Love it or List It: When and How to Get Rid of a Bad Client

Nothing stops the momentum and motivation of a team more than a bad client. These are the clients who fail to communicate what they need, demand unrealistic timelines or results, provide little-to-no-feedback on work or refuse to listen to expertise. A difficult client can hinder a team's ability to effectively do their job, while taking up valuable time and energy.

There is a difference between meeting a client where they are and bending over backward to meet their demands, especially if it contradicts a company’s established values. In the worst-case scenario, these constant attempts at trying to appease a client can have significantrepercussions on team morale. A good leader should know when it’s time to put their team firstand let a client go.

That said, ending a client relationship is not a decision that should be made lightly, especially when it could impact a company’s bottom line. Leaders should be wise to discuss the situation with their teams and consider their feedback, along with the long-term health of the company, before making any rash decisions. During these discussions, teams should carefully weigh the pros and cons of continuing their work with the client and consider any aspects of the relationship where there may be potential for improvement. Unless it’s a serious and gross violation of the working contract, it’s best to try and communicate your concerns and give the client a chance to correct the behavior before making the decision to completely step away.

A client relationship isn’t improving. What’s next?

So, you have tried to reiterate expectations to your client to no avail, and after thorough consideration, have decided the best solution is to end the client relationship. This process should be handled sensitively, as the wrong move could cause reputational harm to a business. Leaders should consider the following as they take the next steps:

• Be transparent about expectations from the start: Respectfully, make your expectations about communication, work style and feedback requirements clear from the beginning. These expectations stand as a critical reference point over the course of a client relationship. Otherwise, a client can feel blindsided and frustrated when confronted on these issues.

• Remain professional in your phrasing: We all get frustrated, but it’s important to always remain professional when interacting with a client. Avoid language that blames any one party outright and instead focus on more neutral phrasing that emphasizes a misalignment of each team’s goals and working style.

• Set up a transition plan: No matter how difficult a client relationship may have become, itwould be unfair to leave a client without a plan in place. Prepare a well-defined transition plan that reflects the scope of work and size of the account, and confirm files, passwords and any other ongoing projects can be easily transitioned.

Building and sustaining healthy client relationships is an important skill in business, but it can also be valuable to be able to recognize when a client relationship is no longer viable. Leaders need to prioritize relationships with engaged, trusting clients and consider whether the revenue generated from a souring client relationship is worth the headache long-term.