Do you know that in Kansas it’s illegal to shoot rabbits from motorboats?
While on the surface that is bad news for rabbit hunters, the good news is that it’s a bad plan anyway. So, whether or not it’s the law, it doesn’t make a dickybird of a difference.
I mention this stupendous fact not so much because I used to be a rabbit farmer, but because many professional services firms’ business development plans are the equivalent of trying to shoot rabbits from a motorboat.
On one side of the equation, the plan looks mind-bogglingly brilliant.
On the other side of the equation, the target market looks good, too.
But closer scrutiny reveals that the specific plan is pretty ineffective or even hopelessly futile to “catch” the selected target market.
Good business development planning is about doing fewer but more effective activities to achieve better results.
There are many methods to land new clients. Some work really well and generate high-caliber clients. Some work pretty inconsistently and generate so-so clients. And some are nightmares and generate clients from hell.
Fortunately, it's easy to determine which plan you should implement and which you should avoid by answering these three questions:
- Is it healthy? That is, is it based on magnetic attraction not on maniacal pursuit?
- Is it consistent, predictable, and sustainable? That is, can it be systematized?
- Does it empower or enslave professionals? That is, can it be automated?
Question 1: Is Your Business Development Plan Healthy?
Is your business development based on magnetic attraction of the market, not mindless pursuit of the market?
When you run a healthy business development program, you are positioned as a trusted, respected, recognized, and sought-after industrial authority. High-quality buyers seek you out and bring their opportunities to you.
It means a small firm can produce an incredibly impressive profit per employee figure, the ultimate performance indicator of a professional firm.
When firms run on unhealthy business development plans, positioned as replaceable vendors, they have to “hunt” down each client, very often by responding to cattle calls. This approach requires you to have a large group of “hunters” in your firm whose daily chore is to roam the land and hunt.
The other option is to have a small group of people who operate as trappers. Instead of chasing the market, they bait their traps and wait. Their bait is high-value, education-based marketing content, and their trap is their list.
Then self-selected people request the appropriate content and land on the list.
With a little upfront attention, a professional services firm could build enough magnetic attraction into their business development, enabling them to stop chasing after the market.
Question 2: Is Your Business Development Plan Consistent, Predictable, and Sustainable?
Can your plan be systematized?
Systemization is important for two reasons:
- Consistency and predictability make it possible for partners to make more accurate projections for the firm’s future performance. The ability to make better projections adds to the firm’s value and makes long-term planning more accurate.
- Consistency and predictability make the firm’s brand stronger.
There are four criteria that help us to determine whether we’re looking at a system or just a random heap of bits and bobs:
- Can you identify its parts?
- Do the parts affect each other?
- Do the parts together produce an effect that is different from the effect that each part produces on its own?
- Is the effect, the behavior over time, consistent under various conditions?
Besides rendering great service, the other main aspect of a professional firm is client acquisition.
The difference is that rendering services is paid work, but business development is not. For this reason, it often happens that associates are so involved in delivering services that they are reluctant to engage in client acquisition.
But if through systematization associates could predict and factor in how much time and effort it takes for them to perform their fair share of business development, their reluctance levels would come down quite significantly.
For instance, the task of “writing an article on leadership” can be pretty daunting. After all, both “article” and “leadership” are broad terms.
A system would simplify the process. For example: based on your last five coaching clients, and following the firm’s “fill-in-the-blanks” article template, write an article on the leadership problem of “when leaders fail to practice what they preach.”
Using this approach, the firm’s articles can be consistent, including a tried-and-tested call to action at the end, depending on what action the writer wants the reader to take.
My firm has a system like that, so no matter who writes an article, it carries the firm’s unique tone and style, thus brand. Not to mention it’s less overwhelming to answer eight questions in a few paragraphs each than to “write an article.”
Question 3: Does the Business Development Plan Empower or Enslave Professionals?
Can your plan be highly automated?
Your business development should take the burden of manual labour off your shoulders, and it should give you more time and energy to work on strategic- and client-related issues.
On the surface, one option is to hire more people to do the work, but that only complicates management.
There is an exponential relationship between the number of team members and the effort to manage them.
Mathematically expressed: (N * (N-1)) / 2, where N is the number of team members.
Management effort for a four-person team: (4 * 3) / 2 = 6
Management effort for a five-person team: (5 * 4) / 2 = 10
Hiring only one person into a four-person team gives you a 25% increase in the size of the team, but a 66% increase in effort to manage that team.
Plus, on a per-person basis, small teams are always more effective than large teams.
That is why hiring new people should be the last effort only when systems and automation are fully optimized and hiring new people is unavoidable.
If you don’t want to ruin the firm’s profitability by hiring more people, you can turn to automation. There are five good reasons to do that:
- Many tactical aspects of business development, put it bluntly, are boring and repetitive. And boring tasks are best left to technology that doesn’t get bored and doesn’t make mistakes due to boredom.
- During the initial stages of the buying cycle, firms can build more trust in their markets through automated consistency than through humanized inconsistency. Consistently arriving auto-responders are more trustworthy than haphazardly arriving manual emails.
- Buyers are more willing to “consume” and “digest” automatically arriving valuable information than to talk to salespeople.
- To be nicely profitable, a professional services firm has to find the optimal headcount to provide its services. That leads to maximum profit per employee. Both understaffing and overstaffing erodes profitability. Economists call it the economies of scale. The key is to have the lowest number of people and automate whatever can be sensibly automated.
- The fewer people your firm needs, without getting understaffed, the more it can pay for highly qualified employees. People get exceptionally well paid, they do exceptionally good work, and the firm becomes exceptionally profitable.
Summary
Business development can become quite complex, especially for larger firms, but the above three questions can set a good direction before you lose ourselves in the tactical details.
Let’s remember Sun Tzu’s words in Art of War:
“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.”