Anyone who has ever worked in a professional firm knows how important leverage is in achieving strong results for both the firm and clients. Leverage allows work to be assigned to people with the most relevant skills at the most appropriate cost base. And it’s this which achieves greater value for clients and profit for the firm.
In recent years, the development of technological solutions to manual workflow has resulted in many routine compliance processes being streamlined or even eliminated. Remaining compliance tasks can to a large extent be systemised and outsourced to people who can complete these tasks more efficiently than using internal staff.
Do you outsource services and tasks to compliance and administrative experts? Have you seen an increase in your capacity? What have you done to take advantage of this?
With the increase in available capacity for growth enabled by leverage, it’s surprising that many firms are still struggling to create new value through the provision of consulting and advisory services to their clients. In essence, the partners and managers of many firms are simply doing more of the same. With increasing price pressure on compliance services, it’s likely that firms that are unable to break the compliance cycle will continue to experience declining profits.
How successful has your firm been at breaking out of the compliance cycle? What can your firm do to start adding real value to clients and to the firm?
It’s essential that any staff with direct client responsibility focus on developing those relationships rather than getting bogged down with compliance and production. This means delegating technical and administrative tasks at a compliance level to free up more time for advice.
Often, the key roadblock to achieving leverage is the behaviour of managers and partners, learnt through years of engagement with clients at a compliance level. Discipline is needed to think differently about traditional roles and responsibilities.