Developing Knowledge-Based Client Relationships, The Future of Professional Services (Knowledge Reader) by
Ross Dawson
"The basic economic resource ... is and will be knowledge," affirms the grand old master of management, Peter Drucker..." (more) SIPs:
knowledge transfer component, enriching mental models, enhancing client capabilities, relationship coordinator, client perceived value (more)
Book Description The publication of this book heralds a new field of management, thought and practice. The advocates of the 'knowledge economy' have to date focused almost exclusively on how managers can increase the internal productivity of their knowledge assets and intellectual capital. The important next step is understanding that a large and rapidly increasing proportion of the value of business transactions is in knowledge itself. Once this is recognized, managers must devote their attention to how to maximize the value of that knowledge to customers, and tie that directly to developing enduring and profitable relationships.
Developing Knowledge-Based Client Relationships guides the reader to understanding the increasing importance of information and knowledge in business transactions and client relationships. It then goes on to present in an extremely practical fashion what knowledge organizations can do to enhance the value of the knowledge they deliver to clients and use that to develop profitable relationships. This is done by presenting underlying theoretical framework, a variety of tools for structuring relationships and presenting knowledge to clients, and numerous case studies and examples of firms which have implemented these concepts successfully.
Fills a gap in present knowledge literature in the customer knowledge area Practical tools and effective case studies with world-recognized companies Shows how knowledge organizations of all kinds can increase their competitive edge by adding value to their clients
Book Info Focuses on how professional services firms leverage client relationships. Discusses the practical challenges and difficulties faced in applying knowledge management principles in a professional services environment. Softcover. DLC: Business consultants
First Sentence:
"The basic economic resource ... is and will be knowledge," affirms the grand old master of management, Peter Drucker. Read the first pageStatistically Improbable Phrases (SIPs): (learn more)
knowledge transfer component, enriching mental models, enhancing client capabilities, relationship coordinator, client perceived value, clients with knowledge, joint project management, project handover, knowledge customization, professional service relationships, effective knowledge transfer, knowledge gatekeepers, developing client relationships, guru model, new pricing models, box services, extranet technology, professional service industries, creative abrasion, knowledge elicitation, add substantial value, add greater value, richer communication, business capabilities, knowledge specialization
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A great deal of work went into conceptualizing and crafting this book, and I give very high marks to the author, who does a really superb job of integrating insights from knowledge management, information technology, cognitive modeling, and client relationship or account management. This book makes the jump from airplane reading, to "hold and read several times more."
At the heart of the book, and many appear to miss this on the first reading, is the author's distinction between commoditized information services and differentiated information services. The first, aided by automation, is on a downward spiral in terms of both value and pricing, and competition is fierce. The second, partially aided by automation but ultimately being unique for rising to a higher level of knowledge service delivery that can only be done by expert humans, is where value pricing and differentiation can be found, and where professional services need to go if they are to remain profitable.
The second urgent and valuable insight the author shares with us is the co-evolutionary nature of a service that evolves through constant knowledge transfer to the client and constant co-creation of new knowledge as the competitive advantage; and a very deep and broad relationship with the client at all levels of both organizations. One leads to the other, the other leads to finding new business with the same client, and the cycle repeats itself. This insight is especially relevant to all those who are using information technology to force single human account managers to handle more and more accounts remotely, all the while "losing touch" with their clients for lack of time to make the personal visit or personal telephone call. This is also explicitly contrary to the prevailing "black box" model where knowledge is withheld as proprietary--the author makes it clear that in this new era, withheld knowledge is much less valuable and much less survivable--this is a dying model.
Among the sections of the book that I found especially worthwhile, partly for their elegance of expression and partly because they represent a considerable professionalism in distilling vast arrays of writing by others, were those that itemized the seven processes for adding value to the client relationship by adding converting information into knowledge (filtering, validation, analysis, synthesis, presentation, ease of access and use, customization); the rare simplicity of the distinction between implicit and explicit knowledge and how to communicate both kinds of knowledge; the brief but sufficient discussion of four key humans in the loop: the senior representative, the relationship coordinator, the knowledge specialist, and the knowledge customer; and the more general discussion of the various means for communicating knowledge value to the client, both in terms of channels and in terms of events including scenarios and wargaming.
Contrary to the publicity, this is not a case study book, although the several "gray block" inserts are both helpful and credible. This book is an executive primer for managing value in the 21st Century, and it merits several readings, not one.
Where the book falls short, and it may be that this is deliberate and better left for another book, is in the section on pricing knowledge services. Despite a fine summary of the kinds of pricing that are used, from time and materials (both the predominant means and the least profitable) to retainer to contingency to commissions and tenders, one is left feeling that neither the author nor his otherwise excellent sources have really come to grips with the fact that clients are still mired in an industrial-age financial mindset that values fixed goods and is not yet ready to pay for intangible knowledge goods. My own research suggests that fully half of the competition for knowledge professionals comes from client middle managers and senior sales or production experts who believe that they know everything they need to know to make good decisions--the other half comes from niche providers of very fragmented services, from the aggregators of online information (Factiva, Lexis-Nexis, DIALOG) to the market research firms (FIND/SVP, Fuld, SIS) to private investigative groups (Arkin, Kroll, IGI) to academic consultants (Harvard, UT) to localized information brokers listed in the Burwell Directory...and many many other sources including commercial imagery and Russian military maps of third world regions that most knowledge specialists--as well as their clients--overlook completely. Somewhere in all this mix, the big accounting and legal firms are trying to leverage their access to clients by becoming portals to global knowledge, and they are *not* delivering the integrated value they should--a value that can only come when the author's wisdom becomes conventional, and every professional services person knows how to define the question, discover and validate the sources, discriminate and distill the many sources into a value-added compelling presentation, and do so in timely easy to use fashion.
