proof positive: executive summary 2013 - sympatico · executive summary 2013 applied research and...

PROOF+POSITIVE THOUGHT LEADERSHIP IN CANADIAN PROFESSIONAL SERVICE FIRMS

Executive Summary 2013Applied Research and Capstone Project Presentation (MCM740)Presenter: Wendy McLean-Cobban, CMP, ABC, MCM

Capstone Advisor: David Scholz

Master of Communications Management Program,

Department of Communication Studies & Multimedia

McMaster University

PROOF+POSITIVE�

AbSTRACT

Canadian professional service firms have significant influence on the country’s workforce and the economy. Since their products and services are generally based on intellectual capital, a highly professionalized workforce, and a high degree of customization for each client situation, these organizations have been positioned as a model for the new reputation-based economy. With firms wanting to build strong reputations and enduring relationships with their clients and other stakeholders – where does thought leadership fit in?

With little Canadian research on professional service firms, their reputations and use of thought leadership, this exploratory study looks at the current practices including the importance and effectiveness of thought leadership activities and reputation management; and what role communications and marketing practitioners play or should play in developing, distributing and evaluating these initiatives. The study includes online survey responses by communications and marketing practitioners along with seventeen in-depth interviews with senior executives and communications and marketing practitioners from a range of professional service firms.

PROOF+POSITIVE�

The findings suggest that Canadian professional service firms have similar opportunities and challenges with respect to thought leadership and reputation management as firms in other countries such as the United States, Australia and Europe. This includes the reasons for developing thought leadership strategies and the belief it contributes to a firm’s reputation; although, there is no clear consensus how to define thought leadership or what activities it encompasses. Specific thought leadership activities which firms believe are more effective than others are consistent with global studies; however, measurement of thought leadership and reputation is still a challenge with many firms only addressing it in a tactical way.

Developing successful thought leadership strategies are a long-term process requiring senior management support and leadership, adequate budgets and employee resources, and solid research and client data. There is an opportunity for communications and marketing practitioners to develop, implement and measure thought leadership strategies which position firms and their leaders as experts on topics and in industries which matter most to existing clients and potential clients. As well, there is a need to develop a holistic approach to measurement that ties a firm’s thought leadership activities and reputation to its strategic goals, including financial, client, employee, and media/social/web related performance indicators.

AbSTRACT (continued)

PROOF+POSITIVE�

CANADA’S PROFESSIONAL SERVICE FIRMS (PSFs) HAVE A SIGNIFICANT INFLUENCE ON THE ECONOMY

$60.6 billion of the nation’s GDP Employ over 1.2 million Canadians (7% of the total workforce)

PSFs two critical assets Inventory of skills, talents, knowledge, and ability Strength of its client relations and reputation

If reputation and brand management are key concerns for professional service firms, how can they build strong and enduring reputations with their clients and other key stakeholders?

“Thought Leadership”

Sources: Government of Canada, 2011; Maister, 1993.

PROOF+POSITIVE�

WHAT IS CONSIDERED A PSF?

PSFs are often structured through partnerships and its products and services are based on intellectual capital, a highly professionalized workforce, and a high degree of customization for each client situation.

Sources: Fenton & Pettigrew, 2011; Hodges & Young, 2009; Von Nordenflycht, 2010; Surry & Wehmeyer, 2007; Government of Canada, 2011.

Accounting

Legal

Financial management

Architectural design

Engineering

Information technology

Recruitment

Scientific and business consulting

Market research

Marketing and communications services

PROOF+POSITIVE�

WHAT IS THOUGHT LEADERSHIP?

An individual or firm that prospects, clients, referral sources, intermediaries and even competitors recognize as one of the foremost authorizes in select areas of specialization, resulting in being the go-to individual or organization for said expertise.

Sources: Prince & Rogers, March 16, 2012; Interviews.

ExpertiseAuthority

InsightsForward-thinking

Innovative

+ + +

+ +

PROOF+POSITIVE�

WHAT CAN bE CONSIDERED A THOUGHT LEADERSHIP ACTIVITY?

