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Ten Deadly Firm Management (Mal)Practices.

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Seven Ways to Destroy Job Satisfaction in Service Firms

By Tom "Bald Dog" Varjan, Organisational Provocateur


1. Lacking of defined values in leadership. Basically your whole firm is just drifting like a rudderless ship, hoping to pick up some clients every now and then. This may sound harsh, but if we consider that – in general - the professional service firm is the least effective and least profitable form of business structure, we are not far from the truth.

2. Having a separate sales team that only pitches your services, and another team that only delivers your services. It is a certain guarantee that rather sooner or later your clients get pissed off with the discrepancy in the quality of your client service, and they go next door to the competition. Sensing this your people learn that there is no point in being loyal to the sinking ship.

3. Paying commissions to some of your staff, while paying straight salaries to others. With this you certainly slap moral right in the face, skyrocketing both talent and client attrition. Think for a moment. Car salespeople and realtors are regarded as some of the most disrespectful, aggressive and pushy people in the known universe.

Guess why?

They are paid commissions and there is atrociously high level of attrition among them. And not just among them. How many people do you know who has gone back to the same realtor or car salesperson the second time? Not many, I reckon. I reckon working for commissions destroys trust. So, what do you want to have? A trusting clientele and a pool of trusted advisors, or one-time clients and a bunch of aggressive and money-hungry sales folks?

4. Having a large gaping gap between the values and goals of individuals and the values and objectives of the firm. It often happens when management preaches something but practises something completely different. People can see the difference very quickly. They realise that it is about stuffing management’s pockets, and lose interest very quickly. This creates confusion, and in the long run it can jeopardise the firm’s future.

5. Tolerating unequal playing fields. Unlike in other forms of businesses, in professional service firms we talk about relationships among equals, not the typical superior-subordinate relationships. These relationships must be based mutual trust and respect. People can feel when management doers not trust them, and they too gradually withdraw their trust from management.

6. Lacking of constant skill development and mentoring can make people lose their motivation. It happens at so many firms that the so-called skill-building fund gets drained on the purchase of a new Mercedes for one of the senior partners, while people are given an explanation, “We’re not doing so well, and so we can’t afford to spend on skill development. Be patient, people”.

7. Offering inadequate recognition and rewards. The funny thing is that most firms pontificate about teamwork, but recognise and reward individuals. So, what happens? People quickly learn that this is an “eat-what-you-kill” type cut-throat environment, and start acting accordingly.

Copyright 1997-2010 Tom "Bald Dog" Varjan. All rights reserved. You are free to use this article in whole or in part. One favour though: Can I ask you to you include complete attribution, including a live website link. Also, can you please let me know where you plan to publish the article.

The attribution: This article was written by Organisational Provocateur, Tom "Bald Dog" Varjan of Dynamic Innovations Squad, a firm specialising in helping consulting firms to sell their expertise at the highest margins. Get Tom's free Practice Management Black Paper when you sign up for his monthly newsletter, Commando Consulting: Lessons And Practices From The Ultimate Professional Service Firm, The Military. Visit Tom's website at http://www.di-squad.com.


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Copyright 1997-2010 Tom "Bald Dog" Varjan & Dynamic Innovations Squad, All rights reserved. Vancouver, BC, Canada

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