It might seem counterintuitive for any integrator or MSP to think about “good business” versus “bad business.” After all, any booked project or contracted client is a good thing, right? Well, maybe not….
Here, in Part 2 of this two-part “The Service Desk” series, we ask MSP members from The ASCII Group for their thoughts on how they separate appealing clients from problematic ones, as well as whether they choose to separate from clients who seem to be draining team members’ energy and company resources. It’s not always a comfortable conversation to have, but it does align with our broader mission to help integrators — and MSPs, for that matter — run their businesses better.
This time, we share insights from Felicia King, CTO/CISO, QPC Security, and Mat Kordell, COO, CyberStreams. To read Part 1, go to CommercialIntegrator.com or check out our October 2024 issue.
Commercial Integrator: If you agree with the premise that not all clients/customers are good clients/customers, what would you say are the telltale signs of a client/customer being problematic?
Felicia King, CTO/CISO, QPC Security
Here are some telltale signs that I look for:
- They ghost you regarding scheduled meetings. It means they don’t value your time or what you have to say.
- They refuse to participate in risk discussions where they are required to make decisions about what risks they want to mitigate versus what they are willing to accept.
- They allow their staff to be disrespectful, toxic and abusive to vendors.
Mat Kordell, COO, CyberStreams
At CyberStreams, we rate clients on two scales as it relates to this topic: joy and profitability. If a client falls below our bar on either of those, they are considered problematic. This is a relationship-ending status that necessitates intentional action.
Commercial Integrator: Are you comfortable firing a client/customer if you feel like theirs is “bad business” for you? How do you go about doing that?
King: Bad business sucks up your time in a draining way that has no profitable revenue associated with it. Bad business clients will never be satisfied with the services delivered. They will always find something to gripe about in a passive-aggressive manner or just outright behind your back. The only effort that bad business clients are making is to get out of the relationship with you. They make no effort to improve the relationship. It takes two to tango.
We indicate to them the desire to separate and provide them with notice per the terms and conditions of the contract. Separation flows from the termination services contract. We have fired clients in the past for criminal behavior. Sometimes, you have to get an attorney involved with a cease-and-desist order, so they stop contacting you.
Kordell: Yes. It all starts in our regularly scheduled IT Planning Meetings (ITPMs). During those meetings, we address the issue head on. We explain that there is a problem, and we are seeking to correct that problem so that the situation doesn’t deteriorate further.
For joy issues, we discuss what is making them a low-joy or no-joy client for us. We identify potential paths to resolution, take action and follow up at the next ITPM. A potential action in this case might be that a particular user who cannot control their communications with our staff is not allowed to call in.
For profitability issues, we discuss the primary contributing factors that are leading to low profitability and plan to either lower utilization or adjust pricing accordingly.
If these attempts at resolution fail, we would communicate this at the next ITPM and collaborate on a plan to assist in a smooth transition to a new MSP, making referrals to trusted providers as needed.
Commercial Integrator: On the other hand, what are the hallmarks of “good business” that would make you desire an even tighter, even more enmeshed relationship with a client or customer?
King: They embrace accountability and have the courage to take responsibility for personnel management and discipline.
A good client enforces accountability throughout their organization and has leadership qualities, including accepting the responsibility to lead by setting policy, enforcing policy and doing real HR personnel management, including coaching and discipline. Nearly all problems that a company has are people problems. Without solid HR management discipline and enforcement throughout the entire organization, IT will find it difficult, if not impossible, to effectively help the client resolve their fundamental challenges.
Kordell: Good business are clients who are high joy and high profitability. We fall all over ourselves to serve these clients well and ensure they are as happy as we are to be partnered with them on their IT. Is there anything more we can do to serve them? Is there anything more we can take off their plate? Are there any other services that we can help get them plugged into through our trusted partner networks?
