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From
the e-Mailbag
Reader responses to last month's MCNews hit an all-time
high. When asked whether a consultant is better off
as a specialist or generalist, opinions reflected the
diversity of MCNews readers and the industry as a whole.
As you'll read below, no clear cut consensus emerged.
The suggestions I received for ridding a yard of gophers
ranged from gentle to medieval. I've included the tamest
of the lot. That pesky gopher is still tearing up the
yard, but I think I've got it on the run now.
Here's a sample of the mail from the past month.
On Generalists vs. Specialists
"I believe the best method of finding the right
information is to go to the specialist, with the necessary
specialist knowledge where difficulties arise, or might
arise. You would not ask a carpenter to fix your leaking
radiator, nor would I, as a lawyer, try to provide advice
to a person with a problem in IP or Admiralty."
- - - -
"I think a generalist is a better choice though
I would want to go with one who had a very broad background
and experience. The problem I have run into working
with the specialists is they see the world too much
like their clients see it--and therefore can't really
bring new and fresh thinking to the problems."
- - - -
"I believe it is the specialist who always carries
the day."
- - - -
"In my long career in consulting
working for large international firms, regional firms,
locals, and for myself since 1991, I have seen the positives
and negatives of both sides of the specialist versus
generalist issue. Some specialists have well-known histories
of great success."
"…I believe that taking a position in one
extreme or the other misses the target of gaining long-term
success. That is achieved only through innovation, willingness
to undergo change, and timely adaptation."
The Gopher War Rages On
"I think it is time to crack a beer
and rent the movie Caddyshack...Gophers
are particularly stubborn breed--I don't have any bright
ideas--other than get a couple of hungry cats."
- - - -
"I have been told that dropping a
nice, fresh stick of Juicy Fruit gum down the hole results
in the little pests being transported to that great
"mound" in the sky."
- - - -
"On the farm we always used a shotgun."
As always, keep those emails coming.
Top
of page ^
 Meet
the MasterMinds: Suzanne Lowe on Competing to Win
Suzanne Lowe, President of Expertise Marketing and
author of Marketplace
Masters: How Professional Service Firms Compete to Win,
believes that "too many professional service firms
compete by trying not to fail rather than by trying
to win."
We tapped Lowe's twenty years of experience in services
marketing by asking her what it takes for consultants
to become Marketplace Masters.
MCNews: How would you characterize the current state
of professional service firms' marketing efforts?
Lowe: Most firms are not proactive marketers.
Rather than doing the hard work of marketing--like learning
more about their clients than they already know, stretching
to gain untapped competitive advantage, or measuring
the results of their strategic initiatives--most
firms stick to the seemingly safer path of acquisitions
or incremental improvements to existing services.
The result is that most consultants are selling the
same thing in the same way for the same price.
MCNews: Many clients are critical of the industry's
lack of differentiation. In today's market, which differentiation
strategies are working for consultants--and which are
not?
Lowe: It's surprising to me that, all of a sudden,
everybody's interested in the subject of differentiation.
Unfortunately, it appears to me that many firms are
employing differentiation strategies that have been
less than successful.
For instance, differentiation on service delivery is
not that effective. Telling clients that your firm
will be the most responsive, customized, excellent,
or the best at listening is not going to give a firm
a long-term competitive edge.
Every consulting firm can beef up its service delivery
capabilities to be more available, more responsive,
and deliver higher quality. But differentiating your
firm on client service will only give you an advantage
for about two weeks--maybe. Some firms claim that it
works for them because none of their competitors can
be as client-focused as they are. But it's the most
copyable of all differentiation strategies.
I would say it will work today, maybe tomorrow, but
you won't have much of a preemptive competitive advantage
on that alone because it's too easy for others to duplicate.
MCNews: Which differentiation strategies do work?
Lowe: Simply put, the most effective differentiation
strategies are those that are difficult to copy.
One that I think will emerge is differentiation based
on the client experience. And I'm talking about the
client's emotional experience. You may have read Joseph
Pine and James Gilmore's book, The
Experience Economy.
That presents a very challenging concept for professional
service firms: that we should intentionally provide
a uniquely favorable emotional experience for our clients.
We may think clients are just buying a transaction--tax
advice, IT implementation, or organizational strategy.
Well, what's more difficult to copy and more competitively
preemptive, especially with first mover advantage, is
the emotional experience.
Maybe the experience you are going to deliver is tranquility
or confidence. Or maybe you want to deliver entertainment
or humor. Consider how Southwest Airlines completely
shook up the commoditized airline industry with the
experience it provides to passengers.
Some professional service firms are starting to work
on this very strategy.
MCNews: Consultants have their own ways of interacting
with their clients. For example, some behave collaboratively,
while others are more aloof. Is that what you're talking
about?
Lowe: Yes, but it's not only behaving in a certain
way. That's only one element of delivering an emotional
experience. It's the intentional delivery of an experience
that causes and stimulates a strategically intended
response from the client.
