If you ask 10 CPAs for their definition of business development, you may get 10 different responses.

But where they are likely to reach unanimous agreement - or at least an overwhelming majority - is that business development has evolved to become a critical function to the growth and profitability of today's accounting firms.

Whether it's soft-selling an existing client for extra services, strengthening an established practice niche, priming the merger and acquisition engines, or embarking on the often-arduous process of prospecting for new revenue streams, business development has matured by light years from when responsibility for firm growth often was thrust upon the shoulders of an already-overworked managing partner or director whose sales and marketing pedigree, more often than not, was lacking.

"[Business development] might be the most misunderstood word in professional services," said Thalia Zetlin, principal and chief marketing officer at New York-based Berdon, and one of the early advocates of business development, having made a presentation on the subject back in 1989. "Now it's taking on a life of its own. Twenty years ago, no one knew the word business development. It was called practice development and it basically consisted of what I call 'country club' marketing. That's how business was generated for accounting and law firms. But it's really one of the five components of marketing, along with communication, strategy and planning, database, and promotions and programs."

She added that communication and training are needed to create an efficient business development strategy so that each partner conveys a unified firm message - that of bringing together what the firm has to offer: "Whatever campaigns are undertaken have to reflect what you as partners do."

Marc Busny, managing director and chief marketing officer at CBIZ Tofias in Boston, agreed. "The two functions running independently doesn't make sense. We have integrated marketing and business development for over 10 years. Marketing executives create the campaigns and generate the leads, and the business development people follow up on them."

TAKING IT TO NEW LEVELS

Lisa Cines, who served as chief executive at Rockville, Md.-based Aronson for nine years, has now transitioned to head up business and corporate development for the 26-partner firm, which has a large specialty practice in government contracting that comprises more than 40 percent of the firm's niche mix. "We felt we needed to place more of an emphasis on business development," she explained. "We had to better understand the metrics of what was needed to grow the firm."

Under Aronson's new business development strategy, the firm found opportunities to lead with consulting work, as opposed to the more traditional engagements.

"Part of our business development initiative came out as a result of the fact that we needed our people to remain billable, as well as getting them out in the marketplace. And we could not do both. During busy season, many of your people basically disappear."

" We used to lead with the tax and audit engagements, she added. "But now we look for small consulting projects first - for example, such as whether a client's accounting systems are government-compliant. That began to open the door for us. By the time we were bidding on the audit, we had built a solid relationship with the client."

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