How to Select a Professional Services Firm

According to a 2009 study by RainToday, the most common way buyers initially identify and learn about service providers is via referrals, namely referrals from colleagues or other service providers. In its report, RainToday also identified the factors most important in an organization’s decision to choose a service provider.

The top four factors cited as extremely or very important were:

• Overall value the provider can deliver (90%)
• Industry relevant or need-specific experience (88%)
• Overall costs or fees (86%)
• Reputation of individual consultants (83%)

In AJO's own study, we asked clients and prospects what they thought were the most important criteria in selecting a consulting firm and not surprisingly, some similar themes emerged. (See chart to the right, where percentages reflect the frequency with which each factor was cited among respondents).

Pricing, track record and understanding us (our needs as well as our organization, industry & culture) were the most frequently cited criteria.

So, how do you go about choosing the firm that can best satisfy your organization’s needs?

The subject came up at a meeting of AJO’s Senior HR Advisory Board this summer. There was keen interest within this group of tri-state HR executives in a set of selection criteria for evaluating professional services firms that provide team and leadership development, specifically executive coaching.

Partnering with a Professional Services Firm - Evaluation Checklist & Scorecard

Using information compiled from questions asked and proposals to which we’ve responded, AJO has compiled our list of seventeen recommended criteria, organized into three overall categories of Strategic Fit, Delivery Performance and Thought Leadership. Within each of the seventeen criteria we’ve included specific questions to ask the firms you are considering. You can also rank each criterion in terms of its importance.

Best of all, we’ve created an excel spreadsheet into which you can plug your importance scores and then evaluate up to three firms. You’ll get a great visual of how each firm matches up to your most important criteria, as shown in the example on the left.

To learn more, download our free checklist and scorecard. In addition, email us if you would like a copy of the spreadsheet.

Additional Resources:

Ten Trends in Coaching and Leadership Development - Ten trends are covered in a series of six blog postings on AJO’s website. Each posting includes several additional resources.

How Clients Buy: 2009 Benchmark Report on Professional Services Marketing & Selling from the Client Perspective. RainToday.com and Wellesley Hills Group research report. Download an excerpt from the link above.