How Can Professional Services Firms Better Connect Growth Strategy to Business Development Execution?

Professional services firms consistently say growth is a priority. But when financial performance falls short, growth investments are often the first to go. Amy Franko shares three ways to strengthen business development execution.

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Business development requires investment, but the return isn’t always immediate. In my work with professional services firms, I’ve found that one of the biggest obstacles to execution is a leadership culture that’s reluctant to invest in growth when short-term financial pressures arise.

When Growth Investments Are the First to Go

Here’s a scenario I’ve seen play out.

A firm establishes ambitious growth goals. Leadership agrees that business development needs greater attention and commits to investing in training, client development, or other growth initiatives.

Then the firm misses its revenue forecast. Utilization drops, and billable hours aren’t where they need to be. So, leadership starts looking for expenses to cut, and growth investments quickly become part of the conversation.

That may mean training gets postponed, business development initiatives are scaled back, and professionals are encouraged to focus on billable work.

Of course, I understand the need to manage expenses. Every firm has financial responsibilities, and there are times when adjustments are necessary. But there’s a problem with repeatedly cutting growth investments when financial performance falls short. Those investments are intended to help the firm generate future revenue.

When firms continually start and stop their growth efforts, they lose momentum. And the business development capabilities they need to achieve their goals remain underdeveloped.

Growth Requires Leadership Commitment

How a firm responds to financial pressure often comes down to its leadership team’s approach to growth. The CFO or finance leader may recommend reducing expenses to protect profitability. The CEO or managing partner needs to consider what those decisions mean for the firm’s longer-term growth strategy.

I’ve seen firms that are still financially healthy, even when they’re not meeting their forecasted numbers. Yet the reaction can be to pull back on investments rather than evaluate which ones are most important to the firm’s future.

Firm leaders, including managing partners and Chief Growth Officers, need to be willing to advocate for growth investments, even when there’s pressure to reduce spending. They also need to establish realistic expectations for when those investments will begin producing results.

That requires alignment across the leadership team and a shared understanding of what it will take to achieve the firm’s growth goals.

In this related video, Amy Franko shares how cross-selling is growth strategy and sales strategy that is an underused revenue accelerator. Learn how to uncover new opportunities in existing accounts to drive profitable growth, strengthen loyalty, and outpace competitors.

How Can Firms Strengthen Business Development Execution?

Once leadership has committed to growth, that commitment needs to be reflected in how the firm operates.

Amy Franko recommends three strategies to help professional services firms strengthen business development execution and achieve their growth goals.

1. Build business development capabilities for the long term.

In a previous article, The Question Every CGO Should Ask Before Approving Another Business Development Program, I explored the limitations of relying on one-time training programs to build business development capabilities.

A workshop or virtual program can provide value, but lasting improvement requires more than a single learning experience.
Firms need to think about how they develop skills, reinforce learning, and create the business development culture necessary to support organic growth.

2. Make growth part of how your firm operates.

In my article for INSIDE Public Accounting, If You Don’t Expand the Client Relationship, Your Competitor Will, I discussed why firms need to make client expansion part of their operating model.
Too often, client relationships remain concentrated with individual partners or within specific service lines. That can limit collaboration and create missed opportunities for organic growth.
Firms also need to examine the systems and structures that influence behavior, including CRM, billing, and financial models.

If the firm’s operating model continues to reinforce individual relationship ownership, it becomes difficult to execute a strategy built around firmwide client growth.

3. Create consistency in business development.

In How Can Professional Services Firms Build More Consistency into Business Development Follow-Up?, I explored the importance of consistent execution and the role leadership plays in establishing expectations and accountability.

That same principle applies to a firm’s broader growth strategy.

Consistent business development requires clear expectations and accountability. Leaders need to establish what follow-up looks like, who is responsible, and how those expectations are reinforced across the firm.

Are Your Investment Decisions Supporting Your Growth Strategy?

Take a look at the growth initiatives your firm has started, postponed, or eliminated over the past year. What drove those decisions? Were they based on the effectiveness of the initiatives, or were they reactions to short-term financial pressures?

Your firm’s growth strategy should influence how you allocate resources, develop business development capabilities, and make financial decisions.
If those priorities disappear every time the numbers fall short, it’s worth asking how committed the firm really is to growth.

Let’s Talk About Your Firm’s Growth Strategy

If your firm is looking to strengthen its growth strategy and improve business development execution, Amy Franko can help. Amy Franko works with professional services leaders to identify growth opportunities, build business development capabilities, and create strategies that support sustainable organic growth. Let’s connect to discuss your firm’s growth priorities.