Don’t walk into Clearspire‘s D.C. headquarters and expect to be impressed. Spartan furnishings and a simple glass sign adorn the waiting room. You may not believe you are in the right place–the offices lack the posh trappings of an emerging law practice competing against the top 200 firms.
Yet they represent the new face of the legal profession. And they are winning global Fortune 500 clients by focusing not on the quality of their office trappings, but on the way in which they deliver and manage client engagements. Other B2B companies would be wise to learn how Clearspire is changing the client rules of engagement in a traditionally secretive, high touch, low-tech field.
Corporate counsel clients have the right to demand changes. Years after corporations have complained about billable hours and unnecessary fees, most law firms are still deploying industrial age business models to serve their clients. The “hours for dollars” approach to delivering knowledge work simply goes against the grain of delivering value. Professional services firms often promote rainmakers who bill the most hours.
Clients get the short end of the deal in this scenario. They are afraid to pick up the phone because the meter starts running in 1/10 hour increments.
In today’s flat world, pedigreed resumes and upscale, wood paneled offices no longer cement client relationships. Value does.
Let’s establish what I mean by value before we share some of Clearspire’s value secrets. In today’s business world, value is a by-product of several factors: the perception of your brand, your ability to communicate your brand clearly and ethically, and how consistently your brand and delivery mechanisms align to ultimately create a positive client experience. Creating value is one part art, one part science. It takes a blend of great listening skills, the ability to think on your feet, and the courage to be provocative.
Clearspire is committed to creating more value, and putting an end to the law industry’s dysfunctional behavior. Furthermore, they have the technology and commitment to prove it. Co-founders Mark Cohen and Bryce Arrowood invested their own funds and 2 1/2 years of R&D to build a technology platform called CORAL.
Since they launched CORAL earlier this year, it delivers on these promises:
- Fixed project fees, established in advance of the engagement–no billing surprises.
- A highly secure technology platform to collaborate real time with clients and team members, post questions, review briefs, and more.
- Clients receive a project plan that clearly outline how and when a client engagement will be completed.
- Efficiency bonuses are shared equally with legal team members, the client, and Clearspire (the firm) when an engagement is completed ahead of schedule.
- Clients are not subject to “fee padding” to support exhorbitant bricks and mortar offices.
- Collaboration trumps hierarchy. Clearspire’s team members do not boast fancy, formal titles. Everyone is a partner.
As co-founder Bryce Arrowood puts it:
Over the last 100 years, the law firm business model was predicated on billable hours. We felt that there was an opportunity to take that model and turn it on its head by re-aligning the incentives of the lawyers who do the work, the law firm that provides the service, and the clients who consume the work.
Here are four Clearspire-inspired strategies that any B2B company can implement:
- Align your proposals and engagements around a client initiative, not your deliverables and outputs.
- Create services and deliverables that allow your client to re-use the content without re-engaging your firm. Inside CORAL, Clearspire provides client with templates they can re-use in the future.
- Identify the thought leaders in your industry and educate them on your value-based model. Prior to launching CORAL, Arrowood and Cohen started working with the major legal thought leaders across IT, academia, and industry associations.
- Look beyond your services offering to refine your value proposition. CORAL is the hub of Clearspire’s culture and value proposition, not their employees’ resumes and pedigrees or a fancy office.
The verdict has been reached: Antiquated “hours for dollars” business models deserve a life sentence. Clearspire’s solid defense team ensures corporate client budgets and relationships receive the protection they deserve.
Watch my interview with Bryce – 9 ½ minutes:
Click the image above or here to watch the video.
Lisa Nirell helps companies grow customer mind share and market share. Since 1983, Lisa has worked with Sony, Wells Fargo Advisors, Adobe, Microsoft, and hundreds of entrepreneurs in nine countries. Lisa is also an award-winning expert speaker, FastCompany expert blogger, and author of the acclaimed EnergizeGrowth® NOW: The Marketing Guide to a Wealthy Company. Download your sample chapter and business energy booster survey at www.energizegrowth.com.
This post originally appeared on fastcompany.com.