A tactic used to demonstrate an individual or organization’s expertise that is accepted and shared with the creators target audience.

Historically… Articles Publications (including books, newsletters, white papers,

case studies) Research reports Event-related presentations Think tank/government committee/board participation

Growing in usage… Blogs and micro blogs Web seminars Podcasts Videos Virtual events

Sources: Frederiksen, 2008a; Pearce, 2012; Arthur W. Page Society, 2012; Ragan, November 27, 2012; Content Marketing Institute, 2010 & 2012.

What role does content marketing play?

PROOF+POSITIVE�

WHAT IS CONTENT MARKETING?

The marketing technique of creating and distributing relevant

and valuable content to attract, acquire, and engage a clearly defined and

understood target audience – with the objective of driving

profitable customer action.

Source: Content Marketing Institute, n.d.

PROOF+POSITIVE�

bRAND & REPUTATION

They are interconnected, but not the same.

What is corporate reputation?

A collective representation of a firm’s past actions and results that describes the firm’s ability to deliver valued outcomes to multiple stakeholders (internal and external) including assessments of the financial, social, and environmental impacts over time.

Sources: Fombrun & van Riel, 1997; Barnett et al, 2005.

brand Reputation

PROOF+POSITIVE�

RESEARCH QUESTIONS

RQ�: How and to what extent do thought leadership activities impact a professional service firm’s reputation?

RQ�: Can these thought leadership activities be measured individually, as well as part of a key component contributing to the overall reputation of a professional service firm?

RQ�: Are there any implications for the role communications professionals have in relation to managing and measuring thought leadership activities and reputation at professional service firms?

??

???

?

? ?

??

?

? ??

??

?? ??

???

?

?

? ?

?

?

PROOF+POSITIVE�0

RESEARCH METHODOLOGY

Literature review of academic, industry, and trade research and articles related to thought leadership, reputation management, content marketing and PSFs

Online survey of communications & marketing practitioners working in PSFs (via Fluid Surveys):

150+ practitioners invited by email (list developed by researcher)

Promoted through 11 professional/trade associations (e-news and/or online LinkedIn group)

17 in-depth interviews with PSFs:

Communications & marketing practitioners (10)

Senior executives (7)

PROOF+POSITIVE��

THE INTERVIEWEES

*5 executive interviews part of MCM714 coursework.

7 Senior Executives from accounting (2), technology/outsourcing (2), recruiting, market research, and consulting*

10 Communications & Marketing Practitioners from accounting (2), technology/outsourcing (2), legal (2), consulting (2), and recruiting (2)

Titles: President Chief Executive Officer (CEO) (2) Chief Technology Officer Senior Vice-President Vice-President Principal

Titles: Director, Marketing & Communications Director, National Marketing Vice-President, Marketing National Director, Marketing & Business

Development Head of Marketing & Public Relations Principal & former National Director of

Knowledge Management Senior Marketing Manager Marketing Content Coordinator


THE SURVEY RESPONDENTS

What type of PSF they work for (n=79 / only 70 qualified)

0% 5% 10% 15% 20% 25% 30%

NoneMarket Research

ConstructionTechnology Services

EngineeringRecruitment

Accounting & FinanceArchitecture

Consulting (Business & Management)Legal

Marketing/Communications/PR

11%1%1% 5% 5% 5% 6% 8% 14% 15% 28%



Size of firm (n=30)

250-4999 employees, 37%

< 10 employees, 23%

11-49 employees, 17%

50-249 employees, 17%


Survey respondents’ titles (n=28)


0% 5% 10% 15% 20% 25% 30%

OtherPresident

Vice-PresidentAdvisor

SpecialistCoordinator

CEOSenior Vice-President

Senior ManagerManagerDirector

4%4%4%4%4% 7% 7% 7% 11% 21% 29%

*50% hold senior or mid-managements positions at their firms



Do they identify as communications, marketing, integrated or other (n=28)

