August 11, 2005
Management Judo in the Law Firm
Management Judo is a concept taken from Peter Drucker’s work. I have previously passed along that most of the management concepts that I live by and that have become an integral part of our business culture were invented by others. We proved them sound in the real world. They have served us well!
Management Judo is the notion of using your competitors’ own strength against them. Actually, it might be better to say that the stronger competitor is likely to develop weaknesses that you can exploit to your competitive advantage.
Drucker identified those weaknesses that the superior competitor is likely to develop:
Ø A "not invented here" attitude is likely to make the competitor slow to take advantage of new technology or methods.
Ø The "Creamer" concentrates too long on the higher profit upper end of the market, leaving the door open to enter the market through the lower end.
Ø Failure to stay in touch is likely to result in the company emphasizing its idea of quality or features ("Wrong Quality") leaving the customer’s real wants unsatisfied.
Ø The "Maximizer" keeps adding capabilities to satisfy added market elements, leaving the door open for the niche company that will provide a simpler or lower cost product or service that just addresses the needs of a particular market segment.
Drucker’s insight is universal but you do have to put them in the context of your particular firm in relationship to your current competitors and the competitors in a market you desire to enter. Their weaknesses are the key for opening the door for a competitive advantage that lets you grow your firm at their expense.
Ø Take advantage of the technology or new methods that they are ignoring.
Ø Shape and price services that appeal to the market they consider too small and work your way up rather than go head to head.
Ø Find out what their customers really want and offer it versus the competitor’s wrong quality. You may be surprised to learn that they would just like to have their phone calls returned. But they are more likely to want “no more surprises." If their customers really want certainty of price, give it to them. If they want certainty of results, market your settlement and resolution skills. If they want participation in the decision processes, design it into your services.
Ø Sometimes less is more. All-in-one legal services can be like a Swiss Army knife. The real tool always works better. If you can’t beat them at everything, beat them at selected specialized things.
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Filed under Firm Culture, Management, Planning by Tom Collins