Golden Practices Blog

Choices Consultants Make

I just HAVE to weigh in on David Maister's post Do You Dispense Useless Pills?

David writes about having made the choice not just to do what potential clients ask...selling them what they want even if those solutions don't work (or if they aren't ready for it?). He talks about walking away from the business rather than just performing the service knowing it won't be effective.

He cites a reader who describes that trainers will be a lot poorer if declining opportunities to do things even if they know they will be wasteful or ineffective.

His example is training, but I see high applicability to consulting. I made the choice when starting my business seven years ago to decline creating strategies or implementing plans that won't lead to sought results. (And we are indeed poorer than our peers who dispense advice, training, or solutions even when they know that they won't stick.)

For us, it came down to two things: reputation and unwillingness to further harm the profession.

Reputation. Those who know me know that, from day one, I've been determined not to be equated with consultants who've become rich charging mega fees for strategic planning, but left those firms with merely a dusty binder on a shelf.

Yes...while consultants cannot be responsible for implementation (unless hired to do so), we ARE responsible for making sure the recommendations we make or strategies we suggest are actually employable, have better than a snowball's chance in hell of achieving the stated outcome, and are assigned to people who are capable and desirous of doing them. If not, they simply aren't the right strategies (for them) and we didn't do a good enough job researching and planning.

Advancing the profession. To be categorized with the consultants who perpetuate reinforcement of the sacred "billable hour" and other such measurements--counter to the improvement of firms--is also against my grain. We don't require firms to change or even beat them up, but we do try open eyes to the negative impact to customer service and marketing that charge-hour-goal and pricing-after-the-work mentalities foster. And by addressing the problems, we work through solutions that improve profitability, customer communications, and increase revenues. We teach focusing on leading, not lagging, indicators.

I like to think we are beginning to bridge a gap. It's beginning to look that way...

Many prestigious consultants to the professions still emphasize tracking productivity and realization as among the most important statistics in a firm. It upsets me because some of these consultants even admit these focuses are counter-productive and have no bearing on future success (it is PROVEN they don't), yet they continue to preach it because it's what firms want, and expect, to hear. And will pay good money to hear.

Consultants have a degree of influence and authority, especially when they are highly visible as when on the speaker or author circuit. If dispensing one-size-fits-all or wrong advice, consultants can do as much harm as good.

Consultants might agree with me that a reality seems to be that few firms are actually ready or willing to change much of anything. After all, professional service firms are achieving great monetary success. Most professionals are making more money than they ever thought possible. Yet the professions are in crisis.

And consultants who aren't part of the solution are part of the problem. Many are cynical, no longer trusting that the professions are capable of changing their ways. (And most probably won't unless they have to, but I sure hold out hope for those who will!)

Though poorer I admit I am, I simply cannot abide by giving advice and selling solutions that won't change what customers desperately want to change. Or that would give the wrong idea about what works and what doesn't.

Maybe it's a product of having been in-house before consulting. When in-house, we become less vocal every year because of politics, getting shot-down, whatever. Personally, I found consulting very liberating because I could say what I REALLY THOUGHT and not have my entire livelihood at stake. (Just one engagement, I suppose!)

For me it is the ultimate in professional responsibility AND enjoyment. Even if riches elude me. So be it.

Court Orders Counsel to Go To Lunch

I'm sure only readers from the legal profession will appreciate this...

A law firm client brought to my attention a court decision in Maricopa County, Arizona resolving some challenging behavior between attorneys.

<snip>

Plaintiff’s counsel extended a lunch invitation to Defendant’s counsel “to have a discussion regarding discovery and other matters.” Plaintiff’s counsel offered to “pay for lunch.” Defendant’s counsel failed to respond until the motion was filed.

Unbelievable...and absolutely hysterical.

Essential Career Advice for Professionals

I appreciate how, in a single, brief post, Maister imparts career advice that covers:

• how to be trusted by your employer (partners, colleagues, etc);
• how to build a loyal and appreciative customer-base;
• why sincerity must underlie your service mentality; and
• what commitment really means

Consider his post entitled You Gotta Serve Someone wherein he discusses core beliefs and pure service mentality.

