adding value that clients really care about peter scott peter scott consulting

Adding value that clients really care about

Peter Scott

Peter Scott Consulting

PETER SCOTT CONSULTING

What do professional firms need to do to be successful?

They need to gain competitive

advantage

HOW?


What are clients looking for?

Core issue is to add value:

More than and better than the competitors

In a way which: - is regarded as valuable by the clients - differentiates you – to create your ‘brand’

So what is ‘added value’?


You will add value that clients care about if…

You provide clients with what they need – and more

At prices they perceive to be value for money; and

You do this better than the competition


Value that Clients Care About

Our clients’ perspective

Not our own perspective

Is there a gap?


A value gap?

It is the client’s perception of value that matters – not yours

Professionals put too much emphasis on service attributes

Not enough on helping clients achieve results


The value gap

Typical remarks by clients:

“I cannot recall any innovative thinking being applied”

“I don’t expect lawyers to be businessmen”


Position your firm to provide value for money

Perceived

Added

Value

Perceived Price

High

HighLow

Low

Ave

Ave

X

Suicide Zone

Do you know what your clients really need?


How can you find out what clients need?

Ask them - communicate communicate communicate

- commission an external survey of clients and referrers


External perceptions of your firm?

Do your clients say you

are adding value?


External perceptions? - take a reality check

Find out what your clients and

referrers really think about you


Some clients’ perceptions

‘I don’t think they show adequate interest in our business’

‘They are not proactive with their own clients’

‘They don’t think laterally’

‘They never visit, and they should if they want to increase the quality of the relationship’


How well do you communicate with your clients?

‘Out of sight, out of mind. They must ensure regular communication’

‘I am not convinced I have their message or why they are different’

‘Their profile is very low – they need to create more noise in the market’

‘They must not assume that people know what they do’


Is lack of resource making you uncompetitive?

Some clients may think so -

‘I don’t believe they have the resources’

‘Sometimes they lack polish and quality in depth’

‘Depth of expertise – I have only one partner to contact on a day to day basis, which is a little limiting…’

‘City firms have greater depth of expertise’


Lack of Awareness

‘They must not assume that

people know what they do’


Lack of awareness is often the problem

Lack of awareness by partners of what the rest of the firm does

Lack of awareness by clients of what the whole firm does


A need to build awareness internally of what the whole can do

To provide partners with the means to build awareness externally

Need for all partners to understand that this will strengthen their own client relationships


A need to build awareness externally

To ensure clients and referrers are aware of the whole firm’s capability

To block client opportunity leakage


Are internal attitudes in your firm holding you back?

Are you presently unable to add

value to your clients because of

internal attitudes and behaviour?


Internal attitudes - but why should I?

To do this may require a shift in culture

There will be a need to build a culture of sharing


Why should I?

Share my clients with my partners?

What good will it do me?

I will not earn any more whatever good things I do


Doing this can also help to ‘lock in’ partners and clients

You will strengthen client relationships

By ‘institutionalising’ the clients you will make it that much harder for partners to take them if they leave

A way of locking in partners

How can partners be encouraged to share clients?


Can reward systems encourage sharing of clients?

Reward systems should be aligned with the achievement of business objectives

How can reward systems be used to incentivise sharing of clients?


Sharing clients

Is it valued in your firm?

Is it measured?

Is it rewarded?

(What gets rewarded gets repeated)


A US law firm example

‘Which partners passed you the most work last year?’That is the most important element of their performance evaluation.

They value sharing work and clientsThey reward sharing work and clients


Values

Skills & Behaviours

Performance Metrics – Qual/Quant

Performance Review

Closing the Performance Gap

Learning & Development Strategy

Building a culture of sharing


To add value in this way will require an integrated strategy

External perceptions

Internal attitudes

Any questions?

adding value that clients really care about peter scott peter scott consulting

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