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The integration imperative erasing marketing and business development silos in professional and business service firms  suzanne c. lowe, expertise marketing llc, usa
 

The integration imperative erasing marketing and business development silos in professional and business service firms suzanne c. lowe, expertise marketing llc, usa

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    The integration imperative erasing marketing and business development silos in professional and business service firms  suzanne c. lowe, expertise marketing llc, usa The integration imperative erasing marketing and business development silos in professional and business service firms suzanne c. lowe, expertise marketing llc, usa Presentation Transcript

    • The Integration Imperative: Erasing Marketing and Selling Silos in Professional and Business Service Firms Frontiers in Service Conference 11 June 2010 Copyright Suzanne Lowe 2010. All rights reserved
    • A History of my Professional Services “Silos” Work Copyright Suzanne Lowe 2010. All rights reserved
    • 2006: Co-published “Increasing Marketing Effectiveness at Professional Firms” Findings Self-reported marketing effectiveness is positively correlated to having a “formal” ROI measurement budget. Marketing and selling initiatives were listed together in the top-three “best results” rankings. Perceptions differed markedly regarding the importance of the marketing communication function. Copyright Suzanne Lowe 2010. All rights reserved
    • 2007: A broad cross section of management literature cited problems between marketing and selling Sample titles “Sales Is from Mars and Marketing Is from Venus” “Bridging the Marketing–Sales Chasm” “Marketing and Selling Make Nice” “The Most Dangerous Job in Business” “Desperately Seeking CMOs: Lots of High-paid Vacancies. But Does M Stand for Masochist?” “Marketing Still a Dirty Word to Many Professional Service Firms” Copyright Suzanne Lowe 2010. All rights reserved
    • 2007: Concurrent to my literature search, I conducted a year of “Doing Things Differently” case studies I wanted to know: What barriers to marketing and selling effectiveness are PSFs and B2Bs encountering? What are they doing about these barriers? Findings: 11 short case studies providing strong evidence that marketers, sellers and C-suite managers were working together to improve effectiveness. Copyright Suzanne Lowe 2010. All rights reserved
    • 2008: Identifying “effectiveness barriers” and improvement areas Methodology: Conducted a nonstatistical meta analysis on the barriers to PSF and B2B marketing and selling effectiveness. Interviewed leaders about why ineffectiveness exists and how they are working to fix it. Tested a framework that visually depicts these improvement areas. Copyright Suzanne Lowe 2010. All rights reserved
    • 2008: Barriers and improvement areas identified High-level findings: PSF and B2B marketing and selling aren’t effectively integrated internally, because of structural and cultural barriers. This lack of integration poses a problem, financially, and a significant competitive risk. PSFs and B2Bs are using structural models and cultural approaches to integrate marketing and selling into everyone’s job. They are experiencing positive early results. Copyright Suzanne Lowe 2010. All rights reserved
    • Structural and Cultural Barriers to Marketing and Selling Effectively Copyright Suzanne Lowe 2010. All rights reserved
    • Structural barriers Process Boundary confusion coordination Lopsided marketing Underemphasized skill and selling development Copyright Suzanne Lowe 2010. All rights reserved
    • Cultural barriers Distrust Feeling marginalized Short-term thinking Immature functions Unrealistic expectations Shifting leadership demands Copyright Suzanne Lowe 2010. All rights reserved
    • What are the Structural and Cultural Solutions, and How Are They Being Implemented? Copyright Suzanne Lowe 2010. All rights reserved
    • Copyright Suzanne Lowe 2010. All rights reserved
    • The Process Imperative: case studies Korn/Ferry: “Using Service Offerings as the Catalyst to Integrate Global Marketing and Business Development Initiatives” Holland & Hart: “How One Marketing Department Became a Full-Service Internal Marketing Agency” Perkins+Will: Wholistically Addressing Clients’ Broader Needs Moss Adams: “Re-Connecting Marketing and Business Development Back to the Business” IBM Global Technology Services: “Connecting Marketing with the Needs of the Sales Teams” Copyright Suzanne Lowe 2010. All rights reserved
