Here is the scenario - a client has called you for a review
of your service to negotiate a revised fee for the next
three years. The client has opened the meeting by stating
that although they were generally happy with the
relationship they wanted to change the project manager and
negotiate a discount of 15% for next year's fees.
You have two ways of responding - co-operative discussion
or competitive challenge.
Unfortunately you choose the latter. You feel confident
about the work you have performed to date and the quality
of the project manager and don't see why they should want
to change or indeed why they should get a 15% discount
despite spending more than £100,000 per annum annually.
After an hour and a half of mud slinging, the client
advises you that not only are they going to cancel the
existing project they will cease working with you for the
foreseeable future. What has gone wrong?
This hypothetical scenario demonstrates what can happen
when we assume we know where the other party is coming from.
What you don't know is that your client is about to undergo
a major restructure, downscaling its existing business and
acquiring a new business in a related industry. The
managing director simply wanted a new project manager who
had a deeper understanding of the new industry segment the
client was buying into and the discounted fees were to
reflect the significantly smaller business in the short
term.
The harsh reality is that sustaining a healthy client
relationship is an ongoing exercise that requires hard
work. How often have we celebrated winning a large tender
thinking that the relationship is 'in the bag', believing
that as long as we deliver the technical content the client
will be happy and we'll get more work. Consultants cannot
rely on technical (subject matter) expertise alone to
manage the ups and downs of a relationship.
Consultants who adopt a consistent and systematic approach
to building and sustaining a client relationship will build
more resilient client partnerships which will overcome
turbulence and survive through the difficult times.
So how can consultants build and maintain these effective
client relationships:
1. Focus on process - avoid getting bogged down in the
technical detail, your subject matter expert can handle
that. Focus on the process by asking "What is really
happening here?" "What are these clients really saying?"
"What are their real, underlying needs?"
2. Influence behind the scenes - research suggests that up
to 80% of the outcome in any formal negotiation is
determined prior to the actual face-to-face meeting, so use
the time leading up to any meeting or planned interaction
wisely. Get the facts, safely test the likely positions
with client representatives (maybe colleague or direct
report of your major client contact) and work through the
optional scenarios of each other's desired outcomes.
3. Find common ground - no matter how difficult
relationships become, there is always some common ground on
which to build a solid foundation. Look for common ground
at every client interaction. The more common ground you
can establish, personally and professionally, the more
resilient the relationship will be. Keep asking yourself
"What do we both want?"
4. Uncover the real needs of the other party - expert
negotiators distinguish themselves by exposing the true or
underlying needs of the other party early in any
relationship, allowing a more open discussion of the issues
and, ultimately, a better outcome. Ask open-ended questions
to elicit deeper responses from the client. By continually
asking questions rather than making statements, you will
learn even the most hidden of agendas of disgruntled or
even happy clients.
5. Manage your style - in our example we had two choices
of style to respond to the client's issues - co-operative
or competitive. The problem was we chose our default or
emotional reactionary style - to get angry and defensive.
But the skilful professional recognises that a negotiating
style is very powerful when you can adapt to the situation.
Some situations require you to "act" in a contrary style to
your personality - for instance, naturally co-operative
consultants may have to become more competitive to assert
their authority, for better results. So be aware of your
style of negotiating and be prepared to flex your style
muscles to suit the climate of the relationship.
6. Have a plan - how often do professionals plan and write
down their approach to managing interactions with clients?
Our evidence suggests rarely. Every negotiation of any
timeframe, from three minutes to three years, goes through
systematic phases of introduction, differentiation,
integration and settlement. Once you understand the
timeline of any negotiation you will become a skilful
negotiator in defining the action and asserting your
position more accurately.
Expert client relationship managers know and understand
that managing expectations is a daily ongoing skill and
that every interaction with clients is an opportunity to
positively influence clients' perceptions about your value
as a trusted adviser.
----------------------------------------------------
Pam Kennett and Crispin White are Directors of Chiswick
Consulting Limited, a management consultancy which provides
advice and direction to clients in marketing and human
resources. They have particular expertise working with
professional service companies. Contact them at
crispin@chiswickconsulting.com or
pam@chiswickconsulting.com or visit
http://www.chiswickconsulting.com for more information.
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