As we approach the end of the year, I go back to all the notes I keep as I talk to prospects, complete client projects, answer questions via email, and other bits of observations I jot down, and I see if any patterns emerge. Today, I'll share some of the challenges an overwhelming majority of consultancies struggle with.
As always, I hope I can create a bubble of calmness with my bi-weekly ‘think piece’, a place of stillness in the face of everyday stress. A chance to reflect on what really matters in your consulting work.
Enjoy reading,
Luk
Client Learnings
Client questions and case studies from the consulting frontline.
The 5 main challenges almost every consultancy struggles with
In the past couple of years, I’ve audited the positioning and business development models of 50+ consultancies. In addition, I had in-depth conversations with 100+ leaders of consulting firms of various sizes on the challenges they face, trying to get to the root of the problem.
There are many similarities in the struggles consulting leaders report having in their business development efforts. The ones I’d like to focus on today have been coming up most often and most prominently.
More often than not, I discover that the problems consultancies come to me with are not really superficial. It rarely comes down to picking out the wrong social media channels for marketing campaigns or failing to track a metric or two. Usually, the problems consultancies come to me with are symptoms of more significant issues embedded in everything they do.
And here are the five big underlying challenges that I witness most consultancies struggle with and my advice on overcoming them.
Most of the time, consulting leaders reach out to me because their firms are experiencing problems: their business growth has stalled, or they keep having to offer discounts to win projects, or they find themselves going through tedious client recruitment processes where their consultants have to follow up on their pitches multiple times.
However, I also spend much time talking to firms that do not need my help. They are hugely successful – they have high profits, their consultants are known as experts, they have low turnover, etc.
Here, I share a story of a mid-size consulting firm I got in touch with not too long ago. Let’s call it Consultancy X. Consultancy X is VERY successful. I will explain why.
How do buyers of consulting services discover relevant firms?
Where does the buyer journey start? Usually, it's a work-related topic – an issue on the executive's mind that requires some information and/or expert support.
And where do these executives go for work-related topics? According to research, on a probability scale of 0-10:
8.1 probability of asking peers and colleagues for recommendations
7.9 probability of doing a general web search
7.1 probability of listening to an expert speak on the topic
All these probabilities lead to the same types of firms – those that are subject matter experts and have successfully established a reputational footprint for being such experts.
Consultancies that do not build up their visibility among their target audiences will never be at the top of the mind of buyers' colleagues or peers. They won't look very professional when prospects google the consultancy. They will not be discovered through their expert presentations on relevant topics – because they have none.
It's really as simple as that. No reputational footprint = no buyer interest.
🅾️ Assessing the Consulting Firm's Market Positioning
Many consulting firms make the same mistake – rushing to pitch their services without putting enough effort into their positioning.
It always seems so counter-intuitive to me. It makes growing a consulting business so much harder, such a poor positioning.
Without a strong market positioning, you do not have a proper framework to organize your priorities, client work, and business development. Moreover, your target market has no clear idea of what you do, how you do it, and why what you do is of value.
I can help you assess the consulting firm's strengths and the areas for improvement. So take a piece of paper and a pen and return to the drawing board. Get the foundation right, and the rest will follow.
My assessment takes you through a rigorous process of diagnosing, researching, assessing, and comparing the touchpoints that connect your consultancy with your ideal audience for the years to come.
If you don't assess your positioning every 2 to 3 years, you might have missed a few things on the market.
🅾️ In-company business development workshops for consultancies
Are you seeking help to build and grow the foundations for a solid business development footprint in consulting?
I can help with short virtual interventions, 2-hour virtual workshops, half-day or full-day classes (virtual or live in West Europe), or 2-day boot camps in a retreat format.
🅾️ Soon to come (early 2023): a new social media support service for owners, leaders, or partners of consultancies
I always get that question, "Luk, could you help me with my thought leadership and social media?"
Well, as of 2023, I will be able to support these requests. With a group of experts, we are developing a brand-new service to build and help manage the social media of people like you...on popular demand.
Curious? Interested? Please send me a mail: luk.smeyers@thevisibleauthority.com.
