The Art of Managing Professional Services

Five: Share Knowledge 111 Four Essentials of Knowledge Management 112 Chaper Summary 119 Chapter 6: Finance 121 Planning, metrics, and reporting How Do the Top Firms Manage Finance? 123 Financial Planning and Budgeting 124 Forecasting 126 Metrics to Monitor the Business 127 Revenue 129 Profitability 130 Utilization 131 Pricing 132 Leverage 136 Performance Efficiency 137 Early Warning Signs 138 Reporting 139 Transparency and Accountability 142 Chapter Summary 146 Chapter 7: Positioning 147 Brand, marketing, and sales Five Elements of a Successful Market Strategy 149 The Power of Brand 151 Determine the Market and Brand Positioning 151 Embed and Build the Brand 155 Keep the Message Clear and Consistent 160 Regularly Test Brand Strength 160 Marketing 161 Sales 162 Building a Marketing and Business Development Plan 164 Firm-wide Brand Initiatives 164 Business Unit Plans 166 Master Plan, Timeline and Budget, Tracking and Measurement 167 Thought Leadership: The Most Powerful Way to Grow the Business 170 The Role of the Marketing Professional 175 Areas of Focus for the Marketing Department 177 Chapter Summary 182 Chapter 8: Partnership 183 Equity, selection, and compensation Six Characteristics of Enduring Partnerships 184 Selecting an Ownership Structure 186 Advantages and Disadvantages of Ownership Structures 187 Public Versus Private 192 To Sell or Not to Sell 195 Equity Programs to Attract and Retain the Best 197 Rewarding the Partners: Dividing the Pie 203 Distribution Models 203 Evaluating Performance 205 Partnership Performance Criteria 208 Partnership Selection: A Pivotal Decision 211 Criteria for Promotion to Partnership 212 Partner Promotion Process 213 Chapter Summary 216 Chapter 9: Strategy 219 Process, responsibility, and accountability Why Strategic Planning Matters 221 Five Essentials for Successful Strategic Planning 223 Orchestrating the Planning Process 226 Long-Term Planning 227 Annual Planning 231 Review, Monitor, and Update 232 Accountability 234 Chapter Summary 236 Chapter 10: Structure 237 Design, governance, and style Why Getting It Right Is So Challenging 239 Seven Essentials for a Successful Infrastructure and Governance Model 240 Organizational Structure: The Scaffolding That Supports the Firm 243 Board of Directors: Composition and Selection 244 Chairman: Selection and Role 247 CEO: Selection, Role, and Succession 248 Management Committee: Composition and Selection 253 Business Units: Structure and Seat of Power 254 Other Functions/Special Initiatives 257 Administrative Support 257 Changing the Structure 258 Governance Style 259 Chapter Summary 263 Chapter 11: Style of Leadership 265 Characteristics, grooming, and advice Essential Characteristics of a Successful Leader: Emotional Intelligence and People Skills 267 Good Influencer/Builder of Coalitions 268 Inspirational and Passionate 268 Visionary 268 Good Listener 269 Good Communicator 271 Understands the Business 274 To Bill or Not to Bill 274 Grooming a Global Leadership Corps: Finding and Nurturing Future Leaders 278 Some Parting Advice for Leaders 284 Author's Note 286 Index 287 Lessons from Leaders Chapter 2: Shared Vision, Values, and Culture Teaming at Cravath 26 Booz Allen Hamilton Core Values 29 Edelman Revisits Vision and Values 32 Korn/Ferry Changes Its Vision and Culture 34 Chapter 3: People Recruiting at ghSMART 48 Career Development at Booz Allen Hamilton 50 Latham & Watkins Multistage Career Training 53 Training at Bain & Company 56 Plante & Moran's Team-Based Mentoring 59 Chapter 4: Portfolio Grant Thornton Client Experience Program 77 Black & Veatch Client Portfolio Mix 81 Account Management at Burson-Marsteller 83 Client Management at Ernst & Young 87 Edelman's Client Feedback Program 90 Chapter 5: Services Deloitte Australia's Innovation Program 104 CSC's Office of Innovation 107 Knowledge Management at Grant Thornton 116 Chapter 6: Finance Black & Veatch Forecasting Process 128 Metric Management at Gensler 141 ghSMART's Budget, Dashboard, and Review Process 144 Chapter 7: Positioning Brand Management at Skadden, Arps 156 Euro RSCG Life Culture Scan 158 Growing an Industry Program at Ernst & Young 168 Thought Leadership at Booz & Company 