Ninth article in a series . . . If you work as a business advisor, you know that engagements can be unpredictable.  Whether helping the owner take advantage of a changing marketplace, or optimizing the business to prepare it for sale, these initiatives typically involve significant planning, coordination, and effort from both advisors and their clients.  Despite the best of intentions, these large-scale projects don’t always proceed smoothly. There are many things that can affect the advisor-client relationship and make it harder for clients to accomplish the tasks associated with the project.  This is the ninth and final article in a series highlighting matters that should be considered by advisors and clients before they agree to work together. “Many of life’s failures are people who did not realize how close they were to success when they gave up.”  – Thomas Edison By their very nature some projects are long, involved, and complex.  Even short-term projects can run into delays, complications, and unforeseen difficulties that extend the duration of the work.  If clients lose interest or give up easily in the face of obstacles, they may find it hard to remain enthusiastic and engaged throughout the course of the project, threatening its success. Consider the case of Leslie.  An accountant by training, she was also an accomplished cook who found great satisfaction baking bread for her family and friends.  When the pandemic struck her accounting practice dwindled, and Leslie found herself making more loaves than ever before.  She decided that this was her opportunity to make a career change.  Leslie hired an advisor to craft a detailed roadmap, listing the tasks ahead of her and suggestions for how to approach them.  Leslie had already drafted a business plan, so she and her advisor turned their attention to securing funding and finding suitable space.  With her accounting background Leslie easily understood the various loan options available, but she was disappointed to learn that the pandemic had slowed approval decisions and caused some institutions to tighten their lending standards.  Although she was excited about finding a space for her bakery, she found the real estate hunt to be physically and emotionally draining.  It seemed as if every commercial space she saw had a significant flaw; either the rent was too high, the cooking area required too much renovation, parking was difficult, and so on.  After three months of looking for a loan and a location Leslie felt discouraged, and she asked her advisor if they could put the project on hold for a few weeks.  Two months later she took a part-time accounting job with an old friend. Given the magnitude of this project, Leslie’s advisor probably should have tried up front to gauge her ability to persevere by saying, “I’m eager to help you succeed.  Tell me about other big projects or initiatives you’ve pursued besides this one.” Sometimes an advisor can forestall a client’s discouragement by discussing the project and identifying challenges in advance.  The advisor might have said, “Let’s review the steps and timeline for this project so you can see the entire sequence and get a feel for the scope of what we’ll be doing together.  Before we begin each stage of the project, we should go over the specific tasks each of us will tackle.  That will give us a chance to spot any potential delays or hurdles we should watch out for.” Not all clients give up easily.  Some are more than willing to stick with a long-term project even if obstacles are encountered.  They will likely remain interested and engaged throughout the course of the project and anticipate the same from their advisor.  Such persistence is a strength, but both parties should be willing to switch gears if they find themselves investing too much energy pursuing the impossible.  The advisor might say, “I appreciate your effort to stick with this project even if it hits some roadblocks.  That kind of persistence will help us carry this past the finish line. That said, we will also need to be willing to switch gears if we find ourselves trying to make the unworkable work.” This is the final article in the series titled “Assessing the Advisor-Client Relationship”.  Each week, I explored a new element affecting the advisor-client relationship in some detail.  These articles were intended to help you understand potential opportunities and obstacles when working on long-term strategic engagements. Please feel free to reach out for more information or assistance proactively assessing the potential advisory relationship.

