By Tim Barrick, FSMPS and Tony Steinhardt, FSMPS, CPSM
"Talent wins games, but teamwork and intelligence wins championships." - Michael Jordan
This quote – from a guy who knows something about winning – fittingly describes the "team sport" of business development in the AEC industry. To win work, firms must assemble a team of both business developers and seller-doers that work well together, share intelligence and leverage each other's unique skill set to accomplish a common goal.
The Business Developer's Role
The business developer plays a vital role in the process of winning work by initiating new relationships and "starting the conversation" with potential clients or partners. This initial contact takes some of the pressure to bring in revenue for the firm off the busy design practitioner, who likely has a minimum billable percentage to reach.
Before the conversation can even begin, however, a business developer must first evaluate the potential client based on the firm's expertise, values, experience, sales strategy and marketing plan, plus determine if it's the right fit for them. Consider pursuing clients first, not projects, as this philosophy leads to more strategic pursuit decisions, longer relationships and can ultimately lead to an increase in repeat work.
This evaluation process is followed by extensive background research, so that the business developer can provide ample knowledge of the client, the client's business and the players involved, and thus set the table for a deal to be made.
Once a deal is struck and a project is underway, the team's job is not done; there is no off-season when it comes to building relationships. Though the client relationship can now be handed off to the seller-doer, who becomes responsible for its long-term continuation and growth, the business developer must still be involved in a support role, mentoring the technical professional on subjects such as competitor analysis and identifying trends in the marketplace. Design professionals sometimes lack these research and sales skills that come so naturally to business development specialists.
The business developer is also responsible for providing a level of accountability for the team, periodically putting pressure on the seller-doer to ensure they are doing the things necessary to nurture their newfound relationship and find continued success. Thus, throughout the process the business developer will act not only as teammate but also as coach, mentor, strategist, researcher, knowledge-sharer, door-opener, community networker, talent agent and information gatherer.
©RATIO Architects, Inc. | Developed by Tony Steinhardt
The Tools to Succeed
This give-and-take between the business developer and the design professional relies on teamwork, trust and communication. To achieve success, the firm must have robust mechanisms for sharing knowledge and data internally, and the BD team must have the discipline to only pursue relationships that align with the firm's marketing plan and strategy. Often it falls on the business developer to be objective enough to ask questions like, "Can we win this job?" and "Why should we pursue this client?"
Most importantly, establishing, developing and maintaining relationships take a significant investment of time and money. Business developers must be given the latitude to seek out and begin relationships, and seller-doers must be empowered to continue them.
Room for Debate
There is some current debate in the AEC industry as to whether the strategy of investing in a dedicated business developer has value. As business developers ourselves, we believe that value is provided in the time and energy needed for the market research and relationship-building efforts that are critical to eventual sales success.
Today more than ever, knowledge sharing and creation is a crucial differentiator for professional services firms, allowing design professionals and business developers alike to establish credibility while also giving them the ability recognize the alignment of firm and client. Often, business developers are best positioned, and have the non-billable time, to recognize client pain points, identify knowledge gaps within the firm and produce content to share with clients.
In fact, some highly-specialized firms assign specific business developers to champion each area of expertise, which creates the opportunity for more in-depth conversations with potential clients and further lifts the burden of relationship-building from busy design practitioners, who typically are relied upon to provide that knowledge.
Investing in dedicated business development talent is essential for a robust client pipeline; however, each firm must make their own strategic and financial decisions when it comes to building and deploying their BD team. Though smaller, more generalist firms may not need the skills and services of a dedicated business developer, as firms grows and specialized knowledge becomes ever more necessary, business developers can provide great value by developing client relationships and bringing in new work, thus allowing design professionals to focus on what they do best. Now that's a slam dunk!
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Under the business development and marketing leadership of Tim Barrick, FSMPS and Tony Steinhardt, FSMPS, CPSM, RATIO (www.RATIOdesign.com) has grown from a small Midwestern studio to a multi-office firm working nationally and internationally. Founded in 1982, RATIO is an award-winning design and planning firm offering services in architecture, historic preservation, interior design, landscape architecture, urban design + planning, graphic design and economic development. Its collaborative studios combine professionals from all disciplines to work on education, community, life science, workplace, lifestyle and cultural projects.
In 2012, RATIO formed a strategic alliance with Chicago-based smdp, LLC. The partnership offers clients an expanded list of services and allows both firms to pursue growth opportunities and continued stability in the new global economy.
(Return to the cover of the 2016 PM Digest: Business Development)