Recently a firm approached me with the desire to take their Value Add Service implementation to the next level. They had been doing some great stuff with clients and purchased a number of good software tools to help automate the process, but they had reached a growth ceiling that they were unable to surpass. Where they got stuck was that their best people were too busy to take on more work and delegation of value add services was at a standstill. In other words the VAS revenue stream was not growing and partners were getting frustrated with everything coming back to them to drive it.
##The Problem – (what happens without value add service implementation)
This firm was suffering from a number of fundamental issues, which we were able to diagnose when the Partners and I sat down and looked over the business.
- No System: the best people were tied up with the workload and without a system, they were unable to free themselves up to maintain strategic viewpoints or high value workloads.
- No Structure: there was no clarity around outcomes for clients, which was a result of there being no formal structure in place for value adding services.
- No consistent Delegation: as in the first point, Partners and high level managers were not delegating to their team members.
- No Value Add Service Implementation Momentum: when the top three issues are resolved, implementation gains momentum and can drive itself. In this firm, there was no momentum due to the first three issues.
- No Prioritisation: the team was inefficient with their workloads because without a system, they were unable to know how to prioritise the high value work.
- Confused Clients: the lack of structure and inconsistent delivery and outcomes left the client’s feeling confused about the process and unsure of the value they were receiving.
These were the underlying issues that the firm was experiencing. They were also responsible for a number of secondary problems:
- Limited Client Results meant the clients were unsure “that VAS was worth it”. (This feeling filtered through to the the team, and further up the management hierarchy.)
- Partners and High Level Management were increasingly busy, and frustrated as a result.
- Team were experiencing low motivation and becoming disengaged as they feel they are not involved in “the fun stuff”.
It didn’t take long to begin creating positive changes within this firm. We worked systematically to apply the Chairman’s Program methodologies, and began to see results within 30 days.
These results gained momentum with consistent application and by supporting the Partners with monthly momentum sessions we were able to rebuild the firm around the Premium Practice structure within 9 months.
Positive Outcomes for the Firm
The Partners in this firm experienced many positive outcomes, including just being more excited about their roles.
- Partners were gradually able to implement a repeatable VAS delivery process and remove themselves by effectively delegating process steps to their team members.
- Partners became more valuable to clients when they were able to step back and focus on better client solutions.
- Partners increased their capacity, and experienced the feeling of having more time available as a result.
Manager and Senior Team Member results
The senior management team became much more effective at driving VAS delivery and client interactions.
- Managers could deliver more VAS implementation as a result of the new system and processes put in place.
- Managers increased their effective delegation because the system made it clear what could be delegated and how the process was to be performed, along with KPI’s and client outcomes.
- Managers experienced more client contact meaning that they built valuable relationships with their clients and were able to bring in new work as a result.
Team Member results
The team experienced massive shifts in their day to day workloads.
- They were able to develop new skill sets eg. Analysis through writing ‘Variance Reports’.
- They became more involved in client accounts as they began to truly understand how client businesses worked and the issues they faced.
- They re-engaged with their jobs demonstrating more proactive approaches and greater levels of job satisfaction.
Bottom Line results for the Firm
This firm experienced growth directly from the transition to a Premium Practice model.
- Created Capacity without hiring more staff.
- Increased Revenue without increased expenses such as marketing.
- Increased Profitability by lowering the labour rate cost on value adding services.
The Firm was losing money until they started the Premium Practice journey
The bottom line was that every month they waited to make these changes, it was costing them.
Our case study firm struggled with VAS implementation for 18 months. Once we started working, revenue increased 21% ($210,000) over nine months. This means that it cost them $420,000 in lost revenue while they experimented with different methods. That’s over $20k per month. This means they were losing $20k every month that they didn’t master their VAS implementation.
As soon as we began the process, their profitability began to increase and their revenue grew.
Let me give you an example.
One of the Partners in this firm used to do about 60% of their value add service delivery. He now does just 20%. Not only is he less stressed as a result, but since his time is worth so much more than what he pays his team members, the business is more profitable.
Book a Free Premium Practice Clarity Session
This free, 15 minute chat in person with Andrew Robertson will:
- Expand the vision of your own Premium Practice model;
- Examine the current situation in your practice, including current roadblocks; and
- Map out the immediate steps for you to increase profitability by 20%.
This session can unlock the next step for your firm to boost your VAS implementation strategy and take profitability to the next level.
Click the link to visit my calendar and view available spots over the next few weeks.
In the next Thought Activator [TA104], I’m discussing what every firm is looking for but will not find it. So watch this space on Thursday 19 May 2016. If you’re not already, make sure you sign up to get it delivered to your inbox.