Amid tumult and reform, two longtime observers assert clients have gained the upper hand in a buyer's market for professional services.
by Rick Telberg
At Large
The scandals, reforms, market shifts and technological advancements of recent years have so changed the landscape of the profession that it is, in some ways, hardly recognizable. In fact, the changes may even have shifted the balance of power, signaling profound new realities for practitioners.
In "Clients at the Core: Marketing and Managing Today's Professional Services Firm," (Wiley, 2004) August J. Aquila, based in Minnetonka, Minn., and Bruce W. Marcus, in Easton, Conn., a pair of veteran consultants, combine their considerable experience, skill and insight into a veritable strategic planning operator's manual for today's consulting firm.
From the outset, they acknowledge "the professional world doesn't need another book on how to write a press release or write a brochure or run a seminar."
Instead, they provide a new perspective on the crucial subject of how to keep firms relevant to the needs of the marketplace -- mainly, creating clients and building a marketing culture.
They don't get tied up in ideas like "vision," or "mission."
Instead they talk about the new realities of the 21st Century and professions in turmoil: dot-coms gone bust, a stock market meltdown, and a rash of frauds, defalcations, misuse of corporate funds; and then a reformist reaction, still unfolding, that the authors term "a helter-skelter regulatory rush that was at least as punitive as it was appropriate. It would seem that the regulatory garment was cut to fit all, when all don't wear the same size."
"The time is past when just the presence of the professional was its own comfort factor. It's long been believed that the concept of the professional was so exalted, and so trusting, that people accepted advice unquestioningly. No more. The scandals of 2002 and 2003 seem to have bred a diminished - if unwarranted -- respect for professionals," they say.
For today's professionals, here are six lessons you can take to the bank according to the authors :
-- Clients are more sophisticated. They no longer accept advice without questioning, challenging, demanding more reasoning and detail.
-- Because of the complexity of business today, clients demand that their professionals know more about the client's business and industry than ever before.
-- Professional services always function best when trust is at the heart of the relationship, but the corporate scandals of recent years have eroded that trust. That trust must now be regenerated. And the workings of trust are more important in the new economy than in the old.
-- Once the narrow structures of a profession were sufficient to serve clients. But clients now demand a broader spectrum of capabilities. The more broadly educated and well-rounded professional is the one with the greater advantage in meeting the needs of today's client. Clients demand that accountants know more than the basic skills of accounting.
-- Competition is now a fact of life. Clients know they have a choice.
-- Clients know the difference between marketing promises and professional services delivery. Today's client demands more real service and solutions -- not just a warm personal relationship.
To Aquila and Marcus, the new paradigm of professional services requires a new demand for partnership with the client and new participatory skills.
As they say: It's a buyers' market. Get used to it.