Eighth article in a series . . . If you work as a business advisor, you know that engagements can be unpredictable.  Whether helping the owner take advantage of a changing marketplace, or optimizing the business to prepare it for sale, these initiatives typically involve significant planning, coordination, and effort from both advisors and their clients.  Despite the best of intentions, these large-scale projects don’t always proceed smoothly. There are many things that can affect the advisor-client relationship and make it harder for clients to accomplish the tasks associated with the project.  This article is the eighth in a series highlighting matters that should be considered by advisors and clients before they agree to work together. “Whether you think you can, or you think you can’t – you’re right.”   – Henry Ford You may provide clients with terrific suggestions and outstanding advice, but in most instances it remains up to them to follow through with your guidance.  Even if your client has the time, motivation, and skills necessary to carry out your recommendations, they may struggle if they doubt their own abilities.  If your clients don’t believe in themselves, they may hesitate to act, sabotage their own effort, request easy solutions that prove to be insufficient, or reject your advice altogether. Consider the case of Brandon, the 37-year-old owner of a small firm that fabricates custom architectural detailing for historic buildings.  Brandon invested in the equipment necessary to make interior and exterior pieces from limestone and terra cotta, but his time and energy had been consumed helping his employees produce products that were precisely crafted and historically accurate.  Knowing that he needed to get the word out about his business, Brandon hired a marketing consultant.  The advisor put together a comprehensive plan that included producing short videos highlighting product installations, and he identified opportunities for Brandon to speak at upcoming conferences geared toward architects and contractors.  Brandon knew that these were worthwhile steps he could take.  Unfortunately, he disliked public speaking and he was reticent about appearing on camera.  Deep down, he simply didn’t see himself as someone who could market his business.  He declined the advisor’s suggestions and settled instead for a refreshed website that he hoped might showcase his firm’s work. In their first meeting, the advisor might have asked Brandon about past challenges by inquiring, “what sort of business problems have you faced before and how do they compare to this one?”  The advisor could have added, “I want to address any concerns you have about this project.  As you think about marketing your firm, are there any aspects of doing so that might be a stretch for you?”  In response, Brandon might have mentioned his discomfort serving as the public face of his company, and the advisor could have tailored his recommendations accordingly.  For example, he could have suggested that Brandon help write scripts for the videos and ask his employees if they wanted on-camera roles. Clients won’t always admit that they lack confidence in their ability to resolve business problems.  Advisors need to be attuned to signals that their client is uncomfortable.  In the scenario above, Brandon might have verbally agreed that speaking to architects was a good idea, but his facial expression was probably less than enthusiastic. This is the eighth in a weekly article series titled “Assessing the Advisor-Client Relationship”.  Each week, I will explore a new element affecting the advisor-client relationship in some detail.  These articles will help you understand potential opportunities and obstacles when working on long-term strategic engagements.  The next article, the last in this series, will explore the client’s level of persistence. Please feel free to reach out for more information or assistance proactively assessing the potential advisory relationship.

Sixth article in a series . . . If you work as a business advisor, you know that engagements can be unpredictable.  Whether helping the owner take advantage of a changing marketplace, or optimizing the business to prepare it for sale, these initiatives typically involve significant planning, coordination, and effort from both advisors and their clients.  Despite the best of intentions, these large-scale projects don’t always proceed smoothly. There are many things that can affect the advisor-client relationship and make it harder for clients to accomplish the tasks associated with the project.  This article is the sixth in a series highlighting matters that should be considered by advisors and clients before they agree to work together. “Progress is impossible without change, and those who cannot change their minds cannot change anything.”   – George Bernard Shaw Business advisors frequently ask me about a behavior they find counterintuitive and puzzling.  They’re approached by prospective clients who have identified them as exactly the expert they need, they ask for recommendations, they seem on board with a proposed plan of action, but then they ultimately reject the advisor’s good counsel. Consider the case of Scott, the 47-year-old founder of a firm that provided security personnel for commercial clients such as hotels, office buildings, and retail merchants.  His clients were increasingly interested in advanced technology rather than simply relying on security guards.  Scott believed technology was unreliable, and he felt the best solution was to deploy additional personnel.  Most of his clients resisted that approach, and Scott was concerned about the long-term viability of his business.  He sought guidance from an advisor who had experience consulting with corporations around large-scale security upgrades.  The advisor affirmed that many clients were implementing technological solutions, but he also opined that security technology is only as good as the people monitoring it.  He advised Scott to focus on building a smaller but more technically proficient team of guards who could augment and interact seamlessly with the security systems being purchased by his clients.  