News for the Hospitality Executive |
Hoboken, NJ (August 2012)—Most doctors firmly
believe that
certain types of regular screening tests and checkups are essential and
help
save lives. And most of us, no matter how much we despise devoting an
hour or
more to getting poked and prodded, dutifully go for an annual checkup
each
year. After all, our health is vital to our overall well-being and
happiness.
Andrew Sobel says that annual checkups can play a vital role in your
professional health as well—especially with regard to client and
customer
relationships, which are the lifeblood of every business. “In fact, you should absolutely
review the ‘health’ of your client relationships on a regular basis,”
says
Sobel, coauthor along with Jerold Panas of Power
Questions: Build Relationships, Win New Business, and Influence
Others “Here’s why: Most clients vote
with their feet. They don’t tell you they are unhappy—they simply start
to give
their business to your competitors. Client relationship checkups can
help you
gauge the health of these relationships, prescribe changes when
necessary, and
identify ways to further grow them.” Sobel recommends
infusing your client health checkups with Power Questions. In his book
Sobel
explores dozens of questions that light fires under people, challenge
their
assumptions, help them see problems in productive new ways, and inspire
them to
bare their souls (which, of course, strengthens the bonds in the
relationship).
“All business
interactions are human interactions,” he says. “And part of being human
is
acknowledging that you don’t know everything about everything—and that
you certainly
don’t know everything about the other person’s needs. Questions help
you
understand these things more deeply, and they’re an essential tool when
assessing the health of client relationships.” When client
relationship checkups aren’t performed regularly, the relationships can
take
unexpected turns. Sobel tells the story of his client, a Fortune 100
company
with a longstanding relationship with IBM. “IBM’s then-CEO Sam
Palmisano decided to visit my client’s CEO,” tells Sobel. “A week ahead
of the
visit my client’s relationship manager for IBM called his counterpart
to
discuss the upcoming CEO summit between their companies. Apparently he
did not
get a return phone call during that week! The story goes that when
Palmisano
met with their CEO, he opened by saying, ‘My people tell me we have an
“A”
relationship with your organization.’ My client’s CEO responded, ‘Well,
my team
tells me your relationship with us is a “C.” Fortunately, this was
a wakeup call for the IBM team to dramatically improve the relationship
with
Sobel’s client. Within a year, his client told him, the relationship
was indeed
an “A,” and today the company views IBM as a key trusted partner in
operating
their business. “IBM is a great
company that has been quite innovative in the way it builds long-term
client
relationships,” says Sobel. “But as this story illustrates, even
well-managed
firms can dramatically misread the health of a key client relationship!
The
successful firms I work with all have some type of process in place to
determine the health and strength of their most important client
relationships.
They seek feedback at multiple levels. They access the client’s views
using a
variety of channels—through the relationship manager, during senior
executive
visits, using independent surveys, and in client forums (virtual and
in-person).” As the IBM anecdote
illustrates, client health “screenings” are necessary when managing
client
relationships. Here are ten questions you should ask yourself when you
are
considering the health of your client relationships: 1. Do you have access? If there were such a
figure as a
“client relationship doctor,” Lloyds Banking Group Chairman Sir
Winfried
Bischoff would be the archetype. The former Schroders CEO and Citigroup
chairman is a renowned trusted advisor who has calmly and wisely guided
hundreds of CEOs through bet-the-company transactions and deals. Last
year
Sobel asked Sir Win, “How do you know when a relationship is not going
well?”
His first response was, “If it’s taking a very long time to set up a
meeting,
that’s usually a bad sign!” “Can you actually get in to see important executives in your
client’s
organization?” asks Sobel. “Some leaders are notoriously busy, and it
does take
time to get on their schedule. But if you don’t have access, you may
not be
considered relevant! PS: If you think you have a good relationship, but
the
client says, ‘There’s nothing going on. It doesn’t make sense to meet,’
that’s
still a bad sign. It means they don’t really value your ongoing insight
and
perspective.” 2. Do you and your client trust each other to do
things without
extensive documentation, checks, and controls? Trust is the
essential
foundation of every long-term relationship. It’s the feeling that the
other
person will come through for you. It’s the belief that they will meet
your
expectations. It’s the confidence that they will demonstrate integrity,
deliver
competently, and focus on your agenda, not theirs. “When trust is present, you don’t need to constantly check up
on the other
person,” notes Sobel. “You don’t need to put in place endless controls
and
systems to monitor results. If your client is constantly micromanaging
you,
then they may not trust you, and you need to find out why.” 3. Does your client openly share information with you?
