By Lee W. Frederiksen, Ph.D.

As you may know, Hinge conducts regular research on professional services firms and their clients. We are just finishing data collection on a national study aimed at identifying professional services firms that are growing fast, even in this challenging economic environment. The good news is that there are some impressive performers.

Today, I’d like to highlight one such company, a technology firm called Invizion. They operate in the GovCon space and are focusing on the security market.

Their top management team includes founders Steve Johnson, George Washington and COO Lauren White. Consistent with many top performing firms, these folks are experienced players with solid track records and experience.

In the interest of full disclosure, I should point out that Invizion is a client of ours. I confess that I admire this company, and I believe they would be successful even without our help. Why? We’ve researched professional services firms across North America. And based on our profile of the most successful professional services firms, Invizion does a lot of things right. Let me give you three good examples:

1. They have brought on very high quality people, both employees and business partners. They spend senior management time and money to develop and maintain a carefully conceived corporate culture. This is very important for a company with a widely dispersed, culturally diverse workforce — a characteristic shared with many government contractors.
2. They understand that their brand has to reflect their strategic focus. Like many high performing firms, they are clear about how they want to be perceived — and they do what it takes to support that perception. From website to office space to choice of teaming partners, they push for consistency. It’s not easy to refocus a high growth firm, but a well-calibrated brand helps keep high performance firms at the front of the pack.
3. They are willing to take calculated risks and innovate. These initiatives build on core strengths and reinforce their brand positioning. Many companies are content to play it safe in an uncertain economy. But playing it safe comes with its own risks. Do all of their initiatives pay off? Of course not; that’s why they are called risks. But when risks work out, they can open up tremendous opportunities.

Invizion expects to continue growing this coming year. We’ll be right there with them, watching and learning.

By Beth J. Bates, New Media Special Correspondent

Everyone loves a good story, especially when it’s about them. Stories are full of life and fuel the imagination. They enable your company to connect with its customers on a personal level. That’s how connections are made.

Corporate storytelling is becoming a popular and effective way to share what a company, its employees and its customers are doing. Done right, it can build emotional interest and trust.

There are a number of ways to present your corporate story. Here are a few ideas to get you started.

• Identity stories connect your customers with your brand. They like to know why a company came to be or how you were able to grow a company from a small kitchen-run business to a large corporation.
• Customer stories enable the people who use your service of buy your product to share their experiences. Stories might include how your product changed their life or how they used your service to better their community. People like to share good news and empowering them to connect helps build validity in your brand.
• Product stories explain how your product came to be. You don’t have to give away trade secrets, but customers like to know why a product came from and who made it happen. It puts a human face on your product, and customers like to connect with people.
• Internal stories are a great way to share your company’s greatest assets — your employees — with the rest of the world. Many of your employees, for instance, are probably doing great things within the community. They are volunteering and helping folks who are less fortunate. That can be a great story.

So, encourage your people and your customers to tell their stories … and you just may live happily ever after.

Beth J. Bates consults with Hinge on social media tool selection and strategy and helps its clients find effective ways to leverage these new mediums to meet business goals.

By Lee W. Frederiksen, Ph.D.

As business leaders, we’re supposed to know all about strategy. After all we’re typically responsible for setting the strategic direction of our firms. But it’s a widely misunderstood topic. So it’s a real joy to encounter someone who can put the topic in perspective.

Recently, I attended a workshop on the topic of execution conducted by Patrick Thean of the Gazelles organization. In my experience, strategy and execution are closely related, and a point Thean made only deepened this conviction. Thean was emphasizing how important it was that tracking performance indicators support your business strategy. That’s when he said it:

“Strategy is not about being better, it’s about being different.”

Now think about that for a minute. How much time do professional services firms spend trying to be better than the competition? We’re forever trying to be faster, more agile, smarter, have better people, use a better process, and walk on water. This is not a strategy. It’s not much of a competitive advantage either.

Let’s reflect on being different for a moment. If everyone else emphasizes low cost, you emphasize ultra-high quality. Now you are talking strategy! Your competitors emphasize customer service; you go for the self-service niche. That could work. What will not work, however, is trying to be “competitive” — i.e., doing what everyone else does, only better.

It is true. Being different just to be different isn’t very smart either. The only differences that really give you an advantage are those that are meaningful and beneficial to your target customers. Nail that one and you have a strategy that will put your professional services firm at the top of the list.