[Image: Flickr user State Library of Victoria Collections]
copyright 2011, Lisa Nirell. All rights reserved.
 One of my close friends provides image consulting and communications training to corporations and professionals in career transition. She is regularly bombarded with calls from low level gatekeepers in Human Resources, Finance, Training, and other non-revenue producing functional areas.The gatekeepers’ job is to turn your company into a commodity. They are “tasked” with getting quotes from trainers, or to gather price quotes for their esteemed RFP process. Most make you feel about as warm and fuzzy as your consultation with an IRS auditor.
If you have been dragged into the land of commoditization, your job is to escape as quickly as you can. It is a dubious place to live with marginal value or spark.Things will not improve–unless you are willing to experiment with customer-centric marketing ideas to uncover category-killing innovations. With some determination, planning, and a bit of luck, you may just position yourself to become the next Apple in your industry.
Let me illustrate why this is the ideal time to consider customer-centric marketing. Most of your competitors are still hoarding cash and focusing inward. Worse yet, they may be buying into the media naysayers, who are claiming that the U.S. is ostensibly in the midst of a “lost decade.” You can’t make this stuff up–I heard it on the BBC this week (I guess the BBC reporter forgot that Facebook, Google, Apple, Zappos are defining a new decade. But I digress).
I recently interviewed two executives who live and breathe customer centric marketing strategies: Chris Golec, CEO of DemandBase and Jim Bampos, VP of Customer Quality at EMC Corporation. This roundtable recording will provide details.
Here are our collective recommendations to help you engage your customers in your commodity “escape plan”:
1. Accept the fact that sometimes, your products and services cannot escape the commodity trap. The only remaining area where you can outpace competition are your relationships with customers, vendors, your employees, and your community. Zappos, now an amazon subsidiary, does this very well.Their culture is obsessed with delivering fun, weird, memorable customer experiences. Golec reported that DemandBase’s unique customer relationships and customer success program have enabled them to discover an unmet need, which resulted in a new product idea that now comprises nearly 90% of their total revenues.
2. Track how often you put your customer first while making strategic and marketing decisions. Customer-centric cultures share one thing in common: the entire company is oriented and incented around customer success, and a single customer metric shapes behavior.
3. Be mindful of end of quarter pressures to close business at any cost. They will undermine your customer-centric efforts and core competencies. Whether you are a startup or a publicly traded company, this can become a huge obstacle to long term success. Avoid succumbing to unique customization requests. Jim Bampos indicated that EMC mitigates this risk. “We take a holistic view of what is most important to the customer, then we tie it back to each business unit. The proof points are if the business units are using our customer metrics to drive business decisions.” While it is important to be responsive, it is even more critical to know your core strengths–or, to quote Jim Collins, your hedgehog.
4. While enrolling customers in key decisions, and gathering valuable feedback, monitor how your stakeholders going to take action on the data. Your customers want to know that their input is valued beyond the interview or advisory board discussion. EMC distributes mirror surveys to the entire organization to assess employee’s perception of how well EMC is managing the customer experience.
5. Get creative on metrics. If you are truly committed to building a customer centric culture and marketing plan, look beyond customer renewal rates. Golec indicates that time to value is a priceless measure: “We track the time from when we close the sale how long it takes before they have a measurable benefit from our technology. The minute that happens, we improve our relationship with that account.” Find a way to temper sales’ innate desire to drive a bigger sale and boil the ocean.
6. Focus your customer centric efforts on your ideal customers. Any program will fail if you administer programs across all customer segments and try to serve anyone with a pulse and a budget.
7. Let customers know you are building a customer-centric company. They may just have a new idea on how you can further strengthen the program.
8. Build social media incentive programs for your initiative. EMC is launching several new online forums where they will announce the agreed upon action steps generated from from their Voice of the Customer programs.
Gatekeepers play an important role in managing expenses. That doesn’t mean you have to live in their world.These strategies will help you escape their commodity trap.
