The 3 P’s for Scaling Professional Services Firms

For many professional services firms, hitting $30 million in annual revenue feels like a major win. It’s proof that their model works, clients are happy, and their team is doing something right. But what catches many leaders off guard is what comes next: growth often grinds to a halt. Strategies that once delivered results begin to fail, and scaling becomes harder than ever. 

How do some firms break through this barrier, while others get stuck?

In a recent episode of The Professional Services Pursuit, host Brent Trimble sat down with Tom Rodenhauser and Alex Klein from Kennedy Intelligence to explore this very question. Their message is clear: breaking through the $30M ceiling demands a radical rethink of proposition, positioning, and pricing, the “Three Ps” that separate firms with scalable momentum from those stuck in the slow lane.

1. Proposition: The Power (and Pitfall) of Defining Your Value

A firm’s value proposition should clearly articulate why a client should choose them and what business impact they’ll deliver. But as Klein points out, many boutique and midsize professional services firms fall into the trap of being too vague or broad.

“Most smaller firms are good at delivering services,” Klein says, “but poor at expressing their unique value to the market. Being all things to all people just doesn’t resonate.”

The key? Choose a focused value area that can be evidenced, ideally one tied directly to client outcomes, like cost savings or efficiency gains. When that isn’t possible, use proxy metrics that demonstrate movement toward business goals.

2. Positioning: Beyond “We Work With XYZ brand”

A good value proposition is just the first step. Positioning defines how a firm stands apart from the crowd. Yet many professional services firms mistakenly equate experience with differentiation.

“Saying you worked with a major brand isn’t enough,” says Rodenhauser. “Clients care about the role you play and the problem you solve — not just who you’ve worked with.”

Kennedy Intelligence identifies multiple roles consultants play, from domain expertise to project leadership. Understanding which one your firm consistently fills is critical to crafting a positioning that hits home with prospects.

3. Pricing: Escaping the Underdog Trap

Too many firms with strong capabilities still undervalue themselves in the marketplace. Why? Legacy mindsets.

“Founders often start as underdogs, scrapping for business,” Klein notes. “But that mentality persists even after they’ve matured. Their pricing lags behind the value they deliver.”

Shifting to value-based pricing and charging based on business outcomes, not time requires courage, discipline, and clear measurement. But firms that embrace it move closer to the premium positioning held by the likes of McKinsey or Bain.

Taking Action: How to Get Started

For firm leaders looking to break their growth ceiling, Rodenhauser and Klein offer a grounded roadmap:

• Get an outside perspective: Don’t rely solely on client feedback. Seek an honest, external market assessment.
• Re-evaluate your success factors: Ask, “What are we truly great at?” and trim services that don’t support that core.
• Be bold with pricing: If you claim to be a partner, act like one. Back your value with results-based pricing.
• Be specific with your specialization: Double down on what your firm does best — where they consistently outperform the market — and build scalable practices around that.

“Many successful $30M firms are essentially low-cost body shops. They do whatever the client asks, without a core proposition. That model doesn’t scale.”

– Alex Klein, Kennedy Intelligence

Ultimately, breaking through to the next level isn’t about doing more, it’s about doing less with greater clarity, purpose, and confidence.

Ready to Dive Deeper?

Don’t miss this insightful conversation with Kennedy Intelligence’s Alex Klein and Tom Rodenhauser on The Professional Services Pursuit. Listen to the full episode here.