Cambridge_book 4/4/01 12:34 PM Page i

CLIENT
RELATIONSHIP
MANAGEMENT

❈
Using Relationship Management and
Project Service Excellence to Create a
Competitive Advantage

David A. Po-Chedley

H R D Press Amherst Massachusetts

Cambridge_book 4/4/01 12:34 PM Page ii

Copyright © 2001 David Po-Chedley

Published by Human Resource Development Press, Inc.

22 Amherst Road
Amherst, Massachusetts 01002

1-800-822-2801 (U.S. and Canada)

1-413-253-3488
1-413-253-3490 (fax)
http://www.hrdpress.com

Printed in Canada
ISBN 0-87425-637-2

All rights reserved. It is a violation of the law to reproduce, store in a

retrieval system or transmit, in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise, any part of this
publication without the prior written permission of HRD Press, Inc.

Production services by CompuDesign

Cover design by Eileen Klockars
Editorial services by Robie Grant
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Dedication

To Eileen—my wife, my best friend, my source of support and

inspiration, and the wonderful mother of our son, Liam.
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Acknowledgments

Several people have played essential roles in this book. Carla Queen
provided the initial idea to develop this content into a book. Wes Sager
provided substantial input and ideas that made the book possible.
Cyndi Lagasse and Deborah Storti played important roles in the
development and editing process. Chris Hunter from HRD Press
helped us navigate the publishing process. I owe each of these people
a debt of gratitude for their contribution and support.
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❈
CONTENTS

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix

Chapter 1 The Client Relationship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Client Relationship Building Questions . . . . . . . . . . . . 4
Relationship Building Tips and Reminders . . . . . . . . . 5
Reference Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Chapter 2 Relationship/Project Initiation . . . . . . . . . . . . . . . . . . . . . . . . . 37
Client Relationship Building Questions . . . . . . . . . . . . . . 40
Relationship Building Tips and Reminders . . . . . . . . . . . . 41
Reference Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Blank Project Job Aids. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Chapter 3 Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Client Relationship Building Questions . . . . . . . . . . . . . . 66
Relationship Building Tips and Reminders . . . . . . . . . . . . 67
Reference Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Blank Project Job Aids. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Chapter 4 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Client Relationship Building Questions . . . . . . . . . . . . . 104
Relationship Building Tips and Reminders . . . . . . . . . . . 105
Reference Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Blank Project Job Aids. . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
Chapter 5 Close Out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Client Relationship Building Questions . . . . . . . . . . . . . 136
Relationship Building Tips and Reminders . . . . . . . . . . . 137
Reference Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Blank Project Job Aids. . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
Chapter 6 Application/Service Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
Client Relationship Building Questions . . . . . . . . . . . . . 162
Relationship Building Tips and Reminders . . . . . . . . . . . 163
Reference Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
Blank Project Job Aids. . . . . . . . . . . . . . . . . . . . . . . . . . . . 179

About the Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183

vii
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❈
INTRODUCTION

“An idea can turn to dust or magic,

depending on the talent that rubs against it.”
—William Bernbach
Advertising Executive

Welcome to Client Relationship Management. The objectives of

this book are to:
❚ Provide you with information and techniques to turn your client
relationship skills into a competitive advantage
❚ Review and apply tools that will promote consistent, well-planned,
and personalized client interaction
This book is designed to help you build strong relationships as you
manage projects by:
1. Clearly understanding the contribution of service performance
and the four dimensions of relationship management to project
success
2. Appreciating the importance of defining a solution that is based
on the client’s history, addresses the needs of all key stakehold-
ers, and meets the criteria for exceeding client expectations
3. Designing a plan that secures ownership from stakeholders, deliv-
ers the solution within realistic limits, and encourages team col-
laboration
4. Promoting project implementation through solid stakeholder
commitment, strong communication, and well-managed
hand-offs
5. Orchestrating project closeout that confirms customer satisfac-
tion, acknowledges individual and team performance, and high-
lights best practices and lessons learned

ix
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INTRODUCTION

❈ x

6. Creating a Service Plan to ensure attention to your client’s implicit

expectations and deliverables, and to heighten focus on the
“How” aspects of service performance

KEY TOOLS AND ORGANIZERS

As you read this book, you’ll encounter several tools designed to

organize and enhance your relationship with the client.
Each tool is directed at a critical component of the relationship.
Use of the tools will promote careful planning and management of
key client interactions, moving the effort forward smoothly and with-
out mishap. The results will be glowing testimonials and/or repeat
business.
Each tool is introduced and demonstrated within a chapter in which
it is commonly put to effective use. Keep in mind, however, that these
tools are quite versatile and some can make a valuable contribution
in all chapters.
Also remember that all tools may not be appropriate for all client
projects. Use only those tools that will add value to your relation-
ship with each client.

❚ Decision Matrix:
❚ The goal of the Decision Matrix is to establish relationships
with key stakeholders at the right time, and to ensure they have
the information they need to ensure a favorable decision.
❚ The desired outcome is a timely decision promoting the
progress of the project and contributing to client satisfaction.
❚ Stakeholder Analysis:
❚ The goal of the Stakeholder Analysis is to ensure that the
right people are involved at the right time along the way, and
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INTRODUCTION

❈ xi

to develop relationships that will foster their support and buy-

in for the project.
❚ The desired outcome is smooth progress of the project with
a minimum of resistance from stakeholders.
❚ Presentation Guide:
❚ The goal of the Presentation Guide is to gather information
on the “buying habits” and communication preferences of
the target group.
❚ The desired outcomes are successful presentations that quickly
earn the target group’s commitment and advance their rela-
tionship with the team.
❚ Communication Matrix:
❚ The goal of the Communication Matrix is to document what
information stakeholders desire, when they want it, and how
they want to receive it.
❚ The desired outcome is satisfied stakeholders, minimal proj-
ect delays, and efficient decision making.
❚ Relationship Extension Plan:
❚ The goal of the Relationship Extension Plan is to identify addi-
tional opportunities to serve your satisfied client.
❚ The desired outcome is the solidification of a long-term loy-
alty between client and supplier, and ongoing commitment
to manage the relationship, even after the technical aspects
of the project have been completed.

TIPS AND REMINDERS

At the beginning of each chapter, you will find a list of tips and
reminders designed to enhance client relationships. Some of them
involve application of concepts and tools described in the corre-
sponding chapter. Others are simple, quick ideas that can be applied
independent of the content of the book. In either case, it is strongly
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INTRODUCTION

❈
xii

recommended that you apply these tips and reminders in a flexible

fashion. That is, use only those that will enhance a given client rela-
tionship. It’s important to recognize that what works for one client
may not work well with another.

APPLICATION MATRIX

The Application Matrix is described in Chapter 6. After you have

reviewed the content in the previous chapters, this tool will help you
to develop your own customized application plan for the content of
the book that best suits your needs. The concepts, tips, reminders,
and tools can then be applied in a way that will be most beneficial to
you and your clients.
Reminder: While the project will be the vehicle used to present and
discuss all the content in this book, most of the tools, tips, and
reminders are also applicable to nonproject relationships as well.
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Chapter
One

1
The Client
Relationship
❈
❈ 1
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CLIENT RELATIONSHIP MANAGEMENT

PROCESS ELEMENTS

THE CLIENT
RELATIONSHIP

RELATIONSHIP/
PROJECT INITIATION

PLANNING

IMPLEMENTATION

CLOSE OUT

APPLICATION/
SERVICE PLAN
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WHAT? ✓ The Client Relationship ❈

WHY? ✓ To clarify the dimensions of the
client relationship and the factors
that impact client satisfaction.

HOW? ✓ Understand the First Law of Service

✓ Understand the dimensions of client
relationships
✓ Review factors that cause projects
to fail

❈
KEY TOOLS ✓ Tips and Reminders
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CLIENT RELATIONSHIP
❈
BUILDING QUESTIONS
✓ What are the factors that impact
the level of client satisfaction?
✓ What are the dimensions of client
relationships?
✓ What causes projects to fail?

ADDITIONAL
QUESTIONS
✓

❈ 4
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RELATIONSHIP
❈
BUILDING TIPS
AND REMINDERS
1. Deliver communications using media that is client-friendly
(i.e., find out if hard copy, fax, e-mail, etc., is best for them).
2. Know your client’s first choices for meeting locations and
communication media.
3. Encourage all team members to adopt high standards of
professionalism while remaining authentic and natural
toward clients.
4. Know when to employ control, influence, or adherence in
managing client relationships.
5. Be sure the client knows all the ways to reach you
(phone, fax. e-mail, etc.).
6. Respond immediately to a client’s message if you have the
answer, but never take more than one business day to respond.
7. Be aware of your own style and preferences so you can
comfortably adjust to the style and preferences of your client.
8. Treat internal clients with exactly the same service standards
as external clients.
9. Keep the implicit dimensions of service performance on a par
with the explicit dimensions of technical performance.
10. Ensure that all clients are addressed appropriately (first or
surnames, titles, etc.).

❈ 5
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❈
REFERENCE MATERIAL
&
APPLICATION GUIDELINES

7
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CLIENT RELATIONSHIP MANAGEMENT

❈ 8

PROJECT CLIENTS AND “OTHERS”

Everyone in your organization has a responsibility to serve and

support clients. Clients come in many definitions, including:

External Clients:
❚ Paying Project Clients: These are the most obvious clients you
work for, and usually the most important. But don’t make the mis-
take of assuming they are the only clients in the project life cycle.
❚ Vendors & Suppliers: Though we most often think of ourselves
as clients of these groups, we often need to provide them with
information, guidance, feedback, etc. In that moment, they are
our clients.
❚ The Community: Socially responsible organizations are initiat-
ing a variety of environmental, volunteer, and stewardship proj-
ects in the local communities. Anyone who benefits, directly or
indirectly, from these initiatives is your client.

Internal Clients:
❚ Cross-Functional Peers: Every member of the team will serve
as both supplier and client as the project unfolds. When you
provide something to a peer, you’re a supplier. When you receive
something, you’re a customer.
❚ Your Superiors: Project stakeholders are very important clients,
as are managers whose functional areas will be impacted by the
project outcomes.
❚ Your Staff: You must deliver resources, information, direction, pri-
orities, etc., to anyone you delegate to or whose time you manage.

The way you relate to internal clients is a pretty good indication

of how you will relate to your external clients. Be careful to develop
and maintain dependable and effective relationships with internal
clients or your results for project clients will suffer.
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THE CLIENT RELATIONSHIP

❈ 9

Consider this scenario at Silo International. Everyone in the oper-

ations group knows when the end of the quarter arrives: the VP of
Operations can be found pounding on the Controller ’s door for the
latest financial reports. The Controller ’s lack of concern for satisfy-
ing her client’s needs (providing the VP with fiscal information) can
trickle down through the organization as a model, or service stan-
dard, for how Silo employees treat their external customers. The con-
nection between the Controller’s limited respect for customer service
and falling revenues will most likely never be identified.
Similarly, if a project leader repeatedly ignores e-mails or messages
from team members, you may see the turnaround time between a
customer’s inquiry and the team’s response getting longer and longer.
Team members feel undervalued by the team leader, and in turn, they
undervalue the customer. Customer relationships erode, and busi-
ness ultimately declines.
Just try to remember that whenever your goal is to deliver anything
to another individual or group, you are the supplier in a relationship
with a client. You now have the opportunity to advance the rela-
tionship and set (or maintain) high standards for others by provid-
ing great service.

THE FIRST LAW OF SERVICE

In “Managing the Professional Service Firm,” David Maister offers

a simple yet universal formula for predicting a client’s level of sat-
isfaction. To understand the formula you first must appreciate this
prediction:

Your clients will tend to focus as intensely on the quality of the service
as they do on the quality of the work.
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CLIENT RELATIONSHIP MANAGEMENT

❈10

For example, you might be the world’s most talented jeweler, but
if you deliver a Valentine’s pendant on February 15th, the beauty
of the craftsmanship will be secondary. Or, if you are the most bril-
liant lawyer in a criminal courtroom, but don’t offer your client any
respect or common courtesy, your client list will be far shorter than
it should be.
The First Law of Service is this:
SATISFACTION = PERCEPTION minus EXPECTATION
All three components inherent in the First Law of Service are driven
by a combination of “what” you deliver and “how” it is delivered.
If your clients’ perception of what you delivered is lower than their
expectation (i.e., the delivery they had “in mind”), negative satis-
faction results.
If, however, your clients’ perception of the value you delivered
exceeds their expectation, you have created a positive level of satis-
faction. The more their perception is above their expectation, the hap-
pier they are.
A key aspect of this formula is that all three elements are subjec-
tive. You can effectively manage these subjective measurements
throughout the project cycle. Doing so will ensure client satisfaction,
and develop into a significant competitive advantage.
Imagine you are an internal training consultant for a fast growing
financial services firm. The manager of the newest satellite office has
requested that you pay a visit so you can train his new operations
team in interoffice communications and systems procedures. Aware
that this is an “ASAP” situation (and an opportunity to proactively
meet urgent needs), you contact the branch manager to explore options
for addressing her plan. You arrange for an advance “Q/A Conference
Call” with the staff to orient them to your upcoming visit; an e-mail
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THE CLIENT RELATIONSHIP

❈11

bulletin board for “as needed” input; and a flight 2 days earlier to
move up the training event. Utilizing direct communications and cre-
ative scheduling, you have exceeded the manager’s expectations and
demonstrated your skills as a relationship manager.

Technical vs. Service Performance

Moving up from “technically proficient project manager” to “proj-

ect professional” requires more than the ability to deliver results. It
requires an understanding of implicit as well as explicit client needs.
Project clients differentiate a project deliverable from the manner
in which the item was delivered.
A project deliverable (product or service) is the result of your team’s
“technical performance.” These explicit project results are the “what”
you have agreed to produce as a result of the project.
The manner in which the project outcome is delivered is your team’s
“service performance.” This is the implicit dimension of the project,
and is reflected in the “how” of the delivery.
Whereas the project client depends on the explicit project outcome
to achieve business results, the client experiences the implicit serv-
ice component of the project. For most of us, the experience of a con-
sumer exchange usually outlives the usefulness of the deliverable
itself.
If you engage the services of a talented tax preparer, who charges
reasonable fees and reduces your tax obligation, you automatically
return next year, right? The answer is a resounding Yes, unless the
planner didn’t return your calls, made you feel ignorant or incom-
petent, and used explanations filled with tax code technicalities and
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CLIENT RELATIONSHIP MANAGEMENT

❈12

complicated formulas. The benefits of what he did are overshadowed

by how he treated you. Similarly, your clients will remember how you
provided service long after you complete the delivery of the project
outcomes.

Technical Performance
(explicit)

Client Satisfaction
Relationship Performance
(implicit)

It’s not possible to address one without the other because:

❚ The project is the context within which relationships are devel-
oped
❚ Relationships are impacted by the way the project is managed
❚ The project will be managed in a way that reflects the quality of
the relationships

What Clients Notice

Every interaction with your client represents a “moment of truth.”
That is, each time you interact, your clients pay attention to every-
thing you do and say. In most cases, they won’t comment on what
they see or hear. The sum total of all these interactions represents
how they see you. It also represents how they are likely to describe
you to others (including prospective clients).
Your clients pay attention to:
Professionalism: If you or your workplace are clean and neat, this
reflects positively on you. If you speak clearly and appropriately
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THE CLIENT RELATIONSHIP

❈13

to the situation (e.g., no slang, jargon, acronyms the client doesn’t

understand), your client will notice. Finally, if you maintain a pos-
itive attitude, this will be noticed by your clients.
Communication: Your ability to ask the right questions at the right
time are critical to successful communication with the client. So
too is your ability to tell clients what they need to know at the right
time.
Availability and Responsiveness: Your clients will appreciate it
if you are there when they need you. They will also appreciate
timely responses to their calls, questions, etc.
Understanding Expectations: If you take the time to clearly under-
stand their needs (i.e., around quality, value, timeliness, etc.), they
will understand that you actually care about them.
Product/Service Knowledge: Your ability to speak intelligently
about your products, your services, and your organization will
impact your clients’ confidence in you, and ultimately, their inter-
est in working with you.
Managing Client Problems: If you can prevent most client prob-
lems from happening, you’re well ahead in the game. Equally
important, when problems do arise, you need to be able to man-
age them in a way that shows the client that you are well prepared
to deal with difficult situations.

Under-Promise & Over-Deliver

The more successful you are at maintaining a realistic expectation
for the deliverable, the greater will be the positive differential between
perception and expectation. To manage client expectations:
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CLIENT RELATIONSHIP MANAGEMENT

❈ 14

❚ Be conservative: set realistic expectations

❚ If the delivery schedule must change, immediately involve the
client in setting new dates
❚ Define the minimum deliverable you can produce and plan to
exceed it
The more successful you are at delivering your product or service
in a style, manner, or method that pleases or impresses your clients,
the higher will be their perception of overall project outcomes. You
can increase perceived value by:
❚ Holding to all milestones and delivery dates
❚ Knowing your client’s preferences for deliveries and communi-
cations
❚ Surprising your client with some extra deliverables and added
value
Imagine you have taken a VCR in for repair, and have been told to
call back in 3 to 4 weeks. How would you react if the repair shop called
you in 10 days, said the unit was not only repaired but cleaned as well,
and they would drop it off after a service call to someone in your neigh-
borhood! The extra cost and effort for the shop is minimal. Combining
technical expertise (the repair) with service performance (the deliv-
ery) to exceed your expectations is very effective in raising your level
of satisfaction. Your project clients will appreciate and remember your
efforts to bring added value to the relationship.
Delivering added value, and maximizing client satisfaction, is much
more than good luck. Constantly monitoring the variables in the First
Law of Service will result in:
❚ More future business
❚ Client testimonials
❚ Increased referrals
❚ Client loyalty (it is far cheaper to keep a client than to get a new
one)
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THE CLIENT RELATIONSHIP

❈ 15

Relationships Matter Pre- and Post-Sale

Most of the projects you work on, and most of the examples in this
workshop, are focused on deliverables for existing clients. The proj-
ect has been defined as a result of a sale, the extension of an existing
relationship, or to meet internal business goals (working with inter-
nal clients). But there is a huge pre-sale world out there, and rela-
tionship management can make the difference between getting the
contract or losing the business.
Sales representatives in every industry are keenly aware that com-
petition is intensifying and consumer choice is growing rapidly. Long-
distance carriers, rental cars, stock trading services, and pet
supplies—our choices are endless. The products we can purchase are
becoming more numerous and similar. The services that surround
our purchase, and the way the supplier relates to us, are quickly
becoming the differentiating factors.
Consumers are seeking the supplier who can deliver the goods,
and a reliable relationship. If the sales rep can prove that she under-
stands the consumer ’s need, and can position her product as a total
solution for the need, chances are she will get the order. Knowing,
and relating to, the individual consumer is much more important
than industry knowledge and demographic data.
The same holds true for team-based selling. Consumers want to
see depth and dependability in their suppliers, especially when a
long-term commitment is on the table. Professional services firms,
construction companies, and distribution networks are examples of
suppliers who become partners with their clients, not simply ven-
dors. They must approach a sale as a project, from definition through
close out, and prove they have the best technical and service per-
formance in the industry. Sales teams need to demonstrate healthy
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CLIENT RELATIONSHIP MANAGEMENT

❈ 16

relationships among themselves in order to establish relationships

based on confidence with their prospects.

THE FOUR DIMENSIONS OF RELATIONSHIP MANAGEMENT

To truly excel at satisfying client needs, you must be aware of and

involved in the four dimensions of relationship management. These
dimensions are:
❚ Intrapersonal
❚ Interpersonal
❚ Team Dynamics
❚ Cultural/Operational

Intrapersonal
Cultural Operational
The
You
Intrapersonal Client

Team Dynamics

Team Team
Member Member

We will explain each of the four dimensions of relationship man-

agement separately in the next section. We can artificially delineate
and define them for discussion purposes, but we cannot isolate them
in the real world of relationships. Each dimension is constantly impact-
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THE CLIENT RELATIONSHIP

❈ 17

ing and influencing the other dimensions—they are all interdependent

on each other.
Consider the dynamics of a baseball team, with you as the left
fielder.

You’re the One

Intrapersonally speaking, you are responsible for development of

your athletic skills and your attitude relative to the game. And
although these traits are specific to you and you alone, they can impact
other aspects of the game. For example, if you are faster than the right
fielder, the pitcher may throw pitches to intentionally draw fly balls
to your field, feeling you are more likely to make the outs. In addi-
tion, if you demonstrate an energetic and contagious attitude for win-
ning, the coach may play you despite the fact you have a lower batting
average than the other left fielders, due to the positive impact you
have on team morale.

It Takes Two

Have you ever seen two fielders collide as they chase a long fly
ball? Their lack of interpersonal familiarity or communication results
in a base hit for the opponent, and has a negative impact for the entire
team. Even though the rest of the team is powerless to influence the
outcome of this two-player event, they are nonetheless all affected
by it.

What a Play!

Have you ever seen a triple play? It is that rare but exciting col-
laboration when several players act as if they were technically chor-
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CLIENT RELATIONSHIP MANAGEMENT

❈
18

eographed to execute the play. It calls for acute awareness and antic-
ipation of where your teammates will be, as well as your role in
pulling off a perfectly coordinated team play. Though nonverbal,
this is a true demonstration of putting relationships to work at solv-
ing a problem.