Part of why a vast majority of partners don't delegate or cross-sell others' work is because this mentality is lacking:

Whenever a superior, a customer or client gives you something to work on, you have their affairs, their reputation and their future in your hands. If you mess up, the embarrassment you will feel is nothing compared to the mess you will land them in. You are being trusted with someone else's baby. Deserve it. Being good is important, being trusted is essential.

What can you do to increase others' trust in you? Maister addresses this:

It can be difficult to accept the "server" mentality. Dale Carnegie once wrote that "You'll have more fun and success by helping other people achieve their goals than you will by focusing on your own goals."

When I first read that, as a college student in England, I was shocked. It sounded like communism, or at a minimum, a self-sacrificing religious principle. However, as I progressed through the real world, I realized Carnegie was right. His principle is actually the vary (sic) core of exchange capitalism: I will give you what you want if you give me what I want.

To make this work, you must be sincere in trying to help the other party. It's not just a bargaining process ("You give me this, and I'll give you that, and then we'll go our separate ways.") Human beings don't work like that. We look for relationships, even in minor transactions.

'Bare minimum' work doesn't instill value. Value comes from genuinely WANTING to better someone's situation or result. He explains:

If I hire somebody to do something for me (clean my house, handle my divorce, do my taxes, diagnose and cure my ailments), I don't want them to focus only on the bare minimum of fulfilling the contractual terms. If they do, I'm going to focus on paying them the bare minimum - and no-one's going to be happy.

What I'm looking for is someone who wants to help me, and will deal with whatever arises. Such a person will get paid well, hired again, and promoted, and referred to others. If I hire you, never forget you're there to serve me. If you're not willing to do that, I don't want you.

Are you committed?

Another key attitude is commitment. Commitment is not numbers of hours you work, the sales you generate or the rates you charge.

It means placing other people - the client and your colleagues - first in your professional life. Commitment means attention to details, not because you might get caught, but because you want to provide the best product or service available and you relish the opportunity to step up and take on responsibility. 

Maister concludes:

It's the paradox of professionalism: the more you put yourself first, the less people want to work with you and the less of life's rewards you get. The more you focus on serving others, the more they want to be with you and give you what you want.

People (bosses, colleagues, clients, subordinates) can spot immediately those who bring a truly professional attitude to work, and reward those who do. 

I'd like to say I agree with these last two paragraphs. They sound great, but they aren't entirely true.

I do sometimes see self-serving people get ahead in life. And sometimes I see firms reward those who aren't as deserving as others who are overlooked. Life IS unfair sometimes. Thankfully, such situations are the exception and not the rule.

Overall, David's advice is spot on. The real stars in firms, those who progress and build strong practices, often aren't "marketer types" -- they are service types. Throughout their careers, these stars get more business from in-house peers, outside referral sources, and client word-of-mouth. Almost entirely because of attitude. (The rest is skill, of course.)

Remember, skill without good attitude is worth far less than great attitude with marginal skill.

And David has nailed the elements of the sort of attitudes that make this success happen. So, now we know. The choice is ours.

What B2B Sites Can Learn From B2C Sites

B2B gives "bad web"? Yep. Especially when compared to B2C sites.

A great post by Anita Campbell on her Selling to Small Business blog (fantastic to follow if small biz is a market of yours) references Jakob Nielsen's (expert on web content and usability) assertions (emphasis mine):

"Many business-to-business (B2B) sites are stuck in the 1990s in their attitude toward the user experience.

Most B2B sites emphasize internally focused design, fail to answer customers' main questions or concerns, and block prospects' paths as they search for companies to place on their shortlists.

These sites haven't realized that the Web has reversed the company-customer relationship. Most online interactions are demand-driven: you either give people what they want or watch as they abandon your site for the competition's....

Considering that there's immensely more money at stake for B2B than for business-to-consumer (B2C), it's astounding that B2B sites offer a much worse user experience."

I couldn't agree more. Lack of clarity, lack of interesting information, and lack of direction (i.e. "where do I go next?") render most professional service firm sites useless.

