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Client Conflict

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by johnbennett

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We are a small firm that provides contracted IT services to small businesses. We have a client that we have been providing contracted IT services to over the last two plus years. We also provide additional IT services to them should the needs arise and have been available to them 24/7. Since our involvement, we have instituted several crucial technology solutions to them (Citrix, VPN, SQL Databases, WAN solutions, redundant hardware, software, etc.) and all have proven to be extremely reliable and stable. Prior to our involvement, their network operations were performing at a 50% uptime rate of operation. We have also been able to show them how to significantly cut costs in their communications needs, web and email hosting, etc.

Overall, the employees, Director, CFO, and Office Manager have been very pleased with the results and have made it known on several occasions. The Office Manager is especially pleased that she is now able to perform the role she was hired for and to not have to deal with computer-related technical issues. The CFO comments quite frequently that this has been the first time she has ever been in a networked environment that is up "all the time".

The problem we are encountering is with the President of the company. She is not technically literate and has often made comments to other staff members that she could operate a business with two telephones and Quick Books quite efficiently. She has gone on to cut our day-to-day involvement with the company quite significantly and we are at the point now where we are wondering if our services are wanted at the client site at all. She has stated to the Office Manager that she must be contacted directly for any work performed by us over 15 minutes. She frequently asks the Office Manager why she isn't setting up VPN or Remote Users and updating the servers and databases, etc. We feel like our hands our tied and cannot perform work for them to the fullest of our abilities. We even need to call in advance to make sure the coast is clear before we visit the office now.

Still, they have been a good client for the last two years and always pay on time. I have told the Office Manager in the past that we need clarification from them on what the current expectations are but the Office Manager always seems to shy away from responding. I have told the Office Manager that if our contract is not going to be honored then maybe we could switch to a flat hourly rate (an increase of almost 70% over our existing one) but she knows that they have it quite good right now.

I am torn between continuing to feel like we are walking on eggshells each time we perform work for them or simply moving forward and replacing them with another client (sometimes not the easiest thing to do). Still, at this rate, it is almost insulting and humiliating to continue to work with them under the current climate. We see great value in the services we provide and have been able to show that to them but it doesn't seem to matter.

Any advice would be greatly appreciated.

Thanks in advance!

John

13 replies

by cactus pete

Instead of simply rubber-stamping the contract the next time it needs to be renewed, talk to them about their needs and desires. Perhaps they'd like to try a month-to-month contract for a while that fits the president's view of how things should be run.

During this time, you should certainly present the same argument you just made - and with all of your supporting documentation.

If they cut you loose/r it will be an opportunity for you to add a/n additional client/s and everyone is happy.

It's just business, and it's their business to screw up if they so choose. Your job is to offer them what they need with an explanation they can understand. If everything works out, the market then pays you both...

by johnbennett

Thank you for the advice.

The contract terms are basically a guaranteed rate for a period of one year with a 30-day out (on either side). Again, I have enjoyed a great relationship with this client up until this point and feel that they would balk at going to an hourly rate that is more than what they are used to paying.

The funny thing is that I just met with them two months ago with regards to their current requirements (the President was present though).

Thanks again.

John Bennett

by oldefar

but when it is about the money it is only about the money. Or so I am told.

If it is not about the money, then the President must be feeling she is loosing in prestige, knowledge, or security. Sounds like you are providing timely service, so that is not likely the issue.

by johnbennett

Thank you for your reply.

I don't believe that it is solely about the money either, the President was located at another branch office that we did not maintain for the previous year and a half. During that time, their office went through three kids out of high school who just about trashed their IT operations and one ended up remoting in late one night and leaving a nice little virus on their system after he had been dismissed. The President has said that we were at fault because we did not give these people the information that they needed (even though they were two totally separate networks).

Everything had been fine since then until she actually moved into the location that we currently maintain. We have been able to provide all (and more than) documentation, information and details that she and any designated personnel have requested but that still hasn't done the trick.

Could it be a vendetta kind of thing? I suppose but I believe that we have proven over the last two years who has come first with regards to the services we provide.

Thanks again.

John Bennett

by oldefar

These seems to be linked to prestige, and I think you have a good feel of the issue here.

Your excellent track record and high esteem with most of the office management is hurting her perception of her prestige. That you solved an issue she created at another site reinforces that rather than endearing your firm to her.

To resolve this and continue having a good client relationship requires feeding her prestige. Without appearing to suck up, you need to involve her in discussions and decisions where her knowledge is perceived as valuable. A certain amount of this will be IT related (ouch!) but you might be able to keep most of it on areas where she does have expertise. Some suggestions - solicit her opinion in her area of expertise for other clients, or as a guest SME speaker to either your company staff or an association you belong to (BBB, Chamber of Commerce, etc.). Write an article related to her industry and ask for her input or review.

At the client location, never miss a chance to deflect her responsibility for the mess up at the other site, never agree with a negative opinion of her from her staff, and never miss an opportunity to sincerely speak well of her expertise. Just don't try BS, since this will be spotted by both her staff and her instantly.

Success is not guarenteed, and you may end up having to lose this client. It depends on how open she will be to a new perception of her prestige. Perception is reality, and if her's will not change you will never again enjoy the good relationship you once had.

I recommend you consider how likely you are to change her perceptions of herself, and if the answer is not very likely I suggest you try to get a good reference letter from the client today and work at a smooth withdrawl with reputation intact.

Best of luck. Use my peer contact for some additional resources via email.

by cactus pete

Yes, I expected Oldefar to ring in as true as he normally does in this matter. He certainly has a knack for managing issues.