    • The Skills Imperative: case studies Haley & Aldrich: “Giving Marketers a Seat at the Table -- and Getting a Leg Up on The Marketplace” Baker Donelson: “Training Attorneys to Market and Sell: Small Steps Equal Great Gains” Ross & Baruzzini: “Using a Balanced Scorecard and Informal Mentoring to Integrate Marketing and Selling with Client Service” Jones Lang LaSalle: “Growing a Global Client Base while Promoting Individuals’ Professional Growth” Copyright Suzanne Lowe 2010. All rights reserved
    • The Support Imperative: case studies R.W. Beck: “Integrating Marketing and HR to Turn a Company of Experts into an Expert Company” Randstad: “Moving From Cost To Contribution: Integrating Marketing and Finance” Copyright Suzanne Lowe 2010. All rights reserved
    • To contact me . . . Go to www.expertisemarketing.com Or e-mail slowe@expertisemarketing.com Copyright Suzanne Lowe 2010. All rights reserved
    • Appendix Copyright Suzanne Lowe 2010. All rights reserved
    • 2006: Co-published “Increasing Marketing Effectiveness at Professional Firms” Link to a summary of the research findings: http://professionalservicesbooks.com/increasingmar ketingeffectivenessatprofessionalfirm.aspx Contact slowe@expertisemarketing.com for a complimentary copy of the full study report Copyright Suzanne Lowe 2010. All rights reserved 18
    • 2006: Co-published “Increasing Marketing Effectiveness at Professional Firms” Respondents’ three highest-ranked “best results” initiatives (among 30 tested) revealed a strong linkage between marketing and sales. “Arranging business development appointments with clients and prospects” was the most-often cited “best results” marketing initiative. “Developing differentiation, positioning and branding strategies” was the second-most-often cited “best results” marketing initiative. “Targeting and segmentation” was the third-most-often cited “best results” marketing initiative. Please identify the three (3) marketing initiatives that have produced the Copyright Suzanne Lowe 2010. All rights reserved best results for your professional service firm in the past three (3) years. 19
    • 2006: Co-published “Increasing Marketing Effectiveness at Professional Firms” Only a fraction of respondents have a separate budget line for evaluating the effectiveness of their marketing programs. Nevertheless, there is a significant statistical connection between having a formal marketing measurement budget and competing extremely effectively in the marketplace (self-reported) . No (340) The firms that have a formal marketing measurement budget are almost 240% more likely to say they are extremely effective than those firms that don’t formally allocate money to measure their marketing and business Yes (37) development effectiveness! The percentage of firms that have a separate budget for measuring marketing ROI, and also rate themselves as extremely effective against competitors, is 35%. This compares extremely favorably to our overall respondent group, of which only 20% said they were “extremely effective” against competitors. Does your budget have a separate line item for measuring/evaluating the effectiveness or results of marketing? Copyright Suzanne Lowe 2010. All rights reserved 20
    • 2006 Study “Increasing Effectiveness at Professional Firms” The divergent rankings for the “increase perceived value” goal suggests a lack of clarity within professional services marketing. Almost twice as many firms (40.1%) ranked this goal “least important” than those who ranked it “most important” (22.6%). None of the other four strategic marketing goals featured this amount of “disagreement.” This finding reveals that there is a distinct subset of professional service firms whose main marketing goal is still largely “communications,” and whose marketing orientation has not yet matured to more tangible, client-focused -- and measurable -- priorities. Average importance Strategic marketing Firms that ranked Firms that ranked in the last three goals this goal lowest this goal highest years* Define and Identify 2.8 23.6 % 19.1 % Acquire 3.2 9.5 % 18.6 % Retain 3.4 10.6 % 26.3 % Grow Revenue 2.9 16.2 % 13.5 % Increase Perceived Value 1.7 40.1 % 22.6 % Copyright Suzanne Lowe 2010. All rights reserved