Campbell picked up Nielsen's research findings from Dianna Huff, author of the Marcom Writer Blog (another great resource, especially for marketing professionals). Here, Huff emphasizes the need for stronger content and "best practices" with regard to navigation.

One thing I see repeatedly with B2B sites is lack of content. “Our Website is our online brochure,” business people will say to me with regard to a five or six-page site. Unfortunately, people don’t view Websites the way they view a 6-8 page glossy color brochure....And, when was the last time a prospect made a buying decision based on a brochure?

B2B sites must also support the decision/buying process for each person in the buying cycle — whether influencer or decision maker.

Jakob Nielsen's research is discussed in his June 1, 2006 Alertbox. The free portion of his in-depth report includes this key point about a perception mistake made by B2B orgs (again, emphasis mine):

One of the biggest differences between B2B and B2C might be that most B2B companies don't seem to see themselves as engaged in e-commerce. Perhaps this is because most B2B sites don't have shopping carts. The typical B2B product can't be purchased through a simple Add to cart button...also prices might not be fixed, but rather adjusted to each customer.

However, the lack of an Add to cart button doesn't mean that B2B vendors should ignore their websites. The site should still support the many other stages of the buying process — including the post-sales stages, which are crucial to customers' long-term brand loyalty.

Nielsen makes some other statements that answer some common questions firms ask. I've framed the questions and inserted, as indented text, his statements.

Why is "free" information (whitepapers, articles, blogs) essential?

Most important, B2B sites can be great lead generators. Prospects use websites during their initial research and stick with the helpful sites during subsequent research.

...research and multi-criteria decision-making dominate the B2B user experience. B2B sites must provide a much wider range of information than what's common in B2C. A B2B site has to offer simple facts that are easily and quickly understood by an early prospect who's just looking around to see what's available. It must also offer in-depth white papers and information....

Why are brochure sites (without detailed information) a problem?

Most of our users also said that when they were thinking of doing business with a company, one of their first actions was to check out its website. Thus, a site that inadequately communicates the credibility of a vendor and its products can seriously deter incoming leads -- long before your official sales efforts begin.

What is the worst mistake B2B sites make?

The most user-hostile element of most B2B sites is a complete lack of pricing information. And yet, when we asked users to prioritize which of 28 types of B2B site information mattered most to them, prices scored the highest by far (29% higher than product availability, which ranked second).

Sites have many excuses for not wanting to display prices, but they are just that: excuses. Users expect to get a basic understanding of products and services during their initial research, and they can't do that without some idea of what it's going to cost. Even if your company can't list exact prices, there are several ways to indicate price level, which is really all people need initially.

Interesting find! Remember, though, readers look at sites to qualify possible solutions.

As such, budget is usually a major consideration. Yet finding pricing info on a site is nearly unheard of! Even if firms cannot abide by putting prices on their sites, recognize that discussing unique pricing strategies is one of the greatest differentiators that you can offer:

• how you price, for example www.exemplarlaw.com touts "no hourly bill, no hourly bull"
• price point, some firms like to be the low cost leader, others are proud to be high-priced and claim they offer value appropriate for their price
• unique payment terms, do you spread payments out for clients?

One thing is apparent. If readers cannot find what they need, they may never call and you may never know what you've missed.

Perhaps the most alarming of Nielsen's findings:

One reason so many B2B sites have poor usability might be because they're less directly accountable for sales. On a classic B2C e-commerce site, every single design decision directly and measurably affects the site's conversion rate and other metrics, such as the average shopping cart size. Many B2C sites are religious in their observance of e-commerce usability guidelines because they know from their own statistics how much money they lose every time they get usability wrong.

In contrast, because B2B sites don't close sales online, they can turn away the vast majority of users and never know how many sales they've lost. A company can determine how its site helps or hinders users only by conducting user research with representative customers -- something most companies don't do. Given our experiences in testing 179 B2B sites, we can safely predict that most companies would be shocked if they ever tested their own sites.

The 'Good to Great' Bus Metaphor

A lot of people have referenced this metaphor since Collins' book came out.

