by Fronetics | Jul 2, 2015 | Blog, Leadership, Strategy
“You’re fired!” What you need to know about firing a client
In the early stages most independent contractors and businesses encounter a learning curve when it comes to client procurement and business practices. They may need to find their footing in terms of understanding their own interests and strengths. Over time they start to understand what kind of clients mesh with their expertise, interests, temperament, ethical practices, and work style.
Perhaps you’ve heard some say, “I/we don’t take on new clients.” Don’t new clients bring in more work, more connections, more money? At some point in a person’s career or a business’s lifespan, there is a shift that occurs from needing and seeking clients to needing and seeking better clients. Perhaps at some point the seeking part leaves the equation, and the contractor or company is the one being sought by clients. And, perhaps, a business doesn’t need to take on new clients because they’ve found a sweet spot with their current clients.
In order to reach this enviable equilibrium with clients, sometimes certain clients need to go. Consultant Dorie Clark, who authored the Harvard Business Review article, A Consultant’s Guide to Firing a Client, shares, “I’ve been a consultant for the past nine years, and my client list today looks dramatically different than it did when I launched, in large part because of strategic decisions I made to let some clients go and take on others.”
The thought of firing clients makes some people shudder. It can feel like a risk. In many ways it is a risk, but the payoff can be great. It’s advantageous to take stock of the clients you’re currently working with. Are there clients who are temperamental or disrespectful, who drain time or money from your business, who require skills or services you’re not interested in providing, who aren’t willing to pay what you’re worth, who you’ve been working with as a favor (such as legacy clients)? In order to make room for new clients, who align with your skills and practices and pay what you’re worth, some old clients may need to go. In order to lighten your load, if you’re looking to become more lean, selective, or focused, some old clients may need to go.
Another anxiety around letting clients go is the conflict that could arise. The best way to fire a client is to do it in a respectful manner, remembering that your integrity and reputation are both on the line. Even if you’re dealing with an abusive client, take the high road. The Forbes article Four Reasons to Fire a Client also encourages this approach, “Remember to remain neutral, avoiding accusation, and whenever possible give your customer a referral to another provider.”
Here are 5 tips for successful culling of clients:
1. Do it in writing. Cover potential legal encounters. This is especially useful when citing the client’s breach of contract or working with a disrespectful or petulant client.
2. Be formal. Even if your relationship has felt informal at times, use professional language.
3. Be concise and clear. There is no reason to bring emotions into the mix and no reason to be ambiguous. Briefly state why the termination is occurring and when it will take place (e.g. on X date, by the end of the contract, immediately, etc.) This should be an air-tight document.
4. Be grateful. There’s no need to gush, but even if the relationship has been challenging, express an understanding that clients are the backbone of a business. A simple line like, “we’ve appreciated the opportunity to work with you…” will secure your integrity. After all, it’s not a lie. Most likely you did appreciate the opportunity, but opportunity and experience are two different things.
5. Be helpful. Don’t leave a client stranded. As previously mentioned, if possible, refer your client to another business. This leaves you in good standing with the client and also fosters connections with other businesses.
At the end of the day, how you handle firing a client could impact the relationships with current and potential clients, as well as your own employees. In a society in which transparency and information are demanded and more available, you want to be sure to end this relationship respectfully. Don’t be the one people are gossiping about, be the one people want to work with.
Fronetics Strategic Advisors is a leading management consulting firm. Our firm works with companies to identify and execute strategies for growth and value creation.
Whether it is a wholesale food distributor seeking guidance on how to define and execute corporate strategy; a telematics firm needing high quality content on a consistent basis; a real estate firm looking for a marketing partner; or a supply chain firm in need of interim management, our clients rely on Fronetics to help them navigate through critical junctures, meet their toughest challenges, and take advantage of opportunities. We deliver high-impact results.
We advise and work with companies on their most critical issues and opportunities: strategy, marketing, organization, talent acquisition, performance management, and M&A support.
We have deep expertise and a proven track record in a broad range of industries including: supply chain, real estate, software, and logistics.
by Fronetics | Jul 1, 2015 | Blog, Leadership, Strategy
How to increase prices and retain customers
Companies raise prices all the time. There are various reasons, explanations, and results. Sometimes companies disclose the changes, but sometimes customers and clients never even catch wind of a change. Let’s have a look at the causes, the perception, and the actions to take.
Why?
Usually there’s an impetus for a company to raise prices. Perhaps there’s a business model already in place to raise future prices, but often a price increase is tied to another event. Here are some typical reasons:
Spike in raw material prices used in manufacturing products
Is there dearth of raw materials used to make the products your company is producing? Perhaps there’s a lack of access to the materials due to stalled transportation from inclement weather, natural disaster, drought, etc. Perhaps resources are dwindling or other roadblocks in the supply chain are driving up prices.
