Mike Cullen Leadership in Professional Services LSN Briefing 5P - - PowerPoint PPT Presentation
Mike Cullen Leadership in Professional Services LSN Briefing 5P conference 3 September 2015 Page 1 Leadership in Professional Services Professional Services in context: What we are One of the most rapidly growing and profitable sectors
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Source: Oxford handbook on professional services firms 2015
……….but are we drifting to another place?
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The changing world around us will have massive implications for PSF business and people
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81% 54% 41% 38% 19% 46% 59% 62% FY00 FY11 FY15 FY20
Revenue ($ billions)
Service line strategies
Channel 1 Channel 2
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42% 32% 58% 68% FY11 FY15 FY20
Revenue ($ billions)
Audit to non-audit mix
Audit Other assurance Other service lines
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.............................................Its not the same but bigger!!!
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Differentiated client experience Distinctive people Teaming, energy, enthusiasm, courage to lead, relationships Integrity, respect, doing the right thing Financial / technical skills Unique Added value Commodity / hygiene Entry point
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(How) Emotional Product / service driven (What) Functional Relationship based
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Complex integrated solutions Buyer- based
Trusted business advisor Single Solution
Client strategies/initiatives
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strategies and issues
do we take an account-centric approach to align them with our service offering?
relationships
relationships cover all service lines?
success
revenue plans
coordinated action plans
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….. Can they progress to partnership?
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Apply the body of knowledge Customising the body of knowledge Grey hair Rocket science
Client problem: Efficient Solutions to common problems Client problem: Help in making an informed choice from a variety of options and guidance through the process Client problem: A Major complex and ill-defined issue that the client has little or no experience of. Client problem: A major ‘bet your company’ issue that the client has no similar experience of. Key skills: Efficient, low cost delivery of established methodologies, models and processes. Key Skills: Providing user-friendly advice which reduces anxiety in the selection process an thereafter Key Skills: Real-time diagnosis and judgement. Key Skills: Providing innovative and novel solutions CSF’s: Established methodologies, models and processes; efficient and low cost delivery CSFs: Established methodologies, models and processes; efficient and low cost delivery systems; inter- personal/relashionship skills; managing the ‘sales’ costs. CSFs: Experience of similar problems; in- depth technical and/or functional knowledge. CSFs: Highest level diagnostic skills; creativity; state of the art knowledge; pioneer concepts Profit Driver: High Volume, High leverage Profit Drivers: Above average fees; good leverage. Profit Drivers: High Fees; Low Leverage Profit Drivers: Premium fees; very low leverage; may also refer work to others Selling Proposition: ‘Better, Faster, cheaper.’ Selling Propositions: ‘Use us, we’ll help you make a better choice and provide you with on- going support.’ Selling Proposition: ‘We’ve seen similar problems before. Trust us, we’ll help you over your problems Selling Proposition; ‘Smartest brains around.’
Source: Mike Cullen, adapted from David Maister and Jack Gabarro
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Apply the body of knowledge Customising the body of knowledge Grey hair Rocket science
Low differentiation Multiple providers Execution High leverage Low Margin High differentiation Limited providers Diagnosis Low leverage High Margin
Source: Mike Cullen, adapted from David Maister and Jack Gabarro
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1. Be the best - Clients need high performing advisors with a track record of success and experience. 2. Do different – Clients want external experts to bring a different perspective rather than echo the status quo, which means Government needs people with experience of the disruptive industries like Consumer, eBusiness – not the public sector. 3. Challenge back – Sometimes clients can be guilty of asking advisors to read their
4. Just what’s needed – Clients should be able to construct a team to meet their goals, without being obliged to take particular grades. 5. Partner presence – The oversight and client engagement provided by partners is vital, and should come as standard, not at cost.
Source: S Kelly, COO - Cabinet Office
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6. Leave a legacy – Every engagement must include knowledge and skills transfer to the client; This should be viewed as neither optional nor secondary, but rather a core responsibility of the advisor. 7. Swap secondments – Two way secondments build understanding and trust between clients and advisors, ultimately improving the outcome of all engagements. 8. Clear scope and FOCUS on OUTCOMES (Payment on OUTCOMES NOT inputs/day rates). Clients want quick, quality outputs 9. Only support, never lead – Advisors cannot own too much of a single piece of work, or occupy key roles, without ultimately compromising the client.
constantly asking themselves whether their work is truly adding value.
Source: S Kelly, COO - Cabinet Office
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High value Expertise Low leverage Build a legacy Knowledge transfer
Anchor relationships Reliable long terms revenue Higher leverage ‘Big’ projects Managed services
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models
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