Types of Clients

Let’s face it. There are clients and then there are clients. The great clients (or customers) are those that are ready, willing, and able to work with experts to achieve organizational efficiencies.

And then there are clients who fall short on anything from initial meeting to following through with an expert’s recommendations – these latter clients are wasting not only the expert’s time, but their own, as well.

As experts in our various fields of work, we have all run into a variety of clients. Here are some of the more common types – if you’re a client, maybe you see yourself in one or more of these descriptions: 

Bargainers. These clients want everything you’re proposing, but they can’t pay for it. Or maybe they’re doing the project “under the table,” and don’t want to ask the “real boss” to pay for it. Solution: If the client does not have the money for the full project scope, downgrade the scope – phase the project into manageable chunks.

Naysayers. These clients just can’t believe the project will take six months to complete. Certainly they can do it in a fraction of the time. Solution: Explain why the project will take as long as it will (perhaps a timeline depicting steps is helpful here); if the client does not believe you, suggest a mix of internal and external resources to complete the project faster. Client is still a non-believer? Walk away.

Stealth Implementers. They insist that no one else from their organization needs to be involved in the project. Just do it. Solution: Stress (and demonstrate with examples) how involving others in the organization will greatly enhance the success of this project as well as change management when implementation occurs. 

Self-Made Experts. These clients believe they can do exactly what you’re proposing without you, so why are you charging them so much? Why don’t you just tell them the steps that you would take and then leave them to it? Solution: Walk away.

Call 9-1-1. These clients think everything is an emergency. They need your proposal “yesterday” and the work is required within the next month. However, when you give them your proposal, you don’t hear from them for six weeks. Solution: Develop a project timetable and meet each deadline. Build in “slack” time for all steps involving client input.

Weekend Schmeekend. This is the client that sends you e-mail at all hours of the day and night. Weekends are for working. There is no such thing as work-life balance. Solution: Say no when appropriate. Just because the client works all hours does not mean everyone else needs to, as well!

Committee Monger. The client who believes everything needs to be decided by committee. The end result? Everything gets decided by committee, no one takes responsibility for decisions, and decisions take much longer. Solution: Ensure that there is one “point” person (typically a Project Champion) that will sign-off on all deliverables.

Wordsmithers. You know the ones that review your work and almost re-write the entire content? Solution: Set a time limit for review and stress that only key content requires review. Provide an example. Or hand out the report ahead of time and then convene as a group to review the feedback.

In the end, it’s up to the expert to determine whether they are able to work with the client. If the decision is to fire the client, provide them with the name of another expert – even if it is a competitor. You’ll be glad you did!

Value and Billable Hours

Why do companies and individuals still insist on billing for services “by the hour?” If you are tracking billable hours, you are not being efficient. And, even worse, you are not providing the best possible service to your customers.

When companies focus on billable hours, it may be to the exclusion of other important activities, like building capacity to better serve customers.  

However, this is a Catch-22 situation:  As you build capacity to better serve your customers, you are not able to bill for your time. Then when you use this new capacity to serve customers, you discover that it takes you less time to provide the same service. If you are billing by the hour and you are very efficient, you are unable to earn as much as someone who is less efficient providing the same service.

This is why billing based on the value of service being provided makes so much more sense. Why wouldn’t your customer want to pay you the same (or more) for a service that you can deliver in less time?  

According to Canadian statistics, the amount of time spent at work is decreasing. This is also the case in the United States. Does this mean that “billing-by-the-hour companies” are earning less? Perhaps, but it might be that these same companies are realizing that it is more economical (and profitable) to bill for value rather than hours. 

The secret to creating value for both parties (the company or person providing the service and the company or person receiving the service) is to focus on outcomes rather than inputs. How much time it takes to create a widget or develop a plan is irrelevant to the value the widget or plan provides to the customer.  

In Lean Six Sigma terms, we want to go beyond just meeting our customer’s needs and wants – we want to be sure our customer is delighted with the product or service they purchase from us. This is value. And it has nothing to do with money.

If customers are delighted with the service provided by your staff, they will pay your asking price to continue to receive this value. It is irrelevant to the delighted customer that it cost you $100 to produce the widget, but they pay you $1,000 for the same widget.

In addition, fixed fees (i.e., value-based fees) have the advantage of using up less administrative time for both sides. There is no need to track hours unless the provider of the service wishes to do so. This improves efficiency for both sides.

In the words of Alan Weiss, “No one cares, really, about how good you are. Clients care about how good they are going to be when you’re done with them.”  And that, really, is the ultimate goal of any service or product.