Category Archives: Professional Services

Ambiguous Marketing Budgets lead to… ambiguous results

Have you ever heard the rant of a financial executive who is fuming because marketing ROI is so hard to define? The lament is usually that “branding” is not enough–that some quantifiable return is desired, but no one really pins it down. Some argue that revenues are the only true barometer. Others feel that smaller yardsticks are better–number of new clients, number of proposals made, number of inbound calls, etc. But…what about % of proposals won, % change in inbound calls, etc to provide comparative data?

Yet…”return” still has to be measured in comparison to investment. In many cases, the investment amount is, to quote Churchill, “a riddle, wrapped in a mystery, inside an enigma.” Why is this so? In many privately owned businesses, it is because marketing dollars are enshrouded in expense reimbursements, dues and sponsorships. Actual agency costs, advertising spend, etc are sometimes separate line items on the income statement, but are often rolled up into an aggregate. In order to have credibility with the financial (& equity) folks, we as marketers need to ask for more detail. It is in our best interests to know travel & entertainment, training, and similar expenses that are charged by managers/executives and reimbursed but not clearly demarcated as marketing costs. However, because we are not considered part of the brain trust, we can be excluded from such conversations/communications.

What's Your Measurement?

 

Once we are able to acquire access to the true marketing financials, we can perform an ROI analysis more effectively. (I prefer to describe this as an “ROM.”) Then, tradeoffs can be evaluated. There may be some in the organization who are unwise in their expense management to the point that allowing them to ring up reimbursable costs is not an investment at all, but a distraction from effective, accountable marketing.

Having the frank conversation with the top financial executive/business owner(s) can set the stage for your voice to gain credibility. No longer may you be perceived as the “soft and fuzzy” management team member, but rather a strategic contributor to business performance. If you are savvy enough to learn what your industry standards are for marketing as a percentage of costs/revenues, then you can help set the budget requisite to drive growth and carve out better market share.

As the marketing budget becomes a management accountability tool, results are easier to predict. Sensitivity analysis can then yield insights into the levers that drive revenue performance. Congratulations–you are then on your way to concrete rather than ambiguous conversations and may soon find that the frustration of not being heard begins to fade away…!

The Internal Customer’s Perspective

This week, we are participating in the Capital Associated Industries’ HR Management Conference at the McKimmon Center in Raleigh, NC. The theme is “Crushing Your Competition With Culture & Talent.” Several speakers have spoken about the need to transform the culture within our organizations to become more engaging. Engagement “management” is a huge topic for HR professionals, as we live in a day and time wherein employees’ minds are engaged/distracted by so many other forces. One of the speakers in particular spoke about the metrics for fun companies versus boring places to work.

While “fun,” may be a stretch for your organization, certainly, we can agree that “boring” is to be avoided at all costs. In between the extremes is where most of us live and work. The ultimate challenge is to find a way to treat the workers within our companies as customers–in doing so, we care about the unique interactions we have with each and become intentional in such.

Engagement takes collaboration!

Marketers think about the messaging, form of delivery, and psychographics of customers all the time. As HR professionals, we are challenged to do the same–both in our direct interactions and in the environment we help foster. There are always a zillion things that fall to our charge that distract us from this type of intentional awareness of what we’re doing for establishing culture. Slowing down to think thoughts like those below–and encouraging others to do so–can inject care and engagement into work life.

  • how will she perceive this communication?
  • is email the best way to share this information?
  • am I the best person to bring this topic up?

Treating our supervisors, peers, and subordinates as target markets changes the dynamics of what we do dramatically. We develop strategies per “market segment,” tactics within each strategy, and “solutions” for problems we did not even know existed until we adopted this approach. Bon chance in making this concept work in your organization!

Your Firm’s Marketing is Unaccountable

Small firms (CPA, law, architects, engineers, etc.) often cannot afford full-time marketing staff. If there is full-time staff, budgets may limit the caliber of the person manning the position.  As a result of the lack of an executive, full-time presence, most firms subcontract with outside agencies for some or all of their marketing.

Unfortunately, the outsourcing of this key business function leads to marketing that is not accountable to the goals of the business. Many agencies are specialists in one area and weaker in others. Consequently, the marketing strategies that are often pursued are not integrated and, therefore, unable to achieve results that are superior and sustainable. In addition to the lack of breadth in approach, there is also likely a lack of measurement as to how successful the programs have been.

Marketing can be one area of the business for which metrics are hard to establish, monitor, and enforce. Internally, your leadership team needs to determine your goals before retaining an agency. Is reputation management your main concern, or is lead generation the focus, or are you trying to develop brand presence in a new niche? Starting with the end in mind will drive your goal setting. Break the goals down into intermediate measurements. For instance, if a firm is looking for more leads and you know how many leads are desired, then establishing a desired cost per lead generated seems like a reasonable measurement. An intermediate measurement may be determining how many leads are desired. Or, the size of the marketing budget. (As a general best practice, it is encouraged that you think in terms of 1-2% of revenues for marketing budget.)

After the metrics have been developed, then it is time to contract with an agency. Interview multiple ones–even if one of your partners has a relationship with a principal in one firm in town. During the interviews, challenge the agencies to provide you a proposal as to how they could meet your goals, including budget. Ask them if they would be willing to provide reports on progress against budget and step aside if they do not help you meet your goals.

Adding accountability into your marketing will yield appreciable benefits over time. The ability to anticipate the outcome of certain marketing actions becomes a competency that drives business performance. Sensitivity analysis can then be applied to determine how minor tweaks to the mix will affect the overall outcome(s). Get started today. Don’t wait until you are less busy. You will be glad you did!

How “professional” is your services firm?

Whether the billable workers are architects, CPAs, engineers, lawyers, or management consultants, there is a certain prestige that comes with being a professional services firm. The credentials on the wall, the exam that had to be passed, and the fees that can be charged for hourly work all distinguish these white collar technicians from those who procure their insights and performance of tasks often related to compliance.

In many of these firms, those without the primary certification–even those working at a director level–are misfits, not considered “professional” in their discharge of duties. In fact, the HR, marketing, management accounting, and similar roles are as accomplished in their respective fields as the billable personnel they serve. A healthy mutual respect would likely ensue and firms would benefit from the same array of expertise disciplines as a more general, “non-professional” services organization.

It is not uncommon for training and development, for instance, to be isolated to continuing education focused on technical skills to the exclusion of the softer, intangible skills that make for better managers, business developers, client relationship nurturers, and the like. When professional development includes fostering the “non-professional” competencies within the suite of requisite skills and roles of “professionals,” then services firms will have evolved.

From talent management and succession planning to emotional intelligence and employee engagement, there’s much to be gained from professional HR. Consultative skills, networking nuances, intentional brand building and thought leadership best practices can be modeled by the business development (or marketing) professional. And so on…

The time has come to either staff for these professional roles in house (which the regional and national firms are doing), or outsource the function on a fractional basis to competent providers (which needs to be done by everyone else.) Often,  the internal resource, regardless of firm size, is overtaxed perpetuating a stream of work tasks that existed before (s)he arrived and cannot carve out the time to address internal growth and development needs.

Find a solution!