Scott quickly dismissed this suggestion and the advisor, noting that the last thing that made sense to him was to field fewer personnel. Clients like Scott who have firmly held ideas about their business may not view problems the same way the advisor does.  They may overlook factors that contribute to a business problem, making it harder to implement an effective solution.  In some cases, they find it difficult to accept the advisor’s recommendations. Both parties should have an initial discussion to explore the degree to which client feels comfortable with the advisor’s perspective.  In some instances, the Advisor may find it helpful to give client additional time to consider and embrace certain proposed ideas and solutions.  Here is one way to begin the discussion: “I want to make sure we have a shared understanding about the challenges facing the business and how to address them.  It’s important that throughout this project you’re comfortable with my observations, ideas, and proposals.  I wouldn’t expect you to instantly agree with everything I suggest, but if you’re not fully on board with something we need to talk about it, o.k.?  So, based on what we’ve discussed thus far, how does it sit with you?  Is there anything you have some reservations about?  Anything you would like time to consider further? It may become apparent that a client is so wedded to their beliefs that they rebuff the advisor’s suggestions.  If they still seem open to dialogue, an advisor might try the following approach: “My sense is that you have some strong convictions about your business.  No doubt they’re rooted in years of experience.  The same is true for me.  In my experience, clients aren’t always 100% on board with certain recommendations when they first hear them.  I totally understand; my suggestions may seem like an outsider’s perspective, but I trust you can see the advantage in that.  If you aren’t fully comfortable with an idea I propose, let’s discuss it and see if we can fit it within your framework.  I would hate to see us overlook a potential solution.” This is the sixth in a weekly article series titled “Assessing the Advisor-Client Relationship”.  Each week, I will explore a new element affecting the advisor-client relationship in some detail.  These articles will help you understand potential opportunities and obstacles when working on long-term strategic engagements.  The next article will explore the client’s ability to resist pressure from various stakeholders. Please feel free to reach out for more information or assistance proactively assessing the potential advisory relationship.

Fifth article in a series . . .  If you work as a business advisor, you know that engagements can be unpredictable.  Whether helping the owner take advantage of a changing marketplace, or optimizing the business to prepare it for sale, these initiatives typically involve significant planning, coordination, and effort from both advisors and their clients.  Despite the best of intentions, these large-scale projects don’t always proceed smoothly. There are many things that can affect the advisor-client relationship and make it harder for clients to accomplish the tasks associated with the project.  This article is the fifth in a series highlighting matters that should be considered by advisors and clients before they agree to work together. “How does a project get to be a year behind schedule?  One day at a time.”  – Fred Brooks Once clients decide to reach out to a business advisor they may convey a sense of urgency about getting started.  Eager to see results, they quickly fill out and return initial documents and questionnaires.  As an advisor you know that projects benefit from forward momentum and progress helps sustain the advisory relationship; you welcome their enthusiasm. However, as the project gets underway some of these very same clients slow down.  Their need no longer seems so pressing, they postpone meetings and put off making decisions.  The project becomes bogged down by delays and distractions.  When the client does act it’s last-minute, hurried, and subject to error. “I like work: it fascinates me. I can sit and look at it for hours.”   – Jerome K. Jerome Research indicates that approximately one-fifth of the adult population regard themselves as having great difficulty initiating or completing tasks and commitments (Harriott and Ferrari, 1996).  Procrastination takes multiple forms.  Many people don’t like being rushed, others don’t like to make decisions, and some simply use their time poorly. Consider the case of Elaine, the 35-year-old owner of a light fixture business founded by her father.  Elaine took the reins from him six months earlier, and she wanted to expand their product line considerably.  She hired an advisor to help her decide which new products to focus on, secure funding to cover development costs, and weigh moving to an upgraded manufacturing facility.  The first two meetings between Elaine and her advisor were animated; they seemed to energize one another as they discussed possibilities for the firm’s future.  The advisor mentioned that grant money might be available for Elaine’s expansion. The advisor downloaded the grant application and emailed it to Elaine, along with detailed information about design trends and forecasts in the lighting industry.  She checked in with Elaine five days later.  Elaine apologized and said she hadn’t yet opened the email, but she promised to do so later that afternoon.  They agreed to talk again in a few days but when the advisor phoned, Elaine’s voicemail greeting indicated that she would be out of the office for a week.  The project limped forward but Elaine missed the deadline for the grant application. Had the advisor been aware of Elaine’s tendency to procrastinate, she could have taken steps to mitigate its effect on the project.  She could have emphasized the grant application deadline and provided Elaine with an estimate of how long it would take to complete it.  More broadly, she could have listed the steps and tasks associated with the project, and with Elaine’s input drafted a timeline that laid out responsibilities and deadlines.  