, building and strengthening a working relationship requires much more than identifying a prospect and making a pitch.

Rainmakers build working relationships by sustaining the activities that create visibility and deliver value to highly valued targets.

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