A Firm of Shared Vision or Shared Services?
Professional service companies can be successful as either shared services or shared vision firms although there are limitations on shared services firms. Your question may be, "What is the difference?" Conducting an honest assessment of your firm is the first step that should be taken. Next, develop a strategic plan.
Shared services firms can grow and prosper financially, while shared vision firms can provide more than just financial results. Shared vision firms can also provide exponential growth as well as a differentiating culture where individuals are rewarded for their significance in support of the firm’s strategic objectives. Shared vision provides direction, growth and integration with personal goals and a differentiating culture.
The following questions will assist you in determining where your firm is today. Shared services firms are limited to incremental improvement and growth while shared vision firms can achieve firm improvement, exponential growth and a differentiating culture. This requires P3 Management™ (…planning, people and processes). P1 is firm improvement, P2 is exponential growth and finally P3 is a differentiating culture.
| Question | Yes | No |
| 1. Does your firm have a strategic plan with buy-in from the owners and staff? | ||
| 2. Does your firm have a professional management team? | ||
| 3. Is your firm managed by a CEO or Managing Partner? | ||
| Are owners compensated for objectives other than financial (charge hours and book of business)? | ||
| 4. Firm and office management? | ||
| 5. Development of staff and other owners? | ||
| 6. Management of staff and other owners? | ||
| 7. Client development and satisfaction? | ||
| 8. Process improvement and innovation? | ||
| 9. Does your firm have succession and retirement plans in place? | ||
| 10. Does your firm view technology as a strategic asset? (The accelerator.) | ||
| 11. Does your firm have written standards, policies and procedures? | ||
| 12. If so, do the firm owners comply with the standards, policies and procedures? | ||
Yes, to 9 or more of the questions – well on your way to a shared vision firm.
Yes, to 6-8 of the questions – you are in transition.
Yes, to 5 or less of the questions, you are a shared services firm.
While the benefits of being a shared vision firm are great and the dangers associated with a shared services firm are significant, both can have financial success. The problem with shared services firms is they tend to be about the owners, rather than the firm. It is difficult to sustain growth…especially exponential growth in a shared services firm. Lack of succession and continuity is also a risk of a shared services firm. It takes planning, processes and the right people to be a shared vision firm. The firm must come first. Once you have determined where you are today and where you want to be in three years, you can then begin implementing the appropriate strategies.
The following is a table showing some of the differences between the two types of firms. Of course there are degrees and many firms are striving to transition.
| Shared Services Firm | Issue | Shared Vision Firm |
| 1. MP- Executive Committee | Governance | CEO - Managing Partner |
| 2. Little time for planning & thinking | Planning – Strategic, IT, HR, Succession, Staff Dev.
| Yes, integrated partner & staff game plans |
| 3. Book of business then the firm – Owners in charge of key leadership roles | Management Focus | Professionals in key leadership roles CEO, CFO, CIO, HR, Marketing, etc. |
| 4. Protect individuals | Agreements | Protect the firm & owners |
| 5. Unfunded, often unrealistic | Retirement | Funded or unfunded, but limited |
| 6. No plan - hope to hire future leadership | Succession | Develop leaders at all levels - Plans in place |
| 7. Overhead | Technology | Strategic asset
|
| 8. Focus on CPE requirements | Training & Learning
| Technical CPE, soft skills & leadership |
| 9. Charge hours and book of business | Owner Compensation | Goal oriented, Balanced Score Card |
| 10. Multiple processes & generally not adhered to by owners | Standard, Policies & Procedures | Documented and adhered to by everyone
|
P3 Management can transform your firm; however it requires the proper balance between planning and processes, then the right people in the right seats on the firm bus.