Some will be deceived by the very easy to read and well-organized sections into thinking this book is slightly superficial. That is not the case. This is a very well researched book that represents enormous value-added because the author has creatively distilled and organized at least four separate literatures, and done so in a fashion that will repay multiple readings of the book by the new standard: at least twice the value of your time taken for each reading.
Although written for and about professional services, the analysis and prescriptions in this book apply to any organisation that is concerned with building value-adding relationships with its clients. That is almost every business except one that is purely in commodities.
It is a first class book: well argued, well written and structured, clear and easy to reference and use. It succeeds admirably as a practitioner's manual. Prior understanding of the field is not essential, while established practitioners will find much to learn.
Knowledge is defined as 'the capacity to act effectively' and 'knowledge management' as referring to the dynamic processes associated with recognising knowledge as a primary asset and attempting to make it more productive. An important consequence of the definition is that knowledge is held only by people. The core of knowledge management initiatives lies in building and developing relationships between people, and knowledge transfer occurs between people. The key to effective knowledge transfer is therefore intimacy and trust.
He argues that knowledge, how it is generated, used and transferred, is probably the key source of differentiation in a world that is heading rapidly to commoditisation. Adding value to clients through knowledge transfer "can only be done with a highly interactive approach that draws on and develops relationships."
There is a detailed discussion of the role of information and the critical importance of understanding how to add the greatest value to information so that it can become can become valuable knowledge for clients.
Whether you're a professional freelance writer, like me, or a consultant for a firm- you need to read this book.
In a world so consumed with the 'gimmes' and the 'gottas' this book offers a very different view of the business world.
We all have specialized knowledge and how we can benefit from sharing this with those we work with or for, is in essence the nutshell of the business.
How many people have sparked a creative thought or showed you a side or solution you hadn't thought of? We gleen this knowledge from them, but what do we do with it? Do we take it and keep it to ourselves, never exposing the great idea to those who could greatly benefit?
It is far more productive to spread the word, joy, idea or whatever with the people who have hired us as a consultant or employee. I have often had extremely productive conversations with large, important business owners, and yes- even millionaires who listened closely and enjoyed my creative insight. What's more is I didn't charge them for my time, I was simply sharing.
Did this knowledge sharing Ross Dawson discusses cause me any loss or to be cheated out of profit? Not at all, they'll remember me when they need a new idea, and will likely hire me because of it.
Dawson brings to light words we all needed to hear- what goes around comes around. I plan on sharing, how about you?
Buy this and give a copy to a co-worker or boss as a gift!
This book reads like a dull sociology treatise. It is hard to argue with most of the points, but much of what is stated is obvious. Dawson is heavy on theory, but light on example and ways to apply the theory. A book this hard to read (i.e., dull) should at least deliver a great deal of wisdom. It doesn't. Contrasted with a lively and example-filled book like Thomas Stewart's "Intellectual Capital", Dawson's work doesn't make the grade.
This book reads like a dull sociology treatise. It is hard to argue with most of the points, but much of what is stated is the obvious. It is heavy on theory, but light on example and ways to apply the theory. A book this hard to read (i.e., dull) should at least deliver a great deal of wisdom. It doesn't. Contrasted with a lively and example-filled book like Thomas Stewart's "Intellectual Capital", Dawson's work doesn't make the grade.
As a consultant who lives from one engagement to the next one of the buzzwords as projects are wrapped up is "knowledge transfer". It is almost like an afterthought and triggers some frantic activity to throw together a last minute plan, get the client's staff to absorb an array of information in a compressed timeframe, and sign off. This book changes that approach for me, and does so in a big way.
After reading the proactive approach to planned knowledge transfer, which needs to be a part of the initial project plan, I would consider the approach I cited above to not only be unprofessional, but borders on malpractice.
This book treats knowledge as a valuable commodity (something the business development types certainly preach, but the engagement team misses), and provides a methodical approach to using knowledge as a the product. Given the fact that we consultants are selling that very thing (knowledge) in a perfect world there should be no need for this book. Unfortunately, this book is sorely needed, and should be required reading for every consultant, regardless of whether he or she is a independent or member of one of the "Big 5".
Rarely do I read a book than makes a dramatic impact on my thinking, or fills me with resolve to immediately assimilate and use the content - this one does. I think it is an important work that is well written and gives a strong foundation for ethical practices and professionalism.
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See all Editorial Reviews 
Deceptively Simply, Seriously Valuable, March 19, 2001
Dry as a bone, March 31, 2002