The Powerful Intangibles

And finally, why is home field advantage such a powerful aspect

of team competition? It is a cultural issue. The home team is famil-
iar with the idiosyncrasies of their field, used to the climate, com-
fortable in their own clubhouse, and certainly pumped up by the
crowd. They “know the ropes,” the vendors, the reporters, and the
die-hard fans. And given the feeling of belonging, they can focus on
their performance.
So, from individual ability to the emotion of hometown cheers,
team success is a constant integration of intrapersonal, interpersonal,
team, and cultural factors. Your relationships with yourself, a peer,
your group, and your environment can work for or against your proj-
ect success.

Dimension One: Intrapersonal Awareness

This dimension is the degree to which you appreciate your per-

sonal style and preferences. This is the first step in understanding
how your personality affects how you work, relate to others on the
team, and enjoy your work.
Intrapersonal awareness is not about assessing individual beliefs
or core values. It is about understanding how your beliefs and val-
ues affect your behavior, and how your behavior impacts others.
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THE CLIENT RELATIONSHIP

❈ 19

A popular way to develop a picture of your personality preferences

is the Meyers-Briggs Type Indicator (MBTI). Such tools don’t suggest
that some personality types are more successful than others; just that
awareness of differences can improve results.
For example, if you rank high as an extrovert, you enjoy social
events with a lot of people. Don’t take your introverted client to a
loud club full of strangers.
Or, if you are a visual learner, don’t assume that your client will
get the most information from your PowerPoint demo. A simple ver-
bal description may be far more effective.

Behavioral Styles: Influence and Conflict Management

A key element of the relationship management process is your abil-

ity to manage differences. During any project, it is inevitable that dif-
ferences and conflict will surface between you and the client, as well
as between team members. In both cases, understanding the various
styles used for managing differences and conflict will help you to exert
positive influence without alienating the client and/or team members.
Individuals bring their strengths, weaknesses, assumptions, atti-
tudes, and beliefs to bear in the management of influence and con-
flict. These elements of personal behavior are reflected in the way
we act and react to others in conflict situations.
A useful way to observe and describe conflict management styles
is to consider the two dimensions that contribute most to our observ-
able behavior.
1. Task/activity orientation—This represents our concern for the
activity at hand and how we strive to accomplish our goals in the
most effective, productive, and efficient manner. In its various
forms, it represents the bottom line, results, profit, total service
rendered, etc.
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2. People/relationship orientation—Regardless of the task involved,

the people asked to accomplish it can be expected to have unique
individual needs and desires. Their motivation to accomplish the
task in an excellent manner will hinge in part on the level of con-
cern that others, particularly those that lead them, show for their
individual needs.

We can represent the most typical conflict management styles as

follows:
People/Relationship Orientation

Accommodating Collaborating

Compromising

Avoiding Dominating

Low High

Task/Activity Orientation

Description of Influence and Conflict Management Styles:

1. Dominating individuals view differences or conflict as a threat
to their authority and control, thus it is important to cut it off as
quickly as possible. This frequently involves the use of intimi-
dation, threats, and personal attacks. Dominating individuals
usually take a fixed position and refuse to deviate from it. Their
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THE CLIENT RELATIONSHIP

❈ 21

win-lose perception of situations makes it difficult for them to

back down after a conflict has emerged.
2. Accommodating individuals view differences or conflict as a
potentially devastating blow to the warmth and friendly atmos-
phere that they strive to maintain; thus, they actively avoid it.
Accommodating individuals quickly yield in most confrontations,
but if conflict is unavoidable, they attempt to smooth over the
issues so as not to hurt anyone’s feelings.
3. When Avoiding individuals sense the emergence of differences
or conflict, they quickly withdraw in an attempt to avoid the sit-
uation altogether. When confronted, they use vague generaliza-
tions in an effort to avoid taking a position that might stimulate
further conflict.
4. Depending on the situation, Compromising individuals deal with
differences or conflict in a variety of ways. If unsure of the party
line, they avoid or smooth over conflict. If majority thinking and
opinion are clear, they more readily accept and, at times, even
seek out conflict. Conflict resolution comes primarily from nego-
tiation and majority rule.
5. Collaborating individuals view differences or conflict as a tool
that, when properly managed, can encourage new and better
ideas to emerge. They also realize that conflict can be dysfunc-
tional. They use communication as a useful tool to manage con-
flict by getting issues out in the open. They seek to resolve
underlying causes by confronting the situation in its early stages.
Each of these approaches represents a functioning style that can be
observed to varying degrees in every organization. Each is associated
with an approach to behavior and interaction that has predictable results.

Receiving Feedback

Whenever communication takes place, various factors are present.

In addition to logic and rational thought, people have emotions that
enter into communication transactions. We try to take this feeling
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factor into account when preparing and giving feedback. It is also

important in a team environment to anticipate our responses when
we are the recipients of feedback. Consider the general responses to
feedback in relation to the conflict management styles:
❚ Dominating: Because this style is characterized by a need for con-
trol, it is often difficult for a dominating style person to receive
feedback without responding defensively.
❚ Accommodating: A person with accommodating style may give
a silent or aquiescent response to receiving feedback. Accom-
modaters may take on more responsibility for project problems
or issues than is warranted instead of engaging in dialogue dur-
ing a feedback session.
❚ Avoiding: A person with an avoiding style may also avoid receiv-
ing feedback. When confronted this person will often acknowl-
edge the feedback and then quickly try to move the conversation
along to other topics. This can make it more difficult to partner
on finding workable solutions.
❚ Compromising: A person with a compromising style will usually
hear feedback, accept some level of responsibility, and look for
a middle ground to move the project along. However, this may
not provide the most creative or effective solution.
❚ Collaborating: A person with collaborating style generally seeks
to listen carefully to feedback, attempts to determine its validity
and the appropriate responsibility level, and pushes forward to
effective resolution. Collaborative style and attitude lend them-
selves to making the best use of feedback when it is offered.

Receiving Feedback Guidelines and Suggestions

Generally speaking, careful listening is the key to making the best

use of feedback. The most effective response to feedback is always
the one that helps clarify the issue in such a way that it can be resolved
quickly and successfully.
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Some responses to feedback that can help clarify and resolve issues
include:
Silence—Listening quietly, observing, and trying to understand
the full message in the feedback.
Acknowledgment—Giving verbal indications of understanding
and validation for the feedback.
Inviting nonverbals (as opposed to the “are you crazy?” facial
expression)—Using expressions that invite additional information
and feedback.
Paraphrasing—Restating the message as you understand it to check
the accuracy of the communication.
Active listening—Expressing understanding of the importance of
the message, as well as your feelings about it.
Perhaps the most important guideline for receiving feedback is to
keep in mind the overall objective of the team and the project. If all
parties keep mutual success in the forefront of communication, both
the giving and receiving of feedback serves a vital purpose.

Dimension Two: Interpersonal Relationship Management

All of your internal and external clients need to be assured that

you:
❚ Take a genuine interest in them
❚ Know and respect their preferences
❚ Will address their needs in a way that is familiar and comfort-
able to them

Whereas the Golden Rule suggests you should treat others the way
YOU would like to be treated, a more accurate piece of advice is to
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treat others the way THEY want to be treated. It is a natural tendency

to assume that what is good enough for us will be good enough for
our clients.
How can you determine your client’s preferences and comfort
zones?

Observation of Behavior
❚ Be mindful of how your clients choose to communicate with you,
and reciprocate whenever possible.
❚ Do they send more e-mails or make more phone calls?
❚ Do they like face-to-face meetings or do they defer to more
efficient exchanges?

Check Out the Client’s Workplace

❚ If a client’s office is full of family pictures, it’s a pretty safe bet he
or she enjoys a question or two about home life. If the office is
all files and flowcharts, better stick to business.
❚ Draw clues from the surroundings the person has chosen to live
with for 40 hours each week, and use those clues to pick a com-
munication style.

Ask Questions
❚ It is perfectly appropriate to ask clients a set of focused ques-
tions to plan and implement a strategy for servicing them. This
is the basis for the “Service Plan” which follows.

Request Feedback
❚ Periodically, ask clients to discuss the things you have done that
they really enjoyed, and the things they wish you had done dif-
ferently. Make adjustments accordingly.
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Ask questions like:

❚ “Was the delivery of the report after lunch okay, or would you
prefer the next one in the morning?”
❚ “I assumed you would like invitations to all review meetings.
Is that correct? How will I learn of your plan to attend?”

Seek Input from Others

❚ Chances are you know other people who have a deeper experi-
ence with the client than you do, or perhaps with the client’s depart-
ment or company. Collect as much information as you can on what
has or hasn’t worked. There is no substitute for lessons learned.

One vital aspect of your response to any of the issues above is that
the behavior you exhibit to the client is natural and authentic. If clients
feel you are mimicking them, or making artificial and patronizing
gestures, they will resent your efforts.

Do Things with, Not to or for, Your Client

Another aspect of your behavior that contributes to successful rela-
tionship management is remembering that you are doing things WITH
the client, not TO or FOR them. Sometimes we can view the task of
making a delivery, returning a call, or editing a report as an imposed
requirement or obligation. In fact, you are entering an interaction
(responding to a client need) and you must demonstrate your will-
ingness to actively participate in the solution.
Consider an example. Your client asks you for eight more copies
of a lengthy proposal so she can distribute them to her department.
One option is to begrudgingly make the copies and deliver them
to her office. Your feelings of being treated like a copy clerk will likely
come through and taint the exchange.
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26

Another option is to call the client and offer assistance in the dis-
tribution. Perhaps you can send the proposal by e-mail to her staff
or provide an electronic copy on a common server for convenient,
shared access.
If you still end up making the copies, you will have demonstrated
a spirit of cooperation and desire to serve.

Dimension Three: Team Dynamics

As soon as one more person joins your team, you have entered the
more complicated world of team dynamics. Where there was only
one relationship to manage (between you and the client), now there
are three (you and the client, you and your team member, and the
other team member and the client).

All the Rules of Relationship Management Still Apply

Even though you are now a member of a team, most of your inter-
actions will be with one other person at any given time. Therefore,
keep all the suggestions above in mind for every other person in the
team, all the time. When you are interacting with any one of them as
your client, he or she is the most important person in the project at
that moment.

Define and Acknowledge Interdependencies

Teams have a common goal, and interdependent relationships must

develop in order to attain that goal efficiently. Everyone will perform
better if these aspects of team dynamics are addressed:
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❚ Individual roles are clearly defined and communicated

❚ Hand-offs are defined, scheduled, and documented
❚ Communications are thorough and consistent among team
members
❚ Review meetings involve the right people and are efficiently con-
ducted
❚ Supplier/Client relationships are acknowledged
❚ Conflicts are surfaced and resolved

Dimension Four: Cultural/Operational Considerations

In order to develop and maintain positive interactions with your

clients, you need to be aware of the influence the culture can have
on those interactions.
Cultures can impact client interactions in several ways:
❚ Explicit and implicit codes of conduct (e.g., How does the cul-
ture view gifts to clients? What level of confidentiality must be
maintained?)
❚ Communication protocols—formal and informal (e.g., Are all
communications documented? Do certain types of communica-
tion require approval? When are clients copied on team com-
munication?)
❚ Image management (e.g., Is there a dress code when meeting
with clients? Is there a standard format and package for delivery
of reports or other client communications?)

When the project is directed at an external client, you will be deal-

ing with all the issues above times two. It is equally important to be
familiar with the cultural issues of your organization and those of
your client.
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The culture of a business is evident in how it operates in addition

to issues related to conduct, image, and communication. Standards
or cultural norms established by an organization’s operations can
have a direct impact on relationships and client interactions.
Administration: Does the client culture call for centralized or decen-
tralized administration? Do administrative functions influence or
simply respond to the activities of the business’s core functions?
Your awareness of the role administration plays in your client’s
culture can help you relate to administrative stakeholders as well
as better manage the role administration plays in the project.
Policies: How traditional is the client culture? Do they allow flex-
time? How do they handle maternity leave (for mothers and fathers)?
Is the organization chart vertical or horizontal? Awareness of pol-
icy platforms like these will give you valuable clues on how to
relate to your clients’ work habits and expectations. It is not your
place to take a position regarding client policies, but to build your
knowledge of them into your service plan for the client.
Infrastructure: Infrastructure can include everything from an on-
site cafeteria to voice mail technology to the number of office loca-
tions involved in your project. Your awareness of each infrastructure
issue can be an opportunity for you to cater to your client. If voice
mail is awkward or unreliable, make a concerted effort to use more
e-mail or fax deliveries. If team members are located in multiple
offices, establish a system for conference calls or electronic con-
ferencing. Make the infrastructure a known and defined asset or con-
straint, and adjust your relationship strategies accordingly.
Capacity: Capacity issues for project execution usually refer to the
number of person-hours that can be applied to the project. Capacity
limits can be a shortage of people or a build-up of projects. In either
case, your role is to be sensitive to the outlay of time your clients
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(and stakeholders) can realistically afford, and then set a schedule

that reflects attainable goals. As a relationship manager, you want
people meeting their objectives more often than not. Working
towards a well-balanced allocation of resources will make the proj-
ect experience more enjoyable for everyone and more likely to result
in a satisfied client.
Keep in mind that most of the ways cultures impact relationships
are through the implementation of unwritten rules. It is important
that you request clarification of a cultural issue if you are not cer-
tain what is expected of you. Most clients will be quite comfortable
explaining the ropes to you in advance, to avoid getting all tangled
up in them.
For example, it may be considered disrespectful to show up unan-
nounced in some offices, whereas in others, it is a sign of open and
proactive team participation. A simple question before the first visit
will let you know whether to call ahead to your client. And, just ask-
ing the question is further confirmation that you are genuinely inter-
ested in understanding and serving their needs, a key element in
solidifying your developing relationship.

CONTROL, INFLUENCE, AND ADHERENCE

When managing relationships, you will often make an individual

impact, and other times need to go with the flow.
You have the greatest degree of control over your own behavior,
both in how you conduct yourself and how you respond to client
preferences.
You can exude influence over the efficiency within your team. Your
level of cooperation, responsiveness, and unselfish contribution
greatly influences project outcomes and customer satisfaction.
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Unless you are high up on the leadership chain, you need to adhere
to the majority rules of culture. But over time, your contribution
on the individual and team level can have a positive influence here
as well.
Regardless of your level of control, influence, or adherence, you
will always enhance client interactions through awareness, a posi-
tive attitude, and proactive behavior.
Remember:
❚ The only person’s behavior you can change is your own. If your
client routinely shows up late, wasting everyone’s time, ask what
you can do to schedule meetings at times the client has fewer
pressing demands.
❚ Avoid blaming the institution for disappointments in project out-
comes. If your company’s antiquated computer system accounts
for delays and partial deliveries, suggest “work arounds” such
as outsourcing some printing or scheduling heavy data entry
early or late in the day.
❚ Always look before you leap—understand the implications of
your behavior. If your enthusiasm to gather project data moti-
vates you to directly contact all stakeholders on the client’s side,
hold off. Consult with your primary client representative in
advance to be sure you won’t be overstepping your bounds, vio-
lating client protocol, and complicating the relationship.
❚ If your choice of action will not improve client interactions, recon-
sider. If your response to a client’s overuse of acronyms and buzz-
words is to resort to the same approach, take a deep breath before
you RSVP. Perhaps compiling a directory of technical terms and
acronyms for the entire team will have a better impact on the
relationship.
❚ Don’t complain, offer constructive criticism. If a team member is
challenged by the workload and always late with the deliverables
you need, respond with suggestions for time management rather
than negative comments.
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FIVE MAJOR INTERACTION-BASED CAUSES FOR

PROJECT FAILURE

There are dozens of documented causes for project failure. These

causes can be due to technical performance, or service performance.
On the technical side, the causes tend to be more explicit and easier
to measure. On the service side, the causes are more subjective and
difficult to pinpoint or define.
The five causes of project failure that result from poorly managed
client relationships are:
❚ Unclear definition
❚ Problems with risk management
❚ Poorly managed hand-offs
❚ Untested assumptions
❚ Lack of communication (particularly around project changes)

These causes will be described briefly here and addressed more

fully in the following chapters. Preventive and contingent strategies
for managing these challenges will also be addressed.

Unclear Definition
Clearly defining the solution is often overlooked. The project team
has a “gut feel” for what needs to get done, so they throw it into gear
and move forward without a map.
A well-defined solution will involve many parameters of client
interactions, including:
❚ What is the ideal project outcome; who will benefit; when and
where will it be realized?
❚ What are the deliverables for the project?
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32

❚ What assumptions may turn into barriers?

❚ Have boundaries and constraints been defined?
All these questions (and more) will need to be answered at some
point during the project. The best time is upfront, before a negative
impact on client interactions (and confidence) has developed. By
choosing when to communicate and answer questions like these, you
are managing rather than reacting to client requirements.

Problems with Risk Management

Risks must be identified and managed in all phases of every proj-

ect. Best case scenario: risks will be identified and prevented. Next
best scenario: risks will be identified and a contingency plan put in
place in case the risk materializes. Worst case scenario: the risk is never
identified, and when it erupts, the project is substantially damaged.
In addition to the technical risks that can plague projects (poor
budgeting, missing milestones, incomplete documentation), there
are also significant relationship risks.
Being implicit in most cases, relationship risks are tough to iden-
tify. For example, your project client may have serious confidence
problems with a member of your team. Rather than express those
concerns, the client avoids the individual, won’t return calls, and
perhaps tells others about his or her unfavorable impressions. This
“chink in the relationship armor” leads to delays, uncomfortable
undertones, and compromised project outcomes.
Diligent definition of relationship risks, and a committed invest-
ment to eliminate them, will increase any project’s chance of success.
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Poorly Managed Hand-offs

Hand-offs are the most explicit example of supplier/client inter-

action in practice.
A well-managed hand-off is a scheduled delivery of a defined deliv-
erable between supplier and client at an agreed place (computers and
voice mailboxes included). It is the perfect example of how WHAT
you do (technical performance) combines with HOW you do it (serv-
ice performance) to create client satisfaction.
Late or partial hand-offs can quickly damage relationships. Perhaps
you have experienced a situation in which your supplier failed to
deliver an important report or schedule to you on time. This resulted
in your failure to deliver a hand-off to your client (perhaps your boss)
on time, and reflected poorly on your performance. In these situa-
tions, no one wants to hear excuses as to why you are late; they just
want the results. Managing hand-offs can therefore be a crucial com-
ponent for maintaining relationships based on confidence and trust.
Sloppy hand-offs are like a bad game of catch. Was the thrower at
fault? Was the catcher distracted? Perhaps the ball was off-balance.
It can become a finger pointing exercise that has no chance of a con-
structive conclusion.
Conversely, well-managed hand-offs are highly visible testaments
to strong supplier/client communication and compatibility. Use them
to your advantage.

Untested Assumptions

It is safe to assume that with every project definition there will be

a litany of assumptions. There has to be. Assumptions are not cre-
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❈34

ated by projects—they pre-exist in the culture, policies, history, and

relationships that surround the project.
Not only are assumptions a common factor in your projects, they
are a common cause of project failure. The most unfortunate aspect
of this situation is the overlooked ease with which failure could be
avoided.
The problem with assumptions is they are “part of the landscape”;
they “come with the territory.” What you need to do is isolate assump-
tions, define them, test their validity, and take action to prevent them
or prepare for their eventual impact.
You also need to be aware that assumptions can be based on tech-
nical performance (there will be enough money; the software will work)
or service performance (we understand the Board’s expectations; the
project client prefers early morning meetings). Your challenge is to
check out any assumption that may have high impact on your project
and take action to minimize its potential negative influence.

Lack of Communication

Communication problems can upset individuals, relationships,

and teams in every phase of project execution. You will see examples
of communication breakdowns in each of the project phases.
A few examples of how a lack of communication can impede
progress are:

Initiation Phase:
❚ Poor communication of definitions (scope, roles, solutions, etc.)
❚ Inadequate communication with high influence stakeholders and
decision makers
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Planning Phase:
❚ Incomplete communication of the plan to everyone involved in
and affected by the project
❚ Lack of involvement of key players in the planning process (lim-
its buy-in and ownership)

Implementation Phase:
❚ Poor communication around hand-offs (before and after)
❚ Undefined communication process between suppliers and clients

Close Out:
❚ No formal communication that project has been completed
❚ No process for communicating lessons learned and best practices

SERVICE PLAN

Technical aspects of a project are explicit deliverables—things like

reports, budgets, directories, and tangible products. Building a proj-
ect plan around these items and/or events is fairly straightforward
and familiar.
The implicit aspects of service performance—things like commu-
nication style, professionalism, managing expectations and percep-
tions—can be far more challenging to define and therefore incorporate
into a plan. This is a major reason why most project leaders and teams
never address the development of a service plan to complement the
project plan.
A service plan will give you a decided competitive advantage for
several reasons.
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❚ Service plans are not typical, and will therefore favorably dis-
tinguish your approach to managing projects.
❚ Service plans transform assumptions about relationships into
defined processes that can be discussed, practiced, and improved.
❚ Adherence to a service plan facilitates efficient execution of the
overall project plan, leading to customer perceptions exceeding
their expectations.
Some of the questions you can use to organize the development of
a workable service plan are:
❚ Which clients are the best candidates for a service plan?
❚ Clients that account for a large percent of your business
❚ Clients being served by two or more of your employees
❚ Prospects who view strong service plans as a competitive
necessity
❚ What tools will best support your efforts to serve your client?
❚ How far into the project cycle is the client?
❚ How many people are in the project client community?
❚ What media or communication style does the client prefer?
❚ How accurate can you be in defining client expectations?
❚ How focused can you be in probing client expectations and
preferences?
❚ How confident is the client that you will make good use of
the information he or she provides you?
You will be presented with an extensive outline for defining serv-
ice plans that will work for you and the questions you can use to
develop the plans later in the book.
Cambridge_book 4/4/01 12:34 PM Page 37

Chapter
Two

2
Relationship/ ❈
Project Initiation

❈ 37
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CLIENT RELATIONSHIP MANAGEMENT

PROCESS ELEMENTS

THE CLIENT
RELATIONSHIP

RELATIONSHIP/
PROJECT INITIATION

PLANNING

IMPLEMENTATION

CLOSE OUT

APPLICATION/
SERVICE PLAN
Cambridge_book 4/4/01 12:34 PM Page 39

WHAT? ✓ Relationship/Project Initiation ❈

WHY? ✓ To ensure that every project/relationship
begins with a clear understanding of
client expectations around service level
and interaction needs

HOW? ✓ Diagnose the need

✓ Define the solution
✓ Gain approval and support

KEY TOOLS ✓ Decision Matrix

❈
✓ Tips and Reminders
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CLIENT RELATIONSHIP
BUILDING QUESTIONS
❈
✓ What is the real need/problem/
opportunity?
✓ What are the service/relationship
requirements?
✓ What solution will work best?
✓ How will we get approval/support
needed to plan and implement the
solution?

