Transforming the Dysfunctional Professional Firm – Part Three
Link to Part One. (https://mailchi.mp/bbcb87be965a/resolution-for-15374845?e=[UNIQID]) Link to Part Two. (https://us12.campaign-archive.com/?e=[UNIQID]&u=c5b0c09025ad045bf11bb02f5&id=11f0ba777a)
For the last two weeks we’ve surveyed the highly successful professional firms and the dysfunctional ones. Last week we covered generally the reformation of the dysfunctional firm into a more successful one. This week we look at the “nuts and bolts”. If you haven’t already done so, first read Part One (https://mailchi.mp/bbcb87be965a/resolution-for-15374845?e=[UNIQID]) and Part Two (https://us12.campaign-archive.com/?e=[UNIQID]&u=c5b0c09025ad045bf11bb02f5&id=11f0ba777a) .
The process of transforming a dysfunctional firm into a highly successful professional firm will not be successful so long as the old ways are coddled and continued. Like the recovering alcoholic, the first step is to admit that “our lives were out of control”. Enough stakeholders need to be excited about and committed to the notion that each will become expert and renowned in a practice area they enjoy, and that each will give all possible support to the others in so doing.
Similarly, there needs to be a clear-eyed assessment of whether the transformation can be pulled off in terms of time, energy, and financial commitment. Income can’t stop just because you’re changing the way you do business.
There is no perfect formula, but the head-in-the-sand approach will surely fail. Remember, this is a “the whole is greater than the sum of its parts” exercise, not a “what’s in it for me?” approach.
That said, here are a handful of key steps:
1. A clear and convincing commitment of a significant majority of the stakeholders to do what it takes to transform the firm.
2. A willingness to lose partners and associates who are not committed to the transformation, including the necessary personal transformation.
3. A clear understanding of the concept of professional Giftings and a commitment to allow and facilitate every member of the group to narrow their practice to their center of excellence. This requires each individual to become crystal clear about the practice area where they are confident, excellent, and joyful. What is important is that the professional and financial success of each individual be considered frankly and openly so that each stakeholder can make critical choices.
4. A plan for each individual to become renowned in their particular center of excellence and an accountable commitment of each to execute the plan.
5. A commitment from each to support each other’s personal professional plan, with a focus on making sure each professional is not only best-in-class, but is renowned as such.
6. An understanding of the potential for synergy, if any, amongst the individual practitioners, each in their centers of excellence. (At this point it might be the case that the group will go forward as two or more separate boutiques, departments within a larger firm, or some other business model.)
7. An understanding of the support system each individual reasonably needs, and what that would probably cost.
8. An understanding of what infrastructure the entire ongoing firm needs, including any professional managers. There needs to be a clear understanding of how costs are to be attributed.
9. A humane, professional, open, and generous dealing with each current stakeholder who does not want to buy in or is “voted off the island”.
10. Considering other professionals of high stature who might be interested in joining the venture. Typically, but not exclusively, this is not done until planning is well underway.
If your firm seems stuck in an unhappy rut, we need to talk.