Ron notes: “There’s a fundamental problem with this relentless focus on efficiency. A business isn’t paid to be efficient; it’s paid to create wealth for its customers.” He goes on: “Excellent customer service is not efficient–ask Nordstrom or Disney. These companies sacrifice efficiency for effectiveness, the true source of all competitive advantage …”
- For Clients. They serve up repeated messages on wanting to see efficiency gains. For them this means getting the same service at a lower price. Having engaged in direct conversations with GCs, my attempts to redirect the dialogue to value and effectiveness fall on deaf ears. So for now, efficiency is perceived as a differentiator by the customer.
- For Law Firms. With market prices dropping, efficiency means profits. In the short-run, cutting the cost of delivering the same service means maintaining profit margins. From the law firm perspective this is not about competitive advantage, but plain ole being competitive.