This blog is the second in a series of four in regards to how Progressus can help your professional services firm by injecting flexibility and speed. Professional Services firms should be flexible and adaptable because of the ever-changing market and technology. In the first blog, we discussed the first three disruptive trends in the professional services industry. In this second blog, we will discuss the remaining three disruptors to the professional services industry.
Here are the remaining three disruptors:
Productization of Services: Professional services firms can deliver services in an ad hoc manner for every client or package them in structured yet flexible ways. An example would be a packaged offering including templates, defined methodologies, work plans, and how-to guides. By packaging, pricing, and marketing these mature service offerings, a professional services rm gains a streamlined sales process for both new and existing clients, more predictable outcomes, and higher profitability.
Value-Oriented Billing: The basic source of revenue for professional firms remains hourly billing, but value billing is a growing trend. Currently, value-oriented billing is easiest to apply for services where the value is explicit, such as tax savings, damage awards, ad placements, or the size of an acquisition or merger. However, more applications of value billing can be expected as professional service firms become “advisors” rather than just hourly workers.
Blending of Industry Lines: Until 1995, Fortune magazine maintained separate Fortune 500 lists for industrial and services companies. However, it became increasingly difficult to distinguish between the companies offering products and those offering services. Product companies now sell services, while services companies sell products.
These three disruptors and the three we discussed previously are major variables that professional services firms need to factor into their plans. It is more important now than ever for these firms to be as flexible and speedy as they possibly can. In the next blog, we will discuss whether or not your firm shows signs of being at risk. In the meantime, download our Flexibility and Speed for Professional Services Firms white paper to learn more!