In a recent Accounting Today article, I lauded the value of strategic growth (not quite motherhood or apple pie, but pretty close), characterizing it as sustainable, efficient and profitable. This article goes on to address three of the most common questions about strategic growth I’m asked by firm leaders.
Hopefully, the questions and answers will resonate with you, as well.
Q: We’re just not getting there. Where are we going wrong in our efforts at strategic firm growth?
I see you and I know you’re trying! But here’s the thing: Strategic growth is a process, not an activity. Too often, firms attack growth with traditional marketing tactics, like thought leadership or stirring the pot on LinkedIn. But tactics are not strategy, my friends. They represent only the last third in a three-stage strategic growth process. And leap-frogging over the first two will not get you where you need to go.
The first stage is drilling down on research and analysis. Understand the size of various markets (think of them as ponds) with an eye to which have the most fish swimming around awaiting your net. Once you’ve identified a market or markets, the second stage is discovering your strategy. This is achieved by conducting interviews in your target industry markets, and comparing them to see which have the best conditions.
Only after taking these essential steps is it time to decide the specific tactic to use. Without the proper groundwork — steps one and two — it’s pretty much a hammer looking for a nail.
Q. I think we’re ready to discover our strategy. But who should lead the charge on this?
Once your research and analysis have led you to a market, you’re ready to hone your strategy. This effort should be led by industry and service-line leaders, senior people close to the action who are knowledgeable (or can become so) about the markets you’ve identified. They will have the ability to connect the dots that lead to the right strategy.
This is not a job for your marketing person, and it’s not a role for your managing partner, neither of whom has the needed market insight and experience. Nor should this be a task left solely to individual “book of business” partners. They have little experience in viewing growth from a market perspective. Their approach is to review their own book of business, seeking fish that resemble those they’ve already caught.
You say you don’t have certain service-line or industry leaders, and your leader lineup is thin? Go out and get them! It’s an essential investment today in becoming the firm of tomorrow.
Q. Where does strategic growth fit into driving revenue?
I hear it all the time, “Gale, we’ve got to drive revenue, we don’t have time for conducting interviews and mapping strategy.” The answer is the daily double. Firm leaders need to do two things at once — keep their nose down to the grindstone to deliver on today’s commitments, and concurrently up to the wind to ensure the firm’s future direction. By mindfully pursuing strategic growth today, you sow the seeds for a more robust orchard that will deliver the fruit you pick tomorrow, and longtime profitability and viability for your firm.
Finally, a public service announcement: Today’s favorable market conditions will not last forever. During times of plenty it’s tempting to focus on all that ripe fruit dropping onto the ground. But if we fail to invest in the work of planning for strategic growth, we risk waking up in a couple of years to a barren harvest.
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