By Beth J. Bates, New Media Special Correspondent

Let’s face it. With social media usage on the rise, news travels fast. And bad news travels even faster. In the past, if you had a bad experience with a company you might write a letter to the CEO or tell your friends face-to-face. But today, a viral complaint is just a click away.

Social media, however, can be used to turn a disgruntled client’s frown upside down. Companies like Comcast, Century Link and Ning use Twitter to monitor customer issues — and they take rapid action. Their quick response gives customers a sense of priority and their professionalism builds loyalty. With the economy still weak but on the mend, happy customers can keep a company afloat.

When I have a positive experience with a company, however small, I like to tell people about it — in person and online. That’s the power of customer service, and it spreads quickly.

On the flip side, many companies never monitor their social media streams. So when a customer complains and gets no response, the damage is multiplied (remember, it’s a public forum). Poor service like this can be detrimental to a brand.

Social media is a powerful tool for managing your customers needs in real-time. It gives you the chance to intervene before a problem spins out of control. When managed properly, it gives you the ability to demonstrate your company’s responsiveness and strengthen your brand.

Beth J. Bates consults with Hinge on social media tool selection and strategy and helps its clients find effective ways to leverage these new mediums to meet business goals.

By Beth J. Bates, New Media Special Correspondent

With the holidays just around the corner, consumers are are planning on spending slightly less than in 2008, but much more strategically. 59% of consumers plan to shop in discount stores. 42% plan to shop online. What does this mean for professional services firms? Probably not much. But it does demonstrate that people in general have embraced social media and web-based alternatives to traditional ways of doing business. This public acceptance of new media almost certainly has implications for the b2b world.

According to Deloitte’s 2009 Annual Holiday Survey:

• 17% of U.S. consumers plan to leverage social media sites to assist in their holiday shopping.
• 60% will do so to seek discounts and sales.

In an online study conducted by an independent research company:

• 53% of consumers will use social media sites to research potential gift ideas.
• 46% will research product reviews.
• 52% will view their family members’ wish lists.
• 30% plan to share their own wish list.

The study surveyed more than 10,000 individuals.

Another recent study conducted by Shop.org indicated that 47.1% of retailers plan to increase their social media usage during this holiday season. The most common social media sites that are being used by retailers are Facebook and Twitter.

Retailers are getting truly creative when using social media to promote their products through events like Twitter scavenger hunts and Facebook contests. Still other companies reported to feature “Facebook Only” discounts through their fan page or exclusively to their Twitter followers.

Professional services firms would do well to watch what is going on in the b2c world and monitor what social media tactics are truly engaging people. Chances are, at least some of these marketing techniques could be successfully adapted to your firm. So this season, keep your eyes open as you do your online holiday shopping. You might just discover a free gift!

Beth J. Bates consults with Hinge on social media tool selection and strategy and helps its clients find effective ways to leverage these new mediums to meet business goals.

By Lee W. Frederiksen, Ph.D.

Sometimes the data speak volumes. I recently had that experience when reviewing the new survey of government contracting firms released by Deltek. The survey, called Clarity 09, is a great resource for anyone who sells professional services to the federal government (and you can download it for free).

Here is the first nugget that caught my attention: How should you approach proposal writing if you want to maximize growth? Be selective (the so called “write fewer and win more” strategy)? Or should you maximize proposals to maximize wins? How about a compromise and be moderately selective?

The survey broke the volume of proposals written per year into four categories 0-24, 25-49, 50-99, and 100+. They then looked at the number of proposals written as a function of growth rate.

What they learned was that as the rate of firm growth increased, the middle categories began to disappear. By the time you get to the highest growth companies (50% or more per year) the only two categories left are the companies who do under 25 proposals a year or over 100. Laser focus vs. carpet bombing (please excuse the military metaphor, it seems so perfect). They both work, but which is most effective? As it turns out, 80% of the high-growth firms use a targeted strategy. Interestingly, this finding fits nicely with our observation that high-growth firms tend to be more focused in their marketing. Thank you, Deltek.

By Lee W. Frederiksen, Ph.D.

I don’t know about you, but I haven’t been in the habit of thinking of Michael Chertoff, the former head of the Department of Homeland Security, as a source of sage marketing advice. But alas, I was wrong.

Mr. Chertoff spoke recently to the Association for Corporate Growth on the topic of security and the role that private-sector business plays. In his role as the first head of DHS he was perhaps one of the world’s largest purchasers of professional and technical services. The lesson he shared from that experience is relevant to anyone interested in professional services marketing.

