The Activator Model: Redefining Business Development in Professional Services and Beyond

In today’s competitive professional services landscape, the role of rainmakers—partners who excel in both delivering services and driving business development—is evolving. Traditional methods of relying solely on personal relationships and expertise are no longer sufficient. The Activator Model, as outlined in this Harvard Business Review article, introduces a proactive and collaborative approach to business development, emphasizing robust client networks, proactive education, and a collaborative ethos that transcends individual expertise. This model addresses the shifting dynamics of client loyalty and the increasing scrutiny of service providers, offering a comprehensive strategy for sustainable growth.

The Shift in Business Development

Professional services partners are often “doer-sellers,” responsible for the entire business-development process. Historically, the belief has been that excellent work and strong client relationships would naturally lead to repeat business. However, recent trends indicate a decline in client loyalty: HBR conducted a survey of roughly 100 C-level executives which revealed that as recently as five years ago, 76% of buyers preferred to buy again from partners or firms they had used in the past. This shift necessitates a more strategic and proactive approach to business development.

Breaking Down Silos

A significant challenge in traditional models is that individual relationship owners often operate in silos. The Activator Model promotes a holistic approach where partners leverage the collective expertise of their firms. By introducing clients to other partners and practice areas, they can effectively cross-sell services and deepen client relationships. This not only enhances service delivery but also maximizes revenue potential by exposing clients to a broader array of services.

The Activator Approach

The Activator Model is characterized by three key behaviors: committing to business development, connecting with clients and colleagues, and creating value through collaboration.

1. Committing to Business Development
   Activators understand that providing excellent service does not guarantee future business. They prioritize business development, reserving time each week to engage with clients and prospects. Unlike non-Activators, who often let business development fall by the wayside, Activators balance their efforts between nurturing existing relationships and cultivating new ones. This balanced approach is crucial for sustaining growth and adapting to changing client needs.
2. Connecting with Prospects, Clients, and Colleagues
   Activators build extensive networks across client organizations and within their own firms. They actively engage on platforms like LinkedIn, attend industry events, and set goals for post-event follow-ups. By fostering connections at all levels of client organizations, Activators ensure no relationship is overlooked. They also avoid the pitfall of hoarding relationships, instead introducing clients to colleagues who can provide additional value.
3. Creating Value through Collaboration
   Proactive education and thought leadership are central to the Activator Model. Activators share insights, conduct webinars, and publish articles, positioning themselves as trusted advisors. AI tools can assist in identifying trending topics and tailoring content to client interests, ensuring relevance and engagement. By educating clients on critical trends and issues, Activators reinforce their role as valuable resources.

Low-Tech Levers of Improvement

While AI and digital tools enhance the Activator Model, many underlying improvement levers are low-tech. Effective business development also hinges on recruiting the right talent, providing comprehensive training, and implementing incentive structures that encourage collaboration and shared success. Firms must ensure that partners see economic benefits in sharing relationships and collaborating across practice areas, rather than fearing potential downsides.

Practical Implementation and Future Potential

Implementing the Activator Model requires a cultural shift and strategic investments in training, technology, and incentives. Firms like Baker McKenzie incentivize collaboration by requiring partners to document collaborative efforts in their compensation memos. This ensures that collaboration is recognized and rewarded, fostering a culture of teamwork and shared success.

Recommendations for Firms

• Invest in Training and Coaching: Develop comprehensive business-development training programs that start early in associates’ careers and continue through to partnership.
• Enhance Technology Use: Leverage AI and CRM systems to provide actionable insights and prompt proactive engagement with clients.
• Revise Incentive Structures: Create compensation plans that reward collaborative efforts and shared success, ensuring partners see the benefits of working together.
• Foster a Collaborative Culture: Encourage partners to introduce clients to colleagues and leverage the firm’s collective expertise.

Ready to transform your business development strategy and foster a collaborative culture within your firm? Contact P&C Global to discover how our expertise in the Activator Model can help you drive sustainable growth and maximize client relationships.