When I stumbled upon Phil Gott's post contemplating the application of that bus metaphor for professional service firms, I found myself agreeing with his insights. Gott reflects on Collins' "do you have the right people on the bus?" and "are they in the right seats?" questions and he says:

...when you apply them to the typical professional service firm the whole thing (the metaphor and perhaps even the bus?) becomes unstable. You have to imagine a bus with dozens or perhaps thousands of different drivers (partners) all with some shared (or conflicting) influence over the steering. Add to that a good many jeering back-seat drivers, quite a number of who are straining on the hand brake. And then imagine that the bus has no particular destination or defined route. You wouldn’t expect such a bus to make much progress.

The more I reflect on this the more I struggle with Collins’s metaphor. I don’t know of any bus company that starts by choosing a collection of passengers and then says “OK, this is where I am going to take you.” No, the main bus company model is that there are lots of different buses all going in different directions. Passengers have to check the route number on the front of the bus and decide which bus they want to get on. They will stay on the bus only so long as it is taking them where they want to go. Then they get off.

For this bus metaphor to work, firms have to have a clear and declared destination and route (and most don’t), and individual professionals have to know where they want to go (and again, most don’t). Perhaps the metaphor does work after all. It’s professional firms – most of them anyway - that don’t.

'Tis true that, as Gott shows us, firms are built a bit backwards. Accountants would say we've "backed into" our passenger list and varied routes. My Grandpa used to say, "Do your feet smell and does your nose run? Then you're built backwards!"

Can we at least agree that we need our long term strategy first (destination and routes) before we determine if we have the infrastructure (fleet and drivers) to get there?

Maybe more people will come along for the ride (passengers) when we've established those first four things. Could this be a clue how to resolve the growing problems in recruiting and retention?

Stormy St. Louie

Just a quick post to say we are among the half million customers in St. Louis with no electricity (61% in my zip code are unplugged) and no good indication of when it will return--they say 3-5 days. Blog posts may be scarce for a bit.

Our storm is obviously nowhere near the disaster that our Louisiana & Mississippi neighbors faced (and still face) from Katrina. Yet it is absolutely stunning to see how one quickly building, relatively small storm can pretty much shut down a city.

My daughter's Montessori was closed, my son's high school summer school was closed. Many stores and business are shut down.

Trees down everywhere, sirens sounding constantly, ice pretty hard to find. Temps well over 100 (113 with the heat index today).

Prayers needed for the elderly and young because some won't have made it through this brutally hot day. And for the workers trying to untangle trees from live wires have a terrifying and monumental task ahead.

My gratitude and appreciation mounts for all the fire, police and rescue workers as well as utility and city workers who are trying to put all the pieces together to keep everyone safe. It's no small thing.

And the Winner Is...

Anita C Goetz of Deming, Malone Livesay & Ostroff in Louisville Kentucky has won a free registration to the 2006 National Practice Summit to be held by the Virginia Society of CPAs.

And, Ben Martin tells me the Virginia Society has made this terrific offer:

Anyone registering from the Golden Practices blog is eligible for a 25% discount. If a firm pays for two people at the full price, the firm can send a third person for free. Just call (800) 341-8189 to take advantage of this offer.

So CONGRATULATIONS to Ms. Goetz and thanks to all who participated! Enjoy the conference!

Pricing Risk

On the VeraSage blog, Ron Baker posted "Lloyd's of Lawyers (or, If only insurance companies would learn how to price)."

It's a thought-provoking piece reminding us that if an actuary can determine "how" to price disaster insurance in advance, certainly a seasoned lawyer can determine how to price a litigation matter.

It's not that NO lawyers are providing fixed prices, it's that those who don't offer their greatest barrier as the RISK in fixed prices.

We find that the lawyers who do fixed pricing (in advance), even for litigation, price per phase of work.

While one may not know all the possible steps involved from beginning to end in any matter (especially with regard to surprises from opposing counsel), each step starting with establishing the case and performing discovery, can be pretty well defined by those with experience.

Enjoy Ron's post and please be sure to comment.

Last Day to Win VA Conference Registration

A reminder that today is the chance to sign up to win the multi-day practice management conference registration. (see my prior post for details).

I know I have a lot of readers in the East so here are the drive times to reach the conference location, a fabulous resort.

Baltimore, MD 5 hours

Charlotte, NC 5 hours

Charleston, WV 3 hours

Cincinnati, OH 7 hours

Columbus, OH 6 hours

Harrisburg, PA 5 hours

Knoxville, TN 5 hours

Lexington, KY 5 hours

Norfolk, VA 4 hours

Philadelphia, PA 6 hours

Pittsburgh, PA 5 hours

Raleigh, NC 6 hours

Richmond, VA 3 hours

Roanoke, VA 2 hours

Washington, DC 4 hours

Directors of First Impressions Really Are

Gerry Riskin is right on with his receptionist post today. He was inspired by Seth Godin's post, "Receptionists."

Results Accountants' Systems (the Bootcamp folks) got it right when they recommended the position be called Director of First Impressions and gave dozens of ideas for how this DoFI could assure a superior experience for customers.

Receptionists are a leading indicator of doing business with a company or firm.

The receptionist, even in a couple moments, reflects the company's culture, personality, quality, accountability, intelligence, warmth, and care.

I called a Top 100 CPA firm in the East that I had thought was pretty savvy and "got it." But my impression of the firm was lessened significantly by the tone and demeanor of the receptionist who sounded inconvenienced to have to answer my call. She sounded like she hated her job. She couldn't get me transferred fast enough cutting off my polite "thank you."

I thought, "This is the firm's idea of an appropriate way to present themselves to callers??"

I've been extremely impressed at times when I've called firms and been greeted especially pleasantly. I've been able to sense that the receptionist had a smile on her face or was genuinely invested in getting me to the person or the information I needed. THAT is what we're after.

Just as Gerry describes being the recipient of a regular string of compliments, I always tell the person I'm calling when the receptionist is exceptional. The most recent such instance was on June 26 when I did so by e-mail. This is exactly what I wrote moments after calling a law firm:

BTW, your receptionist today was absolutely fantastic. Commendable. And she deserves a pat on the back. I speak with a lot of firm receptionists and she stood out in a very positive way. After being extremely helpful and courteous as I worked through a list of 4 or 5 people to potentially speak with, I thanked her for her excellent help and she, in kind, thanked *me* for my patience. Wow. It was no problem at all I assure you and she made it a very pleasant experience doing everything she could to assure that I was taken care of.

This is the response I received:

Thank you SO much for your compliment of our receptionist. Amelia is filling in for Natasha who is on vacation. I will pass along your commendation to her.

Hmmm, while I hope I didn't cause such a positive spotlight on Amelia that it made Natasha look poor in comparison, it occurred to me that I had never been greeted quite as warmly by the firm before by phone or in person. (they are a client...names have been changed)

Two very different experiences within the same firm...

I have also reported, though, when the receptionist is a distinct "downer." I think a firm needs to know. Kinda like telling friends they have spinach in their teeth. This doesn't happen often, though. In fact, I probably pass on mentioning some instances that are borderline. You would want to know, wouldn't you?

So how many compliments do you receive about your receptionist(s)? Do you pass them along? (positive reinforcement is SO powerful).

Or do you get no remarks? You ought to consider making a change.

Negative remarks? Stop reading blogs immediately and start writing your next job ad for a superstar receptionist!

Ads With Punch

Dan Hull over at What About Clients? posted about an ad his firm ran in 1998 in three East Coast newspapers for eight weeks.

For professional service firm ads, there seem to be only a few options:

1) all about us (who we are/what we do) serving to establish brand;

2) the tombstone (more "about us"; usually self-congratulatory; less relevant to the reader than type 1);

3) problem/solution (call to action, hopefully) addressing an issue common to a buyer paired with a solution; and

4) testimonial (happy customer; usually high-profile) sharing results gleaned.

In professional services, most ads are types 1 & 2. It is a becoming a little more common to see type 3 ads as firms realize that readers respond to demonstrated understanding and appreciation of their problems. Type 4 ads are fairly common by firms who aren't fearful of flaunting their client list. Type 4 can be very effective if done well.

I cannot specifically recall another instance (before Dan's--especially in 1998) where I've seen a firm advertise, in a print publication, a better "experience" to be had when using them--an approach constituting a 5th ad type: the experience.

Dan's firm, Hull McGuire's ad copy was

IS THIS A GREAT TIME TO CHANGE LAW FIRMS, OR WHAT?

Doing business has changed. But many law firms haven't.

They still charge for "services" and overhead no corporate client should have to absorb. Like associate lawyer training. Duplicative conferences. And senior lawyers who will never understand or care about your business.

The product is disappointing. Service and follow-up are only words. And the bill makes you nuts.

Stop being the equipment in games lawyers play. At Hull McGuire, we focus on clients, and solving their problems. We build lifetime relationships with businesses of all sizes.

IT'S TIME, ISN'T IT?

HULL MCGUIRE PC

I'm not surprised Dan would be involved in taking this approach given his blog's client-centric focus. What were the results of his ad? Dan wrote:

Maybe it was dumb luck, but this very basic and somewhat crude ad produced:

1. some wildly enthusiastic phone calls from people we did not know (in the first week, one GC, apparently sober, congratulated us from an airport payphone during a layover)
2. some catty but entertaining and telling comments from lawyers in Pennsylvania and D.C. we did know
3. firming up for us at least one still continuing relationship with a like-minded company fed up with the lethargy and indifference of its traditional large law firm

Dan's blog should be regular reading for his spunky approaches to being successful doing something different from the "safe" approaches most everyone else takes. I love that he's not only not afraid to be different, but he's proud of it and promotes it well.

Dan also hosted a global-flavored edition (#65) of Blawg Review. Be sure to check out the fantastic work Dan has done compliling global legal blogs. There are some real gems in his list.

Win Free Registration for National CPA Practice Management Conference

Just for reading this blog. No strings attached. And I am not compensated in any way for sharing this offer. So why would I do it? Because it benefits you. And isn't that what blogs are about?

As a "blogger well-read by CPA firm leaders" (it's a real honor to have earned that label!) the Web-savvy (and blog-savvy) Virginia Society of CPAs has asked me to help them spread the word about their upcoming 2006 National Practice Management Summit.

This is an exclusive opportunity for readers of the Golden Practices blog! 

The Virginia Society has put together an all new event, offered in partnership with 11 other state CPA societies. The program includes nationally-known CPA practice management figures Marc Rosenberg, Gary Shamis, Gale Crosley, and more. Link to program here.

It runs August 23–25, 2006 at the historic Homestead Resort & Spa in beautiful Hot Springs, Virginia (named a top 5 spa resort by National Geographic Traveler).

The Virginia Society is offering one FREE event registration to a Golden Practices qualifying reader. This is a value of up to $1545!

To be considered, you need only ask.

To sign up: just e-mail Ben Martin on or before 11:59 p.m. EDT on July 17, 2006. Put "Golden Practices FREE Registration" in the subject line or body of the email, along with your contact information. (It goes straight to them, not to me).

The VA Society will draw a winner and the lucky recipient will be announced right here on this blog on the evening of July 18, 2006.

Who qualifies:  the VA Society says the drawing is open to all sole practitioners, general and managing partners of public accounting firms and public accounting managers who are on the partner track.

Answers to all of your questions about the 2006 National Practice Management Summit can be found on the event's Web page.

Spread the word!!

And may the most loyal reader win! ;-)

Lost Clients? "Reasons" are Symptoms, Not Cause

Ever have a BFO? A Blinding Flash of the Obvious?  It's my sincerest hope that this becomes one for many readers. It was for me a couple years ago.

What are the reasons professionals think they lose or upset clients?

• price/fees
• not "proactive" enough
• poor service
• relationship changed/deteriorated (chemistry)
• etc

Sure, those are all valid complaints. And the REAL, underlying problem, for every single one of these, is that the customer expected to get something different from what they got.

I'll bottom-line it: Clients name these factors when conversations that should have occurred, did not. 

