Years in Professional Services Consulting: 30+
Geographic Scope: Global
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| [image source: geralt on pixabay dot com] |
Some Considerations When Evaluating Potential New Client Relationships:
This post summarizes some thoughts I wanted to share, in response to this LinkedIn post (asking for input), by Jurgen Appelo
When I evaluate the benefits/risks of establishing a new client relationship, here are just some of the factors I consider:
⏹️ Duration of the specific engagement's SOW under discussion.
⏹️ Potential duration of the longer-term relationship, and follow-on SOWs.
⏹️ Fee size, payment structure, and invoicing/payment terms.
⏹️ Financial viability of the client, and risks of their default.
⏹️ Any external information / evidence of toxicity levels within their culture.
⏹️ Degree of bureaucracy burdens (e.g., their strategic sourcing / vendor management processes, contract negotiations, reporting, billing, legal, compliance, security, insurance, etc.).
⏹️ Long-term value of the client relationship [2], itself.
⏹️ Long-term value of the relationships [2] established, during the engagement.
⏹️ Potential future value of client recommendations, and potential business referrals.
⏹️ Reputation of the client, and any risks associated therein.
⏹️ Client's adherence to ethical business practices, or lack thereof.
⏹️ Client's legal exposure risks (previous history, current, pending).
⏹️ Client's regulatory compliance risks (previous history, current, pending).
⏹️ Potential blast-radius if things go sideways (re: events outside of my control).
⏹️ Contractual terms that impose egregious burdens, and that may potentially exceed the total value of the engagement compensation.
⏹️ Intangible value components (e.g., potential for learning & personal growth: acquisition of new skills, working with new technologies, new concepts, best practices, new/increased industry domain knowledge, etc.).
⏹️ Potential for negotiating retention of some/all of the intellectual property I will create during the engagement.
⏹️ Contractual clauses that make broad claims on intellectual property I possessed before the engagement, or created outside of the scope of contract - during the engagement, or created after the engagement ends).
⏹️ Travel requirements (difficulty, frequency, costs, and reimbursement considerations).
⏹️ Personal safety considerations (physical location of their offices; risks of pandemic outbreaks; high crime rates in the area; travel to areas that are high risks, active war zones, or high potential for terrorist attacks; degree of difficulty to effect escape/evasion if there is a risk of a coup d'état, major social unrest disruptions, or regime collapse). [1] 👈
⏹️ The "Fun Quotient" of working with the team within the organization.
⏹️ {Novelty | Difficulty | Challenge} factor (harder problems = higher score = more attractive)
⏹️ Bragging Rights - for a successful completion of the engagement.
Reflections After 30+ Years in Professional Services Consulting:
(these are drawn from over the decades of my career, in different roles, in different organizations, and performed within the scope of my own consulting practices)
Largest Successful Proposal Pitched: $80M+ (for a global satellite communications company in London)
Shortest successful (one & done) "Close The Deal" client meeting: 7 minutes (last question: "When can you start?")
Typical Outcomes for my client engagements: Increased revenue, efficiency, profitability, innovation, competitive advantage; new products & services; accelerated delivery of new business capabilities; elevated capabilities of staff; improved processes; reduced technical debt. Usually, I am engaged with $10B-$20B+ ARR companies, but I have also been engaged with $2B+, $50B+, $100B+, and $250B+ companies.
Worst Consequence for a client that ignored my warnings: 75% of Market Cap (~$900M) vaporized.
Longest (and Most Distant) International Assignment Location: Sydney, Australia (~1 year; 3 weeks on site, 1 week home; repeat)
Shortest (and Most Distant) International Assignment Location: Hong Kong (2 weeks)
Shortest contract document: 1-page. (great client)
Longest contract negotiation: multiple months (absolute worst client, ever)
Best contract outcome: One meeting (1-hour); Immediate "GO" decision; Initial 3-month SOW, extended (continuously), over 4 years.
Favorite International Assignment: Sydney Australia
Most Unexpected Delight: Istanbul, Turkey
Worst Food Poisoning Experience: Istanbul, Turkey (during a cholera outbreak)
Best Meal, In All My Travels: A small Italian restaurant, in a narrow alley, London
Most Unusual Assignment Location: A Wall Street firm; Manhattan, NY (living in the Marriott World Trade Center, part of the former World Trade Center (WTC) complex; dinners at the Windows on the World restaurant, North Tower). Watching Maria Bartiromo eat her lunch in the square. The juxtaposition of extravagant wealth, surrounded by the absolute poverty of the many homeless.
Most Life-Threatening Client Risk Encountered: Being electrocuted by ungrounded wiring in their offices (Istanbul, Turkey)
Closest brush with being shot by the police: Foolishly scrambling to find my bus ticket, when a swarm of special police (in an Eastern European country) suddenly boarded with automatic rifles (they were looking for someone). The terrified look of the other passengers, all looking at me, told me just how close I came to being worm food.
