7 Key Diagnostic Questions to Determine If Your Firm Is a Strategy Firm or an Implementation Firm

Are you wondering whether your boutique professional service firm is a strategy firm or an implementation firm? This crucial distinction can significantly impact your business growth and operational strategy. In this blog post, we will provide you with a comprehensive diagnostic tool to help you identify your firm’s true identity. Knowing whether you’re primarily focused on strategy or implementation is crucial when aiming to scale your operations effectively.

7 Step Diagnostic

1. External Perception: Have a friend visit your website and ask them if they think you are a strategy firm or an implementation firm. Sometimes, an external perspective can reveal how your firm is perceived in the market.
2. Billing Breakdown: Examine your billings. What percentage of your total billings come from high bill rate employees (senior strategists) versus low bill rate employees (implementers)? This ratio can indicate your firm’s primary focus.
3. Client Titles: Review the titles of the clients you market to, sell to, and deliver for. Are they primarily in the C-suite or middle management? High-level client titles often correlate with strategy work.
4. Project Timeline Analysis: Scrutinize your project plans. What percentage of the project timeline is dedicated to strategy versus implementation? A heavy emphasis on strategy might signal that you are a strategy firm.
5. Client Questions: Listen to 10 recent Zoom calls that you recorded. Isolate the questions asked by the clients. What percentage of these questions are related to strategy and what percentage are related to implementation? This can provide insights into the nature of your client engagements.
6. Competitor Analysis: Examine where your existing clients are choosing to spend with your competitors instead of your firm. Are you losing out on strategy work or implementation work? This can highlight areas for improvement.
7. Delegation Patterns: Investigate whether clients are delegating you down to lower-level employees. If so, to which titles? Do these titles correlate with strategy work or implementation work? Understanding delegation patterns can shed light on your firm’s core competency.

In conclusion, understanding whether your boutique professional service firm is primarily a strategy firm or an implementation firm is crucial for scaling your operations effectively. It is hard(er) to scale a firm that does both. This diagnostic tool will help you gain clarity on your firm’s identity and areas for improvement. If you discover that you’re in the wrong category and want to pivot, consider joining the Collective 54 Mastermind Community. Our community can provide the guidance and resources you need to execute a successful transition. Don’t hesitate to reach out and explore how we can help you navigate this strategic shift in your business.