Are You Sure You Are INVESTING in Growth?
As a professional services firm leader, you've likely been frustrated with your marketing, sales, or other “investments.” Maybe you tried a new technology, hired expensive new talent, or signed a pricy contract, but nothing new seemed to happen. You've been pouring resources into what you believe are strategic investments for growth, yet sometimes, the needle barely seems to move. So you cancel or change strategy. You end up frustrated. Your team ends up frustrated. It is a miserable and unproductive rinse-and-repeat.
We can fix this, but the hard truth may be a matter of perspective and reflection, not execution. When I was a CMO, I learned the following lesson (the hard way):
You can do ROI on anything as long as you agree on the “R” before you make the “I”
The ROI challenge at hand here is not so much about KPIs or deliverables as it is about agreeing on the timeframe of those outcomes. True investments aren’t measured and judged daily; the best ones compound past successes, which takes time and consistency. Before you cash out of a strategy too early, consider the following:
The Transaction Trap
Many firm leaders fall into what I call the "transaction trap." They believe they're making strategic investments, but in reality, they're engaged in a series of high-level transactions. Here's how to spot if you're caught in this trap:
Short-Term Focus Disguised as Strategy: You're always chasing the next big win or project, convincing yourself it's part of a larger plan.
Metrics Myopia: Your focus is primarily on immediate, measurable, top-of-mind results (vs. long-term agreed-upon measurable results)
If any of these sound familiar, you're not alone. Many firms operate this way, all while believing they're making strategic investments.
The True Nature of Investment
Now, let's contrast this with what real investment in growth looks like:
Long-Term Vision: True investments are guided by a clear, long-term vision beyond the next quarter or fiscal year.
Relationship Cultivation: Significant time and resources are devoted to understanding and addressing needs, upskilling, and building trust - even when there's no immediate payoff.
Brand Building: Consistent, strategic efforts to build brand awareness and credibility, often through thought leadership and content creation.
Talent Development: Investing in your team's skills and knowledge, even if it means short-term productivity hits.
Innovation and R&D: Allocating resources to explore new service lines or methodologies without the pressure for immediate returns.
Strategic Saying 'No': Being willing to turn down lucrative but misaligned opportunities to focus on long-term goals.
Why the Distinction Matters
The difference between transacting and truly investing isn't just semantic - it's the key to unlocking sustainable growth. Here's why:
Compounding Returns: Real investments compound over time. Each effort builds on the last, creating exponential rather than linear growth.
Resilience: Firms that invest are better equipped to weather economic downturns or industry disruptions.
Attraction Power: True investments in your brand and expertise naturally attract high-value clients and top talent.
Pricing Power: As your firm's perceived value increases, so does your ability to command premium pricing.
Innovation Edge: Long-term investments often lead to breakthroughs that can redefine your market position.
Making the Shift
Recognizing that your "investments" might actually be transactions is the first step. Here's how to start shifting your approach:
Audit Your Activities: Honestly evaluate your current efforts. Are they genuinely strategic and long-term focused?
Redefine Success Metrics: Look beyond short-term KPIs to include quantifiable tangible and intangible benefits.
Commit to Consistency: Replace sporadic, high-intensity efforts with consistent, strategic actions.
Cultivate Patience: True investments take time to bear fruit. Be prepared for a lag between effort and results.
Align Your Team: Ensure everyone understands the difference between transacting and investing and how it applies to their role.
The Payoff of True Investment
The shift from sophisticated transactions to genuine investments isn't easy. It requires patience, courage, and, often, a complete paradigm shift. But the payoff can be transformative:
A robust, recession-proof business
A strong, differentiated market position
A talented, loyal team
The ability to shape your industry rather than just respond to it
The Choice Is Yours
As a firm leader, you stand at a crossroads. You can continue down the path of high-level transactions and the frustrations and disruption that they bring. Or, you can embrace the challenges and rewards of true investment, setting your firm on a trajectory of long-term success and industry leadership.
The choice is yours. But remember, in a world where everyone is looking for quick wins, the firms that truly invest are the ones that ultimately win big.
Are you ready to stop transacting and start genuinely investing in your firm's future?
Let’s Talk,
Bruce & Lefty
