Feeling a tad melancholy. Last week’s rain bought with it some unhappy news, as the CEO of a long-standing client informed us that he’s planning to retire very soon. We liked working with him. Trust, reliability and a ‘can do’ attitude have underpinned our very successful relationship for well over 15 years. He will be missed, but, of course, we are also delighted for him and he certainly deserves his well-earned retirement.

But as the colloquialism goes – this is business. Our client will be replaced by someone we may or may not know. Of course, this isn’t an uncommon situation but, as the new manager settles into their role, we will nevertheless wonder how this new person will gauge the quality of our services and if they will appreciate the value we’ve provided for 15+ years?

What can we do to ensure an ongoing relationship? Should we get on the front foot, be proactive and seek a meeting with the incoming replacement? Or, perhaps it’s better to wait until they ask to see us? Do we talk to others about the change – what have they heard? Have they spoken to the new boss yet?

The fact we have enjoyed a great relationship over many years and had very positive feedback won’t really matter if the incoming manager wants to put their mark on their new role. The challenge remains – how do established relationships transition with minimal disruption to the business?

Irrespective of which side of the fence you’re sitting on and the nature of the relationship (adviser and client; practice and key staff; licensee and established B/PDM for example), here are some of the key learnings we’ve experienced when a long-standing relationship ends;

  1. Recognise the potential for disruption and possible damage which can accompany a personnel change. Create some strategic plans, ahead of time, to counter the potential effects of losing key relationships.
  2. Key-person dependency is a significant risk. If your relationship with a client (or referrer) rests with just one person, is there any opportunity to expand it’s reach to include others?
  3. Build the strength of your relationship from time to time. Even in the most settled, established relationships, a proactive ‘how’s things’ call will always be appreciated – even if the call doesn’t directly relate to business. And when you do talk – was it a positive, upbeat conversation? Was the client engaged or did it seem that it was out of a sense of duty that they took your call? Be objective in your assessment.
  4. Don’t assume everything is okay – no feedback or comment doesn’t always reflect a settled relationship.
  5. Be prepared to modify your arrangement and your services, if that’s what’s needed.
  6. Appreciate the client’s bigger picture. For example, how does the latest round of industry mergers/acquisitions impact the client (and your relationship)? Similarly, the latest regulatory changes and advancement in tech.
  7. Communication always works – as long as its meaningful (avoid hyperbole), positive and informative.
  8. Virtual is easier, in-person is better.
  9. Keep an open mind.
  10. Hasten slowly! If a transition necessitates changes – implement in a steady and considered way. Reactive changes usually don’t work. ‘Measure twice, cut once’ as the saying goes.

Circumstances may be out of your control, but a well-considered and planned response to change can minimize the risks and even create opportunities for new beginnings.

For your consideration.