The Strategic Approach To Practice Development
Practice Management & Strategic Issues

The Strategic Approach To Practice Development

November 30, 2018

by Tony Vidler  CFP logo   CLU logo  ChFC logo

For any professional services business to realise it’s full potential the owner must take a strategic approach to the development of the practice.  In doing so there are 3 general areas of the firm which drive growth and value of the business, and each of those has some sub-sections.

 

The 3 areas for strategic consideration are:

 

  1. Creating the physical Capacity to ‘grow’ it’s volume
  2. Developing Capabilities of the professionals within the firm
  3. Creating and seizing Opportunity to grow market share

 

Collectively, these determine how well a practice can go.

 

Your capacity will largely hold the keys to your business future.  Capacity is determined by how you manage financial resources, how you use time, and the level of strategic clarity (or planning).  Together, they are the main drivers of how much your business can do.

 

Technical expertise is closely involved in determining capacity, but it is not a critical element there.

 

Technical knowledge together with sales skills and the position you have in the market will determine what type of work, or clients, you are able to take on.  That is capability.

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Leverage or exponential market share growth can then be created, and that is the latent opportunity that many practices never fully realise. This combination of your marketing and positioning, together with your customer engagement processes and the prospecting systems you have developed for creating new clients is what uncovers the opportunities to do more client work and drive more revenue.

 

By “engagement” I am not simply referring to the initial contact or terms of business.  That is part of the engagement process of course, but engagement in this sense is the entire system of how you communicate, service and interact with prospective customers and clients alike.

 

Growing a valuable professional services business requires strategic focus upon each of these areas. Collectively they will determine ultimately what the business will achieve.

 

 

You might also be interested in this related article:

The 4 Keys To A Successful Business Exit

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