ADDITIONAL
QUESTIONS
✓

❈ 40
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RELATIONSHIP
BUILDING TIPS
❈
AND REMINDERS
1. Schedule all key stakeholders for an individual interview
(in person if possible) before a solution is defined.
2. Learn all you can about your client’s cultural history, outlining
key events that led up to his or her present situation and needs.
3. Determine the client’s preferred form and style for proposals
(media, level of formality, level of detail, etc.) before
documenting the solution.
4. Differentiate stakeholders as decision makers, influencers,
and implementers and identify what each one expects from
the project.
5. Determine which decisions and approvals require consensus
and which do not.
6. Gain agreement from suppliers and clients on what will be
measured and the measurement tools to be used.
7. Define a solution that will meet the customer’s needs, then
plan to over-deliver by adding value.
8. Use clear benefits statements in addition to tangible
outcomes when defining the project solution.
9. Use terms and units of measure with which the client is
familiar.
10. Know (in advance) the specific criteria that will be used in
the approval process (by both decision makers and influencers),
a and address them in the definition.

❈ 41
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❈
REFERENCE MATERIAL
&
APPLICATION GUIDELINES

43
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❈ 44

“We shape our buildings. Thereafter, they shape us.”

—Winston Churchill
Think of the initiation of a project like pouring a foundation. It sets
firm boundaries on its form and can seriously limit both the type of
building you erect and the usefulness of it.
Remember, it is not just what you do but how you do it that leads
to unrivaled project success. HOW you initiate a relationship/proj-
ect sets a tone and a model for much of what follows, above and
beneath the ground floor. Not surprisingly, this is where the success
or failure of many projects is cast.

STAGES OF INITIATION

Your interaction with the client begins as soon as the client begins
to formulate an impression of your organization. This can be from
an initial conversation with a receptionist, reading an advertisement,
hearing word of mouth comments, or experiencing the first direct
contact with you. You may or may not have any control over the
client’s first impressions, but you need to be aware of them in order
to productively manage the initiation of your project.
If you can safely assume some interaction preceded your involvement:
❚ Find out as much as possible about the previous encounters (who,
what, when, where, and why).
❚ Determine what went well, and what didn’t.
❚ If you uncover any pre-existing problems, make every effort to
fix them without blaming or embarrassing anyone (you will be
a hero to all involved).
Regardless of whether you are attempting to initiate a new rela-
tionship or expand one that currently exists, three stages within ini-
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❈ 45

tiation always occur. There is no prescribed length for each stage, but
there is a set order. It is:
❚ Diagnosis
❚ Definition
❚ Approval
These stages apply to project work as well as to all types of supplier–
client interactions (including work with internal customers). Each
stage has relationship management implications that need to be
addressed.

Diagnosis
“Don’t ever take a fence down until you
know why it was put up.”
—G.K. Chesterton
If you are entering the project very early on, you will most likely
be involved with the diagnosis stage (i.e., figuring out what the prob-
lem, opportunity, or need actually is).
In the diagnosis stage, your goal is to determine why the current
situation exists, or metaphorically, why the fence was erected in the
first place. Invariably, this will require you to do some detective work,
digging into the background and historical data that will develop
into a clear picture of the events leading to the current situation. The
more intellectual and emotional awareness you acquire about the
client’s relevant history, the better prepared you will be to craft a cre-
ative and effective solution.
A significant associated benefit is the client’s increasing confidence
that:
❚ You appreciate their evolution in arriving at this juncture.
❚ You respect their past and present cultural trends and influences.
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❚ Your solution will reflect where they have been, and where they
want to go.
In this stage, you are seeking to understand:
❚ Why does something need to be done now? (or soon)
For example:
❚ Has there been an increase in new clients?
❚ Has there been an increase in client complaints?
❚ Does the business need to diversify?
❚ What events have led up to the current state of affairs?
For example:
❚ Has there been a merger or acquisition?
❚ Is new leadership setting new priorities?
❚ Have market fluctuations required internal reorganization?
❚ What relationships are affected (or were affected) by these events?
For example:
❚ Did relationships with existing customers change?
❚ Have internal relationships between departments gotten bet-
ter or worse?
❚ Have reporting relationships changed for a number of
employees?
❚ What previous solutions/alternatives have been attempted, and
what do the results of these attempts reveal?
For example:
❚ Can you draw from a repository of lessons learned or best
practices?
❚ Have there been training programs directed at the situation?
❚ Have prior projects attempted to solve the problem?
❚ Do different opinions exist as to the need, opportunity, or prob-
lem? (i.e., are there two or more “camps” with competing ideas
for solutions?)
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For example:
❚ Are there two or more executives proposing differing solu-
tions, or defining the situation in competing ways?
❚ Are there different solutions for domestic and international
interests?
❚ Are there “old school” and “new school” forces in opposition?
❚ Who are the stakeholders? (Identify stakeholders who “own” the
situation and those who can influence whether or not a solution
is pursued.)
For example:
❚ Who has the authority to interrupt or impede the project?
❚ Who will derive the most benefit from project success?
❚ What departments may not have an interest in the project but
may be impacted by it?
❚ What do key players believe to be the root cause of the problem?
For example:
❚ Will identifying the root cause have significant political fall-
out?
❚ Is the root cause strictly financial?
❚ Has the root cause been previously defined but ignored?
❚ How well has the alleged root cause been verified?
For example:
❚ Is the data describing the alleged cause current and relevant?
❚ Is the person or group who defined the cause unbiased and
properly trained?
❚ Have subject matter experts been called in to review the find-
ings and verify their accuracy?
❚ What relationships need to be carefully managed during the diag-
nosis stage?
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For example:
❚ Are there any key stakeholders who may resist offering infor-
mation important for accurate diagnosis?
❚ Will it be difficult to enlist the support of some key influence
stakeholders who don’t see the value of the project?
❚ Do you have access to key decision makers so you can deter-
mine how they will base their decisions?
Pursuing a solution or outcome without this vital information can
lead to disappointing outcomes or abject failure. Part of your role as
a relationship manager is to develop the client’s commitment to honor
best practices and lessons learned. This will impress the client with
the value of his or her own experience and history, and your value
as a facilitator of positive change. In particular, your interest in (and
understanding of) key relationships will let the client know you are
aware of the impact that these interactions may have on any new
solution.

Definition

Have you ever entered a theatrical performance after the begin-

ning of the second act? It can be challenging to catch up with the story
line and get involved with the characters and plot.
This is often the case with projects. Clients tend to engage the serv-
ices of project specialists once a problem or opportunity needs imme-
diate attention and the first act (diagnosis) is over.
Some common reasons leading to your entrance at the definition
stage are:
❚ The client has done a rudimentary diagnosis, but is not com-
mitted to the information or intends to use it in the definition of
the solution.
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❚ Time or budget constraints have forced the client to jump right

to the definition stage with no investment in diagnosing the
situation.
❚ Untested assumptions about their background/history lead the
client to believe he or she knows the cause and therefore skips
diagnosis.
All of these scenarios are less than ideal, and you will have to probe
and sift to compose the clearest possible definition of the need, prob-
lem, or opportunity. At a minimum, you should solicit answers to
the diagnostic questions, at least informally.
Even if your research falls short of giving you adequate informa-
tion for a good diagnosis, it will help you establish relationships with
key stakeholders and get the project off on the right foot.
If, however, the client resists spending any time on diagnosis, you
may need to abort any attempts to explore the past, and rely on your
judgment and intuition to get the most from the information you
have. It’s usually unwise, however, to put the project at risk in this
way before it actually begins.
No matter at which point you become engaged in the definition
stage, there is one key point to remember. The more accurate your
understanding of the solution (and its evolution), the more likely the
project outcomes will exceed the client’s expectations.
Most clients will request that you document or package your pro-
posed solution. This can be formal or informal.
Formal proposals usually require:
❚ A format specified by the client
❚ Submission requirements (number of copies, media, attachments,
etc.)
❚ A specific process for submitting changes or revisions
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Informal proposals can be:

❚ Written: letter, memo, or e-mail
❚ Prepared presentation
❚ Verbal “contract” in person or by phone (often followed by writ-
ten summary notes)
The opportunity to submit a proposal is also an opportunity to
develop the client relationship. Do your homework and find out as
much as you can regarding the client’s preferences in the items above,
and prepare your proposal as close to those specifications as you can.
This will demonstrate to the client that you are focused on his or her
needs and committed to outstanding service performance.
Regardless of the depth or complexity of the proposal, it should
include information gathered from the diagnosis stage, particularly
as it relates to identifying the root cause of the problem. In fact, your
proposal may actually help the client to rectify the root cause before
implementing a solution.
Understanding and managing stakeholder needs is a significant
part of relationship management. The definition stage is where rela-
tionship needs are interwoven with technical needs to craft a solu-
tion that can be embraced by the client.
Defining a solution requires answers to a few questions:
1. Who are the stakeholders? (Include those identified in diagno-
sis, and others as required due to the additional clarity of the def-
inition. Remember, stakeholders can be decision makers,
implementers, influencers, and those who are not involved but
are affected by the project.)
2. What are the needs of the stakeholders for involvement and
information?
3. Who will benefit from the need, opportunity, or problem being
addressed successfully?
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4. What would be an ideal outcome? (Where and when would it be

realized?)
5. What would be delivered to whom and when as a result of this
outcome being achieved?
6. Who will receive/use each deliverable?
7. Who would evaluate the success of this effort (i.e., which stake-
holders)?
8. What will the evaluation criteria be? (What measurement tools
or systems are currently in place?)
9. What boundaries/constraints must be respected during this effort?
10. What assumptions are being made about this situation and
solution?
Comprehensive, clear answers to these questions will greatly improve
your chances of exceeding your client’s expectations.
In summary, the successful solution will be a composite of the input
from the stakeholders, project clients, team members, and lessons
learned (history). The more represented these players are in the solu-
tion, the more likely the approval process will proceed unencum-
bered. Managing relationships among key players will facilitate
participation in the project and ownership of the outcomes.

Approval

A sound diagnosis and a comprehensive definition set the stage

for a smooth approval process.
In diagnosis, the key is careful research into the organization’s his-
tory. In definition, the key is a clear understanding of the client’s
needs and expectations.
In approval, the key is firmly based in managing relationships, and
in knowing the preferences and decision-making style of all the stake-
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52

holders (which you have identified in the process of defining the

solution).
In the process of establishing approval for the project, stakehold-
ers fall into two major categories: decision makers and influencers.

Decision Makers

These people are usually high profile on the project, and they are
consulted at all milestones and other junctures where “go/no go”
decisions are made. They can be:
❚ The Project Leader
❚ The Project Client
❚ The Sponsor (providing funding, approval, or support for the
project)
❚ Miscellaneous committees, boards, or managers who have a
stake in the project’s success

Influencers

While decision makers are fairly easy to identify, influencers may

be obvious OR transparent in the project planning process.
Obvious influencers are the people who will use the project out-
come(s) and/or those whose individual or department functions will
be impacted by the project. These influencers tend to be well inte-
grated in the project and part of the unfolding process. Though they
may not make decisions, they are constantly using their authority to
influence them.
Transparent influencers can be senior managers, longtime “vets”
in the organization, and other core players whose position or history
give them significant power over the company’s culture. The influ-
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❈ 53

ence these folks exert is not documented or directed at specific deci-

sion points. Its impact is both subtle and substantial as it shapes the
way things happen more so than specifically what happens. You may
not be able to pinpoint the source of their brand of influence, but you
will certainly feel the impact.
The key then, to a smooth approval process, is to understand
the needs, preferences, and expectations of as many stakeholders
as possible. The better your understanding, the better your ability
to manage the relationships.
Keep in mind that the relationships you have with your approval
stakeholders can be multifaceted, and perhaps fluctuating. You
may functionally report to a decision-making stakeholder as well
as serve his or her needs relative to the project. Your relationships
with influencers may vacillate from supplier to client and back
again, depending on the stage of the project. The most important
success factor is to keep these people involved by providing them
with the information they want, when they want it, and how they
want it delivered.

DECISION MATRIX

What: DECISION MATRIX

Why: To ensure that the needs of key stakeholders are
considered when recommending solutions
How: 1. Identify goal and timing of decision.
2. Identify stakeholders.
3. Identify needs of each stakeholder relative to
the decision.
4. Identify current position on the issue for each
stakeholder.

❈
Where: Blank template on page 61
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The Decision Matrix is designed to help you quickly identify the

preferences and priorities of the stakeholders who will influence and/or
make the decision to proceed. Use it to organize and communicate
your understanding of each stakeholder’s needs and expectations.
The process of gathering this information from stakeholders will
position you for a one-on-one interview in most cases. Whether by
phone or in person, this is a golden opportunity to develop your rela-
tionship with stakeholders. Establish yourself as their advocate, rep-
resenting their needs and expectations in the process. Be sincere and
authentic. Create a rapport based on openness and candor. Initial
steps taken now to earn the stakeholders’ confidence will go a long
way as the project unfolds.
The Decision Matrix SHOULD be completed prior to defining a
solution. It MUST be completed prior to soliciting approval.
The Decision Matrix will help you focus on some pivotal questions
related to approval of your solution:
1. What is the goal of the approval decision?
2. When does the decision need to be made?
3. Who are the decision makers?
4. Who are the influencers (both obvious and transparent)?
5. What criteria will be used to make the decision?
6. What is the current position of each of these stakeholders regard-
ing the situation and/or the proposed solution?
If you answered these questions during the definition stage (along
with the ten questions presented in the definition section above), you
will have crafted a solution that completely addresses your client’s
needs. You have also set the stage for a smooth and uneventful
approval.
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If you answer these questions while seeking approval, you will suc-
cessfully move the process along (best case). At the very least, you
will discover any barriers or impediments to a smooth approval
process.
Another important strategy for obtaining a fast approval is to
respond quickly and completely to questions that were raised by your
proposal as well as any other questions posed by stakeholders dur-
ing the diagnosis and definition stages. Answer these questions
promptly, preferably in writing, and with the appropriate level of
detail for both decision makers and influencers. Remember that your
relationship with the stakeholders at this juncture is defined by your
awareness of and responsiveness to their information needs. Deliver
a complete reply, on time, and in the preferred media and your chances
for approval are greatly enhanced.
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56

FIVE MAJOR INTERACTION-BASED CAUSES OF

PROJECT FAILURE
Number One: Unclear Definition

There are several schools of thought among project profession-

als on what the phrase “initial project definition” means. Everyone
agrees that the project outcome and deliverables must be defined,
as a minimum. Some feel it is important to define the delivery sched-
ule and an estimated budget before approval is sought. Others go
the distance and outline a comprehensive plan, in addition to budg-
ets and outcomes, before deciding a “go or no go” decision can be
reached.
Your ability to develop a good relationship with your client dur-
ing early discussions and through the diagnosis stage will determine
how much influence you will have in recommending the depth of
information required during definition. If you have used the diag-
nosis stage to establish yourself and the team as technical experts
and top service performers, your client may simply require a clear
definition of the solution to proceed. If your rapport with the client
is shallow and he or she has not developed confidence in your team,
he or she may require a lot more upfront information.
The more information you must compile before approval, the more
resources you may be wasting. A tight, clear, accurate definition of
the best solution for the client, based on a well-researched diagno-
sis, should be an adequate basis for approval of the project. It should
also be enough information to make an expeditious decision to pull
the plug on an ill-conceived project before the use of people and
resources start running up costs.
If you have established a good relationship in the diagnosis stage,
the definition stage offers an excellent opportunity to solidify it. Your
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❈ 57

proposal of a tight and focused definition should convey to the

client that you are interested in meeting his or her exact needs and
minimizing waste. On the contrary, unclear definition of the solu-
tion can lead to missed deadlines, budget overruns, stakeholder
resistance, and a number of other problems, each leading to cus-
tomer dissatisfaction.
In addition to being a pivotal element of project success, a clear
definition can set a valuable precedent on how the client relation-
ship will be managed and the project will be conducted. If the defi-
nition is hurried, poorly worded, or otherwise misses the mark, the
technical and service performance on subsequent tasks may reflect
this initial weak execution.

Typical Causes of Unclear Definitions

❚ The client is not clear on what his or her real need actually is (a
solid diagnosis could be instrumental in clearing this up).
For example, you are called in to stop a slide in profit margins
for a manufacturer of resin-based patio furniture. The manage-
ment feels a switch to more contemporary designs is the solu-
tion. What they haven’t explored are solutions for the real need:
to stop eroding profits. Are raw material costs too high—should
they switch suppliers? Are inventories too large, adding to over-
head? Are transportation costs eating into margins at an inflated
rate? In other words, their need may have a much simpler solu-
tion than redesigning their entire line.
❚ The client is not willing to take the time to describe the situation
(he or she may take the stance that your job as solution provider
is to discover his or her needs without his or her participation).
For example, you are reputed to be the best ad campaign con-
sultant in the East. An importing firm calls you in to replicate
their success in England with a line of tea biscuits, in New England.
They have no interest in retracing their steps or giving you time
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to diagnose the situation. Your expertise is what they are buying

and they expect to move forward quickly. Do you think a suc-
cessful campaign can be launched without the benefit of a well-
defined solution?
❚ You and/or the client assume that the solution is clear and
understood.
For example, you are a trade show planner for a software trade
show that takes place every year in a major convention hall down-
town. The past two years have seen reduced booth reservations
through the fall, until you announce a price reduction and free
amenities. This year the shortfall in reservations is the largest
ever. You and the client feel it simply requires deeper discounts
and better giveaways—the same as every other year. What you
and the client have overlooked are an increase in similar shows
in the area, the increase in e-buying for software, and the fact
that fuel, lodging, and parking prices have doubled in the last
five years. Will discounts be the solution?
❚ The client is uncomfortable disclosing all the details for fear of
breeching confidentiality barriers.
For example, you are put in charge of implementing a complete
backroom payroll administration system for a successful pri-
vately held construction company. The CFO of the company
refuses to release records on compensation history or current
packages for principles and Board members. Without this infor-
mation you cannot fully define the best accounting practices for
the client, but he or she insists the project move forward any-
way. Can you define a complete solution for the client?

Preventive Strategies
❚ Use an informal event to initiate the diagnosis and definition
stages (e.g., lunch, dinner, etc.). This may help the client to feel
more comfortable about discussing the issues in question.
❚ Discuss protocol around confidentiality. Agree to sign non-
disclosure statements to make the client comfortable.
❚ Apply active listening techniques to acquire information.
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❚ Discuss how you can access other resources in the client

organization.
❚ Develop the client’s confidence that your methodology assures
their satisfaction by proactively addressing issues that may neg-
atively impact the project.
❚ Describe your approach for testing assumptions.
❚ Explain the benefits of risk management.
❚ Schedule a meeting to close out the diagnosis stage (including
incorporation of stakeholder comments), and dedicate a segment
of the meeting to confirm the needs of the client prior to initiat-
ing the definition stage.
❚ Use the First Law of Service to assess the client’s satisfaction
with the diagnosis.
❚ Seek input and clarification on the needs you have docu-
mented from all stakeholders.
❚ Explore the client’s preferences around proposal scope and
sequence for presentation of the definition.
❚ Challenge the assumptions that you and/or the client have regard-
ing the definition of the solution (see Untested Assumptions in
Chapter 5).
❚ Seek agreement on the scope and depth of the definition.
❚ Probe for any insecurity on the client’s behalf regarding com-
petence of team members.
❚ Present a list of assumptions you have made regarding the
client’s expectations, ability to secure necessary resources,
time available, etc.