Services or products have become incredibly popular (value-based pricing)
Perhaps you realize that your services or products weren’t appropriately priced early on, and you’re realizing your product’s value in the market. You may also need to reduce demand for some time by increasing prices.
Unexpected change in business or a new tact
Perhaps you’ve lost business recently or your business strategy has changed and you need to cover costs by increasing prices. These changes can come with the opening of a new branch or factory, or the launch of new services or products.
Inflation and market trends
It would be nice to keep prices where they started 5, 10, or 20 years ago, but most businesses aren’t sustainable that way. As all prices of other goods and services rise, so too must yours.
Perception
As detailed in an article about the power or perception, behavioral economist Richard Thaler ran an experiment in which some study members were asked how much money they would give a friend to go buy beer at a “run-down grocery store”. Some study members were asked to get the alcohol at a “fancy hotel”. According to the article, “the fancy resort’s median price was 71% higher than the run-down store’s price.”
This might suggest that considering the perception of your product or services could be key to your next price adjustment. Considering what your current branding is, who your competitors are, and where you want to see your company could help shift your own perception of your company, and that of others. Aligning the two could be critical to successfully stewarding a price shift.
How?
It’s important thoroughly think through a price adjustment. Considering your own worth is important, but understanding that some clients and customers won’t be convinced can be a hard pill to swallow. To make the change more palatable, or even attractive, you should consider these options:
Consider the tactic (good-value pricing, value-added pricing)
Are you planning on going to offer any promotions or price discounts in the future? Are you going to attach value-added features and services to support the higher prices? Are you considering doing bundles packages? It’s important to answer theses questions so that you can communicate to clients and customers.
Consider timing
Have you recently increased prices? Does it feel too soon to do it again? You could risk loyalty from consumers and clients if price increases come back to back. However some believe that small increases frequently are better than large increases infrequently.
Are you implementing new, improved services or bundling new packages? An announcement tied to value increase or product change can be more comfortable for consumers and clients.
Make a solid announcement
Most people feel it is best to announce an increase, especially to current customers and channel partners, rather than try to hide the increase. People don’t want to feel fooled or ignored. They want transparency.
Understand that wording is critical
Being direct and confident in expressing the increase is the best tact. Remember that if you value your product and services, your customers and clients are more likely to as well.
Although you’re briefly sharing the reason for the increase, don’t feel the need to disclose sensitive financial information.
Lastly, provide clear timing on the changes and be sure that changes don’t violate any pre-existing agreements.
Although some customers and clients may bristle at an increase of prices, if you’ve been playing fairly and providing solid products and services, many loyal customers will come along for the ride. If you value yourself, and others value you, you can survive a price increase. You may even thrive from one.
Fronetics Strategic Advisors is a leading management consulting firm. Our firm works with companies to identify and execute strategies for growth and value creation.
Whether it is a wholesale food distributor seeking guidance on how to define and execute corporate strategy; a telematics firm needing high quality content on a consistent basis; a real estate firm looking for a marketing partner; or a supply chain firm in need of interim management, our clients rely on Fronetics to help them navigate through critical junctures, meet their toughest challenges, and take advantage of opportunities. We deliver high-impact results.
We advise and work with companies on their most critical issues and opportunities: strategy, marketing, organization, talent acquisition, performance management, and M&A support.
We have deep expertise and a proven track record in a broad range of industries including: supply chain, real estate, software, and logistics.
by Fronetics | May 28, 2015 | Blog, Leadership, Strategy, Supply Chain, Talent
Cathy Morris, senior vice president and chief strategy officer for Arrow Electronics, Inc., talks women in the supply chain and offers up career advice
Men hold 95% of top level supply chain positions within Fortune 500 companies. Outside the corner office things aren’t much better; between 70% and 80% of positions within the supply chain industry are held by men. Cathy Morris, senior vice president and chief strategy officer for Arrow Electronics, Inc., defies these statistics. Morris discusses her career and the gender gap in an interview:
Only a small percentage of top level positions in Fortune 500 companies are held by women. Within the supply chain industry this percentage is even smaller. How did you get to where you are today?
I’d like to say that I chose the supply chain, but the reality is that I stumbled into it. I was working in finance as a corporate controller when the company for whom I was working was purchased by Arrow. My position was eliminated; however, an individual within Arrow came to me and suggested that I stay with the company albeit in a different department. He suggested that I take my practical experience in finance and my expertise in making businesses better and “do something different.” I did do something different – I went from being a corporate controller to running a series of warehouses.