With more of the story at hand, I really have to second his insight here. Please take him up on the offer of additional resources, as I can vouch for his historical marks in matters like this one.

by dc_guy

It's happening all over America. Even major corporations with a substantial impact on the national economy are in the hands of people who can, without exaggeration, be called either morons or crooks. From your description, it sounds as though the company president either has a hidden agenda and does not truly have the company's best interests at heart, or is simply not qualified for leadership. Everything that has been postulated about threats to her ego may be true enough. But in the final analysis a competent leader has the wisdom and maturity to rise above such petty concerns and realize that you are contributing to the success of her company and thereby facilitating her own success. You've dismissed all other possible explanations for her ill will: your work has been consistently outstanding, she has met you personally, her subordinates give her accurate feedback. The only possible excuse left is that she is either nefarious (hoping to give the contract to a friend, relative, or someone who promises a kickback) or simply incompetent. In either case your client firm is poorly run and it cannot hope to remain successful in today's tough market. Do whatever damage control you find appropriate to make as much profit as you can from this client during its downfall and to help its hapless employees make the most of a bad situation. But start looking for a replacement: this company is doomed. These are tough times; our country has lost both its brains and its scruples. Your experience is but a microcosm of the entire U.S. economy.

by hal 9000

As it happens all over the world.

Start looking for a new client and make the best of a bad situation knowing that you eventually well get shafted and most likely for some unnecessary poor reason as it makes the Manager look good in the short term and most likely will lead to the downfall of the company in the long term.

It is people like this that make our jobs far harder than they need to be and at the same time bring you're company into disrepute as when they fail you will be at least partway blamed if not wear the entire blame for the failure.

If it was one of my customers I would just pull the plug now and start finding another client before any more damage is done to you're organisation.

You can site the reasons as being impossible to perform a "Proffesional Service" as a reason for breaking the current contract or you can just work out the current contract and not renew it when the time comes. But either way I would get out of thsi position ASAP before you end up wearing the blame for what goes wrong in this company.

by voldar

on Oldefar, and your words show a lot of wisdom, but let me tell a story:
- for many years a dog did his job, protecting every person and goods in the yard and house. One day, a cat shows up, and since then, name any troubles a dog might have, he had! The dog did his job even better but the master had eyes only for the cat. In a few month the dog died, with no food and water, with no care at all. Although the cat was there, she was not able to protect anything and the master of the house starts to have doubts about the way he treated the dog and he felt sorry. But the dog was gone.

What is the point of this story you may ask. Stupid people never know's what they possess until they loose that thing. My point is, yes, John should do his best trying to keep the business work, but I don't think humiliation is something acceptable. Nobody say that this is the best option, but sometimes, not any business is a good business. And be sure, about the "lady" we all are speaking in a way or other, really don't mind at all about what anyone else say. She's got an idea about the firm where John works (they are the ones that "ruined her ass") and she'll always keep that in mind. Stupid people never give up on ideas, and you know why? Because they don't have many of them! When the contract we'll fall and everything after that, when they will pay a lot more for the same job (by hour), they will see that they were wrong, but who can re-establish the things as they were before? And John's firm will be again the one that "kicks the lady in the ass" twice, or maybe not, because stupid people also are very "cocky" and they don't like to come and simply say "I was wrong, let's start again from the begining".
That's my point in this issue. I agree to do all human possible to keep the busines working, but if you have nobody to talk to, and you are also feeling humiliated, then, check another place where people listen and talk to you - at last you are the specialist and you provide them consultation/services in the field you were prepared.

by oldefar

Not all business is good business, not all clients are good clients, and some situations are best walked away from.

I have talked about the five currencies in a number of posts - time, money, knowledge, security, and prestige. When dealing with others it is important to understand these are the values you bring and an aggregate positive balance is what both parties want.

On an individual level, it is important to realize that of the five only time, money, and knowledge are real. Security is fleeting and more often perception than fact. Prestige is all perception.

Prestige is an aspect of one's perception of self, as is humiliation. No one can give me either beyond the extent I rely on the opinions of others to determine my self image. Most don't realize this but both humiliation and prestige are self inflicted conditions.

by eric9

Hi Johnbennett,

I am in a very similar situation to you, I work for a small network consulting group, and was in a very similar situation to you. There were two owners to the company in question, one absolutely loved us, the other thought we were a waste of money; tried to get us to give her lower rates, something that we could not afford to do, and in turn decided to go with a moonlighter.

About a week after we stopped working for them their moonlighter called us up and started asking extremely basic questions, such as how to add a computer to a domain. It was a very hard thing for me to do, but I had to refuse to help him.

Last week they called us back, they finally fired the moonlighter and want us back. We asked about rates, and the other owner said she understands where our price comes from. (meaning the person they were paying $40 an hour for didn't know squat)

One thing you could do is be very blunt with her, talk "business owner to business owner" with the president. Say, "Listen ___, I am getting a feeling that you are no longer trusting us; would you feel comfortable telling me if there is no reason for us to do business any more?" That is a very hard blow, but it will resolve this right then and there. In every case that I have used that I got the answer, "No No, thats not the case, I just feel..." And you end up getting to the root of the problem, which could be that the owner feels you were not giving her choices, or you were not keeping her in the loop, or something. Maybe unlike most owners she is really a techy at heart, and wants you to be her tutor; and all the decisions made about the IT area of her company are made as a joint decision between her and her advisor?

I am a firm believer of, "If you feel it, say it."

Eric

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