In a
healthy, trusting relationship, there is transparency. Does your client
give
you access to their plans and proposals? Do they freely share
information with
you, within the constraints of confidentiality? “When you’re a vendor, you get very limited access to
information—it’s on a
‘need to know,’ restricted basis,” says Sobel. “When you’re a trusted
advisor,
your client treats you as part of the inner circle.” 4. Does your client confide in you and bounce ideas
and decisions
off you? Does your client ever call you up to run a new idea
or potential
proposal by you and get your opinion? Or do they make important
decisions and
then call you afterwards? “It’s not reasonable to expect them to
discuss
everything with you,” notes Sobel. “However, if they have an issue in
your
domain, and the relationship is a strong one, they will most likely
draw you in
before reaching their final conclusions.” 5. Are you the first person the client calls when they
need
something in your area of expertise? “This is an essential
litmus test
of a healthy relationship: loyalty,” explains Sobel. “If the client
views you
as interchangeable with other suppliers, then you’re a vendor, and
you’ll be
subjected to constant price pressure as the client continually shops
around.” 6. Are you treated with respect—like an important
advisor?
This is hard to quantify, but you usually will know in your gut if this
is the
case. “I had a client who I felt didn’t value me,” says Sobel. “He
asked me to
help teach his senior partners how to be better trusted advisors to
their
clients. But ironically, he didn’t want a trusted advisor himself—he
wanted an
arms-length ‘expert’ who would be at his beck and call. I finished the
project
and moved on.” 7. Is working with this client a satisfying, rewarding
experience
for you and your team? Some clients just drain you. They are
overly
demanding, they check up on your every move, and they basically drive
you
crazy. “Sometimes, you’re also stuck with a client who is too low in
the
organization to really appreciate the impact you have,” notes Sobel.
“This is
not a healthy relationship! Life is too short—if you can’t fix a
situation like
this quickly, you should get out and double-down on more promising
clients.” 8. Is the relationship economically rewarding for you?
You
could have a great personal relationship with a client, but for a
variety of
reasons be losing money on the work! “Sometimes, weak profitability is
your
fault—you have underestimated the scope of the work or underpriced it,”
says
Sobel. “But sometimes it’s a sign of a client who knows the cost of
everything
and the value of nothing.” 9. Are you having an impact and helping to improve
your client’s
business? In the best relationships, you have a clear and
positive
impact on the client’s organization. You help the client improve their
business. “If, for whatever reason, this is not happening—it’s a
warning sign,”
notes Sobel. “Are you working on peripheral issues that are not really
important to the client? Are you stuck too far down in the
organization? Is the
client ignoring your recommendations? Is your good advice simply
falling on
deaf ears?” 10. Is your client referring you to friends,
colleagues, and other
organizations that could use your expertise? Active
word-of-mouth
referrals, arguably, are the ultimate sign of a good relationship. “Are
you
getting referrals?” asks Sobel. “Would your client give them to you if
asked?
How enthusiastically would your client recommend you? A testimonial is
one
thing—it’s passive—but an active referral is a sign of a very different
level
of satisfaction and delight with your services!” “Just as you
shouldn’t make assumptions about or neglect your own health, you
shouldn’t do
so when it comes to the health of your client relationships,” says
Sobel. “Each
year, go through this checklist and rate each of your relationships.
Are you
weak, average, or strong on each of these ten points? Better yet, rate
yourself
and then ask these same questions to your client. Then, compare the
answers.
Through quality communication and thoughtful Power Questions, you can
strengthen your client relationships and add value to them at the same
time.” About Andrew Sobel: For 30 years, Andrew has worked as both a consultant to senior
management
and as an executive educator and coach. His clients have included
leading
companies such as Citigroup, Xerox, Bank of America, Hess, Cognizant,
Ernst
& Young, Booz Allen Hamilton, Towers Watson, and many others. His
articles
and work have been featured in a variety of publications such as the New
York Times, Business Week, and the Harvard Business
Review.
Andrew is a graduate of Middlebury College and earned his MBA at
Dartmouth’s
Tuck School. He can be reached at http://andrewsobel.com. |
Contact:
Andrew Sobel http://andrewsobel.com |