Lisa Nirell helps companies grow customer mind share and market share. Since 1983, Lisa has worked with Zappos, BMC Software, Adobe, Microsoft, and hundreds of entrepreneurs in nine countries. Lisa is also an award-winning expert speaker, FastCompany expert blogger, and author of the acclaimed “EnergizeGrowth® NOW: The Marketing Guide to a Wealthy Company.” Download your sample chapter and business energy booster survey at www.energizegrowth.com.
[Image Source: respectalliance.com]
This post originally appeared on fastcompany.com.
copyright 2011, Lisa Nirell. All rights reserved.
 Recently, on television, I caught an old episode of the All in the Family television comedy series. It’s still interesting to think about the iconic character, Archie Bunker, and his attitude toward race and social change.
My sentiments about Archie evolved over time. When I first learned of the concept for this situation comedy, I agreed with observers who opined that it would trivialize the serious topic of racial prejudice and set back recently gained progress in the area of race relations. My initial viewing of the show affirmed my concerns.
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 When your biggest customer calls with an emergency request, do you dial 911? Chances are you are setting off unintended fire alarms – and causing your profits to lose altitude.
I met Shane, a dubiously anointed “star salesperson,” on a client assignment in San Diego. He piloted the biggest customers. When I worked with the General Manager of this $40M software division—his boss—I noticed how Shane could turn the entire support and customer service organization into a tailspin with one email. I cringed when I witnessed how his knee-jerk reactions drove adrenaline levels to an all-time high. Things became so heated that the CEO ultimately reassigned him to another division. In fact, he committed an even greater sin: he promoted him to VP of Sales.
Over the years, Shane’s General Manager was equally to blame. He fostered a customer-driven culture. And, as a B2B business leader, you may be unconsciously acting the same way. This behavior is guaranteed to stall your growth and burn out your best people.
First, let’s draw a distinct line between customer-focused and customer-driven cultures. Think of customer-driven companies as those firms who will go the extra mile for every customer, no matter how large or small. They allocate their best resources to every account. And the founders probably invest at least half of their time with customers. Read on for a more exhaustive list.
Conversely, customer-centric companies put customer needs (latent and overt) front and center when making important growth decisions—not all decisions. They treat clients in accordance with their values. But they are unwilling to sacrifice their relationships and principles to make one more sale.
Contrary to common wisdom, every B2B firm is not in the customer service business. My auto mechanic is. And guess what? If they mess up my new Audi SUV, I will complain and find another one.
Here are common traits of client-driven cultures. If more than three ring true for you, it may be time to re-visit your true purpose and ways of operating:
- Your clients comprise most of your social circle.
- At least 20% of your revenue is derived from one large client.
- You deploy an arbitrary resource allocation process.
- Your delivery resources are at every beck and call of the sales organization. This encourages artificial “rush” jobs accepted and done at the expense of Developing.
- Principals are deeply involved in delivering service and making sales calls. Every project is unique because clients demand changes, solutions, and change orders—at no extra charge.
- You encourage personal boundary “erosion.” After-hours calls and pages are worn like a badge of honor. Your team cannot enjoy a meal without their smart phones beside them to harass their dining companions. If your sales, marketing, and support people are encouraging your clients to call them on a 24 x 7 basis, and they sleep with their smart phone at bedside, then you are a client-driven culture (not to mention dysfunctional. Would you want to be married to that person?)
- Suit vs. creative mentality. According to David Baker, founder of Recourses and author of Managing Right the First Time, “’Suit’ is shorthand for account executives. In a business that’s focused too much on saying ‘yes’ to clients, they often make promises that the creative types or technicians have to fulfill, cleaning up after the suits.” This will kill profits and morale in a heartbeat.
Imagine if my local airport – Washington National– were run this way. Any self-appointed “important person” would fight to control their own runway. The gates would admit passengers on a first come, first served basis. Air traffic control would be rendered useless. The inmates would indeed be running the asylum.
Shane cannot be trusted roaming the airport terminal without adult supervision. Nor are your teams if you have given them carte blanche to rule the airways with customer driven behaviors. Act now before the controllers (your customers) go on strike.
