This case study is based on the situation of a client of the Covenant Group. Names and details have been changed to preserve privacy. <\/i>
Nick is a self-con–fessed \u201cgadget junkie.\u201d An \u201cearly adopter,\u201d 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\u2019s rush to acquire the latest technology that would, in his words, \u201cmake my business spin like a finely balanced top.\u201d
My own feeling from observing Nick over the past two years was that his business was indeed spinning \u2014 but out of control. So I wasn\u2019t 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 \u201cvibrate\u201d mode, I could see him flinch each time it signalled a call. I knew he was itching to peek at who had called.
\u201cSo, what\u2019s up, Nick?\u201d I asked. \u201cAre you finally ready to implement that marketing plan we developed last year?\u201d
\u201cI\u2019m almost there,\u201d he answered. \u201cI have been testing software programs that will automate the process. I have it narrowed down to one that should do the job \u2014 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.\u201d
\u201cNick,\u201d I said, \u201cwhen do you find time to see your clients?\u201d
\u201cThat\u2019s part of why I wanted to talk to you,\u201d Nick responded. \u201cAs 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\u2019t feel I am doing enough to develop new business.
\u201cDon\u2019t get me wrong,\u201d he continued. \u201cWe are still doing OK. But I know we could do much better if we had the right tools in place. It\u2019s 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.\u201d
\u201cDon\u2019t be too hard on yourself, Nick,\u201d I said. \u201cTechnology 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?\u201d
\u201cWhat do you mean \u2018strategy\u2019?\u201d he asked. \u201cI just watch what is coming onto the market and look for ways to take advantage of the developments.\u201d
\u201cNick, 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\u2019t take your business anywhere.\u201d
\u201cThat certainly does sound like my experience,\u201d Nick admitted.
\u201cDoesn\u2019t it make sense,\u201d I continued, \u201cto 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.
\u201cAs 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\u2019t fit, you can quickly dismiss it, thereby saving the time you would have spent learning how it might apply in your business.\u201d
\u201cCan you help me develop that strategy?\u201d Nick asked.
\u201cFirst let\u2019s look at the requirements of a good strategy,\u201d I replied. \u201cThe 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 \u2014 for a start.
@page_break@\u201cThen \u2014 and this would be the big one for you \u2014 we find someone else to implement the strategy.\u201d
\u201cWhat do you mean, \u2018Find someone else to implement the strategy?\u2019\u201d Nick asked with surprise.
\u201cNick, I know you love this stuff. But it is weighing you down,\u201d I said. \u201cYou 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.\u201d
\u201cBut why would I pay someone to do something that I do well and enjoy?\u201d he asked, still puzzled.
\u201cDo you recall our discussions a year or so ago about optimization and leverage?\u201d I replied.
\u201cYeah. Basically, we talked about me doing what I do best and letting others do what they do best,\u201d Nick said. \u201cThat\u2019s when we reorganized our structure in the practice and redefined everyone\u2019s role so that I am no longer bogged down in administration.\u201d
\u201cThat\u2019s it,\u201d I said. \u201cOptimization 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?\u201d
\u201cNot really,\u201d Nick admitted. \u201cI started using the extra hours I had on the technology.\u201d
\u201cSo, you got the leverage aspect right \u2014 at least, as it pertained to administration,\u201d I responded. \u201cBut 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\u2019s what you do best.
\u201cYou 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.
\u201cHe 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.
\u201cEach 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.
\u201cWe 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?\u201d
\u201cActually, it could,\u201d Nick replied, \u201cIn 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\u2019s new. He is very much in tune with what\u2019s happening. We have a great relationship and I\u2019d 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.
\u201cI never thought about asking him to do work for us, but that\u2019s exactly what I am going to do right away. This is exciting!\u201d
\u201cThat\u2019s great, Nick,\u201d I said. \u201cNow, one final question: what are you going to do with your extra time now?\u201d
He was quick to reply: \u201cThat\u2019s a no-brainer \u2014 implement that marketing plan, of course!\u201d\tIE<\/b>
George Hartman is a coach and facilitator with the Covenant Group in Toronto. He can be reached at george@covenatngroup.com. <\/i>
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