The March-April issue of HBR features an article which we feel is of interest for law firm practice leaders, especially the ones that are experiencing pressure on their pricing from clients.

In “What professional service firms must do to thrive”, Ashish Nanda and Das Narayandas of Harvard Business School make a clear case for the use of client portfolio analysis in professional services firms.

They build on the ideas of former HBS professor David Maister, who first described the spectrum of sophistication in professional services ranging from “commodity” to “procedure” to “gray hair” to “rocket science”. The authors combine the thinking of David Maister with an approach in which they compare the indirect cost a firm incurs to serve clients, against the clients’ willingness to pay a premium for these services.

Together it provides for insights on which clients and which strategy matches your practice best.

We know it all may sound a bit abstract, and it definitely is a long read, but if you are a practice leader this article is well worth your time.

Read the full article on the HBR site: What professional service firms must do to thrive