© U PSTREAM A CADEMY W ORLD C LASS T RAINING: G ETTING Y OUR F IRM O N T RACK P RESENTED BY S AM M. A LLRED, F OUNDER & D IRECTOR O F U PSTREAM A CADEMY C REATING A B USINESS D EVELOPMENT C ULTURE P RESENTED BY S AM A LLRED F OUNDER AND D IRECTOR OF U PSTREAM A CADEMY

© U PSTREAM A CADEMY 2012 P RESENTATION R OADMAP 1.Observations about upcoming changes in business development 2.Practical steps for creating a business development culture 3.ELA participants answer key questions 4.Question and answer session 2

© U PSTREAM A CADEMY 2012  O BSERVATIONS A BOUT U PCOMING C HANGES I N B USINESS D EVELOPMENT 3

© U PSTREAM A CADEMY 2012 More partners will retire from our profession in the next decade than have retired in the past thirty years combined. In many cases, these retiring partners are chiefly responsible for establishing the firm’s good reputation. O BSERVATION #1 4

© U PSTREAM A CADEMY 2012 The profession will lose many key rainmakers who have spent decades patiently and consistently nurturing clients and referral sources. O BSERVATION #2 5

© U PSTREAM A CADEMY 2012 The majority of our key client contacts will retire in the next decade. Many referral sources will also retire within the next ten years. Few firms have taken the initiative to create strong relationships with the future leaders of their client and referral source organizations. O BSERVATION #3 6

© U PSTREAM A CADEMY 2012 Because of so many pending partner retirements, firm leaders are more focused than ever on developing future leaders. Most firms are proactively engaged in leadership development programs. O BSERVATION #4 7

© U PSTREAM A CADEMY 2012 To make partner, an individual generally must excel in four of the following six areas (and be good at the other two): 1. Financial Performance 2. Business Development 3. Client Management 4. Personal Development 5. Team Development 6. Leadership O BSERVATION #5 8

© U PSTREAM A CADEMY 2012 Many firms have relied on the work of a few individuals with particular expertise in business development rather than helping everyone understand their role in this process. O BSERVATION #6 9

© U PSTREAM A CADEMY 2012 Many firms are moving away from a “book of business” culture. Unfortunately, some partners have viewed this as a relief from the pressure to bring new work to the firm because there is no direct correlation between the size of their client responsibility list and their personal compensation. O BSERVATION #7 10

© U PSTREAM A CADEMY 2012 We are still in challenging economic times. The business market is unstable and costs are rising at an unprecedented rate. This is a perfect environment for trusted advisors. O BSERVATION #8 11

© U PSTREAM A CADEMY 2012 Unfortunately, as helpful as it is to become “the most trusted advisor,” we can’t just sit at our desk aggressively waiting for the phone to ring and expect new business to flood the door. 12 O BSERVATION #9

© U PSTREAM A CADEMY 2012 Firms are putting more emphasis on a team approach to marketing and selling services to clients and prospective clients. 13 O BSERVATION #10

© U PSTREAM A CADEMY 2012 Firms are realizing the importance of social media in the market place and are beginning to develop strategies for using it effectively. 14 O BSERVATION #11

© U PSTREAM A CADEMY 2012  P RACTICAL S TEPS FOR C REATING A B USINESS D EVELOPMENT C ULTURE 15

© U PSTREAM A CADEMY 2012 Creating a Culture A culture is something where a thought or behavior is pervasive throughout a defined group of people. In our case, we don’t have a business development culture unless everyone is involved. 16

© U PSTREAM A CADEMY 2012 Step #1 The place to begin in developing a strong business development culture is to hire people who have the social skills to build strong relationships with others. This doesn’t mean friend- shippers and glad-handers. 17

© U PSTREAM A CADEMY 2012 Encourage staff members at all levels to develop relationships with your client base and with referral sources outside the firm. The more relationships a firm has with a given client, the more secure the work is and the more opportunities you’ll have to understand what the client wants and needs. 18

© U PSTREAM A CADEMY 2012 Step #2 Help everyone understand the importance of business development to the health of the organization. Nature shows us that healthy plants and animals grow. 19

