The Be Better Trap
I just read an articulate article about differentiation in professional service firms, written by my esteemed colleague Bruce Marcus, in the latest newsletter from Rain Today. Many of my readers and clients know about my extensive work (and copyrighted methodologies) on this topic, so I hope Bruce will forgive my disagreement.
First, he begins with the premise that differentiation is fundamentally about being "better" than others. Not! Differentiation is about being, having or doing something that is "only." Any time a professional firm finds itself talking about "we are more than" or "we are better," it should pinch itself hard and remember that these are simply comparisons, and not a true basis for "different."
Second, differentiation is about a future competitive advantage, and not about what a firm is, has, or does today. Too many professional service firms work themselves into a lather trying to discern a differentiation point that doesn't exist in the present day. Bruce's points don't address the work that firms must inevitably do to stretch toward tomorrow's differentiation.
Third, Bruce states that professional firms will have trouble articulating their "be better" state without having tangible evidence. Bruce, this is a sure sign of a firm that's relying simply on messaging to be different, and has not developed an actual differentiation infrastructure! If it had, tangible evidence of substantive differentiation would abound.
He concludes by reminding professional service readers that "The focus, then, should not be on concerns for differentiation, but rather on demonstrating your own capabilities – imaginatively, effectively, thoughtfully. If you can do this, differentiation doesn't matter. Your capabilities do." Bruce is spot-on to encourage all of us to build our capabilities with energy and insight.
But I believe that differentiation can be achieved, and that it does matter.
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(For more on differentiation, see our online differentiation strategies assessment test.)
Suzanne, I think you make a good point. However, I also enjoyed Bruce's approach. Differentiation can be very difficult for a law firm to achieve -- and it's not something that the marketing department can create with a brochure. However, a concentrated effort on showcasing expertise can go a long way in offering what clients are looking for -- demonstration of recent relevant experience and capabilities. In the real world, it may be impossible to get a firm to truly differentiate itself, but the "demonstrate your expertise" approach is a viable way to go.
I just found your blog, look forward to reading more.
Posted by: Amy Campbell | March 18, 2006 at 10:40 AM
I also just found your blog and look forward to reading more. Stick to your guns. Differentiating is tough but much needed in the services space. My view is that, too often in professional services, firms are focused inward or on a select set of competitors rather than on what would truly differentiate them in the eyes of their clients and prospects.
Posted by: Jill Richards | March 20, 2006 at 11:42 PM
Suzanne -- you're right on! Differentiation may not be easy but it makes all the difference. Trying to be everything to everyone ... even if you can somehow say you're better ... leaves us saying the same old tired phrases. Using the example above, I could try to convince people I'm the best lawyer around or be the one who wears cowboy boots to court and only deals with inner city real estate issues related to secondary schools. Chances are if I chose the second approach, I would be an "only" and would have such a depth of knowledge that "proving" differentiation would be pretty simple. Of course, it does help to differentiate in a way that is financially viable. ;-)
Great blog!
Posted by: Joyce Wycoff | March 21, 2006 at 10:38 PM