Skip navigation

Could HR practitioners be making bad decisions as well?
___________________________________________
07 April 2009 6:53am

No matter how bad the economy seems, it’s always a mistake to accept poor-quality clients, says business coach Ric Willmot.

Willmot, the CEO of Executive Wisdom Consulting Group, says some “really bad decisions” are being made in the corporate arena right now – particularly in the professional and personal services sectors.

The mistakes he has witnessed recently include:

reducing or discounting fees;

pressuring the staff left after redundancies to accept increased workloads;

adopting pricing tactics such as adding credit card service and administrative fees; and

sending reminder notices and payment demand letters – or making abrupt telephone calls chasing payment – within 14 days of an invoice being sent.

Businesses will continue to succeed if they can deliver their service to clients in a way that reaches their objectives, Willmot says. “Make the client significantly better because they have you.”

He says businesses should:

Rid themselves of non-quality clients. “I call them X-class clients; those clients who are low value to you and your business. They consume your corporate capacity. Capacity that will be much better served invested in A-class clients who do appreciate your value, and do good, regular business with you, and refer good people to you.”

Be prudent with the new clients they accept. “You do not have to accept every prospect who comes to your door. A poor prospect never makes a good client. It’s not about more business in this economy, it’s about better business. The litmus test: if the economy couldn’t get any better… would you still want them as a client?”

Understand the difference between revenue and profitability. “They are frequently confused.”

Avoid indiscriminate cost cutting. “Now is the time you should be increasing some expenditure, by investing in innovation, product and service development, human talent and retention of staff and customers.”

Re-tool. “This is a term from the days of Frederick Winslow Taylor referring to plant and machinery. I use the term specifically referring to people.”

Build relationships with their clients. “Strong relationships.”

In addition to the above, Willmot says, leaders should realise that procrastination poses a bigger threat to their success than the economic situation does.

To help build business, he says, managers should:
send letters not email if you really want your client to read your correspondence;

speak at business networking functions to expand your reach;

initiate some low-cost PR measures;

reach out laterally to your existing customers by providing additional products and services;

attend a seminar or training course;

write a press release for the local media; and

whether you are travelling across town or across the nation, leverage the trip and arrange to meet other people who haven’t bought from you yet.

http://www.recruiterdaily.com.au/nl06_news_selected.php?act=2&nav=1&selkey=39214&utm_source=daily+email&utm_medium=email&utm_campaign=Daily+Email+Article+Link

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: