Make productive use of nonbillable time. We typically try to manage our collective billable hours. Nonbillable hours, on the other hand, often receive little management attention. Yet these constitute "investment time" where strategic initiatives are implemented, new business is procured, work processes are improved, training and mentoring takes place. I advocate budgeting and managing this time like project time. Check out the article "Investing Nonbillable Time" for more insight on this issue.
Tuesday, November 24, 2009
The Test of Time
Make productive use of nonbillable time. We typically try to manage our collective billable hours. Nonbillable hours, on the other hand, often receive little management attention. Yet these constitute "investment time" where strategic initiatives are implemented, new business is procured, work processes are improved, training and mentoring takes place. I advocate budgeting and managing this time like project time. Check out the article "Investing Nonbillable Time" for more insight on this issue.
Friday, November 20, 2009
Focusing on Your Key Client Relationships
- Overview of the client (size, services, organization, etc.)
- What are the client's priorities? What are the projected expenditures?
- What are the client's major challenges? How can we help the client be successful?
2. Assess the Relationship
- What work have we done for the client? How have we performed?
- What is the current state of our relationship with the client?
- Who are the key decision makers? What is our relationship with each?
- What are the critical success factors for each? Do we know?
3. Evaluate our Positioning
- What are our relevant strengths, differentiators, weaknesses, vulnerabilities?
- Who are our primary competitors? What is the current standing of each?
- What is our current positioning relative to our competitors? Where do we need to improve?
- How can we improve performance on our current work with the client?
4. Define our Strategy
- What are our goals in terms of services, projects, revenue, etc.?
- How do we leverage our strengths?
- How do we mitigate our weaknesses and vulnerabilities?
- What is our single best opportunity at this time?
- What are the next best actions we need to take to strengthen our position?
Give top priority to improving service to your key clients. There's a tendency sometimes to take our best clients for granted. We work hard to win new clients and address problems with existing clients. But when things seem to be going well with our top clients, we may not give them the attention they deserve. Don't let your guard down! There's always someone trying to displace you, and they may be providing that next level of service and attention. Never be satisfied with the status quo.
Be sure you're getting regular feedback. Only about one-fourth of A/E firms formally gather feedback from clients. Feedback is the bedrock of great service. You can't be sure you're serving your clients well if you don't ask. Certainly, you want to be certain that your top clients are fully satisfied with your performance and service. For more insight into how to do this, check out this earlier post.
Become a trusted advisor and valued resource. In their book Clients for Life, authors Sheth and Sobel describe the path from "expert for hire" to "steady supplier" to "trusted advisor." Obviously the latter is the more secure position. Many firms serve only as a steady supplier even for their top clients. That leaves them vulnerable to being displaced. Trusted advisors are indispensable. They provide valued insight, not just expertise. They work collaboratively with the client, not just perform tasks. Are you a trusted advisor with your top clients? If not, determine what you need to do to become one.
Monday, November 9, 2009
Creating Strategic Capacity
That's why I am increasingly urging my clients to take steps to create what I call "strategic capacity." This involves clearing space in overloaded calendars to work on the issues that matter most. In the typical strategic planning meeting, the meaty assignments are given to senior managers whose plates are already full. Where will they find time to work on these critically important matters? Too often, they don't.
One of my recurring themes in this space is: Don't try to tackle important tasks with leftover time. This is often done with business development. Or mentoring. Or strategic initiatives. The result is that these important, yet non-urgent activities routinely get the short shrift. What's needed is a reordering of the priorities driving our time usage.
To create more strategic capacity, let me encourage you to have your firm's senior managers go through the following exercise:
- Have each identify what 5-6 activities they perform that yield the highest value to the company. I'm assuming that implementing strategic initiatives will be included in this list.
- Ask them to estimate how much time (on average) they spend each week on these high-impact activities.
- Have your senior managers identify what 5-6 activities consume the bulk of their time in the average work week (it's almost certainly going to be a different list than their high-impact activities).
- Then have them determine how to shift more time from the second list of activities to their high-impact activities. This usually involves doing one of the following with their most time-consuming responsibilities: delegate, decrease, delay, delete. Each manager should develop a personal plan for shifting more time to high-value tasks.
- Set up a "project" number for each strategic initiative and track time charged to the effort. This will enable you to confirm that appropriate management time is being redirected to your firm's most important activities.
Of course, simply delegating responsibilities down the organization can create other capacity problems. That means ultimately you have to delay or eliminate certain lower-priority activities. That's the crux of time management: We all have more things we'd like to be doing than we have time to do them. That problem applies to organizations as well.
So you have to choose. Creating strategic capacity means that you are choosing to reallocate time from less important to more important activities. Research shows that this is a key attribute of the most successful companies. Will your firm be among them?
Wednesday, November 4, 2009
Building Your Brand
There is great confusion about brand. Even the experts differ on how to define it. One consultant website I discovered listed over 200 definitions of the word brand that he had found on the internet. So let me offer a working definition for our purposes, one drawn from some of the most respected books I've read on brand: Brand is the perception in the mind of the customer that differentiates a product, service, or company.
How that perception is formed is critically important. Most branding activities in our industry (and in others) are misguided. They focus on logo redesigns, graphic standards, positioning lines. These only support brand; they don't create it or redefine it. At its core, brand perceptions are shaped by the direct and indirect experiences clients have with your firm. Marketing can contribute to those experiences, but the substance of your brand is rooted in how you serve the client.
So if you're looking to strengthen your brand, don't start by turning to your marketing department or hiring an outside branding expert. Go first to the heart of your brand. Build (or at least investigate) the foundation before adding the infrastructure. Here's what I suggest:
Learn how you are perceived by clients. Since your brand resides here, this is the obvious place to start. Ask clients what they think about your firm. A few basic questions will suffice:
- When you think of our firm, what impressions immediately come to mind?
- What do you think distinguishes us from other similar firms?
- What qualities among firms like ours do you consider most valuable?
- How well do we deliver what we promise? Are we consistent and trustworthy?
You can survey clients yourself, but you'll get more accurate results if this is done by a third party. Include both existing and potential clients if you can.
Assess all the interactions you have with clients. Again, brand perceptions are shaped by direct and indirect interactions with your firm. So what are the quality and character of those interactions? Dig deep: Meetings and conversations. Work deliverables. Invoices. Reports. Visits to your office. Correspondence (including email). How your phone is answered. Sales calls. Marketing mailings. And so on.Don't overlook the importance of any encounter with the client. Perceptions can be rapidly formed, yet be grudgingly slow to change. A mishandled phone call can cost you a prospective client. A rudderless meeting can start a slide in confidence in your firm. A couple of inaccurate invoices can erode trust. The failure to return a phone call can sour the relationship.
Determine what you need to do to strengthen positive client perceptions. The path to a stronger brand passes through the intersection of (1) what you've learned about client perceptions of your firm and (2) how the myriad of interactions you have with clients influence or reinforce those perceptions. Obviously this can quickly become overwhelming. So you need to prioritize. What are 2-3 things you can do right now to strengthen your brand? What are the most important (albeit likely difficult) things you need to do?
Develop a reasonable action plan and commit your best resources to it. Is there anything more important than your brand? If the fruition of your efforts is well into the future, you can at least celebrate and share your progress. Clients often appreciate your devotion to improvement even if you haven't yet perfected it.
Seek alignment between your external brand and your internal culture and processes. I know some firms that want to brand themselves on the basis of superior client service. Good idea! They rigorously promote that objective, both internally and externally. They've written it into their values statement.
But something is amiss. There are no formal standards or processes to support consistent service delivery. Service breakdowns are routinely tolerated. There is a culture of independence that resists compliance with the "company way" of doing things. Client managers seem to think they're doing good enough already.
This is not uncommon, and is one of the main reasons why there is a paucity of strong brands in our industry. You don't build brand with a fresh coat of paint; you have to reinforce the structure itself. Ultimately, your brand is a reflection of your culture. If the two are not aligned--your desired brand with your existing culture--you've got a lot of hard work ahead of you. But it's worth it.
Demonstrate your brand in how you market and sell. If superior service is the heart of your brand, serve the client through your business development activities (my favorite approach!). If you are known as the consummate experts, don't tell clients about your expertise, demonstrate it during the sales process by helping them solve problems. If clients think of you as "that high design" firm, engage the client in developing some design concepts before the RFP. Sell substance, not image. Enable prospective clients to experience your brand, not just tantalize them with it.
Not the post you were expecting based on the title? I apologize. But these steps represent the reality of building your brand. Don't settle for the cosmetic makeover. It's hard work, but that's what makes a strong brand so difficult for your competitors to dislodge.