Misaligned Clients

For the last decade, I’ve encouraged and coached partners and partner groups to maintain a healthy client list. Typically, firms accumulate clients over the years and, as practices have grown, partners have client lists that are out of alignment with their stated vision of who they aspire to be.

This is a partner decision that proves to be challenging for many. For the partners who are struggling with restructuring their client list, here are some considerations that may help with making difficult decisions.

Alignment Considerations

Are you delivering the level of top service you promise your clients? Some clients strain your system when they insist on doing things their way instead of the efficient way of the firm. All the extra effort, additional communication and specific instructions to serve them well actually stress you and your staff beyond what is necessary. These clients typically resist paying for the additional attention, and even if they do pay, they strain the better ways the firm has designed.

Are these clients receptive to and need the services you provide? More partners are becoming aware of the value of clients that have multiple needs. These are the clients that will grow the firm. Once-a-year clients who aren’t interested in or need anything other than a once-a-year touch are a problem. They require the precious resources at the most compressed times of the year. Everyone, especially staff, are keenly aware of this resource drain.

Are you fulfilling your firm’s mission and vision with these clients? Even quick paying, full realization, easy to get along with clients may not be the clients who will grow the firm. Wise business owners are conscious of their client list. There are more considerations than just economic value.

Are your staff growing with challenging work? Staff want to grow, develop and progress in their careers. Staying late and working overtime to do mind-numbing, rote work wears thin and too much of it will have a negative effect on their motivation and retention.

Emotional Considerations

These questions are logical, rational arguments to clean up your client list; ones that you probably already know. But this task is sometimes more than logical. It is emotional. How many of those clients who no longer fit the firm’s profile have been long time relationships? Or have been great clients but your firm has outgrown them? Remember, we are in a relationship business and you don’t want to just slice and dice indiscriminately.

For those few clients, would it be possible for partners to be allotted a certain number of hours for these cases?  Just like some firms allow X hours for community contributions? This would permit partners to retain certain clients that are outside the firm’s ideal client profile. Just a thought.

In the end, being a business owner requires difficult decisions to be made that are beyond personal preference. Maintaining a healthy client list is one of those responsibilities for partners. Find ways of preserving clients who value you, your services, and will grow the firm and your people.