Contingent Strategies
❚ If the client is nonparticipatory, establish a process for the
client to accept and approve (sign-off on) the definition
that you have developed with the information you could
gather. Include a detailed list of all questions and untested
assumptions.
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❚ Submit a clear and comprehensive proposal for the defini-

tion. This will facilitate approval as well as serve as a foun-
dation document should subsequent disagreements or
challenges to the definition materialize.
❚ Complete a Decision Matrix. It’ll be very useful if any disputes
or misunderstandings develop around the definition.
Due diligence pays off. Doing the homework required to produce
an accurate diagnosis dovetails with the preparation of a clear and
comprehensive definition of the best solution for the client. And remem-
ber, your homework is not limited to data gathering and technical
research. You must be constantly promoting close communication,
building confidence, and establishing a relationship based on team-
work and mutual support. The best evidence of great service per-
formance at this juncture is accurate reflection of the client’s needs in
preparation of the clearest, most comprehensive definition possible.
 Cambridge_book
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DECISION MATRIX
12:34 PM

Decision Goal: ❚ Decision Timing:_____________________________________________________________________

❚ Is there a date by which this decision
must be made?_______________________________________________________________________
❚ If so, what happens after that date?________________________________________
Page 61

❚ If no, what time frame is realistic?__________________________________________

Decision Makers/ Decision Criteria/Constraints Current Position/Opinion
Key Influencer(s) (Go/No Go Factors)
for each individual/group
61
❈
RELATIONSHIP/PROJECT INITIATION
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Chapter
Three

3
Planning ❈
❈ 63
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CLIENT RELATIONSHIP MANAGEMENT

PROCESS ELEMENTS

THE CLIENT
RELATIONSHIP

RELATIONSHIP/
PROJECT INITIATION

PLANNING

IMPLEMENTATION

CLOSE OUT

APPLICATION/
SERVICE PLAN
Cambridge_book 4/4/01 12:34 PM Page 65

WHAT? ✓ Planning ❈
WHY? ✓ To build a workable plan that results
in maximum involvement and buy-in

HOW? ✓ Complete Stakeholder Analysis

✓ Develop stakeholder buy-in for the
solution
✓ Build the plan

KEY TOOLS ✓ Stakeholder Solution Assessment

✓ Stakeholder Issue Resolution
✓ Stakeholder Presentation Guide
✓ Commitment Summary/Action Item List

❈
✓ Tips and Reminders
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CLIENT RELATIONSHIP
❈
BUILDING QUESTIONS
✓ Who must buy-in to the solution?
✓ What is their assessment of the
solution?
✓ How can we get them to support the
solution?
✓ What needs to happen in order to
implement the solution?

ADDITIONAL
QUESTIONS
✓

❈ 66
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RELATIONSHIP
BUILDING TIPS
AND REMINDERS
❈
1. Make sure all stakeholders agree on the planning process,
have input (or defer their participation), and take ownership
in the plan.
2. Set aside time early in the planning process to develop a risk
management plan with the client, including preventive and
contingent actions.
3. Provide each team member and customer with a folder of
background information about the project and team members.
4. Consider potential “people problems” as well as project
problems.
5. Elicit input and ideas from decision makers before committing
to a plan, and schedule their time (well in advance) to review
it once it’s done.
6. Always acknowledge requests, questions, or suggestions by
stakeholders, and commit to a time when you will respond to
or incorporate them in the plan.
7. Allow time in a schedule for client review, sign-offs, holidays,
and personal time.
8. Clarify why everyone on the team was selected, including his or
her role, and ability to bring added value to the project.
9. Learn all relevant client acronyms associated with the project,
and explain all planning terms and budgeting calculations
before delivering planning documents.
10. Ensure the client is clear on his or her deadlines and handoffs,
and knows the liabilities associated with missing them.

❈ 67
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❈
REFERENCE MATERIAL
&
APPLICATION GUIDELINES

69
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❈70

NOW WHAT?
“The problem with Heaven is what
you have to do to get there.”
—Unknown
This chapter is not about project planning. It’s about making proj-
ect planning successful.
You may also have heard the phrase “It is much easier to do than
it is to plan to do.” Our jobs and lives are so full that we feel com-
pelled to keep accomplishing and just can’t find the time to think
ahead and get organized. We get caught reacting to fires rather than
proactively installing the sprinklers. In projects, it isn’t just impor-
tant to create a solid plan, it is imperative.
By now you have:
❚ Diagnosed the current situation
❚ Defined the best solution for your client
❚ Received approval from key stakeholders
Now it’s time to turn your attention to designing a workable, attain-
able implementation plan. A little forethought and planning will go
a long way to avoid the pitfalls that accompany a “ready-fire-aim”
approach to implementation.
The actual planning process is really quite straightforward. It sim-
ply describes the following considerations:
❚ What actions need to occur?
❚ When will each action be started/completed?
❚ Who will be responsible for each action?
❚ How much will it all cost?
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PLANNING

❈ 71

Everyone On-Board

The real challenge in defining and holding to a plan is “keeping

all the bayonets pointed outside the fort” during the process. Since
most project teams are cross-functional in their membership make-
up, there may be as many planning models in the team as there are
members. For instance, Information Technology people may be famil-
iar with a planning model driven by a sophisticated software pro-
gram, whereas marketing people are more comfortable with hard
copy calendars and spreadsheet forecasts.
The nature of an interdisciplinary team of people with diverse skills
and interests presents you with a unique challenge as a relationship
manager. This is the “formation stage” of team performance, and you
must be prepared to hear all the input, involve all the players, and
facilitate agreement on a planning process.
Pursue these steps with your team and the client:
❚ Agree that planning is key to project success
❚ Commit to a single planning model that everyone can use
❚ Apply the model consistently throughout the project life cycle
Below are five phrases which could define project outcomes in just
about any organization. Experience with numerous project teams
combined with survey input from hundreds of project professionals

Project Success Continuum

Shared Ownership Disconnected Team

High profile
Partial Project Project is
Successful, project failure
delivery of dies sabotaged by
on-time due to impact
project on the unhappy
implementation of unforeseen
solution vine stakeholders
risks
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❈
72

suggest that the most influential factor affecting project success is

shared ownership of the plan and teamwork to implement it.
Bottom line—your role is to pull the project off—on time, under
budget, and exceeding client expectations. This can only be accom-
plished by carefully managing relationships, in the team and among
the stakeholders, while keeping the project on track and up to speed.

RELATIONSHIP PLANNING

Don’t waste time constructing a plan until you have thoroughly

explored the needs and expectations of your stakeholders. We have
emphasized the value of managing relationships with your stake-
holders in previous stages, but it is even more critical here. If an
important stakeholder hears about your project from anyone other
than you, or at any time after planning has begun, you have one strike
against you.
If a key stakeholder is taken by surprise, gets angry, or perhaps
worst case, feels embarrassed by being out of the loop, the relation-
ship that will be tested is with you. It is a test you don’t want to take.
When the plan takes shape, it will include firm requirements for
people and resources. This requires a budget, and that leads to spend-
ing. And when money starts getting spent, stakeholders pay close
attention.
To remain on-board with you, they will need information in
advance. Managing stakeholder information needs is a critical part
of relationship management.
Some stakeholders are part of the core team and participate in every
step of the planning process. Other stakeholders function on the proj-
ect perimeter, and have roles as decision makers or influencers.
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Regardless of their level of relationship to the planning process, all

stakeholders must be consulted before the planning process begins.

STAKEHOLDER ANALYSIS

The rule rather than the exception is that some stakeholders will
love the solution you have defined while others will find it unac-
ceptable, unworkable, or simply ludicrous. Many projects have been
scrubbed because a high influence stakeholder did not have a rela-
tionship with a project leader and felt they weren’t given adequate
opportunity for input in the planning process.
To find some balance or common ground, use the Stakeholder
Analysis, which consists of two parts:
1. Stakeholder Solution Assessment (SSA): designed to identify
what stakeholders do/do not like about the proposed solution.
2. Stakeholder Issue Resolution (SIR): designed to manage con-
cerns about the solution voiced by stakeholders.
A good idea that never gets implemented is no better than a bad
idea. When good ideas are implemented, the team wins, the organi-
zation wins, and the customer wins.
Good ideas emerge from open discussion and debate between sup-
pliers and clients in stable, productive relationships. The SSA
(Stakeholder Solution Assessment) and SIR (Stakeholder Issue
Resolution) will facilitate this process.
These steps will lead you through a successful Stakeholder Analysis:
❚ Identify all key stakeholders.
❚ Conduct a Stakeholder Solution Assessment to surface concerns.
❚ Address concerns through Stakeholder Issue Resolution.
❚ Present to key stakeholders, seeking:
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❚ Acceptance, then
❚ Support, and finally
❚ Approval
The objective of the Stakeholder Analysis is to promote a high level
of acceptance of the team’s solution. By doing so, the probability of
successful implementation is taken to a new level.

Identifying Key Stakeholders

To implement a solution, it must be supported by the right people.

You must develop strong and functional relationships with every-
one who will approve, implement, be affected by, or simply support
the solution.
The people whose support is needed are:
❚ Those who must formally approve the solution
❚ Those who must implement the solution
❚ Those who must live with the solution
❚ Those who must informally support the solution

Those who must formally approve the solution. This might be

one person or a small group. Typically it is the person who has the
final say. Budget and other resources may be involved. It then may
be the person(s) with expenditure authority. Without formal approval,
everything comes to a halt.
Those who must implement the solution. The people who must
implement the solution must support it. Some of these people may
be members of the team. It depends on the nature of the idea being
proposed. There may be a number of people involved. For example,
the team may have representatives from production, maintenance,
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engineering, or scheduling. Their solution may include changing the

documentation for reporting on production output or machine uptime.
The solution may involve others from these departments. It may also
involve accounting, purchasing, and shipping.
It may not be practical to get the support of everyone included.
However, identifying key stakeholders is critical. Key stakeholders
are formal or informal leaders in groups or departments responsible
for implementation of the solution.
Without support of key stakeholders, problems will arise. The end
result may be failed implementation. Also, there may be a percep-
tion that the team came up with a bad idea.
Those who must live with the solution. The people directly affected
by the solution are often those who implement it. However, they may
be a different group altogether. For example, a team proposes a new
office layout. The team will also be involved with implementation.
Programmers, engineers, and others who work in the office will live
with the new layout. They will not be actively involved in imple-
menting change. Their support is important, however. Without it,
failure is likely.
This group may not appear to have clout. However, they represent
an internal customer. As such, their needs should be given strong
consideration. This is most important when the focus of the effort is
the external customer. It is the efforts of satisfied internal customers
that make external customer satisfaction possible.
Those who must informally support the solution. This group fits
none of the previous categories. However, they are still important to
success. They are often referred to as “champions” or “advocates.”
They command respect within the organization. Therefore, their sup-
port is extremely valuable.
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This group may include top managers with little or no involve-

ment with the implementation. Or, they may be very much part of
the solution. In either case, they have clear influence with people in
the previous categories. In particular, they have influence with those
whose approval is needed.
For differing reasons, these people must support the solution. Their
support is necessary for successful implementation. Identifying them
is crucial to identifying key stakeholders.

The Role of Influence

Projects do not run in a vacuum. In addition to the impact the proj-

ect has on the people who are responsible for conducting it, every
project affects other individuals, groups, and even other projects.
This means that a lot of people in the organization will take an inter-
est in your project, for a wide variety of reasons. And where there is
interest, there is also influence.
Webster defines influence very simply: “the power to affect oth-
ers.” Your challenge is to identify the source of the power, and the
intent of the change, in order to secure the success of your project.
The best, and perhaps only, way to do this is to develop good work-
ing relationships with all project stakeholders. (The two sections that
follow describe tools to assist in the process of documenting and deal-
ing with stakeholder concerns).
First let’s consider where influencers get their power. These four
categories are not exhaustive, but cover the most common situations.
1. Position: Department Heads, Plant Managers, Account
Representatives, etc., can wield significant influence through the
power vested in their position. Influential moves by these peo-
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ple will most likely come “through channels”, i.e., visible and
documented efforts to change the project.
2. Competence: Every project has its complement of subject mat-
ter experts. These people exert influence through advice and/or
criticism. Their efforts can be upfront and formal (e.g., reports
at project review meetings) or subtle (side conversations to influ-
ence team members).
3. Affiliation: Every organization has its share of unofficial groups
and cliques. Individuals who have participated on previous high
profile projects, been successful in winning large accounts, or
are on the “fast track” may have the right affiliation to impact
change in your project. They are most effective influencing other
people who would like to join their club.
4. Politics: You can name at least a half dozen people (managers as
well as individual contributors) who are “connected.” These peo-
ple have the ear of key decision makers and can exercise signif-
icant influence without ever speaking to you.
You cannot change the source of anyone’s ability to influence or
their intent to exercise that influence. What you can do is influence
the influence. You do this by learning their interests and needs sur-
rounding your project, surfacing any dislikes or concerns, and using
the four dimensions of relationship management to dissipate any
negative consequences their influence may create.
One last point—influence is not always negative or destructive.
Developing close relationships with stakeholders will also reveal
your supporters and advocates. The better you are at positioning
your project for meeting the needs of these important people, the
more you will enjoy their benevolent influence.
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STAKEHOLDER SOLUTION ASSESSMENT (SSA)

What: STAKEHOLDER SOLUTION ASSESSMENT

Why: To identify those who must support or approve
your solution if it is to be successful
How: 1. Describe solution at top.
2. Identify all stakeholders who must support or
approve the idea if it is to be successful.
3. Categorize each based on their role in the
solution.
4. Briefly describe what each will like and/or dis-
like about the solution.

❈
Where: Blank template on page 96

The Stakeholder Solution Assessment identifies people who must

support the solution. It also identifies the parts of the solution that
they may like or dislike.
Be receptive to suggestions and open to change during SSA inter-
views. This will strengthen your relationships with stakeholders and
confirm that their needs and issues are driving the solution forward.
This information is used later for presentation development. It may
also result in minor changes to the solution.
As you gather feedback from stakeholders for the SSA, remain neu-
tral and receptive. Stakeholders may be looking for your agreement
as they define their dislikes for the solution. You will best serve your
role as relationship manager if you openly receive their concerns,
acknowledge their validity, and confirm your understanding of the
issue. Don’t take sides. You need to fill the role of the neutral arbi-
trator in order to maintain viable relationships with all parties. In
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addition, being sensitive to the ways stakeholders may attempt to

exude influence (refer to the previous section) will go a long way
towards understanding their needs and issues.

Generating a Stakeholder Solution Assessment

1. The team uses the worksheet at the end of this chapter. With it
they identify people who fall into each of the key stakeholder cat-
egories. Each is categorized by placing a check in the appropri-
ate column next to his or her name. In some cases, an entire group
or department may be on the list. Do this only when it is likely
that the entire group or department may have the same concerns.
2. For each key stakeholder, briefly describe (using key words) what
the team believes she or he may like or dislike about the solu-
tion. This data is later summarized for use in presentations to
key stakeholders.

STAKEHOLDER ISSUE RESOLUTION (SIR)

What: STAKEHOLDER ISSUE RESOLUTION

Why: To determine how the dislikes of each key stake-
holder can best be addressed
How: 1. Using the SIR worksheet, describe the solution
at the top.
2. Rate each dislike on the SSR on a scale of 1
(low) to 3 (high).
3. Enter the most important dislikes onto the SIR
worksheet.
4. Determine how each liability or dislike can be
removed or managed.

❈
Where: Blank template on page 97
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At this stage, key stakeholders have been identified. Their likes

and dislikes regarding the solution range from inconsequential to
important. Their favorable views may be used in a presentation. The
key stakeholder presentation will be described later in this section.
but it is their dislikes that we focus on now.
Since the SIR is a tool for surfacing stakeholder dislikes, it can also
expose criticisms, differences of opinion, disappointments, and con-
flicts. As you can imagine, the stage is set for emotions to peak and
interpersonal disagreements to surface. Your role as a relationship
manager is to maintain an atmosphere of neutrality and common
purpose, keeping all eyes focused on the flag of customer satisfac-
tion. Your goal is not to avoid conflict, but to handle it objectively
and constructively.
A few tips to keep the process on track and under control:
❚ Minimize use of derogatory terms in favor of constructive sug-
gestions.
❚ Delineate between ideas and their contributors.
❚ Attempt to minimize the use of dislikes or concerns as a means
to influence project outcomes for political or personal gain (see
pages 76 and 77).
❚ Don’t allow past conflicts to creep into the discussion. Remain
in the present.
❚ Help people listen by paraphrasing points, requesting clarity, or
asking individuals to confirm their understanding.
❚ If a serious conflict arises, ask if it can be tabled for the time being
and addressed later.
❚ Any suggestions that address individual needs and do not con-
tribute to the solution must be challenged.
❚ Remain receptive but analytical. Don’t take sides or show bias.
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And remember, as you deal with the concerns of key stakeholders,

you are demonstrating your respect for their involvement in the proj-
ect. Stakeholders will be paying close attention to the weight their
views have in the issue resolution process, and this is a chance for
you to affirm your relationship as their advocate and representative.

Using the Stakeholder Issue Resolution Worksheet

The team reviews the SSA. Each dislike should be rated on the fol-
lowing scale of importance:
3—High: Dislikes which, if not removed or managed, make
implementation of the solution impossible.
2—Moderate: If these dislikes are not removed or managed, the
solution may be significantly compromised.
1—Low: These dislikes have limited effect on implemen-
tation.
In most cases, the importance assigned an item is dictated by an
individual’s position. Other factors that affect the importance rating
include the number who share the view. Cost or scheduling issues
that impact product and service quality are also factors to consider.
The team should list the most important items on the SIR work-
sheet. For each item listed, the team identifies ways to manage or
remove the dislike. Removing a dislike means that the item is actu-
ally removed from the solution. For example, the people responsible
for a solution object to working overtime. The team looks for a way
to remove overtime as a part of the solution.
Managing a dislike means that it cannot be removed. However, its
effects can be managed. By managing it, the solution can still be imple-
mented. Using the previous example, if overtime is necessary for the
success of the solution mentioned above, the team proposes ways to
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manage the situation. Those working overtime may be given bonus

pay, recognition, flexible scheduling, or compensation time.

PRESENTATION TO KEY STAKEHOLDERS

A Tool for Winning Approval and Support

What: STAKEHOLDER PRESENTATION GUIDE

Why: To let all key stakeholders know about your solu-
tion and get their support and approval
How: 1. Analyze the audience.
2. Brainstorm key points using the Stakeholder
Presentation Guide worksheet.
3. Outline the presentation.
4. Make necessary assignments and prepare
materials.
5. Dry run the presentation.
6. Ensure all details are covered for presentation.

❈
Where: Blank template on page 98

In most cases, you must obtain approval for solutions. The key
stakeholder presentation is one method for obtaining approval and
an important tool for gaining the support of key stakeholders. The
presentation provides for face-to-face interaction in which the ele-
ments of the problem and solution are presented. These elements
include the:
❚ Problem
❚ Proposed solutions
❚ Constraints
❚ Resources needed
❚ Benefits
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The presentation situation is also a way to recognize the team’s

efforts. You can use the presentation podium to highlight excellence
in technical performance as well as outstanding service performance.
It can be a subtle but powerful medium to underline the value of
good working relationships and their contribution to attaining the
solution.
By completing the preparation steps shown before, you will greatly
enhance the likelihood of strong buy-in.

Preparing for a Presentation

Preparing for a presentation requires six key steps. The presenta-

tion worksheet at the end of this chapter is a checklist to use when
preparing a presentation. The team should consider various alter-
natives for each part of the presentation. Graphs, charts, and tables
are useful tools for presenting information.
1. Analyze the audience.
Determine who will be involved in the presentation. Next, ana-
lyze audience needs, concerns, goals, biases, and possible objec-
tions. The team identifies how to appeal to the audience.
2. Brainstorm key points.
Identify key points to be covered in the presentation. Don’t worry
about the order at this stage. Just get the ideas out.
3. Prepare an outline.
Using the Stakeholder Presentation worksheet, organize the
team’s ideas into a logical sequence. Decide which data best
describes the problem and solution.
4. Make the necessary assignments.
Determine what charts, visuals, and samples are needed. Assign
responsibility for obtaining them. Also, determine who will
make each part of the presentation. Make presentations a team
activity.
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5. Dry run the presentation.

Practice makes perfect. This is especially true in key stakeholder
presentations. Focus on the introduction, the use of persuasive
data, the benefits, and the conclusion.
6. Ensure all details are covered for presentation.
Review all assignments to assure clarity and make certain all
aspects are prepared.

SUMMARIZING COMMITMENT AND ACTION ITEMS

What: COMMITMENT SUMMARY/ACTION ITEM LIST

Why: To summarize actions needed to maximize
commitment for your solution
How: 1. Identify the commitment offered by each key
stakeholder using a scale of 5 (high) to 1 (low).
2. Identify the actions required to maximize
commitment of key stakeholders.