    • 2007: A broad cross section of management literature cited problems between marketing and selling, Part 1 Paul Dunay, comment on “Sales Is from Mars and Marketing Is from Venus—A CEO’s Perspective,” Buzz Marketing for Technology, March 2, 2008, http://buzzmarketingfortech.blogspot.com/2008/03/sales-is-from-mars-and-marketing-is.html. Jon Miller, comment on “Sales Is from Mars, Marketing Is from Venus—Podcast,” Marketing and Strategy Innovation Blog, March 4, 2008, http://blog.futurelab.net/2008/03/sales_is_from_mars_marketing_i.html. Gale Crosley, CPA, “The Marketing Director and Business Developer Challenge: Help Them Become a Power Couple!” reprinted with permission from Moore Stephens North America, Networker (Spring 2007), www.crosleycompany.com/cpa- accounting-practice-articles-marketing-director-bd-challenge.asp. Barbara Sullivan and Graham Ericksen, “Bridging the Marketing–Sales Chasm,” Strategy + Business, Leading Ideas Online, December 18, 2007, www.strategy-business.com/li/leadingideas/li00056?pg=all. Cindy Commander, Meagan Wilson, and Jane Stevenson, “The Evolved CMO,” research report sponsored by Forrester Research and Heidrick & Struggles, 2008. Mike Schultz, comment on “Marketing and Selling Make Nice,” Services Insider blog, January 22, 2008, www.whillsgroup.com/pages/30606_marketing_and_selling_make_nice.cfm. Julie Schwartz, “Critical Skills for Services Success: The Services Marketing Competency Report Card,” research report, Information Technology Services Marketing Association (ITSMA), March 2007, www.itsma.com/research/abstracts/OLB070306.htm. Copyright Suzanne Lowe 2010. All rights reserved
    • 2007: A broad cross section of management literature cited problems between marketing and selling, Part 2 Robert Buday, “Integrating Marketing and Business Development in Professional Services Firms: Findings from a 2007 Bloom Group Survey,” research report, Bloom Group LLC, December 2007, 9. Diane Schmalensee and Dawn Lesh, “Making Marketing Indispensable in Service Firms,” research report, Schmalensee Partners, September 2008, 2–3. Gregor Harter, Edward Landry, and Andrew Tipping, “The New Complete Marketer,” strategy + business, issue 48, reprint no. 07308 (Autumn 2007), www.strategy-business.com/media/file/sb48_07308.pdf. Ellen McGirt, “The Most Dangerous Job in Business,” Fast Company, June 2007, www.fastcompany.com/magazine/116/next- most-dangerous-job-in-business.html. Gary Hamel, with Bill Breen, “Making Innovation Everyone's Job,” The Future of Management, Harvard Business Online, November 26, 2007, http://discussionleader.hbsp.com/hamel/2007/11/making_innovation_everyones_jo.html. Amy Kotz, “Desperately Seeking CMOs: Lots of High-paid Vacancies. But Does M Stand for Masochist?” American Lawyer, December 1, 2007, www.law.com/jsp/PubArticle.jsp?id=1196417065551. Janet McColl-Kennedy, Jill Sweeney, and Geoff Soutar, “Marketing Still a Dirty Word to Many Professional Service Firms,” UQ News Online, February 17, 2006, www.uq.edu.au/news/index.html?article=9008. Greg Welch, “Chief Marketing Officer Tenure Improves According to Annual Spencer Stuart Study,” June 1, 2007, www.spencerstuart.com/about/media/45/. Granville Loar, “2006 Accounting Marketing/Sales Responsibility and Compensation Survey,” research report, Association for Accounting Marketing, May 2007, 1. Copyright Suzanne Lowe 2010. All rights reserved
    • 2007: A broad cross section of management literature cited problems between marketing and selling, Part 3 Laura Schreier, “Like Ad Campaigns, Tenure Is Short for Legal Marketers,” Hartford Business.com, November 11, 2007, www.hartfordbusiness.com/news3781.html. Milo Sindell and Thuy Sindell, Sink or Swim! New Job. New Boss. 12 Weeks to Get It Right (Cincinnati: Adams Media Corporation, 2006), 7. Thomas J. DeLong, John J. Gabarro and Robert J. Lees, When Professionals Have to Lead: A New Model for High Performance (Boston: Harvard Business School Press, 2007). Thomas DeLong, comment in “New Challenges in Leading Professional Services,” Working Knowledge, Harvard Business School, posted January 22, 2008, http://hbswk.hbs.edu/item/5773.html). David Maister and Patrick McKenna, First Among