D EVELOPING A C LIENT S ERVICE P LAN F OR Y OUR B EST C LIENTS

1. DEVELOPING A CLIENT SERVICEPLAN FOR YOUR BEST CLIENTS • PRESENTED BY SAM M. ALLRED, • FOUNDER & DIRECTOR OF UPSTREAM ACADEMY

2. SESSION MAP • Observations about the clients we serve • What’s a vision for exceptional client service? • Developing and implementing a client service plan • Questions and answers Email questions to sama@upstreamacademy.com • 2

3.  OBSERVATIONS ABOUT THE CLIENTS WE SERVE

4. OBSERVATION #1 • Our firms can be no better than our clients allow us to be. • “It’s axiomatic: You’re as good – or as bad – as the character of your Client List. In a very real sense, you are your Client List.” Tom Peters • 4

5. OBSERVATION #2 • The only clients for whom we can provide A-level service for any length of time are A-level clients. • Serving A-level clients improves our quality of life substantially because these clients are better able to help us have successful engagements. • 5

6. OBSERVATION #3 • A firm can never develop a reputation for exceptional service, if it’s willing to serve D-level clients. Most professionals spend way too much time with D-level clients.

7. OBSERVATION #4 • It seems that many in our profession feel they are morally and legally obligated to provide services to every client and prospective client who wants to be serviced, regardless of the client’s ability and/or willingness to pay for those services. • 7

8. OBSERVATION #5 • Most firm leaders simply don’t believe they should have the right to serve only A-level clients. • 8

9. “Supposedly, professionals are among society’s most bright, educated, and elite members – people who are supposed to have more career choices than anyone else. Yet they seem to be willing to accept a work life made up largely of ‘I can tolerate it’ work and clients, and they feel that they cannot safely do anything about all that.” • David H. Maister • 9

10. OBSERVATION #6 • Every firm has some bad clients. Not all difficult clients are bad clients. A bad client is just that: a client who is not worthy of our time and resources – not now, not later. • 10

11. OBSERVATION #7 • Bad clients cost us a fortune. Not only do they consume resources that could be dedicated to more profitable and rewarding clients, they add tremendous stress to our lives. • Bad clients live in Quadrant I and require all who serve them to become trapped in that energy-sapping quadrant. • 11

12. OBSERVATION #8 • We tend to measure the success of business development efforts by the size of the client landed rather than the quality. • The bigger the new client or engagement, the bigger the celebration. • 12

13. OBSERVATION #9 • Lots of firms talk about client acceptance policies as if they had them and were using them.  • The reality is that for many firms, “client acceptance process” means filling out the right form after work for the new client has already begun. • 13

14. OBSERVATION #10 • Many firms and individuals have a poor screening process for selecting new clients. For many, prospective clients are considered good candidates if they have a checkbook and can fog a mirror. • The idea of performing appropriate due diligence with prospective clients is foreign to many within our profession. • 14

15. OBSERVATION #11 • The primary purpose of a client screening process is to detect as early as possible whether the prospective client is A-level or D-level. • It is much easier to part ways with prospects when we have not invested significant time pursuing them. • 15

16. OBSERVATION #12 • The only thing worse than pursuing a D-level client is landing one. • 16

17. OBSERVATION #13 • Most firms are better talkers than doers when it comes to culling D-level clients. Experience has shown that it’s much easier to lead clients in the front door than it ever is to escort them out the back door. • 17

18. OBSERVATION #14 • Serving D-level clients is extremely difficult for all members of the firm. Failure to hear complaints doesn’t mean the pain is not there. • Here are some actual comments from managers of a top 100 firm regarding what it’s like to serve D-level clients. • 18

19. REAL FEEDBACK FROM MANAGERS • It’s demoralizing. • They don’t allow us to be professionals. • We’re not excited to serve them or even call them back. • D clients lie to us. • It’s discouraging. • It stinks to work for D-level clients. • They create enormous stress. • D-level clients are anti-culture. • I feel totally out of control. • These clients are destroying everything we’re trying to create. • D clients defeat and undermine the firm culture. • They cause friction among directors, managers and staff. • They try to trap us and are looking to cause problems. • Our reputation is hurt more by serving these clients than by firing them. • 19

20. OBSERVATION #15 • Most firms in our profession claim to give great client service. Firm leaders believe their service is what sets them apart from their competitors. • The only reliable indicator of exceptional client service is the number of referrals you receive regularly from satisfied clients.

21. OBSERVATION #16 • Many within our profession call themselves trusted advisors. In reality, too many are record-keeping historians and not forward thinking trusted advisors. • We are often too reactive in our contacts with clients, responding primarily when they initiate contact.

22.  WHAT’S A VISION FOR EXCEPTIONAL CLIENT SERVICE?

23. It’s important to understand that a written client service plan is just one part of the vision for exceptional client service. • This plan is far more impactful if it is part of a complete vision for delivering exceptional client service rather than a stand-alone component.

