| We know we need to. We think we do it. In reality, | | | | So how do you identify more skill sets to refine your |
| far fewer IT professional services firms are | | | | differentiators? |
| differentiated than you might think. | | | | - Do an analysis of revenue for at least the last 2-3 |
| The Issues | | | | years. Look at the number of projects and income |
| The potential consequences of not achieving | | | | by technology, industry and business function. Look |
| differentiation include: | | | | for trends over time. |
| - Stagnant growth relative to sales and revenue | | | | - Determine where you have been most successful in |
| - Participation in more RFPs than sole-source | | | | terms of profit, client satisfaction and knowledge |
| opportunities, because we have not separated | | | | gained. |
| ourselves from the competition | | | | - Identify where you have the opportunity to grow |
| - Increased pricing pressure and resulting lower gross | | | | in your current (and planned) markets - size of |
| margins, because of more competition | | | | industries, breadth of functionality, follow-on |
| - Greater challenges in lead generation, because | | | | opportunities, prospects, competition, etc. |
| prospective clients are less able to single out our | | | | - Talk to your clients to see what they need and |
| companies for the services they need | | | | determine their willingness to use you for other |
| Having 30 years experience in this industry with the | | | | projects. |
| last six being a business growth strategy consultant | | | | 3. Select the areas of specialization with the best |
| to firms like yours, I can attest to the fact that | | | | upside potential for your business. Commit to them |
| most of us sound alike. | | | | with the idea that eventually you will sell only those |
| - "We have in-depth technical experience in | | | | services and turn away from non-specialty work. |
| __________" (fill in the blank). | | | | Incorporate your specialization into your corporate |
| - "We provide business solutions". | | | | strategic plan, and sell it internally across the |
| - "We have the best (most-talented) team around". | | | | company. |
| - "We deliver quality on time and on budget". | | | | 4. Empower marketing to develop new or enhance |
| - "We understand our clients' industries and | | | | the following: |
| businesses". | | | | - Messaging for the marketplace - standardized |
| - "We provide value to our clients". | | | | verbiage describing your company and services, |
| - "We exceed our clients' expectations". | | | | elevator pitch (i.e., your 20 second, 1-2 sentence |
| These are just a few of the comments I hear | | | | statement which generates interest to hear more), |
| repeatedly. Generally they are true. If not, our | | | | and key words to be used for Internet search |
| companies would not still be in business. | | | | engine optimization (SEO) |
| Compounding the differentiation issue is the | | | | - Standards for formats enabling you to present a |
| inconsistent manner in which companies deliver these | | | | consistent/common look and feel across all |
| messages. When asking a company's leaders and its | | | | documentation |
| top staff how they would describe their firm, you | | | | - Collateral materials including - corporate brochure, |
| typically get as many different answers as there are | | | | service offering one-pagers, case studies, and |
| people in the room. If this audience is not in | | | | testimonials/references |
| agreement, how do think the marketplace views the | | | | - Website(s) |
| company? Also, this lack of internal clarity about the | | | | 5. Ensure that all written communication depicts your |
| business strategy can cause conflicting messages to | | | | business accurately and succinctly. In many cases this |
| show up on the company website and in marketing | | | | is where true differentiation is not communicated well |
| materials further confusing the public. | | | | enough to convince the marketplace. Hire an outside |
| Why don't we differentiate our businesses better? I | | | | business writing expert, if you don't have the skill |
| often hear: | | | | internally. It is a smart investment. |
| - "We are differentiated". | | | | 6. Train all company personnel to ensure your |
| - "We don't have (or make) time". | | | | messages, differentiators, etc. are delivered |
| - "We don't have the skills". | | | | accurately and consistently. Remember that |
| - "We don't know how to do it". | | | | everyone in your company markets and sells for you |
| - "We don't have the discretionary funds to do | | | | either directly or indirectly. Equip them to do it well. |
| marketing". | | | | 7. Ensure you have the skills to sell and deliver your |
| For the long-term health of our businesses, we | | | | specialized work. This includes sales people, |
| cannot afford to sweep differentiation under the rug | | | | technology consultants, subject matter experts and |
| for the reasons discussed earlier. | | | | project managers. |
| How to Differentiate Yourself | | | | 8. Participate in industry and/or business function (e.g., |
| Differentiation starts with a commitment to | | | | accounting or human resources) trade associations. |
| marketing. This is very important. Many firms consider | | | | This is where you begin to get the "When I need |
| marketing a cost center. You should think of it as | | | | _______________, I think of |
| part of implementing your strategic plan, not as a | | | | _______________" blanks filled in to your |
| company department. Without marketing you cannot | | | | advantage. |
| achieve two of your key business objectives - | | | | 9. Continue to build channel partner relationships. Be |
| differentiation and qualified lead generation. | | | | selective - focus on fewer partners with relevance in |
| Specific activities or steps to take include: | | | | your chosen specialization. Being one of the best in |
| 1. Ask yourself a number of open-ended questions: | | | | your areas of expertise results in more leads coming |
| - So what is it that really makes your company | | | | to you from third parties, which is a cost-effective |
| different or unique? | | | | way to leverage your marketing. |
| - Are you in your current business space (industry, | | | | 10. Collect and evaluate information periodically on |
| customers, technology, etc.) by plan or by | | | | how your company is doing and make adjustments, |
| circumstance/accident? | | | | as necessary: |
| - What does the marketplace (prospects, clients, | | | | - Financial performance |
| vendors, competitors) think about your company? | | | | - Marketplace perceptions starting with clients, then |
| Remember "perception is reality". | | | | prospects and vendors/partners, if possible - what |
| - What do you really know about your clients' | | | | they think is what counts |
| industries? Their businesses? | | | | - Web statistics - website hits, website ratings and |
| - What is your company known for? | | | | search engine/key word effectiveness |
| - When do your clients or prospects think of you? Is | | | | - Reputation analysis - comments on blogs, forums, |
| it what you want them to think of you? Ultimately, | | | | Twitter, etc. |
| how would you like them to respond to this | | | | These suggested steps require proactive, dedicated |
| statement? "When I need ____(type of | | | | time and effort. And it is not a one-time project. You |
| service)____, I think of ____(your | | | | should review the differentiation process annually as |
| company)____." | | | | part of your business planning and budgeting. If you |
| 2. Analyze your areas of business specialization based | | | | do this effectively, you increase your chances for |
| on three components - technology, industry and | | | | long-term marketplace differentiation and growth. As |
| business function. Most IT professional services firms | | | | an added benefit, you will have more success with |
| start with technology expertise and continue to be | | | | recruiting and retention of staff, one of the ongoing |
| horizontally focused for the long-term. The issue here | | | | issues in our industry. |
| is that over time one area of specialization is not a | | | | Can you afford not to differentiate your business? |
| differentiator. For example, Microsoft has thousands | | | | Assume your competition is and will actively drown |
| of partners that provide SharePoint services. Thus, in | | | | out your messages, if you do not proactively stay |
| any market the competition is significant based on | | | | ahead of them. |
| this expertise alone. | | | | |