Friday, July 7, 2017

Why You Need 3rd Party Client Advocates

Our firm usually at least made the shortlist whenever we submitted a proposal to this federal agency. So when four straight proposals fell short, we suspected something was amiss. I called the contracting officer to find out what was wrong.

"We've been throwing your proposals in the trash," he said (probably an exaggeration, but he made his point!). He then explained that during construction of the high-tech training facility we had designed, there were problems with the electromagnetic shielding material we had specified, resulting in a significant delay and increase in cost.

The problem caught us completely by surprise. Our project manager had talked with the contracting officer a couple of times during construction and was not informed of any substantial issues. This was my first exposure to the risk of leaving communications with a key client totally in the hands of the PM.

Not that our PM really did anything wrong. He had asked how things were going and was not told the truth. I've seen the same basic scenario many times since. The issue is that many clients will not voice their dissatisfaction to PMs or other key project team members, who may be viewed as part of the problem.

Research suggests that 50-90% of unhappy customers don't complain to the product or service provider. They simply take their business elsewhere. One study specific to the legal profession found that 44% of clients don't voice their unhappiness, compared to only 27% who fail to complain in the services sector at large. Why the difference? I suspect the personal nature of professional services is a big factor.

That's why I advocate assigning every key client relationship what I call a client advocate (many firms use the designation of client service manager). Preferably this is someone who is not directly involved in the project work (except potentially in an advisory or oversight role). Otherwise they lose some of the objectivity and independence needed to function effectively as client advocate. This person's responsibilities typically include:
  • Confirms client satisfaction. Keeps in touch with the client from time to time (as mutually agreed upon), checking to see that the client remains fully satisfied with the firm's performance. This feedback can be elicited in a variety of ways, usually through periodic conversations or a formal questionnaire—ideally a combination of both.
  • Leads the follow-up to specific client complaints. When the client voices a concern or suggestion, the client advocate ensures that the firm properly and promptly responds.
  • Monitors overall responsiveness during project performanceActs as an in-house advocate for the client, seeing that the firm is fully responsive to client needs and expectations during the project. May coordinate periodic third-party project reviews to this end.
  • Acts as third-party liaison. Serves as the primary point of contact when the client has a problem or concern that he or she prefers not to take directly to the PM. I assumed this role by default in the example above—albeit too late to avoid losing some business with the client.

Over the years, I've witnessed many situations where clients were willing to speak more openly about concerns when not personally addressing the PM or key project team member. This includes when I've conducted client interviews as an outside consultant.

Another critical role that the client advocate plays is maintaining focus on the client. PMs naturally get caught up in the details of executing the project, sometimes with the unintended consequence of not giving enough attention to clients. There is an inherent tension between client focus and project focus in virtually any A/E firm (see my previous post on "project myopia"). Assigning a client advocate to complement the PM can help ensure that you balance the two perspectives.

Who should serve as client advocate? As you might suspect, this should be someone who has the ability to get things done on behalf of the client. The project principal is a logical candidate, depending on this person's level of involvement in the project work. But this role doesn't necessarily require a principal or senior manager (although your top clients probably warrant someone at this level).

Another critical role that the client advocate plays is maintaining post on "project myopia"). Assigning a client advocate to complement the PM can help ensure that you balance the two perspectives.

Who should serve as client advocate? As you might suspect, this should be someone who has the ability to get things done on behalf of the client. The project principal is a logical candidate, depending on this person's level of involvement in the project work. But this role doesn't necessarily require a principal or senior manager (although your top clients probably warrant someone at this level).

I served as client advocate for many years as an extension of my business development role. My primary authority was the voice of the client. That, plus my persuasive abilities and general management support, enabled me to be effective in keeping clients happy and continuing to earn their business.

I would urge you not to entrust critical client relationships to the PM alone, no matter how competent that person may be. Give the client another avenue to share concerns that doesn't require an uncomfortable conversation, not to mention an individual not so caught up in the details of project execution that the needs of the client can get neglected. Assigning a client advocate is a simple step that can make a huge difference.

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