© U PSTREAM A CADEMY 2012 We’ve found that firms must consistently bring in about 25% of new business from existing and new clients every year just for the firm to remain flat in net revenues. The reason many firms have decreased in size during the recent recession is a lack of significant business from new clients. 20

© U PSTREAM A CADEMY 2012 Step #3 Help individuals at all levels and in both the administrative and consulting portions of your business to understand their roles in the business development culture. (If you don’t help people understand this early in their careers, then they’ll have more trouble “getting it” when it’s a very real expectation of their performance.) 21

© U PSTREAM A CADEMY 2012 “The better you are at marketing, the better the chance you have to work on fun stuff, and the less trapped you become in being forced to take on work and clients you don’t truly enjoy.” David H. Maister 22

© U PSTREAM A CADEMY 2012 Step #4 Firm members must see business development as an ongoing process versus a series of events. Business development is like eating; it has to be done daily or we’ll eventually starve to death. 23

© U PSTREAM A CADEMY 2012 The Growth Partnership offers the following guidelines: Consulting professionals should spend 20% of their non-billable time on business development activities. 24

© U PSTREAM A CADEMY 2012 Of this 20% of non-billable time: 50% should be spent on existing clients 30% should be spent on referral sources 15% should be spend on prospects 5% should be spent on supporting activities 25

© U PSTREAM A CADEMY 2012 Step #5 Develop methods within your practice management system to measure and monitor individual and corporate activity in marketing. 26

© U PSTREAM A CADEMY 2012 Step #6 Engage every person in your firm in serving the clients you have. Ensure your people understand the important role they play in meeting and exceeding client expectations for service. 27

© U PSTREAM A CADEMY 2012 Take it to the next level with existing clients by constantly asking the question: What will help this client achieve the desired financial objectives? When we’re focused on discovering what clients want and need, we won’t be selling to sell. We’ll always have the client’s best interests at heart. 28

© U PSTREAM A CADEMY 2012 Step #7 Require those with client responsibility to involve other members of the service team in meeting with clients on a regular basis. 29

© U PSTREAM A CADEMY 2012 For clients of significant size, ensure there are at least two people who have well developed relationships with the client and a comprehensive understanding of the client’s business. 30

© U PSTREAM A CADEMY 2012 Step #8 Measure the amount of new business you’re receiving from existing clients as well as new business from new clients. This ensures that the culture of the firm recognizes the value of existing clients and doesn’t just focus on the next relationship. 31

© U PSTREAM A CADEMY 2012 David Maister is blunt about the issue of business development with existing clients. He says, “Don’t invest anything at all in winning new clients until you’re sure you’ve captured all the best opportunities in your existing client base!” 32

© U PSTREAM A CADEMY 2012 Step #9 Develop a skills chart for all staff levels that will help people understand the progress they need to make in business development. 33

© U PSTREAM A CADEMY 2012 Step #10 On at least a semi-annual basis, require everyone to plan their business development activities. Focus attention on specifics such as frequency of contacts with clients, referral sources and prospects. 34

© U PSTREAM A CADEMY 2012 Step #11 Ensure the firm has a good client acceptance process and that everyone understands the kinds of clients you want to retain and attract to the firm. 35

© U PSTREAM A CADEMY 2012 Step #12 Find ways to regularly celebrate and re-energize business development activity. 36

© U PSTREAM A CADEMY 2012  ELA P ARTICIPANTS A NSWER K EY Q UESTIONS 37

© U PSTREAM A CADEMY 2012 We have asked a number of ELA participants to respond to several questions regarding the role of a trusted advisor. Please know that response to these questions is not limited to those participants who have been contacted in advance. 38

© U PSTREAM A CADEMY 2012 Is it possible to establish a process for learning more about our clients? If so, what would this process look like? Q UESTION 39

© U PSTREAM A CADEMY 2012 What can you do to show genuine interest in your referral sources? Q UESTION 40

© U PSTREAM A CADEMY 2012 Would it be helpful to shadow one or more individuals in the firm who are considered world-class trusted advisors? If so, how could an individual make this happen? Q UESTION 41

© U PSTREAM A CADEMY 2012 What does your firm do to measure business development activity at all levels? Q UESTION 42

© U PSTREAM A CADEMY 2012  Q UESTION A ND A NSWER S ESSION 43

© U PSTREAM A CADEMY 2012 Thank You! 44