Accounting firms are not in the business of preparing tax returns. Law firms are not in the business of drafting legal agreements. Web development firms are not in the business of building websites. The simple truth is that all professional services firms are in the business of delivering satisfaction.

So, what is the definition of “satisfaction” and how do you ensure it? Satisfaction is the difference between the realized experience and the expected experience. When the realized experience is better than the expected experience, satisfaction will be high. When the realized experience falls short of expectations, satisfaction will be low. It is a simple concept, yet it’s one that many firms fail to grasp.

Our definition of satisfaction includes what’s possibly the most important word in professional services: expectations. How you set and manage expectations heavily impacts the client’s ultimate satisfaction. For professional services firms to prosper over time, they must set clear and honest expectations with clients from the first interaction (before the sale), regularly communicate progress toward those expectations, and proactively reset expectations any time a new learning or event has impacted the project.

The certain path to extinction for a professional services company is to consistently deliver an underwhelming experience to clients. You may survive one or two unhappy clients, but with each unhappy client, the headwinds become a little stronger. Once your firm becomes known for delivering inferior client satisfaction, it is nearly impossible to turn that reputation around.

As discussed in a later section of Compass, it is important to assess the satisfaction level of each client objectively. The best way to do this is to survey clients within a couple months of the completion of each major engagement. You can’t just assume that clients are happy because you aren’t hearing many complaints. A lack of complaints is not a proxy for high satisfaction. You must explicitly ask clients to state their level of satisfaction and also solicit recommendations for improving that satisfaction.

Also, while most firm leaders know the importance of client satisfaction, what sometimes goes underappreciated is the satisfaction of employees. In order to achieve sustained prosperity, the professional services firm must also nurture and cultivate a happy workforce. When a firm has unhappy employees, voluntary attrition rises, utilization is disrupted, and it becomes increasingly difficult to recruit new personnel. Since the majority (if not all) of the revenue that your firm earns is via the expertise and hard work of your employees, it is imperative that you keep those employees happy.

Because satisfaction is so integral to the prosperity of your professional services operation, we have dedicated two entire sections of Compass to the topic.

‍