This case study is based on the situation of a client of the Covenant Group. Names and details have been changed to preserve privacy.



Nick is a self-con–fessed “gadget junkie.” An “early adopter,” he had one very large drawer in his desk overflowing with old cellphones, pagers, personal digital assistants and other devices. All had been discarded in Nick’s rush to acquire the latest technology that would, in his words, “make my business spin like a finely balanced top.”

My own feeling from observing Nick over the past two years was that his business was indeed spinning — but out of control. So I wasn’t too surprised when he set up a meeting to talk about the future of his business.

We agreed to lunch at a nice restaurant, for which I was extremely grateful because it forced Nick to turn off the operatic ring of his cellphone. But even in “vibrate” mode, I could see him flinch each time it signalled a call. I knew he was itching to peek at who had called.

“So, what’s up, Nick?” I asked. “Are you finally ready to implement that marketing plan we developed last year?”

“I’m almost there,” he answered. “I have been testing software programs that will automate the process. I have it narrowed down to one that should do the job — although a friend of mine just told me about another program that has been written up in all the technical journals. So, I should probably check it out, too. I might also need a bigger server in the office to handle all the communications and contact-management requirements that come with these programs. I am researching that, too.”

“Nick,” I said, “when do you find time to see your clients?”

“That’s part of why I wanted to talk to you,” Nick responded. “As you know, I am a bit of a technology nut. In the past year, I have spent a large amount of money and a huge amount of time putting the best technology in place for my practice. Yet I am still incredibly time-pressured. I am not spending the quality time with my clients that I want, and I don’t feel I am doing enough to develop new business.

“Don’t get me wrong,” he continued. “We are still doing OK. But I know we could do much better if we had the right tools in place. It’s a never-ending process. We just get a piece of software or hardware up and running and along comes something new to take its place. We are on a technology treadmill.”

“Don’t be too hard on yourself, Nick,” I said. “Technology does change at a phenomenal rate. It is extremely difficult, if not totally impractical, to try to stay on the leading edge all the time. We all need a sense of balance between what is available and what our businesses can absorb. What is your overall technology strategy?”

“What do you mean ‘strategy’?” he asked. “I just watch what is coming onto the market and look for ways to take advantage of the developments.”

“Nick, you need something more strategic. What do you expect your technology to do for you? How will it help you in your business? You need a plan for evaluation, selection, implementation, service and upgrading or replacement. Otherwise, you are going to stay on this merry-go-round of trying every new thing that comes on the market that may be faster and more powerful but doesn’t take your business anywhere.”

“That certainly does sound like my experience,” Nick admitted.

“Doesn’t it make sense,” I continued, “to have a longer-term strategy against which to measure all the software and hardware that is available? Once you know where you are headed technologically, your choices are simplified.

“As each new program or piece of equipment comes along, you can quickly look at it to determine if it contributes to or detracts from your strategy. If it might have a positive impact, you dedicate time and resources to examine it more carefully against some pre-set criteria. If it doesn’t fit, you can quickly dismiss it, thereby saving the time you would have spent learning how it might apply in your business.”

“Can you help me develop that strategy?” Nick asked.

“First let’s look at the requirements of a good strategy,” I replied. “The foundation for your technology plan is a description of what you want the experience to be for anyone who comes in contact with your firm. That includes clients, prospects, staff, product manufacturers, suppliers and the community at large. That means looking at what you want the experience to be around database management; compliance; contact management; financial, investment and estate planning; sales presentations; accounting; and communications — for a start.

@page_break@“Then — and this would be the big one for you — we find someone else to implement the strategy.”

“What do you mean, ‘Find someone else to implement the strategy?’” Nick asked with surprise.

“Nick, I know you love this stuff. But it is weighing you down,” I said. “You are spending time on technology issues that could be better spent with your clients or on business development. You need to hire someone to manage that part of the business for you. You set the direction strategically and then he or she takes over to drive it.”

“But why would I pay someone to do something that I do well and enjoy?” he asked, still puzzled.

“Do you recall our discussions a year or so ago about optimization and leverage?” I replied.

“Yeah. Basically, we talked about me doing what I do best and letting others do what they do best,” Nick said. “That’s when we reorganized our structure in the practice and redefined everyone’s role so that I am no longer bogged down in administration.”

“That’s it,” I said. “Optimization is all about working at the highest level of your capability; leverage is about taking advantage of the time, talent and resources of others. Let me ask you this: what have you been doing with the extra time that was freed up when you handed over most administrative functions? The original intent was for you to spend more time face to face with your high-value clients and, dare I say, to implement that marketing plan we developed. Has that happened?”

“Not really,” Nick admitted. “I started using the extra hours I had on the technology.”

“So, you got the leverage aspect right — at least, as it pertained to administration,” I responded. “But you missed on the optimization front. You are not working at the highest level of your capability unless you are interacting with your clients or prospects in some way. That’s what you do best.

“You might be surprised to learn that even in our own organization, with considerably more staff than you have and thousands of clients, we outsource our technology expertise. We have a great guy who has been working with us for a number of years who manages that part of our business.

“He was involved in the development of our technology strategy and it is his responsibility is to ensure we can deliver on our service promise through the application of the right technology resources.

“Each year, we look at what we have and whether it is still doing the job for us, whether it is scalable as we grow and what is new on the market that might make us more effective or efficient.

“We jointly develop an annual technology budget and he has to work within it, including what he invoices us for his time. If something breaks down and he feels he needs to exceed the budget to keep us functional, he comes to us with the business case for doing so and we decide whether to proceed or not. We pay him by the hour at a rate that all parties consider reasonable. Does that sound like something that might work for you?”

“Actually, it could,” Nick replied, “In fact, one of my clients has a consulting business similar to what you have just described. Whenever we meet, I pick his brain about what’s new. He is very much in tune with what’s happening. We have a great relationship and I’d love to have him involved in our business that way. I know he could handle another client our size, I have an idea of his fee schedule and I would be comfortable with that aspect.

“I never thought about asking him to do work for us, but that’s exactly what I am going to do right away. This is exciting!”

“That’s great, Nick,” I said. “Now, one final question: what are you going to do with your extra time now?”

He was quick to reply: “That’s a no-brainer — implement that marketing plan, of course!” IE



George Hartman is a coach and facilitator with the Covenant Group in Toronto. He can be reached at george@covenatngroup.com.