True innovation in professional services must go beyond embracing new technologies in a firm’s own operations. Find out how leading firms are redefining value with innovative value propositions and how CMOs can spearhead this transformative journey to stand out in a crowded market.

Overused and Under-Delivered

The term “innovation” is prominently featured across the websites of many large and small professional service firms. However, a closer look often reveals a lack of much actual innovation.

Many firms offer nearly indistinguishable services from their competitors, competing primarily on perceived notions of quality. Implied claims of “we are the best” or “we are better” abound, but these assertions often lack depth.

Innovation has become synonymous with operational technology adoption in numerous professional service sectors

Technology: The Narrow View

Innovation has become synonymous with operational technology adoption in numerous professional service sectors, particularly those involving large amounts of processing, such as law and accounting. The mantra of “we are innovative because we invest in technology to enhance our service efficiency” is common. While investing in technology to boost efficiency and potentially reduce client costs is important, this perspective on innovation is extremely narrow.

Silicon Valley venture capital firm Andresson Horowitz recently made headlines by stocking up on Nvidia AI chips

Broadening the Scope of Innovation

True innovation should extend beyond operational technology advancements. It should encompass how firms deliver and enhance the client experience and add value. For example, Silicon Valley venture capital firm Andresson Horowitz recently made headlines by stocking up on Nvidia AI chips to secure more deals amidst a global GPU shortage — chips for their clients, not for their own use. This move exemplifies innovation not in the core offering of capital for equity—that everyone does—but in the auxiliary services that distinguish them from competitors.

Auxiliary Services as Differentiators

Other VC firms have introduced innovative offerings, such as ‘renting’ part-time finance directors, to assist portfolio companies as they grow. Some firms provide a full-time recruiter, funded by the venture firm, dedicated to sourcing new talent for their portfolio companies. These innovations, while not central to the primary business of exchanging capital for equity, significantly enhance their value propositions. They acknowledge that differentiation in core competencies is challenging, but auxiliary services offer more opportunities for distinction.

CMOs and their marketing teams are often some of the firm’s most creative people

CMOs: Catalysts for Innovation

Chief Marketing Officers (CMOs) understand this concept well. However, they often find it challenging to innovate in service delivery due to its complexity and the necessity to venture beyond their typical responsibilities and the firm’s existing capabilities. This type of innovation cannot be “consulted on” or “discovered” internally because it involves creating something entirely new.

Forming Strategic Coalitions

CMOs and their marketing teams are often some of the firm’s most creative people and are well-positioned to spearhead these innovations. The ideal approach is to form a coalition of colleagues across the business, establish a process to develop unique and innovative service delivery aspects, and then secure leadership support and budgets to bring these innovations to market.

There is immense potential for professional service firms to adopt innovative practices that go beyond technology

Engaging in Strategic Conversations

Engaging in this strategic conversation can be highly rewarding for CMOs as it positions them alongside senior peers in driving the firm’s strategic direction. The examples from the venture capital sector also highlight that useful innovation can be tech-light or even tech-free. There is immense potential for professional service firms, regardless of size or location, to adopt innovative practices that go beyond technology and enhance their value proposition, distinguishing them from other excellent providers.

Conclusion: Embrace the Challenge

Professional service firms must embrace the challenge of genuine innovation. This involves looking beyond operational technology to identify novel ways to deliver value and enhance the client experience. By doing so, firms can differentiate themselves in a competitive market and achieve sustainable growth. CMOs can grab the nettle and lead the way in innovative service delivery.