Equals: How to Manage a Group of Professionals (New York: Free Press, 2002). Bob Liodice, “Unraveling the Contradictions: Making Marketing Masterful in an Era of Change,” research report, Association of National Advertisers (ANA) and Booz Allen Hamilton, October 11, 2004, abstract, www.boozallen.com/news/659394?lpid=981228. Philip Kotler and Gary Armstrong, Principles of Marketing, 12th ed. (Upper Saddle River, NJ: Pearson Education, 2007). Ranjay Gulati, “Silo Busting: How to Execute on the Promise of Customer Focus,” Harvard Business Review (May 2007), 2, http://harvardbusinessonline.hbsp.harvard.edu/b01/en/common/item_detail.jhtml;jsessionid=NOXX04WL53JRGAKRGWDR5 VQBKE0YIISW?referral=4320&id=R0705F&_requestid=280635. Copyright Suzanne Lowe 2010. All rights reserved
    • 2007: Concurrent to my literature search, I conducted a year of “Doing Things Differently” case studies January - Frank Kittredge and Myra Mengwasser of healthcare consulting firm Noblis (formerly Mitretek Healthcare) worked together to develop a completely new integrated service offering that helped the firm keep pace with their marketplace. February - Tom Bennington of law firm Chuhak & Tecson set "give up" goals when he was stretched too thin, and implemented a personal productivity plan that helped him double the revenue he brought in during the previous period. March – Paul Dunay of BearingPoint demonstrated – by example - what a thought leader can do in a Web 2.0 world. April - Carl Roehling and Susan Arneson of architecture firm SmithGroup led the most thoughtfully planned, well coordinated and deeply integrated embrace of marketing measurement I have seen for an enterprise of their size. May - Bill Matassoni, recently retired marketing leader for The Boston Consulting Group, shared some fascinating insights on where he sees social networking heading, and what this will mean for professional service firms. June - Edward Kasparek of structural design firm Thornton Tomasetti shared his story about how he's helped his colleagues employ never-before-tried techniques to grow their revenues with targeted clients. July - Jim Lanzalotto of talent and outsourcing services firm Yoh used three focused techniques to help his colleagues see the strategic advantages of adopting a portfolio-management approach to Yoh's services. August - Elaine Eisenman, Dean of Babson College's Executive Education program, shared her insights about how executive education prepares professional service leaders to break out of dusty paradigms. September - Ed Gates, Sara Crocker, and Jay Wager of law firm Wolf Greenfield worked together to reinvent Wolf Greenfield’s marketing and sales function from the ground up. October - Jeff Durocher of RHR International reported on the solid marketing and business development results the firm has enjoyed since he initiated a surprising counter-cultural process to distribute the firm's marketing content to clients. November - Edmond Russ of Grant Thornton LLP generated and implemented a plan to create widespread awareness of the firm, and discussed how to avoid slamming into the "marketing budget tackling dummy.” Copyright Suzanne Lowe 2010. All rights reserved
    • The Process Imperative: case studies Korn/Ferry: One of the world’s largest executive recruiting firms. Using Service Offerings as the Catalyst to Integrate Global Marketing and Business Development Initiatives. Korn/Ferry International is one of the world’s largest executive recruiting firms. It used its broad array of services as a lever to integrate marketing and business development functions, and to broaden the firm’s professionals’ too-heavy focus on recruiting as a revenue generator. In doing so, the firm better prepared itself to compete against emerging competitors, and shifted clients’ perceptions of its work from transactions to a valued partner. Holland & Hart: Largest law firm in the U.S. mountain west. How One Marketing Department Became a Full-Service Internal Marketing Agency. Holland & Hart is the largest law firm in the U.S. Mountain West. It simultaneously restructured the marketing function into an internal branded services agency, reconfigured the firm’s marketing and business development processes, and carved out exciting new professional growth pathways for marketing team members and exceeded lawyers’ expectations