Products can be made, money can be invested, ideas can be brought to fruition, but without the supply chain everything stops. The supply chain provides routes to market; everything hinges on an effective supply chain.
I decided I need to identify what I needed to know so that I could sit at the table. I invested between 12 and 18 months in roles, from logistics to sales, throughout the company. When I started each role I identified what I could learn from the role, what I could contribute, and what milestone I could attain.
As one of the few women in the supply chain and one of the few women in an executive position what challenges have you experienced?
While I have had incredible mentors few have been women. There are, as you said, not a lot of women at the table. I would say that 90% of the time I am the only woman in the room.
What can women who are in the supply chain do to support each other and how can the supply chain attract more women to the field?
It is the responsibility of women to invest in each other and to help each other. This is important in building a better organization. A better organization is not about the numerical statistics related to diversity. A better organization is about better decision-making. Diversity is essential for companies; diversity enables better decision making and diminishes group think.
Change starts from the top down. If you are interviewing for a position and everyone is of the same gender and race, be bold – ask if inclusion is a top priority for the company. Ask what the company is doing to increase diversity.
The supply chain needs to be rebranded. The perception is that when you work within the supply chain you are a second class citizen. The reality is that in the absence of an effective supply chain the entire value proposition of a Company falls apart. This is what we need to get out there.
What career advice can you offer?
Every career decision you make needs to reflect your personal goals; focus on the culture of company and how the position will enable you in your career.
When you leave a job it needs to be for a purpose. You should never leave a job because you don’t like it, rather you should leave a job because you have achieved what you set out to do within that job.
If you don’t like your job, sit back and assess why you don’t like. When you determine this, change what you don’t like about the job.
One of the most common reasons people leave their job is because they don’t like their boss. This is not a reason to leave. Bad bosses provide more learning than good bosses. With bad bosses you learn what not to do – this is invaluable.
You manage your own career. As long as you continue to manage your career you will be happy. Once you stop managing it, you’ll be unhappy.
Cathy Morris is the senior vice president and chief strategy officer for Arrow Electronics, Inc.. Morris leads strategic initiatives for Arrow, including global merger and acquisition activity. She brings nearly 30 years of experience in the computer products and electronic components distribution industry, having previously served as president of Arrow’s enterprise computing solutions segment after holding senior positions in support service, finance and corporate development.
Prior to joining Arrow in 1994, Morris held financial leadership roles in the banking and manufacturing industries. She is a board member and chairs the audit committee for Graftech International, and she is a member of the Global Leadership Council at Colorado State University and the YWCA’s Society of Women Achievers.
In March 2015 Cathy Morris, was named to the National Diversity Council’s 2015 “Top 50 Most Powerful Women in Technology.” This is the second consecutive year Morris has been honored with this distinction.
by Fronetics | May 28, 2015 | Blog, Leadership, Strategy, Supply Chain, Talent
Cathy Morris, senior vice president and chief strategy officer for Arrow Electronics, Inc., talks women in the supply chain and offers up career advice
Men hold 95% of top level supply chain positions within Fortune 500 companies. Outside the corner office things aren’t much better; between 70% and 80% of positions within the supply chain industry are held by men. Cathy Morris, senior vice president and chief strategy officer for Arrow Electronics, Inc., defies these statistics. Morris discusses her career and the gender gap in an interview:
Only a small percentage of top level positions in Fortune 500 companies are held by women. Within the supply chain industry this percentage is even smaller. How did you get to where you are today?
I’d like to say that I chose the supply chain, but the reality is that I stumbled into it. I was working in finance as a corporate controller when the company for whom I was working was purchased by Arrow. My position was eliminated; however, an individual within Arrow came to me and suggested that I stay with the company albeit in a different department. He suggested that I take my practical experience in finance and my expertise in making businesses better and “do something different.” I did do something different – I went from being a corporate controller to running a series of warehouses.
Products can be made, money can be invested, ideas can be brought to fruition, but without the supply chain everything stops. The supply chain provides routes to market; everything hinges on an effective supply chain.
I decided I need to identify what I needed to know so that I could sit at the table. I invested between 12 and 18 months in roles, from logistics to sales, throughout the company. When I started each role I identified what I could learn from the role, what I could contribute, and what milestone I could attain.
As one of the few women in the supply chain and one of the few women in an executive position what challenges have you experienced?
While I have had incredible mentors few have been women. There are, as you said, not a lot of women at the table. I would say that 90% of the time I am the only woman in the room.
What can women who are in the supply chain do to support each other and how can the supply chain attract more women to the field?
It is the responsibility of women to invest in each other and to help each other. This is important in building a better organization. A better organization is not about the numerical statistics related to diversity. A better organization is about better decision-making. Diversity is essential for companies; diversity enables better decision making and diminishes group think.