You could call it lack of proactivity or lack of service. It's lack of setting and meeting expectations(adjusting when needed). Think of it as "scope" for the soft-stuff.

There is a pretty easy solution. It involves 3 steps:

1. Listen/ask/listen more
2. Mutually establish expectations (written is good)
3. Meet them

If something usurps #3, conduct a conversation as early as possible to alter #2. If you cannot catch it in time, apologize profusely and fix it (without assigning blame, please).

To improve profitability, increase prices, retain clients, have happier team members (who know what expectations to meet), and solve most "service" related problems, apply the magic 3-step system above. It will change your firm forever. I promise.

If you want to see what inspired this advice, read Rick Telberg's post Finance Execs See Service Lagging at CPA Firms (excerpt below) and think about it relative to what I've written above.

What might cause the client to switch auditors?

Bay Street Group's recent studies of accountant-client relationships...got a surprising dichotomy of answers. CPAs tended to say one thing, while CFOs said another. Surprised?

Public practicing accountants (47%) seem to be under the impression that they lose clients due to "price, fees, costs, budgets and affordability."

But finance managers and CFOs have a different take. A solid majority (79%) point to "poor client service and lack of attentiveness." Fees and costs ran a significant second, at 66 percent.

Back on the CPA-firm side of the question, service was the third most commonly perceived reason for expected loss of clientele....

There's something wrong when twice as many CFOs as CPAs see service as the determining factor in client longevity. That might mean that a lot of CPAs are failing to offer what corporate accountants want....

The other reasons CPAs fear they might lose a client were distantly less common. Twenty percent thought "bad personal chemistry" might be the problem; 19 percent recognized that they might not be proactive enough; 17 percent figured they'll beat the client to the punch by firing them for business reasons; and 11 percent worried that the client might take the function in-house.

The third most common gripe among financial officers was "not getting enough time with CPA firm's best people" (again, a matter of service and attention) at a significant 38 percent. Bad chemistry followed next, at 34 percent. Lack of proactive advice came close, at 33 percent. Twenty-two percent said they might need new or different services.

Every time I see these "reasons" hashed out, again and again in study after study, I just want to shout the expectation mantra. It really works.

No matter how small the job or client, the "scope" of these issues is every bit as important to the customer (as demonstrated by defection and complaints) as the scope for the technical aspect of services.

Clarify your buyers' price expectations and parameters and use change orders as needed (better to identify fee sensitivity on the front end!). Ask about their preferences for communication frequency, delivery, staffing, level of "extra" advice/consulting expected, and so forth.

You will be shocked at how much less they expect than what you think they will "require." Either way, it gets everything on the table. Document it in the client's file and in your contact management system, if you use one.

Wouldn't you appreciate the same when you buy professional services?

So, was this a BFO?

Distinction Between "Service" and "Hospitality"

This is one of those "Yeah, what she said!" posts.

Allison Shields of Legalease, has a marvelous piece on whether client service can be taught. Not sure about the answer to that question (my hunch is it could, but it's sure sad that it needs to be...).

What is quite clear in the post, however, is that when people like Allison and myself are talking about "service" we are thinking in terms of hospitality: treatment...experience...how the customer FEELS dealing with you. And most of the people we are talking to seem to be 'hearing' more technical (dare I say measurable?) elements of service such as delivery timeliness, etc.

Fact is, something can be done on time and done accurately, yet still leave the customer feeling miserable about the experience. It's ALL got to work. Read Allison's post!

(hat tip to Dan Hull who also had a nice write up on this...)

BBD Takes Home an AAM-MAA for Website

We are ecstatic that our client just brought home an Association for Accounting Marketing Marketing Achievement Award (AAM-MAA).  (Please forgive the shameless self-promotion element of this news.)

Briggs Bunting & Dougherty's site won first place in the category of websites for firms under $15 million in revenues.

We love the site for its clean and crisp look and navigation and Erin McClafferty, the firm's marketing and recruiting director, did a fantastic job with the content (we just project managed and designed).

