“Better isn’t necessarily always better; different is better.”

Published May 11, 2012 By Jess - 2 Comments

leftA perfectly competitive market is generally defined as one in which at least all of the following conditions exist together:

  • zero entry or exit costs (there are no/low startup costs),
  • zero transaction costs (customers are free to go where they please)
  • firms have a relatively small market share (no single firm dominates the market),
  • ‘factors of production’ are mobile in the long run (labour and capital can be modified easily), and
  • an homogenous product (an easily substitutable product, characteristics do not vary across suppliers).

In such a market there are only two conditions which can be altered by the firm itself; one is modifying labour and/or capital, the other is defining their product so it is perceived to be ‘less substitutable’ or to use plain English – different. The latter is also the only way a firm can command a price premium above that of ‘the market’.

The perfectly competitive market is mostly a theoretical concept; this specific set of conditions do not generally occur together, although some industries have notable similarities and are what you could call “near-perfect”. Utilities are one example; how many times have you been asked to change electricity companies and not really understood (or cared about) the difference?

Firm Of The Future Tour Ends….. Firms Of The Future Begin

Published April 3, 2012 By John - Leave a comment

leftRon Baker’s Firm Of The Future Australian eastcoast tour wrapped up in Sydney on Friday 16 March with approximately 300 professionals attending Forums and MasterClasses in Hobart, Melbourne, Brisbane & Sydney.

Ron & I also got to have discussions with ACLA in house counsel in Melbourne & Sydney on “Obtaining Value & Price Certainty from Your Law Firm” and with some firms. We were also fortunate to meet with the respective Legal Services Commissioners of New South Wales, Queensland & Victoria, speak to several APSMA members over dinner on value based pricing and Ron was interviewed by various business, legal and accounting press who reported on the tour and the principles behind Firm Of The Future.

If you were one of those who attended any of these events- a big thank-you to you for making the whole tour such a success. I not only wish you all the best in your ongoing journey to be a Firm of the Future but again remind you that there are numerous sources where you can seek assistance and guidance at any time. These include the Firm Of The Future Facebook page and LinkedIn Group, the Verasage website, or by contacting Ron Baker and I direct as well as any of the other organisers of this tour. These organisers included Matthew Tol from mta optima, Matthew Burgess from McCullough Robertson, Michael Stewart from Integrity Accountants, Michael Bradley from Marque Lawyers, Steve Major from The Trusted Authority and of course my Associate Jess Hadley.

Lessons learned from History…for our Future

Published March 1, 2012 By Jess - Leave a comment

In the 1850‘s, despite unquestionable empirical evidence in support, the proponents of germ theory were viciously attacked by the medical establishment of the time who were largely in favor of the theory of spontaneous generation. They continued treating symptoms (sometimes successfully) rather than the cause. It was not until 1900 that this theory was recognised by its own profession as having merit – it then formed the foundation of modern medicine.

OK, so in most professions we do not deal with issues that are life threatening or can cause physical harm or disease  like germ theory , but we do often deal with the symptoms of problems in our professions rather than looking at root causes.

It is no longer breaking news that the time based cost accounting and time based billing models are less than optimum and are increasingly being criticized both by those within our professions and those we seek to serve-our clients.

Like Germ Theory in the 1800′s, value based pricing and management without timesheets is not yet practiced by the majority of professionals. However overwhelming empirical evidence is out there and more and more innovative professional firms around the world successfully operate in a timeless environment. These firms are fully aligned with their client’s interests, their knowledge workers enjoy an atmosphere of collaboration and creativity, and firms profits are no longer capped by the physical hours their people can work.

Are you a Firm of the Future…..or a Firm of the Past?

Published February 6, 2012 By Jess - Leave a comment

leftAs highlighted in my previous post I am now delighted to confirm that Ron Baker founder of The Verasage Institute will be in Australia from 1-17 March presenting a series of Firm Of The Future Forums as well as facilitating some intensive MasterClass workshops for professionals.

You will find full details of dates, times, venues and ticketing information if you click on the Firm Of The Future Forum website.

In summary Ron will be presenting a Firm Of the Future Forum in Hobart on 2 March, a Forum and MasterClass in Melbourne (5th & 6th March), Brisbane (12th &13th March) and in Sydney (15th & 16th March).

This is an opportunity to hear and learn from one of the world’s foremost professional firm thought leaders.

These Forums though are not for everyone. Ron challenges many of the concepts upon which our current professional firm business model were based but which are now past their use by date. He does propose a new model that is much more effective and better for all of us – those of us that work in the professions and for our clients who deal with us.

Ron Baker Back In Australia

Published January 10, 2012 By John - 1 Comment

leftleftJust giving you all some advance notice that Ron Baker – founder of The Verasage Institute, economist, author, speaker, value based pricing expert, knowledge worker advocate and one of the world’s foremost thought leaders for professional firms will be returning to Australia in March, 2012. This is Ron’s 8th visit to Australia.

Ron will be presenting full day Firm Of The Future forums in Hobart, Melbourne, Brisbane and Sydney plus optional Masterclasses. The full details of dates, times and venues will be announced by the end of January.

These Forums will be primarily based around two of Ron’s best-selling books, The Firm of the Future: A Guide for Accountants, Lawyers, and Other Professional Services (2003) and Implementing Value Pricing-A Radical Business Model for Professional Firms (2011).

Those of you that have heard Ron previously will know what a brilliant, inspiring, entertaining and thought provoking speaker he is. Ron confronts the conventional wisdom embodied in traditional professional firm business models, which operate by leveraging people and hours. This old model works but is suboptimal. There is a much better business model, utlilizing bold, proven strategies for restoring vitality and dynamism to professional firms of all sizes now being practiced by 1000’s of professionals all over the world.