CREATING A CULTURE FOR SUCCESSFUL CLIENT TRANSITIONS PRESENTED BY SAM M. ALLRED, DIRECTOR AT UPSTREAM ACADEMY

OUR FOCUS FOR 60 MINUTES With ever-growing numbers of partners preparing for retirement, firms must either learn how to successfully transition clients or risk losing them to competitors. Much of our attention has been focused on the partner making the hand-off; but what about the individual receiving the client and the firm culture supporting client transitions?

Client transitions seem to be one of the most random processes performed in accounting firms. Everyone seems to know they need to transition clients, but only a few firms seem to know both when and how.

Most client transition discussions focus on senior partners transitioning work to others in the firm. Often missed in the debate is the most important point – what the recipient of the client can do to ensure a successful transition.

PERSONAL STORY One of the worst days in my career.

This session is about what younger leaders need to do to help their firm and their career by make client transitions successful.

PRESENTATION ROADMAP Email questions to sama@upstreamacademy.com Understanding the value of client transitions Seeking client transfers The client transition process Questions and answers Email questions to sama@upstreamacademy.com

 UNDERSTANDING THE VALUE OF CLIENT TRANSITIONS

PROVIDES GROWTH OPPORTUNITIES When a client is transitioned to another member of the firm, both parties grow. The person giving up the relationship has room to move to more advanced services for other clients. The person taking over the client receives new challenges and responsibilities.

HELPS RAINMAKERS MAKE RAIN Too frequently in firms, rainmakers stop making rain because their plates are already full. When a firm has a culture of transitioning clients, it creates growth opportunities by allowing rainmakers to be active in the marketplace.

GROWS YOUNG LEADERS A professional can learn from every engagement experience, but there’s nothing quite like the rapid skill development that accompanies the assignment of total responsibility for a client relationship.

MOVES CLIENTS BASED ON EXPERTISE Many firms struggle with establishing niches. One of the major impediments is an unwillingness to transition clients. As you develop in your career, you and other members of your firm can move work to those with specific industry expertise and realign client assignments among the team.

SHOWCASES FIRM DEPTH Firms with a strong culture of transitioning clients can demonstrate unusual depth to clients. Clients become aware of the strengths and skills of a greater number of firm members as their accounting needs change and the firm keeps pace with these dynamics.

SHOWCASES FIRM DEPTH Firms that want and expect to remain independent must demonstrate a strong bench. When senior partners are able to successfully move their existing work to others, they can take on new assignments and help the firm expand into new areas.

 SEEKING CLIENT TRANSFERS

Many young professionals live the “strategy of hope” when it comes to client referrals. They merely hope someone will give them the chance to be the lead in a client relationship. You need to change this strategy – it’s a losing game.

MAKE IT HAPPEN – STEP 1 To obtain client transitions, start by developing strong relationships with the owners in your department/office with whom you work most closely. Let them know you are interested in client responsibility and ask them for any clients they might want to transition.

MAKE IT HAPPEN – STEP 1 Never stop asking and seeking client transitions. Once is not enough. Most partners won’t intentionally withhold good things from you, but they get busy and forget. Asking once a month or once a quarter per partner would be a good rule of thumb!

MAKE IT HAPPEN – STEP 2 Be proactive in developing relationships with decision makers on the engagements you manage. Most partners are happy to transition clients but YOU have to demonstrate that you can “take” the client. Take the lead by addressing client issues so the client begins calling you first.

MAKE IT HAPPEN – STEP 3 Finally, transitions go better when you return and report. When you receive a client from someone in the firm, make a point of thanking that person and reporting back on how things are going for at least a year.

 THE C-L-I-E-N-T TRANSITION PROCESS

When someone transitions work to you, you must treat the client the same as you would any great prospect – and maybe better. Many client transitions fail because the recipient expects the client will automatically stay with the firm. Anytime there is a change in client responsibility, the client sees it as an opportunity to consider a change in firms.

The majority of responsibility in the client transition process lies with the recipient of the relationship. That’s right – YOU! Use the following acronym as your guide in the transition process to achieve the desired result for all involved: C – L – I – E – N – T

C - CAPTURE Capture all the information you can about the client and the client’s history with the firm before the transition officially takes place. Often, a good portion of the most important knowledge about a client is located in the partner’s brain. Schedule time with the partner to ask questions and document everything you can about the client.

Client Information Here’s a list of some critical information you should know about each client you take over: Client and family member names (nicknames and family dynamics) Client interests and passions (work and play)

Client Information Decision makers in the client business (organization chart – formal and informal) Client advisor names and their strengths History of the business (when and how the business started and grew) History of the relationship with the firm (how we obtained and serve the business as a client)

Client Information Billing history (how the client expects to be billed and the typical response to invoices) Current services (all services performed and the frequency) Critical issues (major concerns, needs and wants)

L – LEAN IN Sheryl Sandberg coined the term “lean in” when talking to women professionals. It’s the opposite of being placed on your heels. These two phrases conjure up images of someone pressing forward to move an object in a chosen direction, or falling back because something is moving them.

LEAN IN This offers a great analogy for individuals taking over responsibility for a client relationship. We must lean in and own the situation. We must be forward thinking and proactive in our approach both with the client and with the person who transitioned the work to us.

I - INFORM Inform the partner who had the client previously about your current activities with the client to get input from the partner and to keep her/him at ease with the transfer. Partners want to know what’s going on in the relationship. They definitely don’t want to hear about service problems from the client after the transition; if there’s a problem, they should hear from you.

E - ENGAGE Engage the client regularly and often to demonstrate your interest. Just because a partner had a relationship with the client doesn’t mean that a high level relationship automatically transfers to you.

You need to let transitioned clients know you value them and will work hard to help them. You’ll begin to earn their trust if you take nothing for granted.

N – NO SURPRISES There should be no surprises. Be timely and transparent with the client: On technical issues On service dates On bills

T – TRUSTED ADVISOR While it takes time to develop the trusted advisor relationship, becoming an MTA (most trusted advisor) should be your goal with your best clients. Ask questions that will identify client concerns and then seek to be the resource for finding solutions.

TRUSTED ADVISOR Trusted advisor status is awarded when you prove you truly care about your clients and any issues affecting them – business or not. If you’re willing to listen and help find solutions, you’re on the right path to your goal.

 QUESTIONS AND ANSWERS Email questions to sama@upstreamacademy.com