Chertoff described how his department was inundated by firms who had wonderful “solutions” — all in search of a problem to solve. He urged professional services firms instead to take the time to understand the problems faced by their target customers (in his case it was the government security community, but the lesson is universal). Then sell them on the solution. The reception they’ll receive will be enthusiastic.

Amen. This is exactly what our own research on professional serves buyers says.  The challenge, of course, is that everyone pays lip service to this concept but few actually follow through. It’s easy to fall into the familiar and routine: “This is what we do.  So you want us to do it for you?”  If you approach professional services marketing the same way as everyone else, don’t be surprised if the results you get are the same as everyone else.

By Beth J. Bates, New Media Special Correspondent

Many professionals struggle with how much to share on Facebook and whether to “friend” or connect with co-workers and clients. Many users question whether a colleague or customer will know if they “deny” a connection on Facebook. While Facebook will not notify the user making the request that they were denied, they will see that you are not a friend in their friend list. So confirm and deny with caution.

A recent survey from OfficeTeam shows that executives are very uncomfortable with being “friended” on Facebook by subordinates and superiors. Executives were randomly selected form phone interviews from the nation’s top 1000 largest companies. The survey highlights include:

• 32% were “not comfortable at all” being friended by their boss
• 33% were “not comfortable at all” being friended by subordinates
• 33% were “not comfortable at all” being friended by clients
• 38% were “not comfortable at all” being friended by vendors

Specific concerns include:

• Being tagged in an embarrassing photo.
• Really enjoying Facebook games and quizzes.
• Wanting to join non-professional groups or fan pages.

While I use Facebook for both personal and professional use, I am in the process of setting up a fan page for professional purposes. I hope that this helps shift my friends interested in my professional endeavors to another area of Facebook. I encourage anyone using Facebook among colleagues or customers to familiarize yourself with Facebook’s privacy settings and use them.  They will give you peace of mind and will I hope help you avoid any sketchy situations.

The moral? You might want to think twice about friending your co-workers on Facebook. While you might be comfortable with the connection, they may feel otherwise.

Beth J. Bates consults with Hinge on social media tool selection and strategy and helps its clients find effective ways to leverage these new mediums to meet business goals.

By Beth J. Bates, New Media Special Correspondent

As social media use grows, professional services providers such as finance professionals and attorneys have found themselves turning to tools like Twitter to grow their customer base and stay on top of industry news. Some have even taken sharing to the next level, telling tales of taking the bar exam or describing how they kickstarted their own careers. Many of these professionals are finding other creative ways to use microblogging:

Lawyers

• Interacting informally with other lawyers
• Republishing and sharing content/knowledge
• Following government bodies online
• Attracting media attention
  

Insurance Firms

• Resolving customer service issues
• Making announcements (rate changes, etc.)
• Reaching a younger audience
• Enhancing accessibility and personal engagement
  

Accountants

• Commenting on recent industry news
• Following financial regulations and changes in IRS guidelines
• Using their experience in financial issues to attract new clients
• Interacting informally with other accountants

By finding effective ways to use Twitter and other social media tools, professionals are connecting with new customers, keeping up on trends and keeping the public informed.

Find lawyers, CPAs and insurance firms on Twitter:

• 145 Lawyers and Legal Professionals to Follow on Twitter
• CPAs Embrace Twitter
• Twitter and Insurance – You Have To Be Kidding

Beth J. Bates consults with Hinge on social media tool selection and strategy and helps its clients find effective ways to leverage these new mediums to meet business goals.

By Beth J. Bates, New Media Special Correspondent

Twitter can be a tough concept to wrap your head around. Many business owners I meet are either overwhelmed by the conversations (or lack thereof) or can’t figure out how to use the service as a business tool.  Connie Benson, Community Strategist for Techrigy, created a comprehensive slide presentation about how Twitter can support lead generation.

The primary points of the presentation include:

• Engage people as people first and don’t push your sales pitch.
• Listening is a critical key for engagement on Twitter.
• Establish goals and challenges and assess how Twitter can support your efforts.

Benson began her journey into the world of Twitter with 5 eager team members and no budget. She notes that once she began engaging in the Twitter community:

• Within 3 months her customer base increased by 57%
• Within 6 months her customer base increased by 269%
• Within 1 year her customer base increased by 840%

I hope that you enjoy this presentation as much as I did. It’s quite inspiring and says a lot about the viability of Twitter as a sales tool.

Beth J. Bates consults with Hinge on social media tool selection and strategy and helps its clients find effective ways to leverage these new mediums to meet business goals.