Collaboration - The missing link for competitive advantage?

Rob Brown speaks and trains clients globally to sell more, stand out more and win more business. In this article, he makes the case for better collaboration within and between professional firms and offers practical tips to make it happen.

We live in an era of significant disruption and unprecedented change. Trust in governments, leaders, politicians and the media is at an all-time low. Client expectations are at an all-time high.

We live in a ‘similar’ society, with similar firms serving similar clients for similar fees using similar technology and claiming similar outcomes. How does a professional firm stand out in today’s noisy, fast-moving world? There are very few areas where any kind of competitive advantage can be gained. Perhaps technology. Perhaps intellectual property. Perhaps brand. Maybe even people. But, might collaboration create a meaningful edge in the war for talent, new business and market share?

The business case for collaboration

Collaboration within and between firms can bring higher fees and improved margins from more complex work. There is strong evidence for the merits of an intentional focus on collaboration. Harvard Business School shows rising revenues and higher hourly rates when more collaborators are involved in more complex work. Collaboration based revenues dwarf isolated revenues by up to 6x. Better still, there’s an exponential effect too.

A collaborative effort in business development and marketing opens ‘hard to access’ new markets and new clients without significant marketing spend. It enhances innovation and gives firms the chance to do more complex, interesting and higher paid work. It diversifies a firm’s clients to mitigate against local economies and slow markets. Add to that longer-term client engagement, less pressure on price, greater client loyalty, greater share of wallet and reduced impact from negative market cycles and you see why collaboration might be a missing link.

Obstacles to collaboration

Alas, fostering a collaborative environment in professional firms is not easy. Silo mentalities, skewed payment structures, closed cultures, politics, personal agendas and a protective approach to clients create barriers to cross-selling and collaborative conversation.

An agenda of collaboration is not easy to gain buy-in for. Old habits die hard, particularly in a firm skewed to powerful partners and a rigid leadership. In an era of short attention, people will only advocate change if it’s pain free and brings about quick results. That scuppers collaboration because it takes time for the benefits to appear.

Another challenge is one of skills. Fee earners don’t know how to do it. More than that, they’re not really incentivised to do it. Individual performance often trumps team performance. Collaboration is often not a KPI (key performance indicator) and does not feature in appraisals or performance reviews.

Culture is also a factor. Collaboration requires a lot of relationship investment and cultural ‘heavy lifting’ across offices, functions and disciplines to build momentum. It thrives in a joined-up approach to firm-wide goals and overall growth strategy.

Embrace a more collaborative culture

Collaboration thrives in a joined-up approach to firm-wide goals and overall growth strategy.

There are huge benefits for the firms that courageously embrace a collaborative culture, both internally and externally. By external, I mean with clients and the commercial ecosystem they operate in. Co-creating with others outside the firm creates massive advantages.

There is much to be learned from businesses and individuals from all sorts of backgrounds and industries. You just need an open mind, a curious attitude and a mechanism for noting down what you see and applying it to your firm.

For instance, what can:

- online sites like Facebook, Amazon and eBay teach you about online experience?

- hotels, airports and coffee shops teach you about service and hospitality?

- some of your entrepreneurial clients teach you about taking calculated risks, breaking into new markets and hiring good people?

- fintech companies, who provide your software, CRM and apps, teach you about digital adoption, AI, machine learning and automation?

- the coaches, consultants, trainers and mentors who develop your people teach you about mindset, performance and mental resilience under pressure?

Think beyond your firm

A closed mindset is a major barrier to collaboration. It can come from arrogance (we’re better, we don’t need anyone else) or ignorance (we don’t know and don’t care about what’s out there). Embracing diversity and having a willingness to open a dialogue with people ‘different from you’ can always create something special.

Progressive firms send their people out to learn. They enrol them in courses, book them in at conferences and even encourage sabbaticals in different environments. The result is called ‘bring back’, where valuable external insights are brought back that add value to the firm and its clients.

External collaboration also extends to strategic alliances and tactical partnerships. These might be legal and formal, or done informally with a handshake and a look in the eye. They could be ongoing and long term, or ad-hoc and project based. They could involve just a deepening of the relationship or the actual co-creation of a new product, service or intellectual property.

In closing, collaboration means change, and change is not easy. Professional people are often introvert and ‘siloed’ which means fostering the relationships that drive collaboration doesn’t happen without effort. Share this article with your colleagues and professional contacts to get collaboration on the agenda. Try out some of the tips overleaf and turn good intentions into actions. Better still, partner up with someone and do it together!

Ten top tips to be more collaborative

1. Be a team player Don’t just think about your own areas of expertise; identify opportunities for colleagues with other service lines. Don’t take all the credit; recognise the efforts of others.

2. Get educated Talk to colleagues, clients and your professional contacts outside the firm; what do they do, how do they work and who do they help. Look for an opening for you to introduce them to others and get them collaborating with your network.

3. Be inquisitive Get your head up and find out what other people are doing. What are their plans, problems, pain or projects? A healthy curiosity can lead to all kinds of discoveries and relationships.

4. Be helpful Ask people what’s the biggest thing they’re working on right now. The answers will tell you what’s current, important and urgent for them. Offer your help and advice, a different perspective, your connections and your relationships.

5. Change culture Push back against internal practices that act as barriers to collaboration - individual vs group incentives, payment structures, billable hours etc. Push recognition of and time for coaching, meetings, feedback sessions, giving advice, mentoring and general collaboration initiatives.

6. Be available Stay open and approachable. Show yourself to be an active and visible collaborator. Offer and ask for feedback. Reach out to people inside and outside your usual circle of connections.

7. Lead by example Don’t just talk about the importance of collaborating. Model it. Coach and encourage others to do it. Constantly make the business case for doing it. Lead and they will follow.

8. Be entrepreneurial Can you turn nothing into something? Can you morph something intangible like an idea or concept into something tangible like a product, a service or some IP? Entrepreneurs see problems and needs, and provide solutions for them.

9. Get out Stretch beyond your comfort zone, both in terms of skills and physical environment. Attend different events from different sectors and industries. Read blogs, books and articles outside your areas of expertise. Turn what you learn into valuable ‘bring back’ for your firm, colleagues, contacts and clients.

10. Include others Train yourself to see the synergy between different parties. Introduce your professional colleagues to your clients and each other to bring them into conversations, projects and campaigns.

Author: Rob Brown is founder of the Business Development Academy which trains accounting professionals to grow premium fees, win more clients and stand out in competitive marketplaces. To discuss his coaching packages, training programs or keynote talks, contact Rob at: rob@BDAcademy.pro