Change starts from the top down. If you are interviewing for a position and everyone is of the same gender and race, be bold – ask if inclusion is a top priority for the company. Ask what the company is doing to increase diversity.
The supply chain needs to be rebranded. The perception is that when you work within the supply chain you are a second class citizen. The reality is that in the absence of an effective supply chain the entire value proposition of a Company falls apart. This is what we need to get out there.
What career advice can you offer?
Every career decision you make needs to reflect your personal goals; focus on the culture of company and how the position will enable you in your career.
When you leave a job it needs to be for a purpose. You should never leave a job because you don’t like it, rather you should leave a job because you have achieved what you set out to do within that job.
If you don’t like your job, sit back and assess why you don’t like. When you determine this, change what you don’t like about the job.
One of the most common reasons people leave their job is because they don’t like their boss. This is not a reason to leave. Bad bosses provide more learning than good bosses. With bad bosses you learn what not to do – this is invaluable.
You manage your own career. As long as you continue to manage your career you will be happy. Once you stop managing it, you’ll be unhappy.
Cathy Morris is the senior vice president and chief strategy officer for Arrow Electronics, Inc.. Morris leads strategic initiatives for Arrow, including global merger and acquisition activity. She brings nearly 30 years of experience in the computer products and electronic components distribution industry, having previously served as president of Arrow’s enterprise computing solutions segment after holding senior positions in support service, finance and corporate development.
Prior to joining Arrow in 1994, Morris held financial leadership roles in the banking and manufacturing industries. She is a board member and chairs the audit committee for Graftech International, and she is a member of the Global Leadership Council at Colorado State University and the YWCA’s Society of Women Achievers.
In March 2015 Cathy Morris, was named to the National Diversity Council’s 2015 “Top 50 Most Powerful Women in Technology.” This is the second consecutive year Morris has been honored with this distinction.
by Fronetics | May 6, 2015 | Blog, Leadership, Marketing, Social Media, Strategy
There’s a great deal of buzz about social media in the business world – and for good reason. Marketing and communications professionals have made it de rigueur to tap into the popularity of social media networks to extend their brands into the digital world. But when it comes to executive use of social media, the field seems much more divided. Domo and CEO.com estimated that of the 500 leaders of the biggest companies in the US, 68% have no social media presence whatsoever. By leaving the social media management to marketers, these leaders are missing opportunities to connect with followers and expand their influence.
Here’s why social media should be part of the game plan when it comes to matters of leadership.
Social media expands perspective.
Social media isn’t simply a mechanism for broadcasting company news or personal opinion. Many individual perspectives coalesce to create a social network. Asking questions of followers and participating in online discussions helps leaders gain new perspectives. Executives who do utilize social media tend to stick to LinkedIn at a rate greater than the general public, but increasing social participation beyond one network brings more heterogeneous insight and connects leaders to diverse groups.
Social media allows you to keep a finger on the pulse of industry trends and new research.
Participating digitally with like-minded professionals ties a leader into a broad network of resource-sharing. Having consistent access to relevant, curated articles about market and industry trends keeps leaders far ahead of peers who rely on just a few media outlets.
Social media connects your team.
Online social business tool Basecamp promises to help “wrangle people with different roles, responsibilities, and objectives toward to common goal.” Hosted in the cloud, Basecamp is a project management tool that helps managers and employees see exactly what’s happening with a given project. Its dashboard provides a snapshot of tasks and gives users – managers and employees – an opportunity to interact directly on the site. In addition to the real-time accountability it builds in, it also allows for real-time communication about projects, a concept that all but eliminates the need for private emails.
Social media inspires and motivates.
Hadyn Shaughnessy writes about top social media influencers in his contributing posts on Forbes.com. He believes stellar leadership is built firmly on relationships and that day-to-day operations of a business rely on a leader’s ability to connect, inspire, and mobilize employees. Leveraging social media is one way leaders are achieving that. But, he contends, passive consumers of social media – regardless of the number of followers – cannot be considered top influencers. Leaders who inspire are those who actively participate.
Social media builds relationships.
Among executives active on social media, the top benefit of maintaining “socialbility” is the direct access it provides to employees, media outlets, and the public. “Relationship building is one of the strongest skills sets related to leadership effectiveness,” says Jean Leslie, a researcher at the Center for Creative Leadership. Tying into social media networks allows leaders to establish connections with employees, building individual and collaborative relationships.
Leaders who embrace social media technologies are more agile and innovative; their companies are more likely to attract and retain top talent; and they tap more deeply into the ideas of their employees. It’s clear that there is value in social media, and for leaders looking to build the strongest brand for their company, it might not be just an option anymore.