Here are some things she might have said: “This project has a couple of deadlines we should keep in mind; let’s review them so you don’t miss any opportunities.” “To help you plan, I thought you might like to see how much time other clients spent completing various tasks associated with this sort of project.” “I’ve drafted a timeline that can help us stay on track.  I’d like to go over it to see if it seems reasonable or needs any adjustments.” Could the advisor have recognized Elaine’s tendency to procrastinate up front?  Possibly. In their first meeting she might have asked Elaine some questions to assess how she gets things done, such as: “Tell me about other initiatives you’ve spearheaded. What was it like getting from the planning stage to completion?” “As you think about working on this project, what are some other things on your plate that will compete for your time?” Sometimes, if overused, our strengths can work against us.  Consider the client who meets business deadlines far in advance, makes decisions without delay, and accomplishes tasks promptly. This type of client doesn’t waste time and will likely expect the same from the advisor. That’s generally a good thing, but you should ensure that the client doesn’t feel undue pressure to complete assignments or make crucial decisions too quickly.  You could say: “Your diligence will really help us stay on track.  I’ll do my best to keep things moving on my end as well.  That said, it’s possible there will be a few decision points where I may actually tap the brakes to make sure we’re covering all our bases.” This is the fifth in a weekly article series titled “Assessing the Advisor-Client Relationship”.  Each week, I will explore a new element affecting the advisor-client relationship in some detail.  These articles will help you understand potential opportunities and obstacles when working on long-term strategic engagements.  The next article will explore the client’s openness to new ideas. Please feel free to reach out for more information or assistance proactively assessing the potential advisory relationship. Reference: Harriott, J., and Ferrari, J. R. (1996). Prevalence of procrastination among samples of adults. Psychological Reports. 78, 611–616.

Fourth article in a series . . . If you work as a business advisor, you know that engagements can be unpredictable.  Whether helping the owner take advantage of a changing marketplace, or optimizing the business to prepare it for sale, these initiatives typically involve significant planning, coordination, and effort from both advisors and their clients.  Despite the best of intentions, these large-scale projects don’t always proceed smoothly. There are many things that can affect the advisor-client relationship and make it harder for clients to accomplish the tasks associated with the project.  This article is the fourth in a series highlighting matters that should be considered by advisors and clients before they agree to work together. “The past cannot be changed.  The future is yet in your power.”   – Mary Pickford Clients vary in the degree to which they think about and plan for the future of their business.  Those who give sufficient thought to long-range planning will be better positioned to respond to future opportunities and challenges. They will make better informed long-term business decisions that are more consistent with their goals. Advisors should consider how the current project contributes to the client’s business in the long run.  They should also be alert to matters that need to be resolved before the project begins.  They can begin the discussion by asking, “What impact do you expect this project will have on your business?” or “How does this project fit within the context of your long-range business goals?” Not every client has a strong future orientation.  They may be preoccupied with current affairs, or they believe that if they concentrate on matters at hand then the future will take care of itself.  Some people, because of their unique history, may not be wholly comfortable focusing on the future let alone planning for it.  They may dwell on the challenges they envision or the uncertainties they’re experiencing. Consider Paula, a mid-career architect with an expanding practice she could no longer keep up with on her own.  She debated whether to invite a junior colleague to join her in the business, but she had experienced several downturns in her profession over the years and she worried that growth would be difficult to sustain. With all the unknowns, she found herself unable to focus beyond the next couple of years with any degree of confidence.  She decided to hire an advisor to help her map out and execute a strategic plan.  As the advisor inquired about her goals for the practice, Paula grew quiet and non-committal.  Her advisor made the following observation: “My sense is that you’ve not had a chance to do much long-range preparation. That’s understandable; you’ve got a lot on your plate right now plus you’ve seen your share of recessions.  So, before we focus on specific goals let’s step back a bit and talk about the broad range of possibilities for your practice.” Paula became more comfortable with the conversation, especially after her advisor pointed out that by planning for the future, she would be better positioned to take advantage of opportunities that might emerge. Feeling that Paula was now more open to establishing short-term and long-term goals, her advisor suggested that they work on a planning exercise in their next meeting. Clients are more apt to accept an advisor’s recommendations if they see that there is a clear path linking the present to a desired future state.  Sometimes they just need a little help to be more forward thinking. This is the fourth in a weekly article series titled “Assessing the Advisor-Client Relationship”.  Each week, I will explore a new element affecting the advisor-client relationship in some detail.  These articles will help you understand potential opportunities and obstacles when working on long-term strategic engagements.  The next article will explore the client’s tendency to procrastinate. Please feel free to reach out for more information or assistance proactively assessing the potential advisory relationship.  

