Two and a half years ago, Headspring made a radically unique decision that in retrospect, unlocked our future growth.  We focused all of our efforts on keeping every single client that we get. In order to achieve this, it was imperative for us to start by doing the following two things:

1)      Find a good culture fit between our clients and us. This gives the relationship a head start and helps us be better aligned with the client’s need and goals

2)      Ensure our client’s needs are mapped directly to our core competencies so we are in a position to add the maximum amount of value possible.

We called this the “Get New, Keep Existing” strategy.  It sounds simple, but it is alarming how many companies have trouble with this and never realize that this is the key to their future growth.

Working only with clients to whom you can bring value is important.  It is our sales team’s responsibility to seek other companies that will gain value from our core competencies and that will be a strong culture fit for us and our core values – like honest communication and drive for excellence.  By finding clients who gain value from your core competencies, it will lead to a more transparent exchange.  Bottom line is that we must be a good fit for each other.

Our goal at Headspring is to pioneer the “no surprises” movement in the custom software industry. Strong communication and a win/win attitude will keep both parties from unreasonably high or incorrect expectations.  There is no sense in pushing a product or a service on a client when it doesn’t fit their needs.

Once the fit is established, and the work has begun, good account management is one strategy that mitigates the risk of a project failing, and increases the chance that the client will return for more services.  It establishes a strong relationship that gives clients a greater level of comfort in sharing candid feedback.  In addition, it provides a strong foundation to solve tough problems that will arise with any custom software project. I have mapped out a few techniques, like the Rule of Three, in my previous blog.

Fast-forward to today, and we have seen dramatic growth, attributing a great deal of our progress to the simple “Get New, Keep Existing” approach.

What if you focused all of your resources and people on getting the right clients, and keeping the ones you have?

“If you have any questions or feedback, please feel free to contact me.”

How effective has this attempt at quarrying feedback ever been for you? My guess is that this sentiment probably does not move far pass pleasantries. It’s nice. It’s open. But is it really welcoming?

In account management, honest and timely feedback is of utmost importance. This is the case not only to achieve project goals but also to secure long-lasting relationships. Selling to existing accounts is often characterized as “low–hanging fruit,” but reality speaks much differently. Twenty-four percent of custom software projects are cancelled before completion or never used. I can only imagine how a healthy dose of careful account management in these cases could have changed the failed outcome. Client retention is actually very hard work and depends on the careful attention paid to feedback given to a trustworthy account manager.

Some clients are powerfully communicative, allowing account managers and consultants to focus on satisfying the scope of the project objectives. With these people, you don’t have to worry about whether you’ll get useful responses to your request for comments. You also don’t have to worry about if you are welcoming enough because you know it’s coming anyway.

One thing that keeps us from pressing for feedback is what I call “happy ears.” These conversations tend to be brief and end on a good note:

Two factors play into this scenario: The psychology of the person asking questions and the psychology of the person answering questions. The person answering seeks approval by giving praise and the person asking stops once they receive praise for a job well done. The person asking the questions has his/her happy ears on, and they don’t press for more feedback because that would be more work. The person answering the question then assumes that their feedback would be disregarded or would disrupt a good working relationship with a reliable vendor. This need for approval creates communication walls on both sides.

So how is it possible to garner feedback from a client that is not an effective communicator? In other words, how do I get constructive feedback from a seemingly satisfied client?

Some like to start with the Rule of Three: ask the same question three times, in three different ways, and get to the truth. Here’s an example of the supposed conversation:

We had to ask three times, but eventually we get to the reality of our situation. Had we not pressed the issue, would we have known about these issues? The results shouldn’t be surprising to the consulting team. Account managers should be able to bring this feedback to the consulting team, and the team should have an action plan already in place to acknowledge these shortcomings. However, having an account manager available to ask the right questions and empathize with the client’s perception of the project ensures a new level of trust and respect between the client and the organization. This can turn a satisfied client into a return customer.

My recommendation is to place account managers on every project and stress the importance of their role. Have them hold proactive meetings, even when things are going well. Meet in person, often. Shake hands. Share a meal together. Uncover all assumptions, and get to know your client’s wants and desires on a personal level.

Some companies have separate departments for account management, but we utilize our sales team because they are the original point of contact.

Who fills the client satisfaction role in your organization? What can they do to better uncover the hidden opportunities and areas for improvement?

Any type of organizational change needs to be explained to your entire team as clearly as possible. This might also take some follow up communication for weeks or even months after the new changes are proposed and implemented – think meetings, memos, one-on-one meetings, etc. to ensure everyone is grasping the big picture. This will also ensure your teams involvement in validating and/or refining the changes. Part of open communication means being open to listening to your team’s input. When explaining or presenting new organizational changes, avoid expressions like mindset change, changing people’s mindsets or changing attitudes. This language often indicates an imposed or enforced change, and it strongly suggests the company believes its team currently has the wrong mindset, which is never want you want to portray and it’s never the case. If people are not approaching their tasks or the organization effectively, then the organization has the wrong mindset, not the people.

How your managers communicate and participate is crucial to the change process. I repeat. How your managers communicate and participates is crucial to the change process. Your management team should enable and facilitate through communication and leadership, not just convey and implement policy from above, which does not work. You cannot impose change. Your teams need to be empowered to find their own solutions and responses, with facilitation and support from the managers. Open and frequent communication is the best way to make sure this happens. There also needs to be tolerance and compassion from the leaders and executives. This will help your team trust the organization and employees need to be able to trust the organization.

Following these tips will ensure any company going through organizational change can do it with success. Although there will be some challenges, open, frequent and effective communication can make this transition a lot smoother.

The newly conservative age group, 16 percent (about 50,000 people) of the U.S. population in 2009, that was concerned with creating successful futures for ourselves as they focused on college and careers took their world to new heights of material wealth and eventually personal stress. However, the shift in priorities from the social revolutions that captured the attentions of our counter-cultured parents of the baby boom generation also had a huge effect on family values.

My generation, Generation X, witnessed the divorce rate double as our parents embraced the concept as socially acceptable. The effects of social changes led Generation X to focus on careers first and families later. The new path in life, however, has led to a double-role situation unseen by previous generations. Generation X emphasized career first, and therefore, got married later and had children even later than all previous generations – I think I might have been the exception to this rule. I got married when I was in college. Now, many X’ers are busy taking care of their young children and spouses, as well as their parents who have grown old and need their help now, too.

Although I’m not at the point of needing to help my parents yet, I’ve seen and heard how becoming a parent to your parent can be an emotional wrenching process. According to an AARP study, an estimated 34 million Americans serve as unpaid caregivers for other adults, usually elderly relatives, and that they spend an average 21 hours a week helping out. In addition, millions more adult children are calling regularly, flying into town every few weeks or months or just stopping by to take Mom or Dad to the doctor. Also, there are big decisions that sometimes have to be made – from living arrangements, medical decisions, legal rights, etc. and all of this can have a strain on the family. Although most of us would view this as a minor sacrifice or no sacrifice at all, it still can have a physical, financial and emotional toll.

As a Gen X’er, I’ve been thinking more about how best to prepare for this – especially since my wife and I have both of our parents to worry about. Have you been planning? Are you currently in a dual-role of taking care of your family and your aging parents?

As for the mullet, well, isn’t it obvious why we stopped that trend?