Why do so many professional services firms fall at the first hurdle when it comes to defining their purpose?
It’s often said that businesses thrive when they have a sense of purpose, but what happens when that purpose feels forced or inauthentic?
Many professional services firms struggle with this issue. A recent study of the top 50 accountancy and law firms conducted by strategic branding and communications consultancy Bright Space, reveals many of these businesses are missing a key element in their communication strategy: a clear, authentic value statement.
Rather than attempting to craft an ambitious purpose statement, which may not align with the business’s true identity, professional services would benefit from adopting a simpler, more straightforward Business Value Proposition (BVP).
Why Purpose Statements Often Fall Short
Law firms, accounting firms, and other professional services frequently stumble when it comes to articulating a purpose that resonates with stakeholders. These firms may feel pressured to create purpose statements that are too grandiose or disconnected from their true day-to-day activities.
When there is a mismatch between what a company does and what it claims to stand for, confusion and scepticism can arise among key stakeholders, such as clients and employees, investors, and the broader community.
From those studied, Bright Space found that while just over half of law firms (52%) and fewer than half of accountancy firms (44%) claimed to have a purpose statement, only a small percentage of these firms had a fully articulated and embedded purpose that included narrative and context. This suggests that while many firms recognise the importance of purpose, they are falling short of integrating it effectively into their operations and communications.
Why is this and what should firms be doing?
Purpose has long been seen to be a must have for any organisation - the North Star that guides operations and culture, and defines social and environmental impact. Whilst this is entirely true, it is not always wholly authentic, however well intentioned.
The lack of commitment from professional services, highlighted by the study findings, perhaps should not be unexpected from a sector that can be taken to be relatively risk adverse.
Instead of stretching to define an idealised purpose, a Business Value Proposition offers a more practical and grounded approach. A well-crafted BVP outlines the tangible value the business provides to its four critical stakeholder groups. This makes it easier to embed into the firm’s operations and ensure consistency in messaging across all touchpoints.
Where to begin - Know who you’re creating value for
A Business Value Proposition allows firms to communicate the value they create more effectively by targeting four primary stakeholder groups; customers, employees, investors and broader society.
When targeting customers, a clear value statement fosters trust and loyalty. It gives clients an understanding of the benefits they’ll receive without being drenched in “saving the world” rhetoric which all stakeholders for that matter, can see through.
When value is communicated clearly, employees are more likely to feel engaged and understand their role in delivering that value. A well crafted value proposition provides investors confidence in a business’s foundation and direction.
And in an age where corporate responsibility is increasingly scrutinised, communicating value to wider society without obtuse sentiment helps professional services align with modern expectations.
And where and how you create it
It can be easier to identify where professional services create value, and for whom, by considering specific areas of the firm in isolation. Bright Space uses a Value Framework and STAR method to work this out across five key areas; products and services, financial performance, environmental impact, societal contribution and governance.
To understand how value is created in these areas Bright Space starts by asking questions like what makes the firms offerings distinct, how does the firm contribute to sustainability, what social value does the business create for communities? Other conversation starters along the lines of what economic value does the firm provide stakeholders, and how transparent and accountable is the leadership?
Once these discussions start, it’s often the case that value is easier than anticipated to extract.
The STAR method enables firms to identify value in a practical and pragmatic way that is true to its day-to-day activities.
Simple – Don’t overcomplicate
True – Can you prove it with examples?
Authentic – Does fit within the context of your business? How much pro bono work do you really do?
Relevant – What stakeholder need does it meet?
What next?
Once the value has been identified and articulated, it must be consistently communicated across all platforms; client interactions, employee communications, and investor reports. The goal is to make sure the value the firm provides is clear, consistent, and accessible. Whether it’s purpose or a value proposition, make sure you can walk the talk.
Finally, measuring the effectiveness of this value proposition is essential. Firms should regularly evaluate how well their messaging is driving engagement and whether it is delivering tangible results.
A Simpler, More Effective Approach
In many of the cases where professional services firms have attempted to define a purpose they over-complicate messaging and become too ambitious. A simpler, more authentic Business Value Proposition provides a better route.
By focusing on the tangible value they create through products and services, financial performance, environmental impact, societal contributions, and governance, firms can build stronger, more genuine connections with customers, employees, investors, and society at large.
The priority should be on articulating value and meaning in a way that accurately reflects what the business does and how it benefits its stakeholders. In a sector where clarity and trust are paramount, the importance of a clear proposition cannot be overstated.
After all, it’s not about claiming to change the world—it’s about delivering real value to those who matter most.
This article was first published in PM Forum Magazine November 2024