Background
In 2004, ISBA (the leading British association for client-side advertisers) authored a groundbreaking paper that looked at the two key dimensions that creative service providers (e.g. advertising, marketing and communications agencies) need to excel at. Titled “The Magic and the Logic“, it argued that agencies must provide provide superb core outputs (the creative magic) and at the same time operate as well oiled functional businesses (the logic).
This same reasoning applies to the technology services area, where suppliers should also look to outperform competitors on these two foundational dimensions.
“The Magic”
In terms of magic, the concept is that the outputs and deliverables the supplier provides should be of the highest quality. For example, an IT consulting firm should strive to provide ideas, insights, and strategies that shift the needle for their client’s business in new and innovative ways. A SaaS provider should focus on delivering features that dramatically improve the efficiency of the process they are automating, while a hardware supplier should prioritize rapidly implementing their client’s servers, perfectly configured.
Understanding the client’s business needs and challenges at a deep level can inspire truly innovative solutions. Therefore, firms should invest in training their consultants, attorneys, or accountants, not just in their specific professional skills, but also in relationship management. By establishing robust feedback channels with clients, firms can continuously refine their offerings to better meet clients’ needs, thereby boosting the ‘magic’ they provide.
“The Logic”
On the “logic” side, all suppliers should aim to run like well-oiled machines with as little friction as possible. Outputs should be delivered on time and on budget. They should strive to generate optimal value and, on the fee side, be transparent with billing and invoicing. Account management should be seamless and proactive, looking to uncover areas of opportunity for the client to grow in profitability.
When it comes to ‘logic,’ it’s about more than just meeting deadlines and managing budgets. Firms should also focus on increasing operational efficiency in all areas of their business. One of the keys to this is effective communication. By maintaining open, honest, and regular communication with clients, firms can mitigate misunderstandings and delays that could negatively impact project timelines and budgets. Furthermore, clear communication around goals, roles, and expectations can reduce friction and enhance the overall client experience.
Get the balance right
It is not enough for an IT supplier to excel in only one of these two dimensions. The best companies are able to achieve excellence in their services and deliverables, while simultaneously running efficient businesses that delight the client in terms of relationship service. A well-balanced business across these two dimensions is not only likely to retain clients but, over the years, grow their book of business, leading to long-term, profitable growth .
Rewarding Success and Fostering Innovation
Finally, IT providers should remember to celebrate success and foster an environment that encourages innovation. Recognizing and rewarding teams that effectively balance ‘magic’ and ‘logic’ will motivate others to strive for this balance. Similarly, creating a safe space for innovative thinking, where new ideas are welcomed and explored, will help ensure a steady stream of ‘magic’ to delight clients.
By focusing on these elements, technology firms can elevate both their ‘magic’ and their ‘logic,’ leading to stronger client relationships and sustainable business growth.