24. EXCEPTIONAL CLIENT SERVICE VISION • We have categorized all our clients into levels (A – D) based on characteristics and have developed a plan for each of these four client levels • We have modified our scheduling process to place our very best people with our best opportunities (A-level clients) • 24

25. EXCEPTIONAL CLIENT SERVICE VISION • We have organized client service teams for our best clients, providing more than one contact for each A- and B-level client • Our clients are one of our best referral sources and a high percentage of new clients each year come from client referrals • A good part of our growth each year comes from new projects with existing clients • 25

26. EXCEPTIONAL CLIENT SERVICE VISION • We are effective at moving D-level clients out of the firm • As a firm, we do a great job of cross-selling services and the partners are the firm’s #1 source of referrals • We have a written service plan for every A-level client and many of our B-level clients • 26

27. EXCEPTIONAL CLIENT SERVICE VISION • We know the top five issues all of our A- and B-level clients are dealing with • We’re very good at identifying new services for our clients and we train our staff to recognize opportunities • We introduce at least one new client service offering every 24 months • 27

28. EXCEPTIONAL CLIENT SERVICE VISION • We have a written plan to convert B- and C-level clients to A- and B-level clients • We only pursue potential clients that fit our A-level criteria • Our partners have become proactive, forward thinking, trusted advisors (PFTTA) • 28

29.  DEVELOPING AND IMPLEMENTING A CLIENT SERVICE PLAN

30. A CLIENT SERVICE PLAN SHOULD: • Address how to deepen the relationship with the client by establishing significant relationships with at least two people in the firm and a strong connection with members of the team who serve the client • Document the client organization chart and ensure we understand the client’s internal relationships • 30

31. A CLIENT SERVICE PLAN SHOULD: • Initiate regularly scheduled face time with the client • Measure client satisfaction by charting additional services provided to the client and the specific referrals received from the client • Contain a specific plan to WOW the client year after year • 31

32. A CLIENT SERVICE PLAN SHOULD: • Help us understand what the client’s top issues are and cause us to spend more of our time working with clients on those issues that are most important to them • Allow us to deliver exceptional service to our best clients and turn them into raving fans • 32

33. Please keep in mind that there is not just one perfect client service plan. The key is to have a written plan that allows you to be a proactive, forward thinking trusted advisor with your clients. • Here are some of the possible components of a client service plan:

34. CLIENT SERVICE PLAN COMPONENTS • The frequency of proactive contact and who is responsible for making contact • Identification of the team serving the client and team members’ respective roles • A list of current services provided • How the client wants to be communicated with • 34

35. CLIENT SERVICE PLAN COMPONENTS • A list of key players on the client side and a strategy to connect at deeper levels within the client’s organization • The client’s vision, strategy and goals • The top five issues the client is struggling with • Cross-selling opportunities • 35

36. CLIENT SERVICE PLAN COMPONENTS • The results of a team brainstorming session regarding possible services and solutions that could benefit the client • A plan to deepen the relationship with the client by establishing significant relationships with at least two people in the firm • 36

37. CLIENT SERVICE PLAN COMPONENTS • A plan to effectively introduce all team members who serve the client • A client organization chart • A measurement of current client satisfaction with our services • Analysis of the areas of risk the client faces • A list of the client’s top trusted advisors • 37

38. CLIENT SERVICE PLAN COMPONENTS • A way to track the specific referrals we have received from this client • Questions to ask at the annual internal meeting to solicit thoughts on how we will continue to WOW the client each year • 38

39. CLIENT SERVICE PLAN COMPONENTS • Key questions to ask the client • If you could change two things about your business, what would they be? • What area of your business causes you the most worry? • What is one thing you should be doing with your business that you’re not doing? • 39

40. CLIENT SERVICE PLAN COMPONENTS • Key questions to ask the client • In what areas of your business are you most vulnerable? • What three things do you like best about your role in the business? • What three things do you like least about your role in the business? • 40

41. CLOSING THOUGHTS AND SUGGESTIONS • Some individuals will be better PFTTA than others • Create a PFTTA learning environment within the firm through open, honest discussions • Recognize that it may take a while to hit your stride, that improvement will be incremental, and that persistence will yield greater results • 41

42. CLOSING THOUGHTS AND SUGGESTIONS • Become an expert at asking the right questions • If you treat this as another checklist item you will likely lose the client • This is not so much about the client service plan form as it is about a sincere desire to help the client • 42

43. CLOSING THOUGHTS AND SUGGESTIONS • Read Getting Naked by Patrick Lencioni • If your singular focus is to sell more services, you will likely fail – even if you end up selling more services • Is there a risk to doing this? Absolutely • Is there a risk to not doing this? Absolutely • 43

44.  QUESTIONS AND ANSWERSEmail questions tosama@upstreamacademy.com

45. UPCOMING EVENTS • MANAGEMENT PRESENTATIONS • The Proper Way to Evaluate Firm Culture October 5 & 31, 2012 • BESTPRACTICES CONFERENCE • October 25-26, 2012 – Chicago, Illinois • HIGH PERFORMANCE FIRMS PROGRAM • November 5-6, 2012 – Chicago, Illinois • 45

46. Thank you. • sama@upstreamacademy.com