❈
Where: Blank template on page 99

The purpose of the key stakeholder presentation is to confirm

acceptance, gain support, and secure approval for a solution. The
presentation is incomplete until this is accomplished.
Your role as relationship manager throughout the stakeholder
analysis process has included interviewing stakeholders and incor-
porating their concerns in the final solution. This process helps to
assure that all stakeholders accept the solution even before the pres-
entation begins.
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In most cases, the presentation attendees will also support the solu-
tion, to some degree. To get full support, some form of action may
need to be taken. Providing additional data, modifying the solu-
tion, or obtaining additional approval may be necessary. It is impor-
tant that any necessary actions be agreed to before the end of the
meeting.
The Commitment Summary and Action Item List is a convenient
tool for summarizing the commitment of each attendee. It can be
completed by the team as a whole. The main presenter acts as the
facilitator of this activity.
Each key stakeholder at the meeting is asked for a candid assess-
ment of his or her support for the solution. This is identified as being
(5) high, (3) moderate, or (1) low. Ratings of 2 and 4 can be used to
indicate intermediate levels of support.
If a rating other than 5 is given by a key stakeholder, they may have
some reservations or concerns. In most cases, these concerns can be
managed. In such cases, the individual should be asked, “What needs
to be done to move your support up to a ‘5’?” These actions should
be noted on the action item list. For each action listed, a completion
date and responsible party should also be agreed to and entered. Also
entered on the action list are the initials of the person(s) for whom
the action is being taken. This is to increase their commitment and
support and to draw attention to the interdependent relationship the
two parties are depending on.
In some cases, the action suggested may not be appropriate or real-
istic. It may be necessary to negotiate an acceptable action to gener-
ate the necessary support without compromising the solution.
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PUTTING THE PLAN TOGETHER

Good planning contributes to sound relationships, and sound rela-

tionships contribute to good planning.
With the Stakeholder Analysis complete, you have accomplished
these important objectives:
❚ You have a good idea how to meet the needs of all your key play-
ers as you develop the plan.
❚ Where differences of opinion exist, you have a process to resolve
them.
❚ You have established a communication process with all the stake-
holders, a vital element in managing relationships and develop-
ing a sense of ownership in this group.
The plan itself can be simple or complex, depending on the nature
of the solution.
In its simplest form, a plan will answer these basic questions:
1. What actions need to occur?
2. When will each action be started/completed?
3. Who will be responsible for each action?
4. How much will it all cost?
Have you ever spent hours working on a plan (e.g., business plan
or household budget) and once the plan is complete, it ends up in a
drawer somewhere never to be referred to again? People often go
through the motions of preparing a plan, never committing to use it
as their guide and monitoring system. If this happens in a project,
chances of success drop dramatically. In order for a plan to be use-
ful to the team it must be realistic and workable. This depends on a
few factors:
❚ Having the right people (i.e., stakeholders) involved from the
beginning
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❚ Matching the experience of the people doing the planning with

the requirements of the solution
❚ Reserving enough time to do the planning properly
Preparation of the Stakeholder Analysis included your commit-
ment to involve everyone in the planning process. Now it is impor-
tant to keep that commitment and get stakeholders to take part.

Getting Stakeholders Involved

Your relationships with stakeholders prior to the planning process

have been based on information exchange and some negotiation to
arrive at a solution. Now the relationships shift slightly to require
creative contributions and commitments to the plan. Our vision
turns from the present situation to execution of future actions and
strategies.
All stakeholders can contribute to the planning process in one or
more of the following ways:
Suggesting ideas for the plan: Seek the ideas of those who are not
able to (or desire not to) be involved in the ongoing planning process
before you begin planning for implementation. Make sure they
have confidence their input will be considered and they are not
being paid lip service.
Working on the actual plan: This is the best way to secure com-
mitment and develop a sense of ownership. Get those that have
the time, interest, and ability involved and keep them engaged.
Reviewing/revising the plan: All those who make suggestions for
the plan should be asked to review and suggest revisions for the
document. It is always preferable to have people suggest ideas for
and/or work on the plan as a condition for reviewing it. This min-
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imizes the likelihood that stakeholders will enter the process after
implementation has begun and demand wholesale (perhaps even
arbitrary) changes to the plan.
Approving the plan: One of the most valuable outcomes of the
Stakeholder Analysis is engaging decision makers (especially those
with approval authority) early in the planning process. The more
ideas and suggestions you can elicit from these people prior to
development of the plan, the more likely you are to develop good
relationships and secure their approval once a plan is documented.

Making the Plan Realistic: Task Estimating

Now comes the challenging part. Figuring out how long it will
actually take to get everything done. There are a few things you can
do to make task estimating easier and more accurate. Ask questions
about the task before giving an estimate of time involved.
Some questions to ask are:
1. Is the task expected by a certain date?
2. What do I need to complete this task?
3. Where do I get the input I need?
4. What am I expected to produce as a result of completing this
task?
5. Who receives the output from my task?
6. What are the requirements for the output(s)?
7. What other tasks are dependent on my task completion?
8. Is there any slack time surrounding my task?
By asking these questions of the appropriate stakeholders, you will
demonstrate your commitment to a successful outcome along with
strong communication and positive relationships.
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Once you understand the nature of the deadlines and dates sur-
rounding your task, you are ready to estimate. Use the estimating
guidelines and methods described here that make sense for your sit-
uation.

Estimating Methods and Guidelines

❚ If you are not familiar, ask people who actually do the work or
have done the work, for input.
❚ Get an objective, expert opinion (from someone who is not work-
ing on the project).
❚ Find a similar task in a completed project plan to see how long
it took to complete.
❚ Allow additional time for tasks:
❚ being done for the first time
❚ that require support from outside the project team or company
❚ that have caused delays or problems in the past
❚ in which the inputs or outputs are unclear
❚ involving groups of people working together for the first time
❚ in which the people responsible or doing the work are sepa-
rated by time and distance
❚ Make your best educated guess. Incorporate estimating methods:
❚ Approximation or “Rule of Thumb” uses past or others’ expe-
rience to come close to the actual or exact task duration.
❚ Definitive estimating is based on well-documented data about
types of work and may involve input from suppliers, sub-
contractors, or even estimating guides or manuals.
❚ Best case/Worst case estimating is a technique used in the
PERT project planning method which factors both optimistic
and pessimistic estimates into a realistic estimate.
❚ When possible, have the estimate reviewed by a second, expe-
rienced person.
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Pulling It Together

In summary, to create an environment in which planning will be

effective and enjoyable:
❚ Make sure everyone shares a commitment to develop and use a
plan.
❚ Select a planning model that everyone has confidence in, and
will use.
❚ Survey all stakeholders in advance of the planning process for
ideas, concerns, and to learn their ongoing level of involvement.
❚ Line up the right people whose experience coincides with the
requirements of the solution.
❚ Keep everyone involved and informed—develop ownership of
the plan:
❚ Schedule focused review meetings with adequate advanced
notice.
❚ Maintain routine and efficient communications.
❚ Respond promptly to any questions raised along the way.
❚ Make the plan realistic, with attainable estimates for the length
of each task.
❚ Prepare decision makers for their role in approving the plan:
❚ Solicit their ideas before beginning the planning process.
❚ Schedule their time to review the plan upon its completion.
The planning phase is a great opportunity for relationship devel-
opment. Use it to learn about important client needs that will serve
you well during implementation.
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FIVE MAJOR INTERACTION-BASED CAUSES OF PROJECT

FAILURE
Number Two: Problems with Risk Management

The main reason that risk management is one of the most common
causes for project failure is that it is ignored. Many people feel it is
futile to attempt to prevent the inevitable. Others compare manag-
ing risks to herding cats—try all you want, but you will only end up
frustrating yourself.
The truth of the matter is that risks can be managed, and their
impact greatly reduced. This applies to risks founded in technical
material (e.g., project schedules can be changed due to a threatened
truckers’ strike) as well as in relationships (e.g., the turf battle between
finance and marketing can create dangerous delays).
A straightforward methodology for managing risks can be applied
to relationships within any project.
Consider a project to develop a marketing campaign to launch a
new product. The product being introduced is not important. The
key issue is the dispute between finance and marketing which could
kill the project and open the door for competition to gain first access
to the marketplace. In this example, you need to work with the finance
and marketing executives as your clients as you attempt to deliver a
plan for the campaign.

Typical Causes of Problems with Risk Management

❚ The client is unwilling to spend time worrying about problems
that have not yet happened.
❚ The rapid pace of events leaves little time for risk management.
❚ The client is unsure how to manage risks around relationships.
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Preventive Strategies
❚ Informally, ask the client about any concerns relating to stake-
holders
❚ Competence
❚ Availability
❚ Relationships between stakeholders
❚ Ask about the likely causes for each concern.
❚ Brainstorm ways to remove the causes and document actions to
be taken.
❚ When possible, meet with conflicting parties ahead of time to clar-
ify issues and emphasize the importance of achieving the outcome.

Contingent Strategies
❚ If no preventive actions can be taken, advise the client that the
relationship-related risks could impact the project.
❚ Adjust the schedule, deliverables, etc., as needed.
❚ Ensure that your problem management process is well-defined
(see Chapter Six: Application/Service Plan).

Example

Dealing with risks can itself be risky business. It is difficult to dis-

cuss failure or disappointment, even in a conceptual or predictive
framework. Do your best to keep discussions around risk manage-
ment based on facts, not hearsay (for technical issues), and behav-
ior, not personalities (for relationship issues). An example:
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Step One: Assess the Risk

Finance believes marketing overspends and underdelivers, and is

threatening to push for a severely reduced budget for the project/cam-
paign.
❚ Describe the specific risk in detail.
The Finance VP feels the Marketing Director fails to see the impact
on the company bottom line of excessive spending on fancy mate-
rials, expensive pilot studies, and knee-jerk ad campaigns. The
issue is a fundamental lack of confidence.
❚ Assess the probability that the risk will become a barrier to
progress.
The probability is assessed at 75% to a sure thing.
❚ Assess the potential impact on the project (low, medium, or high).
The impact is high—the two executives can bring the project to
its knees and the investment in the new product can be lost.

NOTE: Once you have assessed probability and impact, you can
make a decision whether this particular risk is worth spending any
more time on. A Low/Low risk should be tabled. A High/Low risk
is also a candidate for the back burner. When impact is Medium or
High, take a close look.

Step Two: Design Actions to Offset Significant Risks

❚ Preventive Strategies (Actions that will eliminate the risk)
❚ Ask the Finance VP to define the information Marketing could
supply that would reduce his concerns and free the funds.
Seek Marketing’s compliance.
❚ Identify a high influence stakeholder who can mediate and
bring resolution between the two executives.
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❚ Do a careful diagnosis of previous campaigns to see if one

or two precedents have caused Finance to overreact. Then
get Marketing to describe why these events will not be
repeated.
❚ Contingent Strategies (Actions that will minimize impact if the
problem occurs)
❚ Define critical target markets so if funds are reduced you can
still hit prime audiences.
❚ Develop a communication strategy so manufacturing and dis-
tribution can quickly revise plans if the campaign will be scaled
back.
❚ Identify a high influence stakeholder who can overturn the
decision of the Finance VP.
This case has several interesting implications for you as a rela-
tionship manager.
❚ The whole problem may be a personal battle between the two
executives. If you can find a way to mediate this emotional con-
flict, the risk may evaporate.
❚ The risk may not be a problem at all, but a misunderstanding cre-
ated by poor communication. If Finance is filled in on the real
results Marketing dollars have accounted for, their fears may be
resolved.
❚ You may not have the authority to intervene, so you might seek the
participation of another relationship manager (senior executive)
to resolve the conflict and prevent the risk from materializing.
❚ If the problem does materialize, one option for saving the proj-
ect (overturning the decision by Finance) can actually increase
the heat between the two departments, potentially increasing
risk for future projects. You need to weigh the current risk poten-
tial for loss against future potential losses.
Risks founded in relationships can be based on a wide variety of
perceptions:
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❈95

❚ Interpersonal differences
❚ Lack of trust
❚ Perceived competence deficiencies
❚ Availability
❚ Respect for authority
❚ Personality preferences
In many instances, the best approach is to encourage everyone
involved to behave in a manner that will best serve the goal of meet-
ing the customer ’s needs. A willingness to “bury the hatchet” and
focus on the prize may be the way to deliver the goods successfully.
 Cambridge_book

STAKEHOLDER SOLUTION ASSESSMENT

SOLUTION / IDEA DESCRIPTION:_____________________________________________________________________________________________
4/4/01

ROLE

What will each What will each

12:34 PM

KEY PLAYER person like about person dislike about

the idea or solution? the idea or solution?

Support

Approve
Live With

Implement
Page 96

96
❈
CLIENT RELATIONSHIP MANAGEMENT
 Cambridge_book

STAKEHOLDER ISSUE RESOLUTION

4/4/01

SOLUTION / IDEA DESCRIPTION:_____________________________________________________________________________________________

LIABILITY Importance How can it be How can it be

12:34 PM

(Brief description removed? Managed?

High (3)
of “dislikes”) (Preventive Actions) (Contingent Actions)
Moderate (2)
Low (1)
Page 97

97
❈
PLANNING
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❈ 98

STAKEHOLDER PRESENTATION GUIDE

PART REMEMBER YOUR IDEAS
1. Introduction/Goal • Get their attention
Description (include • Tell them what you’re
Presentation Agenda) going to tell them

2. Problem Statement • Clear, crisp definition

3. Impact of Problem • Show why it’s important

• Show how it wastes
time, raises cost,
reduces quality, etc.
• Use evidence, examples

4. Solution • Clear, crisp definition of

your proposed solution

5. Benefits • Show benefits

• Do they outweigh cost?
• Use evidence, examples

6. Request Action • Ask for what you want

• Summarize with emphasis

PRE-SESSION CHECKLIST

People Informed Room Scheduled Equipment Available

Seating Adequate Agenda Prepared Dry Run Completed

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PLANNING

❈ 99

COMMITMENT SUMMARY/ACTION ITEM LIST

Presentation/Meeting Date:______________ Reason for Meeting:______________

COMMITMENT/
NAME SUPPORT LEVEL
5 = High 3 = Moderate 1 = Low

ACTIONS REQUIRED For By Date

(Initials) (Initials)
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Chapter
Four

4
Implementation ❈
❈ 101
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CLIENT RELATIONSHIP MANAGEMENT

PROCESS ELEMENTS

THE CLIENT
RELATIONSHIP

RELATIONSHIP/
PROJECT INITIATION

PLANNING

IMPLEMENTATION

CLOSE OUT

APPLICATION/
SERVICE PLAN
Cambridge_book 4/4/01 12:34 PM Page 103

WHAT? ✓ Implementation ❈
WHY? ✓ To ensure that client expectations are
exceeded as the solution is implemented

HOW? ✓ Communicate the hand-offs

✓ Communicate clearly and often

KEY TOOLS ✓ Communication Matrix

❈
✓ Tips and Reminders
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CLIENT RELATIONSHIP
BUILDING QUESTIONS
✓ Does everyone understand what
❈
they need to do?
✓ Have these needs been
communicated to and agreed upon
by suppliers (internal or external)?
✓ Does everyone understand and
agree with the needs of their
internal/external customers?
✓ How will we ensure clear, timely
communication during
implementation?

ADDITIONAL
QUESTIONS
✓

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RELATIONSHIP
❈
BUILDING TIPS
AND REMINDERS
1. Accurately define all hand-offs, make sure they take place on
or ahead of schedule, and verify their successful completion.
2. Deliver client hand-offs in person whenever possible.
3. Help project team members manage their time and activities
as planned commitments turn into actual tasks and obligations.
4. When briefing clients, discuss particular contributions
by individual team members.
5. When hand-offs are missed or errors occur, pursue the root
cause and appropriate corrective action rather than assigning
blame.
6. Respond immediately when clients call with problems. Have
contingent actions ready before calling whenever possible.
7. Notify all stakeholders as soon as a problem arises, solicit
input on how to address it, and notify them upon resolution.
8. Maintain a personal connection with all stakeholders, and
remain receptive to their suggestions.
9. Be sure everyone contributes during team meetings and
encourage a balance between facts and opinions.
10. Encourage informal communication among stakeholders, and
make people accountable for informing each other of “off line”
discussions that affect them.

❈ 105
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❈
REFERENCE MATERIAL
&
APPLICATION GUIDELINES

107
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❈
108

MAKING IT HAPPEN
“A fair idea put to use is better than a good
idea kept on the polishing wheel.”
—Alex Osborne
Strong relationships require commitment and communication from
both sides. Nowhere is this more true than in the area of project imple-
mentation.
Putting your plan into action will truly test your skills as a rela-
tionship manager. Documenting intentions is one thing; making them
happen is another.
Anytime there is a requirement for a collective, coordinated effort
among people who are not in a direct-reporting relationship, the
“c C Phenomenon” shows up.

From Talking to Action

During initiation and planning, people are asked for their ideas,
their opinions, their best practices, and to describe what they need
as project participants. The dialogue is full of statements including
phrases like “what if,” “when we get there,” and “we’ll find a way.”
The atmosphere is creative and conceptual. There is plenty of excite-
ment and no one wants to be left out of this high visibility, obvi-
ously important, initiative. People are anxious to sign on as
participants and supporters, but only with a “lower case” level of
commitment.
Then one morning, all the “small c” supporters get an e-mail, with
an implementation plan attached. The plan is riddled with their name
next to all sorts of tasks, meetings, reviews, and even trips. You can
hear people thinking: “What have I gotten myself into? I never agreed
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to all this. I thought someone else would be assigned these steps. I

haven’t got time. How can I get out of this?”
Only when “small c” commitment gradually but surely grows into
“capital C” Commitment can implementation succeed.

Your Role

Your role as a relationship manager is to make sure people accept

their commitments. This will be more likely if they:
❚ Understand the diagnosis and what led to the current situation
❚ Agree with the solution that has been defined for the client
❚ Have developed ownership for and confidence in the plan
❚ Are clear as to their role AND what is expected of them as the
plan unfolds
The last thing your project can afford is to have members and stake-
holders bailing out during implementation. This is another reason
consistent communication is so important. You may want to ask the
following questions prior to final commitment to roll out the project
plan.
❚ Do you fully understand what is being asked of you?
❚ Have you budgeted your time to allow you to make the target
dates?
❚ Do you have the requisite experience to perform what has been
asked of you?
❚ Has your supervisor given you enough flexibility to participate
without penalty?
❚ Have any of your functional responsibilities increased since proj-
ect inception?
❚ Do you know what to do in case your availability changes?
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110

Asking these questions is no guarantee implementation will be

pothole-free. It does, however, keep a fresh impression in everyone’s
mind of their value to the overall effort and their future responsibil-
ities toward making it succeed.
An additional benefit of asking these questions is that you demon-
strate your dedication to making each team member successful. It
shows you are not only interested in the project outcomes but in the
individual’s ability to eliminate obstacles that may impede his or her
personal performance. You are strengthening your role as an involved
relationship manager, and as guardian of the service performance
dimension of the project.

THE PLAN VERSUS REALITY

The project plan in many ways is a best guess. It represents a set

of actions that you believe (or hope) will result in a successful out-
come. The times associated with each task are estimates of what you
think will be needed, given a specific set of conditions at the time.
One key condition involves timely completion of predecessor tasks.
Given the fact that all task durations are estimates, it would be rea-
sonable to expect that at least some of the tasks will take longer than
expected. Unfortunately, you will probably not know which ones
ahead of time. It is also reasonable to expect that other intervening
variables (e.g., new requirements, quality problems, miscommuni-
cations, etc.) could further complicate things. Finally, it is unlikely,
particularly with new project initiatives, that every necessary step
will be accounted for (and in the proper sequence).
Once the plan is put together, it is up to members of the team to
make it happen in spite of these formidable challenges. Specifically,
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it is up to each team member to manage his or her own tasks so that

he or she contributes value to the project outcome. It is also up to
each team member to test his or her tasks against the conditions that
determine whether a task actually adds value to the plan.
By asking the questions on the previous pages, you can be a great
asset to each team member and help him or her manage his or her
respective tasks. You can also be an asset to the team as a whole by
assisting in the management of relationships among team members:
❚ Encourage team members to maintain open communication with
all other team members (formal and informal).
❚ When changing conditions impact a team member’s task require-
ments or schedule, be sure he or she contacts any other team
member that may also be affected.
❚ Keep team members clear on their client/supplier relationships
within the team, and keep them focused on customer satisfaction.

Succeeding in Spite of Reality

In the initiation phase, people are talking about doing something, and
asking these questions.
❚ Diagnosis: How did we get here?
❚ Definition: What will be the best possible solution for the client?
❚ Approval: Who needs to approve this solution, and how do I
ensure it happens?
In the planning phase, people are documenting intentions to do some-
thing, and asking questions like these:
❚ Relationship Planning: Who are the key stakeholders and what
do they need to see in the plan?
❚ Putting the Plan Together: How do I get the right people with rel-
evant experience to apply enough time to get this done?
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❚ Making the Plan Realistic: Do all tasks within the plan have attain-
able time requirements assigned?
In the implementation phase, people are being asked to deliver on
those intentions. With all of the obvious challenges, good communi-
cation and relationship management become essential.
One aspect of relationship management that is commonly over-
looked is the definition of supplier/client transactions. We call this
hand-off management. Anytime one person expects to take delivery
of something (information, reports, product specs, airline tickets,
etc.) from another person, a hand-off needs to take place.

The Hidden Magic

Hand-off management is the heart of any successful project. It is

what turns the plan into a successful outcome, much like mortar is
used to turn loose bricks into a wall. It involves connecting the peo-
ple responsible for the tasks into a cohesive force that dramatically
increases the likelihood that requirements and deadlines will be met.
Specifically, it helps project team members to:
❚ Achieve results that are clearly value added
❚ Maintain a clear customer focus
❚ Develop and maintain positive relationships with peers
❚ Clearly understand how their individual contributions are con-
nected to the project
A project is a true test of our ability in each of these areas. The more
people on your team that exhibit these competencies, the greater your
chances for success. Building a plan is one thing; making it happen
is quite another. The foundation for making it happen is having every-
one on the team manage their own relationships with suppliers and
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customers. It then becomes clear that relationship management hap-

pens at every level within the project.
While projects are managed by project managers, hand-offs are
managed by project team members. The difference between simply
performing tasks and managing transactions (with internal customers
and suppliers) is what separates the successful project teams from
the rest. Effective project managers are able to make this difference
clear and explicit. (There is more information on hand-off manage-
ment at the end of this chapter.)