Marketing, 32%

Integrated, 32%

Other, 18%

Comm/PR, 18%


STRUCTURE OF COMMUNICATIONS & MARKETING AT PSFs

Few PSFs have separate Communications/PR departments. Most are part of marketing or business development (n=31)

Marketing & Comm/PR part of Business

Development, 39%

Comm/PR part of Marketing, 32%

Small firm/Individual, 16%

Small with a department, 13%


COMPETITION AT PSFs

Majority of respondents said competition within their industry has increased since last year (n=52)

Increase a little, 40%

About the same, 31%

Increased a lot, 29%


PSF FIRM GROWTH RATE

All firm respondents expect business growth this year (n=30)

0-10% growth , 43%

No growth, 3%

11-20% growth, 17%

Over 20% growth, 3%

Unsure/Not Disclosed, 34%


HOW CLIENTS CHOOSE A PSF

What selection criteria do potential clients use to decide whether to work with your firm?

Very Important to Important

Criteria % n= Ranking

Expertise/technical skills 96 51 1

Firm experience 91 48 2

Availability/flexibility 88 45 3

Knowledge of the client’s industry/situation 87 45 4

Reputation 87 45 4

Price 81 43 5

Personal relationship 77 40 6

Firm resources 58 30 7

Firm management approach 48 25 8

Firm size and reach 41 22 9

PROOF+POSITIVE�0

THOUGHT LEADERSHIP: STRATEGICALLY IMPORTANT TO PSFs

Majority of respondents (98%; n=46) and all interviewees said thought leadership is an important initiative for their firms.

Majority of respondents (96%; n=45) and all interviewees said thought leadership was part of their firm’s strategic business plan and objectives.

On thought leadership and business strategy:

“Always focusing on the value proposition… so what is it exactly that you provide in terms of the services in the market and where do your customers benefit from partnering with you or associating you with the idea? Make sure that it is an idea that somebody cares about.” (Communications & Marketing Interviewee)


THOUGHT LEADERSHIP HELPS TO bUILD A PSF’S REPUTATION

Majority of respondents (98%; n=46) and all interviewees said thought leadership contributes to developing a credible reputation their firms.

Respondents and interviewees said:

“Thought leadership, it’s our key differentiator at this point, it helps set you apart, it helps keep you out of that commoditization pool …it introduces that whole concept of value add, it positions you as a business partner versus a vendor.” (Senior Executive Interviewee)

“Where all you have is content and there are so many changes going… that our clients cannot possibly keep up with everything… our job is to make the lives of our clients easier in telling them what they need to know at that exact moment.” (Communications & Marketing Interviewee)

“Demonstrating that we have expertise and we are on top of current issues that are important to our clients.” (Survey Participant)


ON DEFINING THOUGHT LEADERSHIP

Most of the interviewees felt that thought leadership was about showcasing and positioning the firm’s expertise in the marketplace along with increasing its reputation.

“Is a considerable investment for a firm… you have to be continually striving… connect thought leaders in the academic world with thought leaders in the business world or practitioner world. Thought leadership means innovative work and the only way to do that is to basically stop the work that you’re getting paid to do and step aside and actually quietly and soberly think things through.” (Senior Executive Interviewee)

“An ambition to be recognized as a firm that can provide high level, high value service, and information and value to its clients because of the information, knowledge and expertise that it has, and be recognized as one of the best in that world, or that business or in that market.” (Communications & Marketing Interviewee)


OUR ROLE IN THOUGHT LEADERSHIP

When it comes to thought leadership, communications & marketing practitioners do it all (n=30; multiple answers)

0 10 20 30 40 50 60

Evaluation and measurements for the thought leadership activities

Delivery and implementation of thought leadership activities

Management (development, delivery and evaluation) of thought

leadership activities

Contribute to the development of thought leadership activities

20%

30%

40%

57%


THOUGHT LEADERSHIP ACTIVITY USE & EFFECTIVENESS AT PSFs

Which activities are being used and what is the perceived effectiveness of those activities

Podcasts -6 17 23

Videos 47 26 21

Research Reports 44 30 14

White Papers 52 44 8

Twitter 62 49 13

Blogs -6 57 63

Social Media -12 53 65

Newsletters -3 62 65

Boards/Think Tanks -10 62 72

Articles -17 64 81

Presentations -49 44 93

Case Studies -28 19 47

Books -10 20 30

Webinars -13 31 44

High Effectiveness

Usage

Gap +/-


DO PSFs MEASURE THOUGHT LEADERSHIP?

