Firms that are fit for the future are excelling beyond their rivals. They thrive by achieving goals such as business growth, faster innovation, and improved sustainability. Their strategic foresight and agility have allowed them to succeed amid uncertainty.

Here are key insights from our Future Fit data, showing how integrating sustainability into operations positions organisations to thrive in the evolving professional and business services landscape.

• Develop a clear vision for the future: focus on what needs to be achieved based on the insights from this research.
• Adapt to the evolving external environment: Share learnings with peers and other industry leaders.
• Communicate the vision effectively: Set clear, measurable goals for colleagues to resonate with the rest of the business.

Professional and business services (PBS) firms have faced significant challenges, from economic and political volatility to unprecedented labour shortages. But as the economic outlook improves, our new study highlights how sector leaders are well-placed to capitalise on emerging opportunities. Our research, based on a survey of 100 PBS firms from across the UK, reveals how these Future Fit businesses have been preparing for recovery.

“Future Fit businesses in this sector have not simply defaulted to survival mode,” says David Weaver, our Head of Professional and Business Services. “They’ve not just focused on the here and now – recognising the need to protect their margins and maintain liquidity – they have also shown vision and agility.”

The behaviours and attitudes identified in our research provide a blueprint for other PBS organisations to emulate. Future Fit businesses in the sector are positioned to lead, but peers can also progress rapidly by prioritising talent, digital transformation, sustainability and value chain collaboration.

• Identify future skills needs: Develop a plan to secure talent over the medium to long term.
• Understand employee expectations: Build a compelling employee value proposition reflecting diverse needs.
• Differentiate with purpose: Articulate organisational values and objectives clearly, backed by action.

PBS firms succeed or fail on their ability to attract top talent. The leading businesses in the sector are doing their best to anticipate those future needs. But while 65% of PBS companies in our research understand how their long-term strategy drives talent requirements, only 23% have mapped their future skills needs and begun work on ensuring they will have access to the talent they need.

With salary inflation rising in parts of the sector, not every PBS business can aggressively compete on pay. Many firms recognise that both new recruits and existing employees look for other things from their employer and some 49% of businesses in the sector look beyond remuneration in their strategies for recruiting and retaining staff.

Our recent webinar explored, for example, how some firms use compelling branding and a supportive work environment as well.

“The key for employers is to really put the work in to understand what employees – present and future – are looking for,” says David. “The answers will differ depending on the level of the employee, but also on the nature of the business. But once employers have a clearer view, they can start to put the right culture in place.”

• Utilise automation tools: Deliver outputs quicker, boost productivity and free up fee earners for more value-added work.
• Focus on client experience: Meet clients’ raised digital expectations.
• Prioritise security and privacy: Invest in cyber protection and develop clear ethics policies.

PBS firms increasingly view digital transformation as crucial for competitive advantage. Our webinar explored how technology is transforming the sector and where firms innovate for an edge. Firms are enhancing efforts to collect, manage and analyse data for actionable insights to improve internal operations and client experiences.

Leaders in the sector think strategically about driving innovation, with more than half (52%) implementing formal change management capabilities and 46% creating cross-functional teams for digital innovation projects. Emerging tools like artificial intelligence (AI) present further opportunities, with 41% of businesses implementing AI applications.

David says commitment to innovation and new technology must be driven from the C-suite level.

He also urges PBS firms to develop a comprehensive AI strategy, including discovery sessions across different areas of the organisation. “Make sure you interact at all levels and build communication, education and training around how AI could help the firm move forward.”

• Build internal expertise on environmental, social and governance (ESG) issues and/or seek external support to inform planning and actions.
• Think more broadly about what sustainability means – move away from a narrow focus on emissions numbers to a broader discussion around purpose.
• Engage with key stakeholder groups – particularly clients and employers – to understand how to align more closely with their values.

In a sector that does not have a significant carbon footprint of its own, PBS firms have not always prioritised the discussion around sustainability. But that is changing – partly as the focus on Scope 3 emissions intensifies, requiring PBS organisations to think harder about decarbonisation, but also as firms recognise that they also face questions about purpose and broader societal impact.

“There has been a marked change,” David says. “Some businesses now see sustainability as a key differentiator and are thinking hard about what good looks like across a wide range of ESG issues.”

Partly this is because improving ESG practices is the right thing to do, but it also reflects a growing realisation that these issues matter deeply to many clients, as well as to employees. Two-thirds of PBS firms (67%) now believe that investment in sustainability can provide them with a source of competitive advantage.

Leaders understand that engagement at every level is crucial, with 41% allocating regular board meeting time to ESG and sustainability issues, and 45% involving staff in sustainability activities.

• Strengthen value chain relationships: Identify mutually beneficial partnership opportunities.
• Leverage sustainability collaboration: Build on existing efforts for broader collaboration.
• Look beyond cost in procurement: Prioritise resilience and shared values over narrow cost considerations.

Future Fit PBS businesses recognise the value of closer collaboration across their value chains. For example, 36% regularly collaborate with key suppliers on product and process improvements, and 28% work closely with customers to the same end.

In sustainability, 53% monitor suppliers’ ESG performance and 50% have implemented circular economy principles. “As businesses are required to improve reporting of Scope 3 emissions, this will become more important,” David says.

High-performing PBS firms regularly step back from day-to-day operations to focus on long-term vision. “It’s too easy to get stuck in the short term,” David explains. “There will always be operational issues and challenges that need to be gripped, but future-proofing the business requires leaders to carve out time to build a vision.” 

By acting now to prioritise change, your business could be more ready to boost future resilience, meet market demand, reduce costs, or access capital. Find out about all the ways we could support you here:

Business Management