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Eighteen years ago, the business world was rocked by the shocking collapse of Arthur Andersen & Company. Here was a firm that had become a bedrock of commerce since its founding in 1913. At its peak, Arthur Andersen employed 85,000 people and achieved $9.3 billion in revenue based on a reputation for providing auditing, tax and consulting services with utmost integrity. Then, seemingly overnight, a global powerhouse went kaput after being found guilty of crimes in the company’s auditing of Enron.
All it took was one lapse — and yes, it was a doozy — for a storied brand to lose everything.
A Call To Action For Professional Services Firms
The demise of one of the original Big Five accounting firms still reverberates for me. A couple of realities seem as relevant today as they were then:
• Arthur Andersen’s collapse was caused by just a few people who failed to live the values of the company.
• This event could easily happen again in the $2 trillion professional services industry.
The professional services industry spans businesses ranging from advertising agencies to consulting firms. We have two things in common: We’re only as good as our people, and we need to do a better job serving our people and clients with purpose and values.
I’ve been a part of this industry for decades. It’s clear to me that professional services is at a crossroads. On the one hand, a new generation of job seekers wants something different from their employers: clear purpose and alignment with their personal values, not just financial rewards and promotions (although those things remain important). But professional services firms typically do not put values and purpose first. Instead, too often we’re mired in old models for running our businesses, viewing our operations through the lens of rate cards and billable hours.
We Need Strong Brand Foundations
Any business needs metrics to measure its success. Most leaders of professional services firms focus on growth goals, increased sales, and streamlined efficiencies to increase profitability. They operate by a simple credo: “We provide a service to our clients in a professional manner, and they pay us accordingly.” But what if professional services firms shifted our focus to running purpose-led, values-based companies? Those metrics would fall into strategic alignment at an expedited pace.
Aligning Profits With Purpose And Values
Aligning purpose, values and profits is one of the compelling themes of the 21st century — and one that will define the decade ahead. In August 2019, the Business Roundtable, a consortium of leading U.S. corporations, called for corporations to focus on purpose — to serve customers, employees and shareholders, not just shareholders. Business publications regularly examine how well companies align with their purpose. Typically, companies outside professional services dominate Fortune’s annual ranking of purpose-driven businesses. Professional services firms can learn a lot from these businesses. They understand why they exist (their purpose). They define their codes of conduct (their values). And they hold themselves accountable by discussing their commitments publicly (their stories).
I call these three elements — purpose, values and story — the brand foundation of a business.
The Three Elements Of A Brand Foundation
I discuss the elements of a brand foundation in a new book, How to Lead a Values-Based Professional Services Firm. The foundation looks like this:
Purpose: The “why” behind a professional services firm. As the Business Roundtable noted, purpose needs to encompass all aspects of a business. Purpose needs to act as a beacon to attract job seekers and clients.
Values: These are the codes of conduct that define a company. Values are based on data and psychology. In this ever-changing world, values are constant. They are the immovable object in a business.
Story: Stories articulate purpose, values and every other aspect of a business. Good stories also create emotional connections between the audience and the storyteller. They support a message when marketing a company to potential employees and clients.
I do see some compelling examples of professional services firms living their brand foundations. Consider Accenture, the global giant that split from Arthur Andersen. Accenture delivers on the values of shaping responsible businesses and innovating for society. For example, the company collaborates with nonprofits to train healthcare workers in developing regions — not only to do good, but to expand its business in emerging markets.
Marcom Needs To Play A Central Role
Where should professional services firms get started with creating a strong brand foundation? I believe a firm’s marketing and communications teams need to be part of the answer. A professional services firm needs a strong marketing and communications team to help define all aspects of its brand foundation. It makes intuitive sense that marcom must own the story, which is crucial.
Too often, businesses stumble when they share their stories. A disconnect between story, purpose and values can lead any firm astray. But marcom also needs to take the lead in helping a professional services firm understand its purpose and values, too. That’s because good marcom teams are connected to the only asset a professional services firm has to offer: the collective thinking and actions of its people.
By rallying around purpose, values and story, professional services firms will set themselves up to lead the next decade ahead — and beyond.