Yes (44%)

No (34%)Unsure (22%)


TOP �0 THOUGHT LEADERSHIP MEASUREMENTS bEING USED

0 10 20 30 40 50 60 70 80

Social Media FollowersEmployee Satisfaction Rates

Media Coverage (Branded Mentions)Web (SEO ranking)

ExpendituresEvent Attendance

Web (Time Spent Online/# of Pages Visited)Web (Unique Visitors)

Net ProfitSocial Media Coverage (Branded Mentions)

ReferralsClient Satisfaction Rates

Sales/Fee GrowthQualitative Feedback

58%58% 60% 61% 61% 62% 71% 71% 74% 75% 76% 76% 78% 80%

(n=23 to 26; multiple answers)


TOP �0 MOST EFFECTIVE THOUGHT LEADERSHIP MEASUREMENTS

0 20 40 60 80

Web (Open and Click-through Rates)

Media Coverage (+, - or Neutral Tone)

Web (Inbound Links)

Employee Satisfaction Rates

Client Acquisition Rates

Client Retention Rates

Net Profit

Client Satisfaction Rates

Qualitative Feedback

Sales/Fee Growth

Referrals

46%

46%

50%

50%

56%

59%

63%

67%

71%

75%

81%

(n=10 to 21; multiple answers)


GAP ANALYSIS OF TOP THOUGHT LEADERSHIP MEASUREMENTS USED VERSUS EFFECTIVENESS

Web (SEO Ranking) -25 36 61

Expenditures -28 33 61

Web (Time/# Pages) -44 27 71

Web (Visitors) -38 33 71

Event #s -28 44 72

Net Profit -11 63 74

Social Media Mentions -56 19 75

Client Satisfaction -9 67 76

Referrals 81 76 5

Sales/Fee Growth -3 75 78

Qualitative Feedback -9 71 80

High Effectiveness

Usage

Gap +/-


Yes, Monitor(55%)

No (23%)

Yes, Monitor &Measure (16%)

Unsure (6%)

DO PSFs MEASURE THEIR REPUTATIONS?

(n=31)

PROOF+POSITIVE�0

DISCUSSION & RECOMMENDATIONS

PSFs need integrated thought leadership strategies and content marketing programs to be successful

Thought leadership strategies can help Canadian PSFs grow and differentiate themselves in the marketplace, and help build a credible reputation

Having the right people is critical for PSFs to be able to build and sustain long-term and successful thought leadership strategies

Measure consistently and measure what make sense – no one size fits all

Room to grow role of communications and marketing in the eyes of senior management at PSFs


DELIVERAbLES & KNOWLEDGE MObILIZATION

Online repository for study and deliverables (wendymcleancobban.blogspot.ca):

Thought leadership assessment tool

Next step – testing, analyzing feedback, making adjustments

Executive Summary

Infographic

Other opportunities may include presentations and articles for trade and/or academic publications and associations.


AbOUT THE AUTHOR

Wendy McLean-Cobban, CMP, ABC, MCM (@wmcleancobban) has over 14 years of experience as a communications, marketing and events professional working in both the financial and not-for-profit sectors. Currently she is working at the Chartered Professional Accountants of Canada as a Communications Manager. She is a recent graduate of the Master of Communications Management (MCM) program at McMaster University. She also holds both the Accredited Business Communicator (ABC) and Certified Meeting Professional (MPI) accreditations.

Linkedin: http://ca.linkedin.com/in/wendymcleancobban

proof positive: executive summary 2013 - sympatico · executive summary 2013 applied research and...

Documents