for value. Perkins+Will: A global architecture and design firm. Integrating, for the Clients’ Sake. Perkins + Will is a global architecture and design firm. It initiated a firm wide internal study to break down internal silos that impeded optimally addressing clients’ broader design needs. This significant internal exploration resulted in setting a groundbreaking new direction for the firm’s future marketplace journey. Moss Adams: Largest U.S. western regional accounting firm. Re-Connecting Marketing and Business Development Back to the Business. Moss Adams is the largest U.S. western regional accounting firm. It developed new marketing and business development integration tools that for the first time helped practitioners connect marketing to selling, and selling to client service. These frameworks and new cultural norms are driving strong revenue increases, even in a downturned economy. IBM Global Technology Services: The world's largest business and technology consultancy. Connecting Marketing with the Needs of the Sales Teams. IBM Global Technology Services is the world's largest business and technology consultancy. Through a set of still-in-process structural and cultural initiatives, IBM’s services division made substantial progress toward erasing the disconnect between marketing’s lead generation activities and the firm’s sales pipeline. This work resulted in better linkage between the firm’s services marketing investment and its sales ROI. Copyright Suzanne Lowe 2010. All rights reserved
    • The Skills Imperative: case studies Haley & Aldrich: One of the U.S.’s top environmental, engineering and management consulting firms. Giving Marketers a Seat at the Table -- and Getting a Leg Up on The Marketplace. Haley & Aldrich created a pathway to a “seat at the table” for its non revenue-generating marketing leader. This structural framework, coupled with the firm’s mindful stewardship of a shared- accountability culture, has contributed to the enterprise’s continued prominence in its sector. Baker Donelson: Southern-United States-based law firm, one of the top 100 largest in the U.S.. Training Attorneys to Market and Sell: Small Steps Equal Great Gains. Baker Donelson developed two new personal-productivity programs to help attorneys grow a sense of accountability and increased skills in marketing and business development. Resulted in directly correlated increases in billings for attorneys who participated in the programs. Ross & Baruzzini: One of the U.S.’s top 50 engineering and architectural firms. Using a Balanced Scorecard and Informal Mentoring to Integrate Marketing and Selling with Client Service. Ross & Baruzzini adapted a big-time performance management tool (The Balanced Scorecard) and combined it with an informal “guardian angel” mentoring program. Jones Lang LaSalle: Financial and professional services firm specializing in real estate services and investment management. Growing a Global Client Base while Promoting Individuals’ Professional Growth. Jones Lang LaSalle overcame marketing and business development silos that impeded optimal value-delivery for clients. Expanded current programs and introduced new internal support avenues that increased the company’s value to clients, expanded its book of business with them, and simultaneously grew individuals’ professional competencies. Copyright Suzanne Lowe 2010. All rights reserved
    • The Support Imperative: case studies R.W. Beck: A western-U.S. based management and engineering consultancy. Integrating Marketing and HR to Turn a Company of Experts into an Expert Company. R.W. Beck’s marketing and HR functions teamed up on the firm’s first-ever performance-improvement and organization-development initiatives to formally frame how professionals could better collaborate and share accountabilities. The endeavor resulted in improved teamwork to market, sell and deliver client services. Randstad: One of the world’s largest temporary and contract staffing organizations. Moving From Cost To Contribution: Integrating Marketing and Finance. Randstad forged innovative formal shared accountabilities and created a new culture of global collaboration between marketing and finance departments, resulting in vast improvements in the productivity of the company's marketing expenditures. Copyright Suzanne Lowe 2010. All rights reserved