Most Memorable Flight Experience: Because I flew coach often (monthly) on a particularly distant international assignment, one of the local friends I had made in the city where I was working (that also happened to work for the airline I flew on), on my last return trip, unbeknownst to me, made special arrangements to have wine and dinner from First Class delivered to my coach seat. The look on the faces of the people seated near me were clearly amazed, and one asked: "WHO ARE YOU!?"
Most Memorable Act of Kindness: On the Saturday that I was to depart Istanbul, still suffering from a severe case of food poisoning – I arrived at the airport only to discover that the queue extended outside of the terminal, and far down a hill. I felt doomed. I desperately wanted/needed to get inside to the executive lounge restrooms (and the excessive heat/humidity was not helping my situation). A small child, from out of nowhere, approached me. He did not speak any English (and the situation exceeded my limited Turkish vocabulary), but motioned for me to follow him. He led me to a side door, where a security guard stood. I do not know what was said, but it was the magic incantation that was needed (most urgently, in that moment): I was allowed to enter. I suspect he was an angel (but, he might have been a kind Djinn).
Cities with the Warmest Social Reception: 1. Sydney, Australia; 2. Istanbul, Turkey; 3. Washington D.C.
Cities with the Coldest Social Reception: 1. Moscow, Russia; 2. Cleveland, Ohio; 3. Seattle
Most Unusual Layover Experience: Singapore, SilverKris Lounge (ask me about that sometime, over a drink)
Worst Luggage Disaster: Tahiti, my luggage was left on the tarmac - took a week to catch-up with me in Sydney. Each day I was told "it will be here tomorrow"; so I kept washing my clothes each night, in the sink, for a week.
Favorite mode of travel: Trains
Favorite train memory: A winter overnight trip, in a sleeper car, viewing the distant moonlit snow covered Carpathian mountains, on my way to Prague.
Favorite International Airports: 1. DFW; 2. Singapore; 3 Frankfurt
Worst Airports: Newark (for on-time departures); Moscow (for safety); Bali (rats)
Best Business Class Airline Experiences: 1. Singapore Air; 2. Qantas; 3. British Air
Best International Expat Community Experience: Happy Hour in the bar of the Sheraton Grand Warsaw, Poland
Best use of my Frequent Flyer Miles: Flying my not-yet girlfriend to the island of Saint Lucia (in the Caribbean, ~2,480 miles from Little Rock, Arkansas) just for dinner (1993, for our 2nd date).
[1] While some reading this may dismiss this entry (👆) and its importance – Let me assure you that it is based on personal lessons-learned, while usually operating solo in high risks areas, that included:
- because the threat of an Al-Qaeda attack was deemed very high (upon our arrival in-country), an armed private security detail was tasked to deliver a colleague and me from the airport – to our hotel;
- a private briefing, at a U.S. Consulate, on the almost certain risks of being tracked/targeted by Al-Qaeda – while in-country, and the operational security steps to mitigate the risks;
- not long after the private briefing, a terrorist car bombing attack occurred at that same U.S. Consulate.
- the threat of car bombs was so high at my hotel, that all cars were inspected;
- while seeking intelligence on possible local threats, I was advised by a police precinct office in the Middle East city (where I was working) of nearby terrorist cell activity – and to avoid certain neighborhoods;
- a cholera outbreak in the Middle East city (where I was working);
- civil unrest;
- violent anti-government protests;
- acts of violent government oppression;
- acts of state-sponsored terrorism;
- organized crime activities;
- assassinations of police and government officials;
- being targeted and tracked by a pair of muggers in a city in Europe;
- an attempted carjacking, while driving through a very bad part of a city;
- being cornered by a belligerent threat on a city bus;
- a sudden surprise attack launched at a bus stop;
- an assassin's bullet that barely missed my temple;
- and a terrorist car bombing attack narrowly avoided (my hotel was severely damaged).
- I have refused three assignments in the past that exceeded my risk tolerance levels:
- In an active war zone (primarily due to the inability to legally obtain body armor and weapons, in-country);
- In a Post-Soviet state, with a very dangerous Russian Mafia (Bratva) controlling the city where the work would be performed.;
- Because their office was in the MOST DANGEROUS area of a major city in South Africa, and they also refused to provide security, a Per Diem (for meals and incidentals), housing, and transportation.
[2] In this context, the value of a relationship is bi-directional, and multi-dimensional. For example:
- Will they demonstrate a willingness to help others, and/or make mutual introductions – in our respective professional networks?
- Will they demonstrate a willingness (and an activity level) in sharing interesting news, experiences, lessons-learned.
- Are they curious?
- Do they demonstrate a habit of continuous learning?
