Listening to Professor Richard Susskind speaking after dinner at the APP AGM last week I was struck by the logic of his predictions for the future of professional services. There are lessons here for all ambitious professionals.
The Professor, who has long been a highly respected guru as regards the future of the legal profession, outlined the five stages of evolution that professional services are moving through.
First stage: The original bespoke or tailored service that seeks to directly match a client’s circumstances. The professional works like an artist starting with a blank canvas;
Second stage: This involves the standardisation of the substance and process of the services such that advisers can avoid reinventing the wheel;
Third stage: Involves systemisation through the application of technology which allows advisers to automate some processes;
Fourth stage: Packaging. This will allow clients to drive and access information directly and will reduce the costs of delivery;
Fifth stage: Commoditisation. This will allow clients to access commonplace information and services directly online.
Many older professional advisers attempt to provide all clients with a bespoke service. This is fine if it’s what the client wants but it is inevitably more expensive than any of the evolved approaches to the provision of professional services.
Ambitious professionals would be well advised to ensure that they do not automatically provide a bespoke service to all clients. Unless you only act for wealthy clients you will find that many of them would be happier paying the lower fees they would associate with an off-the-peg approach. Beware too of charging bespoke level fees when you provide a standardised, systemised, packaged or commoditised service. Once the client perceives this is what you are doing you will lose credibility and the justification for your fee levels.
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