Lisa Nirell helps companies grow customer mind share and market share. Since 1983, Lisa has worked with Zappos, BMC Software, Adobe, Microsoft, and hundreds of entrepreneurs in nine countries. Lisa is also an award-winning expert speaker, FastCompany expert blogger, and author of the acclaimed “EnergizeGrowth® NOW: The Marketing Guide to a Wealthy Company.” Download your sample chapter and business energy booster survey at www.energizegrowth.com.
[Image: Flickr user Ed Yourdon]
This post originally appeared on fastcompany.com.
Copyright 2011, Lisa Nirell. All rights reserved.
 As I sat across the City Club table from Mike (whose name was changed to protect his identity), I realized the economic recovery was not yet in full swing. And the stress and strain of just making a living is affecting experts at all levels.
Mike, a 20-year veteran of organizational development and nationally-known executive coach, shared the current state of his business. I set the meeting because a mutual friend suggested we connect. As a perennial connector, I wanted to know how I could support his company’s growth. I asked him what kind of ideal client he was seeking. Mike’s response surprised me.
“Any company who will hire me.”
Really?
Mike was more stressed about his future prospects than I expected. Here’s a top notch business advisor with a established D.C. following who is lamenting the challenges of marketing in this economy. How is he coping? He is taking on government contracts at a low hourly fee. He regularly donates his keynote speeches and seminars to trade associations in hopes they will someday compensate him for his time. He’s still waiting. Sadly, he has reverted to the “hours for dollars” model that I vehemently oppose.
The pressures of coping with today’s mercurial economy has not averted professional services firms and B2B companies (except for the remoras who have attached themselves to speedboats such as Google, Apple, Facebook, and Twitter).
Riding out the recession will take more than a good product or service and a relentless commitment to marketing. It’s going to take intestinal fortitude. Here are some approaches that my best clients have taken to achieve all three:
1. Develop a written bridge plan to eliminate less than ideal clients.
Mike would serve himself well by developing a small network of less seasoned, high potential coaches and referring his clients to them while seeking out projects that bring out his gifts and talents. A conceptual bridge plan doesn’t count and seldom gets implemented. Activate your brain by documenting your plan and share it with trusted colleagues.
2. Find your center. Meditate.
My friend Steve, a brilliant 35 year business veteran and two-time CEO, meditates daily with a long hike in nature. I joined a year long mindfulness meditation group with Jonathan Faust in Washington, D.C., a city I affectionately call “the capital of human suffering.” Practice yoga. Even ten minutes a day will make a difference in how you cope with the global gravitas that surrounds us.In challenging times, over-achievers tend to over-invest in over-doing. Balance out those tendencies with some over-being time.
The U.S. Department of Veterans Administration has invested in a number of mindfulness programs to help thousands of veterans suffering from PTSD. If Western bureaucracies the size of the DVA are willing to try new modalities, why can’t you?
3. Get serious about referrals.
I am amazed by the number of seasoned executives who are afraid or ashamed to ask for them. Your clients WANT you to succeed. My recent survey of 100 business owners revealed that one of their top three challenges is generating more referral business. Nearly one-third indicated this was a serious concern. Don’t let this issue persist. Develop an outreach program to thank your past clients for their support and faith in your company’s abilities. Contact at least three clients a week. Prior to speaking with them, research their LinkedIn connections and volunteer affiliations. Then ask them for very specific introductions. Set a specific time to follow up within two weeks. This will ensure they make the promised introductions. Rinse and repeat.
Breakfast with Mike gave me a wake-up call. Let’s hope these business recovery accelerators shield you from self-proclaimed sugary social media panaceas and empty marketing calories.
Lisa Nirell helps companies grow customer mind share and market share. Since 1983, Lisa has worked with Zappos, BMC Software, Adobe, Microsoft, and hundreds of entrepreneurs in nine countries. Lisa is also an award-winning expert speaker, FastCompany expert blogger, and author of the acclaimed EnergizeGrowth® NOW: The Marketing Guide to a Wealthy Company. Download your sample chapter and business energy booster survey at www.energizegrowth.com.
Copyright 2010, Lisa Nirell. All rights reserved.
[Image: Google PicassaWeb]
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