Third article in a series . . . If you work as a business advisor, you know that engagements can be unpredictable.  Whether helping the owner take advantage of a changing marketplace, or optimizing the business to prepare it for sale, these initiatives typically involve significant planning, coordination, and effort from both advisors and their clients.  Despite the best of intentions, these large-scale projects don’t always proceed smoothly. There are many things that can affect the advisor-client relationship and make it harder for clients to accomplish the tasks associated with the project.  This article is the third in a series highlighting matters that should be considered by advisors and clients before they agree to work together. “In life, change is inevitable.  In business, change is vital”    – Warren G. Bennis It’s very common for clients to seek a business advisor to help them make modifications or improvements to their business.  They may genuinely want things to be different, but that doesn’t necessarily mean that they are comfortable initiating and implementing changes to their business. Consider the case of Sam, the 70-year-old owner of a firm that brokered construction equipment.  Sam hoped to fund his retirement from the sale of the business, and he engaged an advisor to help him streamline the operation so that it would be more appealing to a buyer.  Sam had an encyclopedic knowledge of nearly every piece of large machinery east of the Mississippi and he was acquainted with many of the larger buyers and sellers in the region.  The advisor recommended that Sam embrace the Internet and list his inventory on his website.  Sam felt his success was due to his telephone outreach to prospects and he wasn’t keen on shifting toward an online approach.  He rejected the advisor’s advice and terminated the engagement. Advisors should discuss the amount of change that will likely be required to meet the goals of the project, and they should explore the prospective client’s attitude toward change.  The advisor may acknowledge that change can be difficult, but both parties should focus on the benefits that will accrue from the change(s) rather than the effort involved.  Here is one way to begin the conversation: “This project could involve making some significant changes to your business.  Please tell me about a past instance when you modified your standard operating procedure.  What led up to it, and what was it like for you and your employees?” The advisor should listen to determine whether the client was proactive in making the change, or at least didn’t wait until the situation was dire.  Was the client nervous about the prospect of change or did they see it as a potentially helpful step?  Did the client accept guidance from experts and advisors regarding the change?  Did the client take an active role in implementing the change and help staff adjust to it? If the client appears reticent about making changes, the advisor might say the following: “My sense is that all things being equal, you’re not necessarily inclined to make changes in your business. That’s understandable; even if it leads to a good outcome, change isn’t always easy.  Let’s talk about how much and what type of changes this project might involve.  That way, if there are certain things you would be uncomfortable with, we’ll know that ahead of time and can discuss options and alternatives.” It’s possible that a client may be extremely eager to make changes and solicit (if not expect) suggestions from their advisor.  This may appear to be a client strength, but keep in mind that our weaknesses are often our strengths taken to excess.  Both parties will need to ensure that the client’s embrace of change doesn’t inadvertently lead to the pursuit of unnecessary modifications.  If the client appears too eager to make changes or wants to make too many, too quickly, the advisor might counsel: “I can appreciate how invested you are in making changes, but we also need to make sure we’re strategic in how we roll them out.  Let’s talk about which ones should be prioritized, how we can get the most leverage out of them, and so forth.” This is the third in a weekly article series titled “Assessing the Advisor-Client Relationship”.  Each week, I will explore a new element affecting the advisor-client relationship in some detail.  These articles will help you understand potential opportunities and obstacles when working on long-term strategic engagements.  The next article will explore the client’s future time perspective. Please feel free to reach out for more information or assistance proactively assessing the potential advisory relationship.