For example, there's a restaurant in Chicago--Ed Debevic's,
which is a 1950's style diner. People don't go there
because they're desperate for a hamburger or hot dog.
They go there for the retro atmosphere and to get yelled
at by that gum-popping waitress.
Obviously, there are variations on the theme. And delivering
emotional experiences is much easier when there's a
product- or a retail-oriented support system.
I've documented eleven or twelve different foundations
of differentiation. Some are older, dustier and easier
to copy because people have figured out how to do that.
The elements of differentiation that are working today
are the ones that are difficult to copy, are operationally
deep and usually more complex to implement.
MCNews: Can a firm's culture be part of its marketplace
strategy?
Lowe: Sure. But many firms think culture is
only something that needs to be proclaimed to the world,
when in fact it's more deeply nuanced and integrated
than that. It imbues all of their operational approaches
and, in fact, should be harnessed to their competitive
advantage.
As an example, consider a firm whose main "personality
DNA" reflects a lack of self-esteem. There are
firms like this, believe it or not! Everyone in the
firm is a worrywart, concerned about their competitors
sneaking up on them and stealing clients. How does that
culture impact their market behaviors in a way that
benefits them competitively?
Well, they meticulously double check themselves on
the accuracy and completeness of every work product.
They are aggressive in gathering and using competitive
intelligence, and they are focused on training and developing
their professionals. It also means they push for innovation
because they're so worried they're not good enough that
they are driven to stay ahead.
Now would they ever actually announce to the marketplace
that they have a lack of self-esteem? No, but they could
align their market behaviors around their cultural DNA,
their personality profile. And that does translate into
appropriately successful competitive behaviors.
I believe that culture can be a powerful market
strategy, but most professional firms are not yet intentionally
developing the alignment of their culture with their
go-to-market strategy.
MCNews: Let's shift to the concept of thought leadership.
What is your perspective on using thought leadership
as a differentiator?
Lowe: During my years in marketing, I have been
at once pleased by and worried about the emphasis on
thought leadership. It makes people stretch their basis
of expertise and stay current with the state of the
thoughts regarding their craft. That's a good thing,
right?
But what is not good is to simply stay slightly ahead
of the incredibly low common denominator that is out
there. That does not ultimately serve clients or substantively
improve one's expertise base. In fact, it works against
true innovation.
Thought leadership works when it becomes the basis
for robust new services--reengineering, the balanced
score card, and so on. These methodologies were
born from thought leadership, and they became value-added
service propositions that clients paid billions of dollars
for.
Those are examples of effective thought leadership.
But the thought leaders who came up with those methodologies
did a lot more than write an article or two. They engaged
in deeply integrated innovation exercises.
Thought leadership simply as a promotional strategy
advances the state of thinking in a very minimal way.
And I do believe many consulting and professional service
firms use it as a crutch. On the other hand, thought
leadership can be a powerful marketing strategy when
it's followed and supported by a robust service.
MCNews: Most firms ask their consultants to sell
and deliver services. Is that, in your view, the best
way to sell services?
Lowe: I would like to challenge not only consultants
but the professional service profession as a whole for
spending so much time on training professionals to sell.
Why try to make them do something so many struggle to
do well?
Wouldn't firms have more competitive success, maybe
even save money by using business developers? Why
go through this massive training effort and require
all people who want to be partners to become rainmakers?
Look at the way this model works in engineering and
construction management. Some civil, mechanical and
structural engineers are so technically oriented that
they can barely talk to another person. But they can
plan and construct buildings that will never fall down.
In that field, business development and operations people
work together very effectively. And clients gobble it
up.
MCNews: You've suggested that data mining can make
marketing two to three times more effective. Can you
describe how?
Lowe: You know about the proliferation of contact
management databases? Well, it's been my experience
that consultants have become overly enamored with contact
management databases for the purpose of relationship
management. But they fail to use these tools for real
competitive advantage.
If done well, relationship management can, of course,
create a competitive edge. There are many pieces of
information that can be captured and organized to provide
valuable perspectives. But currently, patterns in the
way clients buy are too anecdotally captured. They're
not captured with a keen eye to discovering nuances.
So I'm suggesting that data mining as a practice
needs to be much more wholeheartedly embraced.
MCNews: How can consultants use data mining more
effectively?
Lowe: A good example is the Numerica Group, which
is a UK business consultancy and accounting firm. Their
contact management system is linked to their practice
management system, which is then linked to their accounting
system so that they can discern where profit margins
are being trimmed.
Then you can see where softness is developing, where
competitors are starting to make inroads, where proposals
are being lost. That's one of the more simplistic examples
of this, but most firms have not yet built their technology
infrastructure to enable data mining opportunities to
surface in a competitively preemptive way.
One could argue that it's not profitable to do so, but
I think that argument is rapidly losing traction.
MCNews: If you could give a consultant one piece
of advice, what would it be?
Lowe: Understand the environment in which you do
business. Whether you're in a change management practice
or a new products development practice, or whatever,
you're there because the marketplace has asked for it.
But that's never going to stay the same. It's got to
change.
