Download the Business Development Guide<\/a><\/p>\n<\/div>\n Business development<\/strong>\u00a0(BD) is the process of identifying, nurturing and acquiring new clients and business opportunities to drive growth and profitability<\/a>. As commonly used in the professional services context, BD includes major elements of traditional marketing and sales functions, such as lead generation, nurturing, opportunity qualification, proposal preparation and closing.<\/p>\n Once upon a time, business development was pretty simple. Do good work, take care of your existing clients and get involved in your local community and the referrals would come your way. For those professionals with outgoing personalities, a round of networking events and perhaps an occasional educational presentation was all it took to be a successful rainmaker.<\/p>\n In this traditional seller-doer configuration the role of business development was quite limited. BD was there to support individual rainmakers<\/a>. Setting up appointments, managing some events and helping with proposals was all that was expected. The individuals filling these roles often had administrative backgrounds with little or no formal marketing or sales training.<\/p>\n But then something changed.<\/p>\n Slowly at first, but then with increasing speed, professional services buyers changed their behavior. Rather than calling up a colleague to ask a business question, they began to use search engines. Online shopping became easier and easier. We began to develop the expectation that we could find exactly the right product or service to fill our specific needs. In industry after industry, a wave of digital transformation<\/a> rocked traditional buying patterns and expectations. And professional services were no exception to this trend.<\/p>\n A recent study of professional services buyers showed that over a five year period traditional referrals decreased by 16% and client loyalty declined by 20%, even though client satisfaction remained stable. However, the latest edition of this study<\/a> indicates that client referrals are back on the rise. \u00a0At the same time, the use of online search continued to be the second most popular channel to search for business solutions, just after asking their peers or colleagues for a referral.<\/p>\n What\u2019s going on here? The answer is pretty clear. Buyers are using digital technology to find a \u201cperfect fit\u201d solution\u2014a firm with the right expertise and focus to solve the specific challenge they are facing. Buyers are looking for tailored solutions that provide superior value. It matters less and less whether or not these service providers are local. Even before COVID-19, remote work was becoming more and more normalized.<\/p>\n Now, make no mistake about it\u2014traditional face-to-face interaction has not disappeared, nor is it likely to. Rather, it is becoming one<\/em> possible path to new business, rather than the only possible path. Based on our study of buyer behavior<\/a>, we estimate that approximately 70% of buyers\u2019 sales behavior happens in the digital space.<\/p>\n So how is a modern professional services firm to respond to this shift in the behavior of prospective clients? What is the right way to structure your business development team?<\/p>\n <\/p>\n While the specifics of how firms structure their business development function can vary, two basic models tend to dominate. The first of these is the traditional model in which a seller-doer drives business development. We call this structure the Rainmaker Model.<\/p>\n The primary alternative is a model in which multiple people collaborate to implement a strategic business development plan. We call this configuration the Team Model.<\/p>\n The Rainmaker Model is focused on individual fee-earners. Their goal is to build long-term relationships and become a trusted advisor to the clients that they bring into the firm. In turn, these personal relationships will produce referrals to build their practice.<\/p>\n In this approach, the role of marketing or business development personnel is to support the activities of the Rainmaker, often at the direction of the Rainmaker. The result is a portfolio of clients who are loyal to the Rainmaker.<\/p>\n When you overlay this traditional model on the emerging patterns of buyer behavior, the limitations become obvious. The range of talents and activities required to succeed at both digital and traditional marketplace is daunting. How can one billable professional find the time or acquire the range of specialized skills necessary to be successful? They probably can\u2019t. And what happens if that person moves to a competitor? Their personal relationships probably leave with them.<\/p>\n And, of course, there is that pesky problem of cross selling the firm\u2019s services. In an alarming number of cases, it simply doesn\u2019t happen. Because each Rainmaker is focused on their own practice, the \u201csiloing\u201d of practices is almost inevitable.<\/p>\n Given these limitations, it is not surprising that an alternative model has emerged.<\/p>\n Watch the On-Demand Webinar: Business Development Plays to Close Deals in Turbulent Times<\/a><\/strong><\/p>\n<\/div>\n The Team Model envisions a business development function where the individual fee-earning professional is just one member of a team that includes diverse skill sets and roles. The professional\u2019s primary goal is not to develop individual relationships, but rather to showcase the firm\u2019s full range of expertise to solve clients\u2019 problems\u2014including emerging issues that might affect clients in the future.<\/p>\n Why expertise rather than relationships? The answer is simple. Expertise is the number two deciding factor in the final selection of a firm<\/a>. While many clients certainly value good relationships, they also value solving their critical business problems. And as we mentioned earlier, it’s very difficult for an individual to successfully deliver as a jack of all trades.<\/p>\n Every team needs a leader, and in this model that role falls to marketing or business development. They assemble and manage the team, planning and coordinating multi-channel activities. Members of the team may come from a marketing or business development background, or they may be fee-earners themselves. Importantly, roles within the team are based on skill sets and interest, not titles.<\/p>\n The focus of the team is on the firm as a whole, not just a single practice. This allows the team to make strategic decisions about priorities and resource allocation and not assume that every practice should be treated identically. What best serves the firm as a whole? How can our client\u2019s benefit from the full range of services we offer? This concept is often referred to as a \u201cone firm\u201d strategy. No matter which practice they work with initially, clients have easy access to any of your services with a minimum of fuss.<\/p>\n One of the biggest benefits of the Team Model is that it builds the value of the entire firm\u2019s brand, not just a single practice. This means that when a professional leaves your firm, the value doesn\u2019t go out the door with them.<\/p>\nBusiness Development Defined<\/strong><\/h2>\n
How Business Development Is Evolving<\/strong><\/h2>\n
Two Models of Business Development Team Structure<\/strong><\/h2>\n
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