COMMUNICATION

As you move through initiation and planning to implementation,

the need for effective relationship management rises dramatically.
Specifically, communication must be more frequent, clear, direct, and
precise with each phase.

The Importance of Clear Communication Grows

The effects of poor communication are far more dramatic during

implementation than they are during the previous phases.
Think of the information we need in order to execute a successful
project to be like water. In the initiation stage, we are drilling for
water—trying to piece together a clear view of the events that got us
here. Once we have established a well filled with experience and his-
tory, we can then suggest a solution that addresses our client’s needs.
Communication of the solution is very important, but there are few
interdependencies to worry about, and we can control most of the
communication ourselves.
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❈
114

During planning, we are creating a new pool of information. Every

stakeholder is asked to bring his or her buckets filled with informa-
tion and pour them into a common pool of ideas, suggestions, and
needs. The more we communicate with the project players, the more
ideas we will have to work with, and the more comprehensive the
plan will be. At the same time, if communication isn’t the best, and
a couple of people fail to make their best contribution, it probably
won’t make a huge difference in the outcome.
During implementation, we need to cooperatively move the infor-
mation from one place to another. This requires teamwork and tim-
ing. Communication has to be exact and consistent. Each member of
the team is like a length of hose, and has a responsibility to flow the
information along, quickly and completely, as the project unfolds.
Each coupling of the hose is like a critical hand-off. If one is missed,
the information pipeline is broken and the implementation totally
disconnected.

Communicate from the Start

Do you remember how it was stressed in the first paragraph of

initiation how the success or failure of a project can be cast in con-
crete from the very outset? This applies to communication as much
as any other aspect of project management.
If poor communication takes place during initiation (or any sub-
sequent phase of the project), a precedent is being set. If communi-
cation bad habits remain unchecked, permission is being given to cut
corners on future communications. As a relationship manager, you
have a responsibility to model good communication techniques.
For instance, when it’s time to define a solution for the client, a
proposal should be developed. What if this proposal is poorly organ-
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❈ 115

ized, full of typos, and hard to understand? What if it is delivered to

you late and by fax instead of e-mail as you had requested?
This situation could inspire you to intervene and help the writer(s)
do a better job, in the best interest of satisfying the client and setting
high standards for the team. That would be a positive approach to
managing relationships around communication.
If you choose to do nothing, and offer passive acceptance, you are
in essence participating in degradation of the project. When sub-
standard performance (technical or service performance) is unchal-
lenged, expectations for excellence erode and project performance
suffers.
Remember, communication takes many forms. These are just a few:
❚ Communication is what you hear:
❚ Things said to you as well as things you overhear or hear
about.
❚ Communication is what you don’t hear:
❚ Things that go unsaid can convey at least as powerful a mes-
sage as explicit comments or instructions.
❚ Don’t assume that “no comment” implies “no opinion.”
❚ Lack of an explicit response can leave the door open for oth-
ers to interpret or make assumptions on your opinions or
position.
❚ Communication is what you see:
❚ Behavior is a powerful communicator, setting examples and
authorizing others to behave in certain ways.
❚ Don’t expect to get away with “do as I say, not as I do” in hier-
archical or political situations. Your behavior provides evi-
dence of your beliefs that words may not overcome.
As a relationship manager, you must be a model of good commu-
nication as well as coach for good communication habits in others.
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116

Whenever making suggestions for how your team members or stake-

holders can be better communicators, focus on the appropriate behav-
iors ( e.g., “Perhaps you can mark your calendar to let Jim know a
little earlier next time”) and not on personal styles or personalities
(e.g., “Your procrastination and late announcements make it diffi-
cult for Jim to do his part”).

Reporting Requirements

In every project, there will usually be reporting requirements that

are non-negotiable. These often include time/cost reports, change
requests, and milestone progress reports. Find out what these are
early in the project, and you will avoid unnecessary problems.

THE COMMUNICATION MATRIX (CM)

What: COMMUNICATION MATRIX

Why: To assure that project stakeholders get necessary
information when they need it
How: 1. Identify information to be distributed.
2. Determine how information is to be distributed.
3. Determine information update frequency.
4. Enter initials of project stakeholders.
5. Identify which information will be received by
each stakeholder.

❈
Where: Blank template on page 131

As mentioned previously, a key aspect of your role in managing

relationships is to encourage team members to be disciplined with
communications. An excellent way to pursue this is the use of a tool
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❈117

for defining and documenting the expectations around communica-

tions of all stakeholders and project customers. The Communication
Matrix is such a tool.
The Communication Matrix provides the foundation for a strong
communication network. Along with meetings (discussed next), it
helps to assure that important decisions are based on accurate, timely
data.
The Communication Matrix allows for the distribution of data in
a client-friendly manner. It allows each stakeholder to receive infor-
mation in a format that best suits his or her needs.
The Communication Matrix allows project leaders and team mem-
bers to get precise feedback on project performance in key areas. It
also helps to assure that the right people get accurate information at
the right time. Keeping all key stakeholders informed, in touch, and
involved helps solidify interpersonal relationships, as well as com-
mitment and support for the project.
To develop the Communication Matrix the project leader will need:
❚ Information Packages (any body of information relevant to the
project)
❚ Information Distribution Method
Hard Copy (H), Fax (F), E-mail (E), Meeting (M), Telephone (T),
Inter/Intranet (I)
❚ Update Frequency
Hourly (H), Daily (D), Weekly (W), Monthly (M), Quarterly (Q),
Yearly (Y), Every 2 Weeks (W2), Twice per Week (2/W)
❚ Names (or initials) of the project team members who need
information
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Communication Matrix Contents

As projects become larger and more cross-functional, more data

will be needed to manage the project. Thus, more data should find
its way into the project file. For example, a large, cross-functional,
multi-site project might require the following elements in the proj-
ect file:
1. A cost/benefit analysis
2. A completed project scope summary
3. A project impact matrix
4. A project stakeholder directory
5. A milestone chart
6. Task lists and Gantt charts for each milestone (preferably in elec-
tronic format)
7. A summary of key hand-offs for each project team member
8. A project measurement summary
9. A distribution network
10. A meeting assessment summary
11. A risk assessment
12. A risk management plan

Communicating with the Project Customer

The most important communication you will have on the project

is with the project customer. It is important to identify customer infor-
mation requirements before the project begins or very early during
implementation.
Whenever possible, you should make an effort to communicate
with the project customer on a face-to-face basis. Communicating in
person greatly expands the information you can gather, and allows
you to tune and qualify your understanding of the client’s needs
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interactively. Body language, eye contact, the setting for the discus-
sion, tone of voice, and inflection—all these cues can enhance your
ability to connect with the client. Face-to-face communication will
also give you a better awareness of the client’s preferences for being
addressed and his or her comfort with interpersonal dialogue. All
these factors will prepare you to serve the client in his or her pre-
ferred style.
In addition, opportunities for informal communication with the
project customer should be exploited. These interactions can yield
much useful information that is not typically available through for-
mal channels.
Opportunities for informal communication include:
❚ Phone call “check-ins”
❚ Short, “no agenda” phone calls to see if the client has any
open issues or new questions you can address.
❚ FYI events
❚ E-mails (perhaps with attachments), copies of articles, cur-
rent events, even short verbal anecdotes that deliver infor-
mation related to the project or your client’s personal interests
can spark valuable dialogue. These communications should
add value to the project through the experience of others.
❚ Hand-off deliveries
❚ Use every deliverable as a chance to engage in conversa-
tion related to the project or the specific hand-off. Since
deliveries are usually moments of accomplishment, they
can be unique opportunities to check on a client’s level of
satisfaction.
❚ Personal events
❚ Get to know your client’s birthday, anniversary, vacation plans,
or other special events so you can express well wishes and/or
offer congratulations. But be careful—we all know how the
obligatory greeting or acknowledgment feels. If that is all you
can muster, it is best to refrain altogether.
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Managing Difficult Interactions

An important part of establishing an open and clear communica-

tion style with the customer is being prepared to deal with “bumps
in the road.” All relationships that are interdependent include some
potential conflict or room for improvement.
Here are a few simple tips that may help you address those moments
when the relationship hits a few waves:
1. The Customer Disagrees. This will happen, and hopefully you
will know when it happens (a good relationship increases the
chance the customer will express themselves). Whether the dis-
agreement is mild or serious, stay focused and don’t act defen-
sively.
a. Restate the customer’s issue to ensure you understand his or
her view.
b. Acknowledge the validity of the claim.
c. Offer information the customer may not have known, and
which may counter his or her disagreement.
d. Ask for direction or suggestions on how the issue can be
resolved.
e. Confirm steps you AND the customer will take to address the
problem.
f. Move quickly towards resolution.
2. The Customer Gets Angry. Anger directed at the project or the
project team may or may not be rooted in the project process
itself. REGARDLESS, the anger is real and you must acknowl-
edge and deal with it. Your goal is not to qualify or defend against
the anger but to dissipate it.
a. Empathize, and apologize (saying “I’m sorry you feel that
way” IS NOT accepting blame for the anger—simply acknowl-
edging it).
b. Explore possible causes for the anger. Agree on the most
likely cause.
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c. Offer solutions to remove the cause (if you have the control).
d. Offer solutions to compensate for the cause (if it can’t be
removed).
e. Offer suggestions for preventing the situation from repeat-
ing itself.
f. Re-focus attention and efforts on the project.
3. The Customer Gets Stuck in Minutia. Customers can get mired
down in a “nickel and diming” mode rather than moving ahead
with the project. This may be due to their comfort in working with
details rather than milestones, or a lack of ability to see the big
picture. In any case, you need to maintain momentum. These tips
may help re-focus the customer:
a. Acknowledge the value of attention to detail while remind-
ing the customer of his or her value in managing the higher
level issues.
b. Suggest the customer delegate the detail work to an associ-
ate and request a report on his or her progress.
c. Work with the customer to assign a date when the details will
be put to bed and the customer will recommit to the project
plan.
d. Align project resources to assist the customer in wrapping
up the detail work as quickly as possible.
4. The Customer Asks for Changes. Within reason, changes are a
healthy thing. However, customers can become unreasonable
with volume and frequency of changes. Changes are often the
customer’s way of asking for attention and securing control. This
requires some adept relationship management, and possibly a
delicate intervention.
a. Establish a change management process in which changes
are explained, justified, and documented.
b. Make it very clear to the customer how changes impact the proj-
ect schedule, costs, and affect other projects. (This is an attempt
to make him or her accountable through objective means).
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122

c. Compare change requests to the original project scope sum-

mary to assess the need for or validity of the change.
d. Avoid accepting changes to the scope without making adjust-
ments to deliverables, dates, and costs, and making these
adjustments known to all stakeholders.
In all four situations above, and the numerous other discrepancies
that can arise with customers, the overall goal is to deal with their
issues professionally, nondefensively, and with the clear intention of
delivering the best solution. Because you are in a reactive rather than
proactive mode, you should listen closely, accept the situation from
the customer’s perspective, and seek agreement for resolution—then
move on.

A Simple Two-Letter Word

One simple two-letter word is often very difficult to say, in rela-

tion to projects and life in general. The word is No. The absence of
this tiny expression of commitment results in some of the most dam-
aging changes in project outcomes: scope creep, budget overruns,
damaged relationships, and missed milestones to name a few.
Perhaps the most difficult situation in which to utter the No word
is in response to a customer request. After all, you have spent lots of
time and energy getting your customer to say Yes. How can you all
of a sudden turn the tables and respond to his or her expression of
need with a refusal to cooperate?
The truth of the matter is that there is no simple solution to this
dilemma. Your role as a relationship manager puts you in the pre-
carious position of keeping the customer satisfied while also keep-
ing your project on track.
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The most important aspect of how or when to say No is to exercise

good judgment. Here are a few suggestions on how to prevent prob-
lems associated with not saying No. Each tip relies on your per-
formance as a relationship manager and leveraging the rapport you
have previously established with your stakeholders.
1. Prediction Is Prevention: Have a clear and concise discussion
with key project customers and stakeholders (during the initia-
tion stage) of the implications of changes to the project scope.
Seek their “buy-in” to the reality that changes in the plan will
directly result in changes in cost, delivery dates, quality, and
overall project success. Orient them to the likelihood that you
will need to resist or refuse significant changes if you are to act
in the best interest of the project plan and deliver the defined
solution.
2. Yes Can Lead to No: When a change is on the table, make con-
certed efforts to detail the implications of the change before
accepting responsibility to honor it. If you agree to add deliver-
ables, accelerate schedules, or reduce costs, your customer must
simultaneously agree to alterations in the plan to accommodate
his or her requests. This approach flips the coin so to speak, put-
ting the responsibility back on the project client to retract the
request or accept the associated impact on the project plan.
3. Document the Situation: In some cases, No is not an option.
Key stakeholders (the project customer or your boss) may sim-
ply lay down the law and require that changes in the plan be
honored. In these situations, take the time to document the
change with complete objectivity, and describe the liabilities
the change may precipitate. Distribute the “change bulletin” to
all stakeholders.
Providing your project customer with a clear view of reality (i.e.,
changes do not occur in isolation—everything affects everything else)
is not necessarily a negative event. In fact, taking the time (and cal-
culated risk) to encourage a full appreciation of the implications of
scope-changing requests may position you as a more valued partner
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124

and respected advisor. Using good judgment, solid communication

skills, and relying on the facts will increase the likelihood that say-
ing No to customer requests will improve your relationship with the
client and confirm your ability to lead the project.

Communicating with Strong Influence Stakeholders

Strong influence stakeholders are people who do no value-added

work on the project, but by virtue of their influence in and on the
organization, can have a dramatic impact on the project (positive or
negative). Like the project customer, strong influence stakeholders
need to be kept informed regarding progress and results. This can be
done by making relevant documents from the project file available
during and after project implementation. It is also important to ask
each strong influence stakeholder what his or her information require-
ments are.
One word of caution: Don’t overload stakeholders with more infor-
mation than they desire. It is a natural tendency to give stakehold-
ers everything they could possibly want, with the intention of
removing any chance they could complain about being left out of the
loop. However, in today’s information-intensive environment, pil-
ing on the documentation can be a bigger negative than holding back.
As with the project customer, opportunities for informal commu-
nication should be utilized when available. When appropriate, these
interactions will help to solidify strong influence stakeholders’ sup-
port. Equally important, you may learn of impending problems that
might otherwise have escaped your attention.
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Other Considerations

As you complete the Communication Matrix, keep a few points in

mind:
❚ Stakeholder need for detail: how much/little detail is preferred
by each stakeholder. Usually, the higher up the stakeholder is,
the less detail required. Ask to be sure.
❚ Frequency of communication: how often each stakeholder needs
to be informed about progress and issues.
❚ Communication method: how each stakeholder likes to be
informed. While the Communication Matrix gives an indication
as to the media desired, some stakeholders will prefer informal
updates, while others will want more formal presentations.
In summary, consider how synonymous these three phrases are:
❚ Successful project implementation
❚ Successful relationship management
❚ Successful communications
Though not entirely interchangeable, you can surely see the deep
overlap these terms have. Granted, a project may be successful with-
out strong relationships, and outstanding customer relationships
require more than good communications, but the connections are
clear and undeniable. Pay attention to all three, and your project will
progress naturally and deliver the greatest level of customer satis-
faction possible.

Making Implementation Successful

Here are a few final suggestions for ensuring smooth implemen-

tation:
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❚ Motivate the Team

❚ Provide clear role definitions.
❚ Confirm understanding of future obligations.
❚ Assist those who need it with time management.
❚ Make sure everyone is Committed with a capital C.
❚ Do a Reality Check
❚ Set realistic time estimates on all tasks.
❚ Plan for unforeseen or unaccounted for tasks.
❚ Establish a sense of responsibility in all team members for
managing her or his own tasks.
❚ Validate all tasks as adding value to the collective effort.
❚ Clarify the supplier/client relationship and interdependencies
(internal and external).
❚ Define and manage hand-offs for all deliverables.
❚ Be a Model of Outstanding Communications
❚ Set strong precedents for good communication from the very
beginning.
❚ Intervene whenever communications dip below standards.
Offer constructive feedback for improvement.
❚ Prepare and share a Communication Matrix with all stake-
holders.
❚ Be ready to clearly communicate how changes to the project
plan will impact budgets, deliverables, schedules, etc., and
say No to potentially destructive requests.
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FIVE MAJOR INTERACTION-BASED CAUSES OF

PROJECT FAILURE
Number Three—Poorly Defined Hand-Offs

Building a plan is one thing. Successfully executing that plan can

be quite another. One of the most frequent causes of project delays
and failure is the inability to manage hand-offs between project stake-
holders.
One of the reasons so many project teams don’t focus on hand-offs
is that they are dependent, secondary events. In other words, a hand-
off cannot exist until a supplier and a client define their individual
responsibilities with respect to a certain deliverable. Project players
commonly assume that clarity of these individual responsibilities is
enough. What hasn’t been confirmed, however, is everyone’s under-
standing of how these actions will come together.
In this sense, a hand-off is like the corner of the room you are sit-
ting in. The corner itself does not exist except for the coming together
of the two walls. Contractors don’t spend a lot of time worrying about
or defining corners. They just “happen” in the process of building
the room.
Don’t assume hand-offs will just “happen,” like corners, and you
will have a far more successful project.

Typical Causes of Poorly Defined Hand-Offs

❚ Stakeholders don’t communicate with internal suppliers and
customers.
❚ Hand-off related needs are not clearly defined.
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Preventive Strategies
❚ At each review meeting ask stakeholders to verify that they have
everything they need (technical and service aspects) from their
internal/external suppliers.
❚ Ask stakeholders to communicate with their suppliers, provid-
ing the what, where, and when for each deliverable.
❚ Encourage frequent formal and informal communication between
stakeholders that have supplier/client interdependencies.

NOTE: Hand-offs are great examples of the truth in “it’s not only
what you do, but how you do it,” especially when it comes to address-
ing client needs. Your clients can have very specific technical needs
around hand-offs (“I want it in Word 6.0 format,” or “Send e-copies
to all my branch managers at the same time.”). They can also have
very specific (but implicit) service needs around hand-offs. You will
prove yourself as a relationship manager if you can respond to serv-
ice needs around hand-offs.
Some examples are:
❚ Would the client appreciate a personal delivery? Is there a spe-
cific person he or she would rather not see during a hand-off?
❚ Do you give the clear impression you are receptive to comments,
suggestions—even significant changes?
❚ Are you consciously focused on surpassing expectations?
❚ Do you answer questions and respond to suggestions with a pos-
itive attitude?
❚ Does the client feel distinct and individually valued?

Contingent Strategies
❚ When hand-offs are missed, ask the affected parties to meet to
clarify requirements, and commit to a firm delivery date/time.
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(You may choose to attend that meeting because relationships

may need to be managed.)
❚ Adjust project schedule/budget as needed.
❚ Advise the client on any imminent delays caused by the missed
hand-off.

Consider this typical hand-off event:

This hand-off occurs within a project to produce a computer-based
training course on the use of a new payroll-processing program for
Perks Unlimited.
The project plan specifies that the team of writers will deliver the
narrative for the first 100 frames of the CBT course to the editing team
on the 60th day after project kick-off.
Unless discussed between the team members, these questions could
interfere with a clean passing of the baton:
1. Does the 60 days account for holidays? Down time? Other inter-
ruptions?
2. Is the delivery via e-mail, zip disk, floppies, etc.? Is a hard copy
included?
3. Where is the delivery to be received? On a certain desk? Onto a
certain PC? Into a certain mailbox?
4. Is the delivery to be verified, formally (e.g., receipt) or informally
(e.g., voice mail)?
5. If the delivery is delayed, how will the customer be notified?
6. Will associated graphics called for in the narrative be part of the
delivery?
7. Is the project customer getting a copy of the delivery at the same
time?
8. Is there an operating version of the payroll program available to
check clarity of instructions?
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9. Who are the key contacts for Q/A after the delivery?
10. Is the editing team “clearing the deck” in anticipation of the
delivery?
And there may be other systemic or project variables to consider.
The point is, stating that a hand-off will, or should, occur is only
scratching the surface. The parties involved must provide much more
detail, isolate and test assumptions, and anticipate changes in the
plan in order to maximize the likelihood that a hand-off will be suc-
cessful. Developing relationships in which such questions are encour-
aged is a key part of successful projects.
 Cambridge_book
4/4/01

Update Frequencies:
S: Single Event M: Monthly Communication
Matrix Project Name / Number:______________________________
12:34 PM

H: Hourly Q: Quarterly
D: Daily Y: Yearly
W: Weekly 2/W: Twice Weekly
W2: Every Two Weeks
Page 131

PROJECT STAKEHOLDERS (initials)

Information Package / Update
Performance Indicator Frequency
131
❈
IMPLEMENTATION

Information Transmission Methods

H: Hard Copy F: Fax E: E-mail M: Meeting T: Telephone I: Inter/Intranet
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Chapter
Five

5
Close Out ❈
❈ 133
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CLIENT RELATIONSHIP MANAGEMENT

PROCESS ELEMENTS

THE CLIENT
RELATIONSHIP

RELATIONSHIP/
PROJECT INITIATION

PLANNING

IMPLEMENTATION

CLOSE OUT

APPLICATION/
SERVICE PLAN
Cambridge_book 4/4/01 12:34 PM Page 135

WHAT? ✓ Close-Out ❈
WHY? ✓ To assess client satisfaction with
the outcome and to identify new
opportunities

HOW? ✓ Verify client receipt of the solution/outcome

✓ Obtain client feedback
✓ Review lessons learned
✓ Identify new opportunities

KEY TOOLS ✓ Project Summary

✓ Lessons Learned Summary
✓ Relationship Extension Plan

❈
✓ Tips and Reminders
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CLIENT RELATIONSHIP
BUILDING QUESTIONS
❈
✓ Has the client received the
solution/outcome?
✓ Was the client satisfied with the
outcome/solution and related
service?
✓ What lessons were learned during
this project?
✓ What new opportunities can be
pursued as a result of this project?