I'll give you an example. I recently visited a management
consulting firm and the CFO took justifiable pride in
telling me about how much they honor their employees.
They are uniquely positioned in the marketplace. Their
people are deeply satisfied with the work they do, and
they have an incredibly low attrition rate. It's a great
place to work.
That culture also benefits their clients, who are well
served because the consultants are happy to be collaborating
on important and cutting-edge projects. My reply was
cautionary. I said I guess that means you don't think
the marketplace is ever going to shift, right? My point
was that they are too focused on themselves, rather
than on the long-term, ever-evolving needs of their
clients.
MCNews: Thanks for your time.
Find out more about Suzanne Lowe, her book and services
at www.marketplacemasters.com.
Send me an email
with your thoughts on this interview.
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of page ^
After
the Speech, by Stephen D. Boyd
Most people breathe a huge sigh of relief
once they've completed a speech. But according to
Stephen D. Boyd, a professor of speech communication,
some of your best opportunities for improvment come
in those moments right after the speech.
Read
the Article
top
of page ^
Consulting
Pay Rates Survey
In September, Abbott,
Langer & Associates, Inc. will begin its 10th
annual survey of compensation in consulting firms.
If your firm would like to participate, in exchange
for:
A complimentary executive summary
A 50% discount if you want to buy the complete survey
report; and
The inestimable pleasure of contributing to your
profession,
Then:
1. Click on the following (or paste it in your web
browser).
2. Mark the box for Consulting Firms (of course).
3. Complete the remainder of the form.
4. Click on Submit Information
Note: MCNews receives no commission or
consideration for purchases made by MCNews subscribers.
top
of page ^
Top-Consultant.com
Has a Recruiting Event for You
Top-Consultant
has a career event for consultants coming up in London
on September 24th. This is a great opportunity to meet
recruiters from firms such as Accenture,
Booz
Allen Hamilton, Boston
Consulting Group and IBM.
If you'd like to attend, reserve your place at:
http://www.top-consultant.com/UK/events/Article_display.asp?ID=12
Spaces are limited so make your reservation ASAP. The
venue is in the Mayfair area of London, and the event
will run from 8.30am to 1:00pm.
top
of page ^
Guerrilla Marketing for
Consultants Webinar
 Jay
Conrad Levinson, the father of Guerrilla Marketing,
and Michael McLaughlin, Editor of MCNews, have a new
book coming out--Guerrilla
Marketing for Consultants. It will be in
bookstores in October 2004.
On October 14, 2004, Levinson and McLaughlin team with
Tom Sant, author of Persuasive Business Proposals,
to offer a no-cost Webinar entitled Guerrilla Marketing
for Consultants. For more details and registration information,
follow this
link.
Here's some of the recent buzz about the book:
"Wow! If you're the sort of person who tells someone
how to build a watch when they ask you what time it
is, this is the book for you. No baloney, essential,
useful hands-on advice for anyone who's serious about
being a consultant." - Seth Godin, author of
Free Prize Inside
"Great consultants don't just talk about marketing,
they do it--every day. That's why they win. Follow the
marketing advice in this book, and you'll outsell, outperform,
and outlast your competitors." - Jeffery Fox,
marketing consultant and author of How to Become
a Marketing Super Star
top
of page ^
Airport
Security--How Long Will You Wait?
Remember the days when you could allow twenty minutes
to check in for a flight, get to the gate and still
board the airplane on time? Well, those days are gone
for good. Some airlines advise passengers to arrive
up to two hours before a flight. Whether you heed that
advice or not, one thing you should plan for is the
line at the security checkpoint.
The Transportation Security Administration
(TSA) now provides wait time information at security
checkpoints for U.S. airports. Check it out at http://waittime.tsa.dhs.gov/index.html.
top of page
^
This Month in History
On September 2, 1752, Britain and the American
colonies made the "Gregorian Correction" to
the calendar and declared the following day to be September
14. There was rioting in the streets by those who demanded
the eleven days back. Talk about losing track of time.
http://webexhibits.org/calendars/year-text-British.html
On September 10, 1913, the Lincoln Highway opened.
The first paved, coast-to-coast highway in America went
from New York to San Francisco. To fund the $10 million
dollar project, entrepreneur Carl Fisher asked auto
manufacturers and accessory companies to donate one
percent of their revenues.
http://www.ugcs.caltech.edu/~jlin/lincoln/history/part1.html
top
of page ^
Coming
Attractions
Travel is part of the job for consultants around the
world. To help with the journey, next month MCNews will
talk to Theo Brandt-Sarif, coauthor of Guerrilla
Travel Tactics: Hundreds of Simple Strategies Guaranteed
to Save Road Warriors Time and Money. Brandt-Sarif
is editor of Travelexpert.com and a consultant on travel
strategies. Whether your travel is for business or pleasure,
you won't want to miss this interview.
Look for the next issue of MCNews on October 5, 2004.
top
of page ^
The
End Page
"Now this is not the end. It is not even the
beginning of the end. But it is, perhaps, the end of
the beginning." - Winston
Churchill
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