Creating and managing
brand value Interbrand
Professional Services
Branding the Business
of Intangible Advice
January 2003
www.interbrand.com
Branding the Business
of Intangible Advice
Interbrand
A Uniquely Tough Environment
The 1990’s were a decade of unprecedented growth in
professional service firms and the services they
offered. Various reports have indicated that in the U.S.
alone 2,600 new accounting firms were formed, executive
recruiters increased 54% to 5,490, and 2,300
advertising firms were created. Not to mention the fact
that freelance consultants in the U.S. rose to 50,000 in
2000 from 1,400 in 1990.
The recent economic situation has quickly and ruthlessly
checked that growth. The market has contracted
significantly for most professional services. This has
resulted in a startling example of supply far outweighing
demand. Industry reports have noted that overcapacity
is as high as 30% in management consulting.
When you marry these statistics with the less-thanpositive
news coverage of lawyers, accountants, and consultants
related to corporate scandals, it produces one
frightening picture for the industry. In fact, professional
services management has never been so tested. These
conditions are forcing firms that lack solid leadership
and sound business models to question the viability of
their existence.
In this new environment, historic points of difference
are now commodities. Firms more interested in solid
and stable implementation fees now give strategic
advice away. Quality is no longer a competitive advantage,
as clients perceive an abundance of short-lived
and benefit-bereft services. These are sophisticated
buyers who interact daily with law firms, consultancies,
ad agencies, recruiters, accounting firms – and expect
the same best practices from all regardless of their
core service. Professional services are perceived
expensive and increasingly the advantage is shifting to
sharp clients who understand the value / price equation.
The absence of something really new, meaningful,
and performance improving has frustrated and
jaded the market. It is clear that savvy clients have
experienced too many fads and templates and know
that they do not provide any true competitive advantage.
Firms Need Differentiated Strategies for Their
Brand to Stand Out
Professional service firms frequently seek the services of
Interbrand because they believe that category parity is
their greatest challenge. And they are right. What is a
surprise is the fact that these firms lack differentiation
not because of their brand necessarily but because they
all have virtually the same business and operating model,
the same strategies, and the same mission. The root of
the problem with professional services is not brand differentiation
but business differentiation.
At first glance, a professional services firm represents a
relatively simple business model, each:
• Involves a specialty service
• Demands highly talented people to execute
• Involves a high-degree of customization for each
client situation
• Requires high levels of face-to-face client interaction
to facilitate the proces
• Competes both to sell its services and to attract the
intellectual capital to grow the business
Simple in theory, perhaps but by their nature professional
services are a people business and therefore as
unpredictable as the individuals who comprise them.
From working with professional services clients
Interbrand has discovered that:
• Most professionals do not want to be managed or led
• Most professional service organizations are overlap
ping matrices of geography, services, and industries
that promote ambiguity rather than accountability
• Most work junior staff extra hard to ensure leverage
• Most tell the outside world that they are one seamless
firm even though they are patchwork of acquisitions and
regional fiefdoms
•Most struggle with finding the balance between
long-term development and short-term
client delivery
And perhaps the greatest challenge professional service
firms have now (and have always had in a less pronounced
sense) is business development.
Historically, the phone always rang and when it stopped
most firms designated the least busy but most out-going
partner to head up marketing.
Jeffrey Swystun
Global Director Interbrand
Clients are sophisticated buyers
who interact daily with law
firms, consultancies, advertising
agencies, recruiters, accounting
firms – and expect the same
best practices from all regardless
of their core service.
Branding the Business
of Intangible Advice
Interbrand
But soon lack of qualifications and the need to deliver
client work forced firms to abandon the partnerasmarketer
model and look for outside help.
Next, the firms tended to hire Consumer Product marketers.
This had limited success because they could
not identify with the intangible product (let alone the
strange culture, politics and tiny budgets). Both of
these solutions resulted in short-term ad hoc campaigns
that failed to sway prospective clients and
increased the sceptism professionals had with branding,
marketing and sales.
Branding Professional Services
At Interbrand we have been doing brand missionary
work for close to 30 years. We are evangelists and we
are innovators in the brand category. And in no other
industry is there a greater need for us to communicate
the benefits of branding than professional services. We
frequently and explicitly tell our clients that:
• A logo is not a brand
• A brochure is not marketing
• Marketing is not sales Here is a partial list that
makes the discipline of branding and the investment
it requires attractive and valuable. A strong
profes sional service brand:
• Makes the client’s selection process more
manageable by providing clarity of offering among
the multitude of firms and the services that abound
• Acts as a virtual ambassador reaching new clients
globally and through many channels
• Is built from the core values of the people who
comprise the firm and imparts a shared sense of
mission internally
• Shapes and drives corporate strategy by defining
which initiatives fit and which do not
• Achieves consistency between external and internal
messages
• Ensures efficient and effective marketing which in
turn produces more real sales opportunities We
know this because there are few businesses harder
to market and sell. For the most part this is a
mature industry where common marketing and sales
approaches do not apply. It is as much about selling
the individual professional as it is the firm.
But most of all the challenge lies in the fact that
advice is intangible.
Through our brand consulting work, Interbrand has
determined that clients of professional services want
“Practical Innovation”. That is, unique and achievable
solutions that produce tangible results. We have further
discovered that clients are willing to pay an
attractive premium for Practical Innovation. This
approach removes the intangible aspects of advice and
clearly communicates the firm’s benefits to its clients.
Successfully branded firms base their brand on a core
positioning that is uniquely own-able and represents a
distinct attribute or capability. This clear definition is
supported and reinforced by everything the firm does
– requiring all professionals and staff to live the brand
every day. This internal dimension of branding is critical
to professional services and highly topical currently.
It involves the alignment of the brand and its values to
human resources, operations, internal communications,
and more, to ensure the right behavior is in place.
Obviously branding cannot solve every business performance
issue and cannot be applied in all situations.
If, however, your firm possesses a clear business strategy
a commitment to a sustained investment in branding
that conveys differentiation can measurably drive
better business performance.
From that strong platform you will be able to more
effectively attract, retain and guide employees while
selling more of your services, more often, to more
clients, at a premium, forever and ever. That is the
promise and proof of strong professional service
branding.
Jeffrey Swystun has worked at Deloitte & Touche and
Price Waterhouse. He has advised legal, accounting,
advertising, engineering, and management consulting
firms on business and brand strategy. He is the Global
Director of Knowledge and Innovation at Interbrand,
the world’s leading brand consultancy.
There are few businesses harder
to market and sell. Commonly
accepted approaches do not
apply in the business of intangible
advice.
A commitment to a sustained
investment in branding can
measurably drive better business
performance.
Creating and managing
brand value Interbrand
Founded in 1974, Interbrand serves the world with
34 offices in 22 countries. Working in close partnership
with our clients we combine the rigorous strategy and
analysis of brand consulting with world-class design
and creativity.
We offer a range of services including research, strategy,
naming and verbal identity, corporate identity, package
design, retail design, internal brand communications,
corporate reporting, digital branding tools, integrated
marketing services, and brand valuation.
We enable our clients to achieve greater success by
helping them to create and manage brand value.
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