Down to business

Whether you believe in the emergence of green shoots or not, there is no doubt that recovery from the recession won't be swift. Having so far adopted a strategy of cut back/wait and see, many firms are asking whether they should now start spending more on marketing to ensure 1) that they survive the recession intact, and 2) they are ahead of their competitors when the 'good times' return. The answer is that it all depends.

For some firms investment in updating their image (if needs be), extending the reach and impact of their business development activities, and focusing more intently on innovation and client relationship management is likely to be worthwhile. The majority, however, may be better advised to switch their focus from marketing per se to reviewing and revising the management and motivational practices which support it.

Some years ago after decades of working in marketing in a variety of sectors, I decided to try and rationalise what separated those businesses that were highly successful in business development terms from those that weren't. Dozens of individual characteristics emerged but three main factors stood out: 1) their understanding of marketing; 2) how the business was managed; and 3) the willingness of staff.

This adds up to a model in which business development represents a balance between marketing, management and motivation (the 'M3 model'); elements which are regulated by the firm's leaders to develop and maintain a truly market-focused business.

Marketing

Many people continue to think of marketing in terms of marketing communications, i.e. activities such as advertising, PR, and events which form part of the business/client interface. In fact, marketing is something much more fundamental as can be seen by the Chartered Institute of Marketing's definition: 'the management process responsible for identifying, anticipating and meeting customer needs, profitably'; or that of marketing strategist Kotler who summarized it as 'an approach to doing business'.

These two definitions with their holistic, client-focused implications mean that the problems many firms face with marketing emanate from lack of commitment to operating as a truly market-facing (rather than internally-focused) business, lack of clarity about current and anticipated existing and potential client needs, and lack of support and motivation for encouraging all personnnel to adopt a multi-level approach to their work.

Management and motivation

As the Chartered Institute of Marketing's definition makes clear, marketing is essentially a 'management process'. As such it needs to be part of the mainstream business of the firm as has been recognised by those organisations which have appointed marketing professionals alongside their other functional leaders. However, marketing specialists can only do so much. Success ultimately lies in the extent to which business development is managed and supported from the very top, creating and sustaining a business development ethos which radiates from the very heart of the firm.

Business development management is often patchy, with 'administration' masquerading as something finer and failing to provide support in terms of clear strategies, priority setting, and performance monitoring. Sound management continously reviews where the business is, where it wants to be, what opportunities exist for getting it there, and the problems, weaknesses and obstacles that may prevent its success.

Within many firms, despite the lip service paid to it, there is often little or no motivation for partners and fee earners to devote time and effort to marketing. With few exceptions, all that is seriously measured, valued, or rewarded is fees earned on the basis of this simple equation: work on desk = amount billed = degree of success.

What that work is, where it came from, how it was obtained, whether it will lead to more work, even whether it is truly profitable, is often not measured or rewarded; all efforts are focused on the bottom line. When time pressure is an issue (as it frequently is), business development takes a poor second place to 'doing the work', with little encouragement or recognition provided for effort expended in performing across both roles. As a result, lack of success in marketing isn't usually due to lack of skill or knowledge, but to much deeper, ingrained problems such as inertia, insecurity and cynicism.

Rigorous application of the M3 model enables firms to establish sensible plans and objectives, implement realistic programmes of activity and monitor progress. Underlying practices involving, for example, balanced scorecard techniques, comprehensive performance management reviews and client focus groups, identify imbalances which may be emerging, equipping leaders with the insight needed to put matters right and continue on course.

Ten characteristics of success

Over time as theM3 model has been repeatedly applied and tested, the following have emerged as defining characteristics of success in professional services firms:

1. Creation of a shared vision and sense of purpose throughout the firm.

2. Taking a commercial approach and looking outside the profession for business models.

3. Strong, charismatic leadership and an energetic approach.

4. Consistently giving time to business development and management.

5. Understanding and utilising the value of existing clients and contacts.

6. Acceptance by all that delivery of the technical service is only one part of the job.

7. Focusing on the client, not on the work being done for them.

8. Modern, flexible employment policies and a democratic culture.

9. Excellent proactive communication (internal and external).

10. Soft skills training programmes for all levels of staff.

How many do you recognise in your own approach to marketing?