ADDITIONAL
QUESTIONS
✓

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RELATIONSHIP
BUILDING TIPS
❈
AND REMINDERS
1. Have the client verify (in writing) that final deliverables have
been received and that the deliverables meet outcome
specifications.
2. Communicate formal close-out of the project to all stakeholders.
3. Plan an organized effort to document, store, and distribute
(if appropriate) lessons learned during the project.
4. Using the Project Summary as a guide, encourage the client to
offer candid feedback on the interpersonal aspects of the
project experience.
5. Follow up with management to acknowledge and resolve
problematic systemic issues that surfaced during the project.
6. Schedule a review meeting to assess team effectiveness,
focusing on Best Practices that contributed to project success.
7. Commit the client to a post-project interview for preparation
of a Relationship Extension Plan.
8. Use measurement strategies that the client has pre-approved
and understands.
9. Use a company communication vehicle (newsletter, e-mail
distribution, staff meeting announcements, etc.) to announce
successful project completion and appreciation for project
stakeholders.
10. Seek out other individuals or groups in the client organization
who may have interest in your (or the team’s) services.

❈ 137
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❈
REFERENCE MATERIAL
&
APPLICATION GUIDELINES

139
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THE WRAP-UP
“It ain’t over ‘til it’s over.”
—Yogi Berra
The end of a project can be the beginning of new opportunities.
The responsibilities that come with project close out are as impor-
tant as any that have occurred along the way.
Surprisingly, many project veterans have never experienced a phase
they would label as close out. It seems the project simply fades away
and the team quietly disbands once the final deliverable has been
turned over to the client. No fireworks, no acknowledgment, and no
closure.
Some reasons for this are:
❚ Project team members are pulled back into their functional
roles by their department managers at the earliest possible
opportunity.
❚ Project leaders are being pressured to move along to the next
project.
❚ The project has been an interpersonal disaster and everyone can’t
wait to put it to bed.
❚ The project culture defines the end of the project as the delivery
of the last element of the solution.
❚ Management sees no more revenue opportunities, so they pull
the plug on the project and re-assign the team.
And there are many more possibilities. The important thing for you
to understand is that project close out is a vital element of the current
project, and it can have a significant impact on future projects.
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Close Out Purpose

The purpose of the close out phase is to:

❚ Ensure that all deliverables have been received by your client
❚ Obtain feedback from the client
❚ Review project team performance
❚ Identify and begin follow-up on additional opportunities
When properly executed, the close out phase will wrap things up
in a way that leaves the client with a positive perception of you and
your organization. This may be the last and best chance for you to
focus on the First Law of Service (satisfaction = perception - expec-
tations) and truly impress your client by overdelivering. Remember
that this is the moment of truth in your client’s eyes, and never before
in the project life cycle is the “what and how” of the delivery of the
solution so crucial.
Equally important, and frequently overlooked, close out can be
used to solidify and extend your relationship with the client. If you
have exceeded expectations and the client is feeling he or she has
profited from your work together, now is the time to identify ways
to further develop the relationship.
And finally, close out is an opportunity for you to once more affirm
your role as relationship manager within the team. You have the
golden opportunity to:
❚ Acknowledge individual performance
❚ Acknowledge team performance
❚ Acknowledge stakeholder participation and contribution
❚ Highlight best practices
❚ Document lessons learned
❚ Confirm customer satisfaction
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Any one of these close out communications can be rewarding and

motivational to those who participated in and/or supported the proj-
ect. If done well, they collectively will cast a bright light of success
on the project and your skills as its relationship manager.

STEPS IN PROJECT CLOSE OUT

Verify Delivery of the Solution

The first step in this phase is to verify that the solution was imple-
mented fully and effectively. It would be a serious mistake to rely
solely on input from project team members in verifying solution deliv-
ery. Check with key project clients, and once you are satisfied THEY
are satisfied, communicate the verification to all stakeholders. (See
“Complete a Project Summary” as a way to verify client satisfaction
with stakeholders.)
As a final step in verification, it is appropriate to request that the
customer acknowledge receipt of the solution in writing. This docu-
ment will become an important element of the project file, and may
be very useful in extending the relationship with this client, or into
other groups within the client organization.
Written verification can take many forms, from formal contracts
to brief memos. Projects with complicated solutions may be served
by a thorough checklist covering all key deliverables and the signa-
tures of people who verified their receipt.
Smaller, shorter projects may only need a brief confirmation memo,
on your letterhead and signed by both you and the client. (It is often
a good idea to complete two copies of a confirmation document, leav-
ing both client and supplier a copy with original signatures.)
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SAMPLE CLOSE OUT/VERIFICATION MEMO

Date
Client Address
Dear ______________,

Thank you for allowing us to be of service to you. Our entire team found
working with you and your colleagues productive and enjoyable.
As promised, we have delivered all components of the planned solution
by the agreed upon date of ______________.
The solution was reviewed and approved by ______________.
We appreciate your business and look forward to working with you again
in the near future.
If questions come up regarding this or other solutions that you might need,
please don’t hesitate to contact me at ______________.

Sincerely,

Your Name

For Your Company Date

Printed Client’s Name

Received By (Client) Date

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Complete a Project Summary

What: PROJECT SUMMARY

Why: To obtain client feedback on project results
How: 1. Inform the client (at project initiation) of the
value of his or her feedback.
2. Deliver project summary to client for
completion.
3. Review feedback with client.

❈
Where: Blank template on page 156

In verifying the client’s satisfaction with the delivery of the solu-

tion, you are also getting confirmation that the technical perform-
ance of the team met or exceeded expectations. What, received when,
and by whom is the tangible proof that the project solution has been
completed.
Equally important (and perhaps more important for extending the
relationship) is the client’s satisfaction with the team’s service per-
formance.
Keep these issues in mind as you review the implemented solution
and talk to a number of clients and stakeholders. You should know
if the client offers any information in support or contrary to these
points before completing the Project Summary.
1. Overall, is the client satisfied with the solution?
❚ Does the solution address all the criteria specified in the orig-
inal definition?
❚ Do any aspects of the solution significantly exceed the client’s
expectations?
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145

2. For each deliverable, would the client respond positively or neg-

atively to:
❚ Was it received in its entirety?
❚ Was it delivered on time?
❚ Did it meet all your requirements?
3. Did the client find it easy/comfortable working with our team?
❚ Did the team communicate with the client according to desired
parameters (how, when, where, etc.)?
❚ Was the team reliable, accessible, and responsive?
❚ Did the client feel involved at all times?
Essentially, the Project Summary is the team’s report card. Questions
1 and 2 get the client’s reaction to what the team did, and the rest of
the information is feedback on how they did it.
The Project Summary is designed to provide an easy way for you
to obtain this information from the client. It is a one-page summary
that ensures that you have accurate and timely client feedback.
For best results, hand deliver a Project Summary to each project
client as one aspect of the initiation stage. You can explain to the client
that you will be focused on satisfying all of his or her needs and expec-
tations, as evidenced by the type of feedback requested. This also
“sets the switch” that he or she will be expected to provide feedback
during project close out. Perhaps most important, it is an opportu-
nity to draw attention to a dimension of your team that will distin-
guish you from the competition: the ability and intention to provide
excellent service.
When it comes time to ask the client to complete the summary, it
is a nice service to give each client a self-addressed, interoffice or
stamped envelope for convenient return of the survey. Ask if a week
is enough time, and if he or she has any questions. (Have extra sur-
veys on hand for those who have lost them!)
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If 10 business days pass and summaries are still outstanding, make

a brief call or drop a note as a reminder to send it in. This informa-
tion is very important and should be tactfully pursued.

Document Lessons Learned

What: LESSONS LEARNED SUMMARY

Why: To facilitate transfer of learning from one project
to the next
How: 1. Complete project summary information.
2. Agree on what went well.
3. Agree on what can be done differently on
different projects.

❈
Where: Blank template on page 157

Whenever possible, it can be useful to visit with the client during

close out and discuss the effort in more detail. This can be a good
excuse to meet casually, perhaps going out for dinner or lunch. Use
this opportunity to level the playing field and work with the client
as peers in a review process of the project. Assure the client that you
will take no offense from his or her candid comments on the aspects
of the project he or she would have liked to have experienced dif-
ferently. Establish an atmosphere of objectivity and open reflection.
While you are no longer on the hook to deliver technical results,
you are always being assessed for the delivery of service excellence.
Assure the client that you appreciate and value his or her time, and
you intend to make productive use of the information he or she is
providing. And remember, your role is to ask open-ended questions,
listen closely, avoid defensive reactions, and cement a relationship
based on trust and confidence.
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147

The clearer the client is that this discussion is intended to make

you even more effective on future projects the more likely it is to lead
to a discussion of future opportunities. If the conversation drifts that
way, pursue it in the context of putting any lessons learned to pro-
ductive use. When appropriate, confirm how your experience on this
project allows you to be more productive (valuable and resourceful)
on future collaborations with the client.
Though discussions of future potential are important and exciting,
don’t lose sight of the basic intent of this meeting: to capture valu-
able “Lessons Learned.”
Every project is a repository of valuable information that can be
used in future initiatives. Key information must be captured and
shared for this to happen.
Information that should be shared:
❚ Project customer, purpose, and timing
❚ Responses to key questions
❚ Barriers encountered and how they were managed
❚ Major learnings from the project
❚ Major accomplishments
❚ Customer feedback
❚ Team member perceptions
In its simplest form, “Lessons Learned” should include a descrip-
tion of:
❚ Project customer, purpose, and timing
❚ What went well
❚ What the team would do differently next time
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It is important to remember as you document your lessons learned

that:

Knowledge eliminates mistakes and saves time. Shared knowledge elim-

inates redundancy and saves money.

The most innovative lessons learned are useless unless other proj-
ect teams can learn from them. Put your experience to productive
use by:
❚ Using every appropriate distribution channel to expose Lessons
Learned.
❚ Submit Lessons Learned to whatever knowledge repositories
exist in your organization or the client’s organization.
❚ Incorporate Lessons Learned into your Project Summary,
Relationship Extension Plan, and Service Plan, as appropriate.
❚ Refer to Lessons Learned when involved in any future project ini-
tiation efforts to validate diagnosis and definition with relevant
experience.
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Prepare a Relationship Extension Plan

What: RELATIONSHIP EXTENSION PLAN

Why: To identify additional opportunities to partner
with satisfied clients
How: 1. Meet with client to discuss potential opportuni-
ties using the REP.
2. Identify/agree on next steps.

❈
Where: Blank template on page 158

Which of the following should be treated as a client?

❚ A prospect involved in evaluating the fit between his or her needs
and your services
❚ A paying project customer
❚ A former paying customer with whom you have no current
business
Obviously, all of the above. Most of this program has focused on
the second type of client, the paying project customer. This section
focuses on the former paying customer, and what you can do to
increase the likelihood they will be a future-paying customer.
The cost of finding a new client is typically about six times as much
as that needed to keep an existing client. Based on the financial incen-
tives alone, you should be motivated to make every conceivable effort
to keep every client for as long as possible.
In addition to measurable revenue, satisfied clients have tremen-
dous value. These are a few ways clients can be important to you:
❚ They can refer business your way.
❚ They may provide recommendations for prospects.
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150

❚ They may offer testimonials for your promotions and advertising.

❚ They can be a sounding board for new product ideas or market-
ing programs.
For each contribution above, there is no tangible benefit to the
client. Yet it is a basic premise in marketing that any time two par-
ties commit voluntarily to a transaction, they must profit from it. If
you have excelled as a relationship manager, you will have devel-
oped a desire in the client to partner with you and to serve you in
return for exceeding his or her expectation. The client’s willingness
to support you is evidence that he or she profits from the feeling of
being a contributing partner in your business.

From Success to New Opportunities

Given the level of confidence the client has developed in your

services, it is the next natural step to look to the future for addi-
tional collaborations. These opportunities can be working together
on a project again, or they can be developing new business in other
areas of the organization. If the client feels other groups will profit
from a relationship with you, he or she will be the best spokesper-
son imaginable.
A simple structured outline can help you approach the client with
organized questions and a convenient way to capture information.
The Relationship Extension Plan (REP) will foster a discussion between
you and the client about potential opportunities including:
1. From whom can a written testimonial be obtained?
2. In what way can this solution be extended to other parts of the
organization?
3. What additional value-added solutions can be offered to the cur-
rent client?
4. What needs to happen to move ahead on these opportunities?
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The Value of Face-to-Face Meeting

Whenever possible, use the Relationship Extension Plan in the con-

text of a face-to-face interview. This allows you the flexibility to add
follow-up questions for more detail or to clarify information offered
by the client. Leaving the REP behind for the client to complete alone
will result in less useful and possibly incomplete information.
Stay in touch with the client’s level of comfort in offering the infor-
mation requested by the REP. If you sense he or she is at all uncom-
fortable referring you to other departments, drop that direction and
focus the questions on his or her future needs exclusively.
Once the Relationship Extension Plan has been completed, you can
derive many benefits from it:
❚ Include it in the Project File as supplemental information.
❚ Distribute it to key stakeholders as confirmation of ongoing man-
agement of the client relationship.
❚ Use it to reinforce the success of the project for team members
and other implementers.
❚ Draw from it when you are defining or proposing additional proj-
ects with the client.
❚ Use it as a work in progress and modify it as players, issues, or
needs change within the client organization.
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FIVE MAJOR INTERACTION-BASED CAUSES OF PROJECT

FAILURE
Number Four: Untested Assumptions

Home Life Assumptions That Can Hurt:

❚ What do you mean, I was supposed to pick up the kids?
❚ I thought you knew.
❚ You have the traveler’s checks, right?
❚ Your mother is leaving Friday.
Work Life Assumptions That Can Hurt:
❚ The budget is approved.
❚ Bob from Accounting is on the team.
❚ The International Division’s buy-in is a sure thing.
❚ I have a direct line to the project customer Sr. VP.
Assumptions are always dangerous. Assumptions can be based on:
❚ Past performance projected on current conditions
❚ “We wrote all the code for ABC Inc. in the same amount of
time. It’s the same application. Piece of cake.”
❚ “Best Case” scenarios you hope will come true
❚ “If everyone shows up and buys what they said they needed,
we’ll easily make our goal for the show. Relax.”
❚ Limited information blown up to be “all we need to know”
❚ “We know she is looking to outsource the back room stuff,
and Jack gave us a great referral. We’re in—who cares who
else is bidding.”
❚ Rumors, hearsay, or “what if” gossip
❚ “Heard the new CEO likes racy jokes. When we see her, we’ll
give up our best stuff.”
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❚ Cultural defaults
❚ “Don’t bother. There has never been a P.O. over $3,000
approved in less than 90 days. It will never get off the ground
in 6 weeks.”
❚ Limiting beliefs
❚ “If I thought my boss would even consider it, I would go for
it. All I can do now is risk embarrassing myself.”
And there are lots of other reasons, too. The one common aspect
of all assumptions, no matter what causes them, is they can really
hurt a project unnecessarily.

Typical Causes of Untested Assumptions

❚ You and/or your client never ask about or document assumptions.
❚ The rapid pace of events leaves little time for surfacing and test-
ing assumptions.
❚ Even if assumptions surface, and you have time, you assume you
can’t neutralize them.

Preventive Strategies
❚ Use the diagnosis and definition stages of the initiation phase to
identify and communicate assumptions that you and the client
have about the project.
❚ Build actions into the plan that will ensure that all assumptions
are tested, either in advance of implementation, or as assump-
tions surface along the way.
❚ Ensure clear definitions of all deliverables, roles, and hand-offs.
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Contingent Strategies
❚ If the client will not take the time to surface and test assumptions,
document your assumptions and ask the client to review them
with you.
❚ Ensure that your problem management process (see Service Plan)
is well-organized to address untested assumptions that cause
problems on the project.
❚ Quickly communicate problems caused by untested assumptions
to stakeholders, and adjust the plan accordingly.
There are three types of assumptions that can impact projects.
Undefined Assumptions: These assumptions go unmentioned and
never surface during the project unless they become barriers. You
don’t want to find out about them after they have had a negative
impact on your project.

For example, you sense your project client has some resistance to meet-
ing with your top programmer, but you can’t imagine why. He is talented,
friendly, and a good communicator. After several weeks the client refuses
to meet him, and the project grinds to a halt. You later learn the client
is allergic to his cologne, but too self-conscious to say so.

Untested Assumptions: These are assumptions you are aware of

and probably have verbalized during initiation or planning.
Unfortunately, you have decided to live with them as constraints or
potential risks. You have chosen to passively hope they will go away,
or at least have a very limited impact on the project.

For example: Your team lives in fear of missing a milestone. The last
team that did was immediately disbanded and several “heads rolled”
when Mr. Hatchet found out. So, you rush the work and turn in a mediocre
report—on time. Turns out Mr. Hatchet cares far more about quality then
meeting unrealistic deadlines.
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Tested Assumptions: Once you define an assumption, test its valid-

ity. This is often as simple as asking a few questions or composing a
few postulates.

For example: A memo to the Mr. Hatchet (mentioned above) might read,
“Our team has carefully researched our options and we cannot produce
our best work within the current schedule. Can you meet with us to brain-
storm possible alternatives?”

Assumptions are sort of like termites—eating away at the foun-

dation of our projects. The undefined assumptions are like the unde-
tected termites. We live in blissful ignorance of the damage they are
causing, and only wake up to the reality of their impact when the
floorboards fall away beneath us.
The untested assumptions are similar to the little holes we find in
our baseboard or traces of sawdust on the cellar floor. Something is
eating away at our structure, but we are too busy to explore or inves-
tigate. Ultimately the damage done is the same as with the undetected
pest—the unfortunate difference is we had a chance at prevention.
Unlike the explicit actions required to exterminate termites, neu-
tralizing assumptions deals with implicit aspects of relationships.
Bringing assumptions to the surface, and then finding ways to test
and manage them, can be a true test of your relationship skills. The
most important thing to remember is to never ignore them.
Nothing is more discouraging to a project team than to have an
apparently benign issue, such as an untested assumption, blow up
and bring their project to an abrupt end.
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PROJECT SUMMARY
Project #__________________ Client #__________________ Client Name__________________
Project Name____________________________________ Project Leader_______________________________
1. Were project requirements delivered? 2. Was it done on time?
❑ Completely ❑ On/Ahead of Schedule
❑ Almost Completely ❑ Late (no effect on outcome)
❑ Partially ❑ Late (minor effect on outcome)
❑ Not At All ❑ Late (major effect on outcome)
Comments: Comments:
3. Was it done properly (i.e., did it meet all Customer requirements)?
❑ Exceeded Expectations ❑ Met Expectations
❑ Almost Met Expectations ❑ Fell Far Short of Expectations
Comments:
4. Customer Service
Rate how well the project leader/team members demonstrated the following:
Always Most of Time Sometimes Rarely Never
a. Professionalism ❑ ❑ ❑ ❑ ❑
— Appearance, language, attitude
b. Communication ❑ ❑ ❑ ❑ ❑
— Asking the right questions/
saying the right things at the right time
c. Availability and Responsiveness ❑ ❑ ❑ ❑ ❑
— There when you need them
— Gets back to you in a timely manner
d. Quality, Value & Timeliness ❑ ❑ ❑ ❑ ❑
— Understands/meets your needs in each area
e. Product/Service Knowledge ❑ ❑ ❑ ❑ ❑
— Knows the answers or where to get them
f. Customer Problems/ ❑ ❑ ❑ ❑ ❑
Problem Customers
— Prevents most of them; manages
the rest effectively

General Service Comments:___________________________________________________________________

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157

LESSONS LEARNED SUMMARY

Project Outcome:______________________________________________________________________________________________
______________________________________________________________________________________________
Project Customer:_________________________________________________________________________________________
Start Date: _____________________________________ Finish Date: _______________________________________

What Went Well What The Team Would Do

Differently Next Time
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RELATIONSHIP EXTENSION PLAN

Client Name: ______________________________________________________________________________________________
Solution Successfully Implemented:_________________________________________________________
________________________________________________________________________________________________________________________

1. Level of Client Satisfaction

(10: Outstanding; 5: Acceptable; 1: Complete Failure): ____________________________

2. From whom can a written client testimonial be obtained? ___________________________

3. In what way can this solution be extended to other parts of the

organization? _______________________________________________________________________________________________
____________________________________________________________________________________________________________________

4. What related/derivative solutions can be developed for the client

organization?_______________________________________________________________________________________________
____________________________________________________________________________________________________________________

5. What additional/new value-added solutions can be offered to the

current client? _______________________________________________________________________________________________
____________________________________________________________________________________________________________________

Next Steps
Follow Up With Regarding By (date) Method*
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________

Follow up Methods:
V: Visit T: Telephone E: e-mail M: Mail F: Fax P: Presentation
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Chapter
SIX

6
Application/
Service Plan
❈
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CLIENT RELATIONSHIP MANAGEMENT

PROCESS ELEMENTS

THE CLIENT
RELATIONSHIP

RELATIONSHIP/
PROJECT INITIATION

PLANNING

IMPLEMENTATION

CLOSE OUT

APPLICATION/
SERVICE PLAN
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WHAT? ✓ Application/Service Plan ❈

WHY? ✓ To ensure that the client’s service
and relationship needs are met along
with the technical requirements of
the project

HOW? ✓ Identify key target clients

✓ Prepare service plan
✓ Communicate plan to affected
stakeholders

KEY TOOLS ✓ Application Matrix

✓ Service Plan

❈
✓ Tips and Reminders
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CLIENT RELATIONSHIP
❈
BUILDING QUESTIONS
✓ Which clients need special
attention?
✓ What will we do with/for
these clients?
✓ How will we communicate these
intentions?