But perhaps the most amazing aspect of this site is that it went from concept to launch in only 60 days. With most firms averaging 9-18 months to complete their site, this is a very impressive timeline. Erin made it possible through her decisiveness and trusting her instincts.

Congratulations BBD, we are proud to be associated with your recognition! There was some pretty tough competition...

See all 2006 AAM-MAA winners.

Happiness or Purpose: Which is More Important?

On her blog, Rita Keller posted advice of a Denver consultant, Ben Leichtling, on creating a winning firm. Not that reshaping a firm could ever be easy, but perhaps he's on to something.

It makes sense to me in managing a firm, but it also resonated with me as a parent...

Do we spend too much time trying to create "happy" people instead of purposeful people? Where there is purpose, there is personal reward, yes?

Keller wrote:

It’s not all about continually searching for ways to make them happy and some firms seem to go overboard in trying to do just that. Making people happy is impossible! It is so much more than that...

Mr. Leichtling says, “How do you build a happy work place? Do you use typical team-building activities, flex-time, event tickets, free pizza on Fridays or a wilderness-survival course?

“I suggest a different goal: Create a winning workplace instead of a happy one. If you build a winning workplace, including shared sacrifice, accomplishment and reward, you’ll also have a happy one. You’ll retain only those people, at all levels, who are happy when they’re being very productive, winning and being rewarded.

“If you focus on happy, you’ll only create an unproductive organization based on begging and bribery.

“Most of us think of happiness in terms of ‘what will they give me?’ But getting paid all that you want and having a good time working only when it’s convenient aren’t the reasons your customers are paying you. They want results and service.

“To create a winning workplace, clarify performance goals and the role each person is expected to play. Outstanding performance will become a test of whether specific team-building activities and rewards are paying-off.”

The key is to align customer goals with performance goals of everyone in the firm. So many firms say "our success is the success of our clients" but do they actually aim for it? Or more or less luck into it on occasion?

I really believe that today's young (under 30) people seek purpose.

Purpose isn't "more money" for them (or the firm's owners). It is to make a difference to someone, somehow.

How many firms actually establish a goal or outcome, per client? How about even just for the very best customers? An objective in which the customer has participated in setting and the team is involved in achieving?

As I've posted more than once recently, to be successful, significant ideas like these require more than policy dictated from above. They require sincere participation (role modeling) of partners, managers and all the firm's leaders.

Most firms lack identification of a purpose beyond "profitability" and those that do have a purpose aren't doing a great job of communicating it.

If you want a team, you must have a purpose for your team.

Keller concludes (emphasis mine):

...If [team members] truly feel like a team, that EVERYONE is working together to serve the client, they are willing to go the extra mile. It is when they do not see the partners and managers setting the example that they feel used.

Remember a time when there was a personal tragedy or health issue with a particular person in your work-life and everyone knew they had to pitch-in to get through a tough time? I bet everyone felt good about helping. That is the spirit to nurture in your firm.

Leadership Notes

Dr Ellen Weber is author of the Brain Based Business blog and contributor to Leader Notes blog (and kind contributor of comments on this blog).

She recently picked up on my post about Steve Erickson who said "Leadership is a Quality, Not a Position" and added very interesting perspective. Further, commenter Stephanie West Allen, of IdeaLawg, adds significantly to the conversation and links to her interview of Dr. Charles (Chuck) Yoos regarding his 1984 paper entitled, "There is No Such Thing As Leadership."

Read Dr. Weber's post and the comments.

Coupons and a Firm's Value Perception

I'd like to clarify my position on coupon use by professional service firms. I don't advocate it.

I saw Ed Poll's pick up (thanks Ed!) of my previous coupon post, "Ever Thought About Using Coupons?," and was a little surprised that Ed said I suggest trying coupons because I actually don't recommend that strategy at all.

I rather think coupons aren't a very good tactic for most firms working to elevate their value perception among buyers (most firms these days). However, my purpose in making the post was to suggest that IF your firm chooses to try coupons, be aware of the considerations in my post and on Seth Godin's blog to which I linked.

I appreciate this exercise because it teaches me that I need to take a little more care to assure I am actually saying what I think I'm saying. :-)