who pays for strategy?
August 2nd, 2010 • posts i've written
There are two types of clients that pay for strategy work.
There’s the client that is deeply curious about outside perspectives and looks for a strategy partner with a set of skills that compliments their own. Client No. 1.
Then there’s the client that feels too busy to do the strategy work for themselves, and who reaches out to a strategy partner to think on their behalf. Client No. 2.
And for each client type, there’s really only one course of action to satisfy their needs.
For Client No. 1, you better be ready to commit yourself to spending a good deal of time with the client, learning their business, and then deep diving on your own. Your work should be the product of rigorous exploration and synthesis.
For Client No. 2 you should brush up on your mind-reading skills. Whatever you deliver, it better sound exactly like the client’s inner monologue. Because, in their minds, if they had the time, they’d do this work for themselves.
In the world, there are more Client No. 2′s than No. 1′s. It’s by far the bigger market. A bigger, less rewarding, market. Client No. 1 will demand more of your time and an overall better product, but the return on your time can be huge. Client No. 1 is looking for a partner. Client No. 2 is looking for an intern. Client No. 1 understands the value of good strategy. Client No. 2 , by the very fact that they haven’t made strategy a personal priority, doesn’t understand your value, and won’t pay you what you’re worth.
Working for Client No. 1 makes you better at what you do. Working for Client No. 2 just tests your patience.
Client No. 2 is a dead-end.
Once we accept a client, we owe them our very best work; it’s something we owe ourselves, as well, come to think of it. But we have a choice of whose money to take. If you keep saying yes to Client No. 2, you’ll never find Client No. 1. You won’t get better at your craft. You’ll only improve your ability to deal with a difficult client.
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11 Responses (add your comment)
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Any companies you can think of that might fit into the two categories?
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Extremely well-spoken, Bud.
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Bud,
Often, people say that they’re looking for a partner to provide insight and perspective, when in fact they’re looking for labor. Distinguishing client number one from client number two is the key. Next time someone says that our company is “too expensive,” perhaps I’ll just be happy that we didn’t get saddled with a type two client instead of dwelling on where we failed to illustrate the value we provide.
Great Post!
Cheers,
Mark Gallagher
Brand Expressionist® -
Interesting.. it makes me think that client #2, if they’re not doing it themselves as much as possible, they probably don’t believe in it. If they don’t believe in it, they’re not going to value it and won’t see potential as an opportunity, but as a risky expense.
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IMO, the failure of strategy happens in implementation. The C-suite strategy gets created, gets stress-tested with the top level executives and (maybe) managers, and then is passed off for implementation by people below management and the front-line. Because the strategy hasn’t been “stress-tested” with these important people, it often fails. Yes, Bob the CMO knows how the strategy works, but it doesn’t make any sense to Jeff who is working the call center and dealing the company’s important customers everyday. Full implementation and feedback hasn’t been thought out.
This is where Strategy and management consultants get flack, because often the extent of their implementation is limited to a “x” year tactical roadmap, and they don’t stick around for further implementation of the strategy throughout the organization.
So, tying back to your original heading, “Who pays for strategy?. I don’t think the full onus should be on the client. If the strategist (hired by the client) is confident in their work, then they should pull up their pants and put some money up front. Fahrenheit 212 in NY (your old stomping grounds) does this with new clients. If we partly invest in the outcome then we signify confidence to our clients and also want to guarantee its success (and maybe stick around for necessary implementation).
Hope Boulder is treating you well
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Dead on sir. I would add that turning a “2″ into a “1″ is very rewarding. With exciting insights, brute force and a kind hand it is doable.
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Dan Weingrod August 2, 2010at 4:00 pm
Great truths here – “If you keep saying yes to Client No. 2, you’ll never find Client No. 1″. I think that sometimes, in the dark recesses of our hearts we want to be Client #2 and finding confirmation of that just moves us further away.
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@DigitalInfant – you’re right to say that strategy often fails in implementation – there was a recent HBR study to that effect, that shows how poorly top-line strategy is communicated down into the organization. Not to plug my own horn, but my book will offer solutions to that problem. I read a quote yesterday, benign at first, but it’s stuck with me, “The role of the C-suite is to support everyone’s objectives below them.” That rarely ever happens.
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I absolutely love working with people/organizations like Client #1. They make he happy. And being happy is important — so important.
Client #2 is, in the cases I’ve encountered, delusional.
We need tools to help foster more healthy Client #1s. And I agree: the book you’re writing carries with it the capacity to help.
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Oy Vey…so true…
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Great distinction and *extremely* helpful advice. Thanks.