Let’s talk “business development” with Tony Stephens, Partner at Business Health.

Vue:  Tony, you have seen the inner workings of many professional services firms.  What’s the biggest difference you see between those firms that do business development well and those firms which struggle with business development?  Is it attitude, branding, tracking, staff structure, staff remuneration or something else?

Tony:  I think the main difference is implementation. The old saying “walk the walk” or “talk the talk” is very relevant in business today. A lot of businesses struggled in the GFC, many because they forgot to implement good business practices and relied on an increasing market and therefore (in the large part) increasing revenue.

Vue:  Your firm works with professional services advisers around the world including the US and Australia.  What differences do you see in business development styles by advisers in the US and advisers in Australia?  Is there much difference?  Do Australian’s do different things or have a different approach?

Tony:  We are constantly amazed at the similarities between Australia, the US and South Africa in the way business is done. Our HealthCheck analysis consistently shows the business practices that what drives profit are the same in each country. Australian businesses are ahead if the pack in many facets, primarily because of a harsher regulatory framework and the need to change and adapt to tougher conditions.

Vue:  You have a huge database of client survey results.  Got anything in there you can share with our readers about client referrals?  Some industry benchmarks perhaps?

Tony:  Over 50,000 clients have told us some pretty interesting things. 87% of all clients say they WOULD refer their adviser, 56% of clients say they HAVE referred their adviser. Pretty interesting statistics I would think, especially when experience tells us advisers do not get anywhere near these numbers in actual referrals. How clients refer is obviously a key issue to be addressed.  [Vue note:  We couldn’t agree more – clients are willing to refer but often not able.  And client’s need education that a “referral” is not just casually mentioning your name or handing over a business card].

Vue:  I know this will be tricky, but what’s one of the top differentiators between a top 10% firm and a middle of the pack firm (in terms of profit)?  Are there a few single issues which stand out or are the top firms implementing better across the board?

Tony:  The two key profit drivers we see is business planning – not just having a plan but working it on an ongoing basis, and client communication – proactive and personalised.

Vue:  What’s the hardest part of implementing or executing a business plan?  Once a firm has it’s business plan written, in what areas do you typically see a firm struggle with execution?  Where does the plan often fail to get executed?

Tony:  I don’t think there is a common area of failure of execution. I think the common failure is that there is not a business plan review process in place to make sure the agreed actions are implemented and very importantly what were the results. We all get side tracked with new ideas – a process to ensure any and all implementation is a key component to success.

Vue:  Time for your “stadium pitch”.  You are standing before 30,000 people and have 30 seconds to get them to come and have a coffee with Business Health.  You step up and say…

Tony:  One of the great things about being a partner in Business Health is that we get to see a lot of successful businesses all over the world. We see what people say they do and we see what people actually do. We see what works and we see what doesn’t work. If you want an honest assessment of how your business compares you need to talk to us.

Vue:  Thanks Tony! You can check out all the business planning, coaching and strategic advice available to clients of Business Health at www.businesshealth.com.