complacent ? For example - he or she : consistently tells you - with little selfexamination - that the relationship is great , year after year ; has been managing the client relationship for many years , and doesn ’ t seem to have strong aspirations for it . You don ’ t see a high level of energy , planning , and innovation ; doesn ’ t fully understand the client ’ s evolving agenda of key priorities and goals , especially at the level of the individual client executives you work with .
Is your relationship manager energized about the opportunities with their client and actively seeking to grow and improve the relationship every year ? Have they developed a strong , well thought-out client plan ?
The client isn ’ t highly engaged with you
You don ’ t see the client reaching out to you for advice and help , and drawing you into the day-to-day life of their organization . Are you invited to their internal conferences and events ? Do they look for ways to showcase the impact you ’ re having on their business ? Have they stopped communicating with you ? Worse , is the client unhappy with your work and complaining about it ?
Do you see evidence that the client actively engages with you / your firm ?
You have a narrow relationship
Does this client account hang by the thread of a single relationship , or is it anchored in many-to-many relationships ? If it ’ s a major client relationship , and you only have one really strong connection , it may be at risk .
What would happen to your business with this client if a key executive sponsor left or moved ?
The client service team is weak or flawed
If every year you have a nagging feeling that you don ’ t quite have the right team serving the client , or that there are holes in the experience base of the team that you struggle to fill , you may have a serious problem .
Are you fully confident in the experience , skills , and drive of the team serving the client ?
Lack of planning and feedback
For a major client , you need a plan to sustain and grow the relationship . You need to be getting feedback on a regular basis - feedback on each contract or project , and also annual input from the client on their perceptions of the relationship and satisfaction with your work .
Does your team develop and continually update a robust , aspirational plan for the relationship , and seek meaningful feedback ?
There are significant executive changes
Executive turnover or changes can be an opportunity , but they can also be a threat to the relationship if you are insufficiently grounded in the client ’ s organization . When there are organizational changes , you need keep your client close and be on your toes .
What executive changes are happening now or may occur in the future at your client ? What are your plans to deal with these and fortify your relationship against key individuals leaving ?
The client faces strategic headwinds
If your client faces significant strategic threats , there may be a risk to your relationship ( what if Blockbuster Video had been a major client of yours ? In 2004 it had over 9,000 stories and $ 3 billion in revenue . By 2010 it was bankrupt ). The ideal situation is one where the client views you as a partner in helping to address these threats and turn them into opportunities , but even then you need to be aware and cautious .
What strategic threats does your client face ? Could these debilitate their business ? Can you help them proactively navigate some of these threats where they may impact the areas of the business you have expertise in ?
There is a lot of Mergers &
Acqusitions activity in the sector
A merger or acquisition often results in the consolidation of suppliers and advisors . Audit firms , investment banks , consultants , law firms , technology suppliers , and many others are often casualties of M & A transactions . Another type of threat is a dissident shareholder who demands major changes that will in turn negatively affect your relationship with the client ( often , this means radical cost-cutting ).
Could an acquisition , merger , or hostile shareholder negatively impact your position with your client ? How can you prepare for this eventuality ?
Your client is in crisis right now
If your client is in financial trouble - either due to external shocks or a lack of leadership - your relationship will also likely be threatened . On the other hand , a great relationship can actually be forged during a crisis . Nonetheless , you must carefully take this into account in your assessment of the risks to the account .
Is your client having a financial or operational crisis ? Is it temporary or oneoff , or might they be in a long , downward spiral ? How can you play a role in their recovery ? What contingency plans should you make ?
Detractors
If there are important executives in the client ' s organization who do not like you / your firm , that can be a warning sign . In any complex organization , you will , of course , have detractors . But are the detractors growing in number , and / or do you have very senior executives who would like to see your backside ? Not good .
Dr . Clifford J . Ferguson is the Managing Partner of Rainmakers , and Chairman of Glad ’ s House . You can commune with him on this or related matters via email at : Cliff . Ferguson @ rainmakers . uk . com , or visit their website : Rainmakers . uk . com .