174 Chapter 8: Partnership Slater & Gordon Becomes the First Law Firm to Go Public 193 The Acquisition Process at Baker Robbins & Company 196 Gensler's Principal Evaluation Process 207 Compensation Criteria at Eversheds 210 Making Partner at Egon Zehnder International 215 Chapter 9: Strategy Planning at Peppercom 225 Hewitt's Planning Process 229 Annual Planning at Ernst & Young 233 Chapter 10: Structure Clifford Chance Offshoring Program 242 Election Process at Skadden, Arps 250 A.T. Kearney Revamps Structure and Governance 261 Chapter 11: Style of Leadership Ogilvy Public Relations Worldwide: Leading Growth 270 KPMG: Leading Through a Crisis 272 Clifford Chance: Leading Through Transition 275 Cultivating Leadership at O'Melveny & Myers 281 Emerging Leaders Program at Dewberry 283

--Richard Edelman, President and CEO, Edelman "Broderick's research has revealed the views and practices of some of the world's top professional firms, presented in an easily absorbed style. Very informative." --David Maister, author of Managing the Professional Service Firm and Strategy and the Fat Smoker "Maureen Broderick's book, The Art of Managing Professional Services, provides a valuable contribution to the very limited body of knowledge on managing professional service firms. These firms are simply very different than other corporate structures, and successfully managing them requires a very different approach. Maureen's insights from her research and interviews provide a very useful understanding of the subtleties of managing these institutions." --Bob Dell, Chairman and Managing Partner, Latham & Watkins "Maureen Broderick distills the art of firm management into clear, concise practices through candid insight and perspective from leaders of the world's most prestigious firms. Every professional service partner--and aspiring partner--should read this book." --Paul Laudicina, Managing Officer and Chairman of the Board, A.T. Kearney "High praise for Maureen Broderick and The Art of Managing Professional Services. Maureen has bridged from the principles to the pragmatic in exploring the key drivers of firm success. In so doing, her analysis reflects the lessons of many--both in successes and failures--and presents a thorough compendium for today's and tomorrow's leaders. This analysis gives leaders a leg up in competing on the global landscape." --James Turley, Chairman and CEO, Ernst & Young "Broderick delivers more valuable insights per page than any business book that I have read in recent memory." --Geoff Smart, Chairman & CEO of ghSMART and coauthor of The New York Times bestseller Who: The A Method for Hiring "I wish I had had Maureen Broderick's new book when I cofounded Peppercom 15 years ago. It's quite simply the best 'how to' book on the subject of managing a professional service firm I've ever read and should be mandatory reading for the leaders of today and tomorrow." --Steve Cody, Co-Founder and Managing Partner, Peppercom "In contrast to manufacturing companies which are identified by their output, professional service firms are defined by their essence--their leadership, culture, and values. Maureen Broderick brings shape and clarity to the vital, but abstract, essence of professional service firms, and she insightfully captures what makes them successful." --Ralph Shrader, Chairman and Chief Executive Officer, Booz Allen Hamilton "Too many business books take 300 pages to do no more than espouse one or two theories. This work is not like that. There is a lot here, and I think anyone involved in the management of a professional service firm will find real value here." --David Childs, Global Managing Partner, Clifford Chance "By their very nature, professional service firms must excel at employee and client engagement--the best ones always have; it is their lifeblood. In today's hypercompetitive business world, for any business of any type to win, engagement is more important than ever. Broderick's book is filled with best practices that will help all kinds of companies--whether they are professional service firms or not--meet the challenges of doing business in the 21st century and come out on top." --Ray Kotcher, Senior Partner and Chief Executive Officer, Ketchum