Common Traits of Successful Firms

Ever since March of 1994 we have worked intimately with 50 different, new firms each year. These firms have been spread throughout every major metropolitan area in North America, ranging in size from 1 to 135 people.

Wouldn’t it be interesting to know what personality traits are common to the principals of those firms that are successful? Thanks for asking!

But first, let’s define success. Making lots of money is the easy answer, maybe because it happens to be more measurable. But we would also define success by what time you go home at night, how little you worry because you have a steady stream of clients, how much time you take off every year, and how sustainable your current pace is (try going to http://www.recourses.com/ and choosing “Predict your Endurance” under the “Tests” option on the menu at the left).

After identifying the firms that are successful, here are three common traits that surface repeatedly.

First, successful principals are confident (that’s not the same as arrogant, which might indicate a lack of confidence). They are not limited by common client objections. They are not afraid of their employees. They aren’t destroyed by criticism. They set prices higher than employees would. They are not afraid to think in new paradigms. They view themselves as unstoppable bulldozers that are moving inexorably over obstacles to get somewhere.

Second, successful principals are focused. They actually get things done. They aren’t so distracted by “doing” that the big picture planning languishes. The marketing plan might not be thorough, but something is done consistently. Employee reviews don’t get put off. They are organized. They take initiative.

Third, successful principals have some degree of sales outlook. They might not be sales-driven, but they are comfortable networking and then persuading prospects of the merits of their firm. They don’t anguish about how the entire selling/marketing process can be delegated. They see this function as ultimately their responsibility no matter how many employees are tasked with supporting the effort.

If a particular firm has more than one principal, each trait should be present in at least one of them. In fact, the most dependent (and thus healthy) partnerships are firms in which only one principal has the third characteristic.

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