Growth through Accountability: It’s not Magic. It’s Metrics

Managing partners in firms large and small share the same struggle when it comes to business development. Accountability.

Many firms set an annual revenue goal, measure total revenue vs. the goal regularly, but once the goal is established they wait and hope for favorable results. And while most offer some form of reward to individuals who bring in new clients, there are risks to this minimal approach to measurement and accountability. Setting one simple revenue goal for the entire firm may not give individuals a sense of responsibility for reaching the goal-despite the rewards offered. These individuals will be lulled into the feeling that the goal will easily be reached and others will take care of it.

Firms lacking accountability for business development often exhibit the same symptoms. They may build great marketing plans that never get implemented. They may have individual partners experiencing little or no growth in their personal books of business. The firm overall may experience less than desired growth rates. Without accountability, business development activity in a professional services firm is sporadic and results are unpredictable.

So how do you start building a culture of accountability if it hasn't been there historically in your firm?

Keep it Simple
It isn't as hard as you might think.  Four simple metrics - and how you apply them - can begin the process:

1. Annually - set the right growth goal, determine what it will really take to reach the goal and whether that's feasible, and determine where your growth will come from.

2. Semi-annually - measure your billing results using the same parameters you did in setting your goal to determine if you need to step it up half way through the year and how to set your goal going forward at year-end.

3. Quarterly - review the referrals given and received by your firm for each referral source to assess whether you're networking with the right people and effectively implementing this valuable lead generation tactic.

4. Monthly - analyze your sales pipeline to determine if you are generating enough leads and working opportunities to move them through the sales cycle.

Once these metrics are in place it's how you use them that will determine your success. Don't just produce the reports; hold regular business development meetings with all who have responsibility for growth. Ask them to report status of results and activity. Offer to help those who have fallen behind and recommit to implementation. Then, watch as eventually accountability starts to work its magic. Activities are implemented when people said they would be. Your people commit to building their skills so they can be more effective, and growth results will follow.

The Whetstone Group is a growth consulting firm that helps professional service firms meet their business development goals. Since its inception in 2000 Whetstone has helped hundreds of firms nationwide establish and use tracking and reporting mechanisms to help foster accountability in their firms. For a copy of their free accountability tool, contact info@thewhetstonegroup.com. For more information, visit www.thewhetstonegroup.com .

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