ADDITIONAL
QUESTIONS
✓

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RELATIONSHIP
BUILDING TIPS
❈
AND REMINDERS
1. Use the Service Plan to make the implicit dimensions of
service performance as tangible, and therefore,
manageable as possible.
2. When the development of a Service Plan exposes conflicts
or areas of contention, find the root cause of the problem, avoid
assigning blame, and move quickly to resolve the situation.
3. Qualify your clients and prepare Service Plans for those that
account for the greatest portion of your revenue or present
other compelling reasons for the investment.
4. Employ the Application Matrix to assist in selection of the
best tools and content for the client’s specific Service Plan.
5. Encourage stakeholders to honor Service Plan commitments on
a par with Project Plan commitments.
6. Brainstorm with stakeholders to define service performance
components that will make the client say (and feel) WOW!
7. Use the information gathered in the Service Plan to closely
manage both perceptions and expectations of the client.
8. Refer to the Service Plan for guidance on how to deliver
technical outcomes in order to maximize client satisfaction.
9. Review the Service Plan at Project Review Meetings and
modify it to reflect changing client expectations.
10. Use the Service Plan to confirm you are adjusting your
methodology to client needs rather than expecting them to
conform to your process.

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❈
REFERENCE MATERIAL
&
APPLICATION GUIDELINES

165
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PUT YOUR KNOWLEDGE TO WORK

“You can learn a lot from your clients. Some 70%
doesn’t matter, but that 30% will kill you.”
—Paul J. Paulson, President, Doyle, Dane Bernbach
There are many things about your relationship with your clients
that are of marginal importance to your clients. There are other aspects
that will be critical to their satisfaction. Learning which is which and
acting on it could be the difference between a successful and unsuc-
cessful initiative.
In a very general sense, a plan is simply the means to an end. The
end is typically a good return on your investment.
Means (the Plan) End (the ROI)
Business Plan Work you enjoy; profits; security
Trip Itinerary Relaxing vacation; time with family
Recipe Tasty meal; good nutrition
Project Plan Satisfied customer; profits;
repeat business
Why then, do so many individuals and businesses overlook pro-
ducing a Service Plan for their prime accounts? Surely the ROI at risk
can be huge—conceivably the future of the business.

Don’t Risk the Relationship

Your relationship with the client warrants some focused atten-

tion and planning. Your experience repeatedly reminds you that
the way you handle the client can be the difference between repeat
business and a lost account. Furthermore, you see indications every-
where that relationship management is becoming an essential ele-
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ment of successful suppliers. Seems like a compelling case for a

Service Plan, but all too often no plan is produced. Perhaps these
factors play a part:
❚ There is no process model or tool set for producing a Service
Plan.
❚ The implicit elements that a Service Plan would address are too
hard to define.
❚ There are no precedents in the business culture: it just isn’t done.
❚ Service is not respected as making a contribution to the bottom
line.
❚ The current level of service is apparently adequate—there are no
complaints.
❚ There is too much to do and no time for the luxury of planning.
The list could go on. Notice that most, if not all, of the issues are
“systemic” (i.e., aspects of the business culture or environment). That
is a symptom of the fact that most businesses focus on technical per-
formance and the logistics of delivering quality products. The busi-
nesses that balance their investment between technical performance
and service performance will be tomorrow’s industry leaders. These
businesses will file Service Plans alongside Financial Plans, Marketing
Plans, Business Plans, and Product Development Plans.

What Is a Service Plan, and Why Is It So Important?

❚ A Service Plan is way to organize your approach to the implicit
deliverables your client needs, and to manage the “how” aspects
of the relationship so client expectations are routinely exceeded.
❚ A Service Plan helps coordinate the efforts of an account team,
keeping you in touch with your colleagues as you service key
accounts. This will ensure adherence to consistent service stan-
dards and avoid embarrassing miscues.
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❚ For key customers who account for a large percentage of your

revenue, the simple presence of a Service Plan verifies that you
value their business, and are willing to invest not only in deliv-
ering what they need, but in doing so in the way they prefer.
❚ The successful Service Plan will include techniques or tools for
ensuring that the client’s implicit expectations have been met or
exceeded.
❚ Service Plans should be monitored regularly and adjusted along
the way to meet the changing needs of the client and to be
improved as your knowledge of the client grows. Good Service
Plans are literally “works in progress.”
❚ The most compelling reason to produce a Service Plan is the
competitive advantage it will give you. The client may never dis-
close why he or she continues to order from you, but you can be
assured that your consistent and visible commitment to service
is a large part of it.
Inherent in all the points above is one simple yet compelling rea-
son to develop Service Plans for your key accounts. Just as a retire-
ment plan makes you think about what you need when you retire,
the Service Plan makes you think about what your customers need
in order to be satisfied by your efforts. Diverting your focus and
energy from the tangible, technical deliverable to the implicit, serv-
ice dimensions of your client relationship will result in a more bal-
anced project effort and better performance overall.

Application Targets

Skills and tools are only useful if they are used. Every resource
(including this one) must be put into practice in order to answer two
important questions:
1. Does it work for you?
2. Can it make you more successful at what you do?
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Before initiating any work on a Service Plan, think about these

questions:
1. Do you believe a Service Plan will work for you?
2. Can it make you more successful at what you do?
3. Will your client have a positive reaction to a Service Plan
approach?
Any new system, process, or set of skills must be field tested in
order to determine its true value. Whatever you choose to use from
this experience must receive YOUR complete commitment—only
then can you affirmatively answer the first question noted above. As
the manager of the supplier/client relationship, it is your responsi-
bility to choose the right approach, the right people, and the right
tools to service clients in a manner they have defined as right for
them.
Not all projects and/or client relationships warrant the investment
of a Service Plan.
The first step is to determine which projects and/or client rela-
tionships are appropriate as Service Plan application targets. Consider:
❚ Key clients that may account for a significant portion of your
revenue
❚ Clients where one or more colleague will be working with you to
support the project
❚ Prospective clients where a visible commitment to strong serv-
ice performance could provide a competitive advantage for you
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Application Matrix

What: APPLICATION MATRIX

Why: To apply workshop content in the most productive
way possible
How: 1. List all your application targets.
2. Determine where your application target is in
the project cycle.
3. Identify key tools needed.
4. Determine 2–3 tips that can be effective with
each target client.
5. Decide on need for a Service Plan.

❈
Where: Blank template on page 179

In developing your Service Plan, you will have the opportunity to

utilize tools and techniques covered in previous chapters. Choose
them with care.
Not all tools and tips are appropriate for every relationship. The
important thing to remember is to use what works at the right time.
Don’t “force fit” any process or tool where it doesn’t belong.
The Application Matrix is designed to help you select the best tools
for each of your application targets. For each application target, check
off the tools that will help you to improve your service and relation-
ship performance with that client. The last column allows you to make
note of any tips and reminders that may be useful for relating well to
each client.
It is likely that different tools and tips will be appropriate for dif-
ferent clients. Remember, the goal is to have your clients feel distinct
and well-understood, not standardized or expected to conform to
your process.
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For example, one client may have already made a decision to pro-
ceed, so a Decision Matrix would not add value for you or him or her.
On the other hand, if you are working with a client with numer-
ous stakeholders, a Communication Matrix will probably serve as a
true asset on the project.
Bottom line, select only those tools and tips that will truly make
your work easier, and your client relationships most productive.
Avoid going through the motions for the sake of completing a form
or engaging in unnecessary data collection.

SERVICE PLAN DEVELOPMENT

What: SERVICE PLAN

Why: To create a competitive advantage by ensuring
client satisfaction
How: 1. Describe the project stakeholders and
deliverables.
2. Identify ways to exceed client expectations
3. Identify client relationship management tools
that will help the relationship.
4. Identify tips/techniques that will help the
relationship.

❈
Where: Blank template on pages 180–181

Every client is different. Each has their own expectations regard-

ing service and relationship management. So, approaching each
client the same way may have unwanted effects over the course of
the project.
Every important client deserves a Service Plan. You and the team
must be prepared to perform in response to the client’s implicit serv-
ice requirements as well as his or her explicit technical requirements.
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Development of a high quality Service Plan will require you to

address a list of critical questions about your client. You will not sit
down and answer these questions in a single session. Rather, you will
address them as they come up while you progress through initiation,
planning, implementation, and close out.
The more questions you are able to answer and act on, the greater
the likelihood that you will routinely exceed client expectations on
the implicit service deliverables.
1. What is the real opportunity, problem, or need?
❚ Successful completion of the diagnosis stage of the initiation
phase will answer this question.
2. Who are the players (decision makers, influencers, etc.)?
❚ Successful completion of the Stakeholder Analysis in the plan-
ning phase will provide the answer to this question.
3. What are the primary deliverables?
❚ Thorough work in the definition stage of the initiation phase
(and possible development of a proposal) provide the answer
to this question.
4. What are client expectations around professionalism?
❚ How you look (casual dress, business-like, formal attire, etc.)
❚ How you speak (speed, volume, acronyms, articulation, slang,
jokes, use of titles, etc.)
❚ How you act (casual, formal, professional, friendly, eye con-
tact, body language, etc.)
5. What are client expectations around communication?
❚ Frequency, timing, etc. (how often, time of day/week, how
long per meeting, etc.)
❚ Media (words, pictures, electronic, hard copy, etc.)
❚ Transmission method (e.g., e-mail, phone, fax, etc.)
❚ Level of detail (e.g., maximum, moderate, minimum)
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❚ Asking questions (can you expect them to ask the right ques-
tions, or will you need to do it?)
❚ Data collection/distribution (who will do it—you or the client?)
6. What are client expectations around availability and respon-
siveness?
❚ When do they need you (via phone, face-to-face, etc.)?
❚ When and where do they like to meet (e.g., best days, times,
locations, etc.)?
❚ How long do they like to meet (maximum target duration)?
❚ How quickly do they expect a response (may be dependent
on the situation, although a default target can be set)?
❚ How quickly can you expect them to respond (e.g., always,
sometimes, never on time)?
7. What are client expectations around quality, value, and timeliness?
❚ How many iterations are allowed before the final deliverable
is produced (e.g., one, some, many)?
❚ What value-added service/enhancements are they willing to
pay for (e.g., none, useful, essential, etc.)?
❚ How soon is ASAP (e.g., within an hour, a day, etc.)?
❚ What level of client participation do they require (high, mod-
erate, low)?
8. What are client expectations regarding your expertise?
❚ What do they expect you to know about them and about their
needs (low, moderate, high detail)?
❚ What do they expect you to know about your products and serv-
ices (technical expert, well-informed, basic user knowledge)?
❚ What do they expect you to be able to find out/have access
to (related information, resources, R&D contacts, other cus-
tomers, top management, etc.)?
❚ Where is consistency of information flow critical to client sat-
isfaction (e.g., scheduling, deliverables, process, contacts,
etc.)?
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9. What are client expectations regarding problem management?

❚ Who will make initial contact with the client when a problem
occurs?
❚ Who will follow-up after a problem has been fixed?
❚ Who will notify appropriate players during problem resolution?
❚ Who will manage any damage control?
❚ Who will ensure that the fix exceeds their expectations?
10. What can you do/provide (within the constraints of the relation-
ship) that would make your client say WOW!?
❚ Will deliveries ahead of schedule impress or annoy them?
❚ Will check-in calls add value or be a nuisance?
❚ Will visits or calls from your upper management solidify or
jeopardize your relationship?
❚ Are they very impressed with packaging or do they prefer to
focus on substance?
❚ Do they enjoy having the relationship get public exposure or
prefer confidential privacy?
❚ Do they prefer having connections with most or all team mem-
bers or the consistency of one liaison?
The Service Plan template can be used to capture information about
key client projects/relationships and will help you make the most of
your efforts. Use it as a vehicle to ensure that everyone involved with
these important clients contributes to a positive and profitable rela-
tionship.
Many people don’t discuss the implicit aspects of relationships,
never mind create a plan to manage them, because it feels awkward
or uncomfortable. You have heard of the best friends who start a busi-
ness and never develop a partnership agreement because they trust
each other. A year later, the duo navigates a bitter partnership divorce.
What they took for granted ended up destroying their opportunity.
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The same is true for managing client relationships. If you feel by

defining a plan you are predicting problems, get over it. You are doing
exactly the opposite (i.e., defining a plan to do what you do better).
A good Service Plan not only opens opportunities for exceeding client
expectations, it demonstrates your commitment to meeting the explicit
and implicit needs.
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176

FIVE MAJOR INTERACTION-BASED CAUSES OF

PROJECT FAILURE
Number Five: Lack of Sound Communication

Of the five interaction-based causes of project failure, lack of sound

communication is by far the most common and the most devastat-
ing. A case can be made that all the causes of project failure come
down to a simple failure to communicate.
In the interest of solving problems rather than being satisfied with
identifying them, we have made poor communication situation-spe-
cific. Terms like “unclear definition” and “poorly defined hand-offs”
are types of problems resulting from inadequate attention to com-
municating. If we have accurate labels for how lack of communicat-
ing can hurt projects, we have a shot at preventive or contingent
actions to minimize the damage.
Similarly, most of the questions in the Service Plan and the
Relationship Extension Plan are about communicating. Even the Tips
sections of every chapter are there to focus your attention on tactics
and strategies for being a better communicator.
At the risk of being redundant, this section will list some of the
causes for, as well as ideas for preventing, poor communication. The
more explicit we can make communications, and the nuances of behav-
ior and emotion that surround it, the better we will be at getting the
most from our relationships.

Typical Causes of Lack of Sound Communication

❚ Communication is not encouraged, or modeled, by the project
manager
IF your project manager doesn’t return calls or e-mails; sends
memos full of cryptic technical jargon; never informs team mem-
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bers of changes in delivery dates—how will the team respond

when they need to communicate? What will be the impact on cus-
tomer satisfaction?
❚ Stakeholders are geographically dispersed (by distance and/or
time)
IF you send an e-mail to London at noon EST that a key project
decision will be made by 6 PM today, EST, and their input is crit-
ical—what will the reply be? How important will your London
stakeholders feel?
❚ No time is allocated for formal project communication
IF it is assumed by project leaders that everyone is “in touch”
with each other and there is no need for review meetings, progress
summaries, or other status and update reports—what will hap-
pen to project coordination? Will the client know where the deliv-
erables are in the project cycle?
❚ No emphasis is placed on the value of informal communication
IF ad hoc meetings, spontaneous brainstorming sessions, and
“drop by” conversations about project activities are discouraged
in favor of “real work”—how informed will team members be of
each other’s progress? What will the impact be on creativity and
project enjoyment among the team?
❚ Meeting management skills are poor
IF meetings start late, run long, are not documented, and the
wrong people are invited—how does that reflect on the overall
importance of the project? What happens to team member rela-
tionships?
❚ No mechanism exists for systematic information distribution to
stakeholders (solved by use of the Communication Matrix)
IF stakeholders are not informed on project progress, or they hear
about significant project events from nonproject sources—how will
this affect their support for the project? How will strong influence
stakeholders react to poor, late, or inaccurate communications?
❚ Changes occur and all affected stakeholders are not informed
IF changes in project deliverables are not quickly and clearly com-
municated to all stakeholders, and those expecting the deliv-
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CLIENT RELATIONSHIP MANAGEMENT

❈178

ery assume everything is going according to plan—what hap-

pens to project effectiveness and interpersonal relationships
when the delivery doesn’t show up? How is stakeholder confi-
dence in the project team affected?

Preventive Strategies
❚ When possible, develop a project web site for disseminating proj-
ect information.
❚ Assign a “communications coach” for the team—select some-
one who values and is adept at clear, consistent communication
(does not have to be the project manager).
❚ Build frequent (but short and to the point) review meetings into
the project plan.
❚ Use a facilitator and a process to ensure meeting effectiveness.
❚ Facilitate opportunities for stakeholders to communicate infor-
mally (e.g., social events, team lunches, etc.).
❚ Incorporate a change management process that includes imme-
diate communication to affected stakeholders.

Contingent Strategies
❚ Schedule periodic “issues” meetings to discuss and resolve com-
munication-related problems. Develop an attitude that surfacing
conflicts is an opportunity to improve performance.
❚ Ensure that the problem management process is designed to
address problems associated with miscommunication.
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❈179

Service Plan Required?

2–3 tips for use with each
application target
Identify (by tip #)
CRM TIPS

Relationship
Extension Plan (p. 149)
Lessons Learned
Summary (p. 146)
APPLICATION MATRIX
CLIENT RELATIONSHIP MANAGEMENT TOOLS

Project Summary (p. 144)

Communication
Matrix (p. 116)
Commitment Summary/
Action Item List (p. 84)
Stakeholder
Presentation Guide (p. 82)
Stakeholder Issue
Resolution (p. 79)
Stakeholder Solution
Assessment (p. 78)

Decision Matrix (p. 53)

APPLICATION TARGETS
(Project/Relationship)
Cambridge_book 4/4/01 12:34 PM Page 180

CLIENT RELATIONSHIP MANAGEMENT

❈ 180

SERVICE PLAN
Client Name: ____________________ Phone: ___________________ Plan Date: ___________________
Client Contact: _________________________________________________________________ e-mail: ______________________

What is the real opportunity, problem, or need?

_____________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________
Who are the players (decision makers, influencers, etc.)?
________________________________________________________ ________________________________________________________
________________________________________________________ ________________________________________________________
________________________________________________________ ________________________________________________________
What are the primary deliverables?
________________________________________________________ ________________________________________________________
________________________________________________________ ________________________________________________________
What will we do to exceed client expectations around professionalism?
_____________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________
What will we do to exceed client expectations around communication?
_____________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________
What will we do to exceed client expectations around availability and respon-
siveness?
_____________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________
What will we do to exceed client expectations around quality, value, and
timeliness?
_____________________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________________
What will we do to exceed client expectations regarding our expertise?
_____________________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________________
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APPLICATION/SERVICE PLAN

❈ 181

SERVICE PLAN (continued)

What will we do to exceed client expectations regarding problem management?
_____________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________

What can we do/provide (within the constraints of the relationship) that would
make the client say WOW!?
_____________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________

Tools Target Completion Date Who

• Decision Matrix ________________________ ___________
• Stakeholder Analysis ________________________ ___________
• Presentation Guide ________________________ ___________
• Communication Matrix ________________________ ___________
• Project Summary ________________________ ___________
• Lessons Learned Summary ________________________ ___________
• Relationship Extension Plan ________________________ ___________

Project/Relationship Notes
Enter any ideas, tips, techniques that will aid in maintaining a positive rela-
tionship during each phase of the effort with this client.

Initiation: ______________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________

Planning: ______________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________

Implementation: ______________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________

Close Out: ______________________________________________________________________________________________________________

_____________________________________________________________________________________________________________________________
Cambridge_book 4/4/01 12:34 PM Page 182
Cambridge_book 4/4/01 12:34 PM Page 183

❈
ABOUT THE AUTHOR

Dave Po-Chedley has been actively involved in improving organ-

ization effectiveness for over 20 years. He is currently President of
Cambridge Consulting, Inc., and continues to work with clients
around the world to enhance their effectiveness.
Thousands of people from organizations in North America, Europe,
Asia, and South America have benefited from workshops and con-
sulting services provided by Mr. Po-Chedley. They include:
Morgan Stanley Dean Witter
Johnson & Johnson
Florida Power and Light
FleetBoston Financial
General Electric
MITRE Corporation
All Children’s Hospital of Florida
Bell Communications Research
World University Games
Pacific Gas and Electric
McDonnell Douglas Finance Company
Automobile Club of Michigan
Rich Products Corporation
OppenheimerFund
General Motors
Xerox
General Dynamics
US Airways
Harley Davidson

183
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CLIENT RELATIONSHIP MANAGEMENT

❈
184

Boeing
Pratt & Whitney
Hewlett Packard
IBM
Kohler Company
Tenneco
AT&T
Bank of America
After earning an MS in Industrial Psychology at University of
California, Long Beach, California, Dave worked at McDonnell-
Douglas for 8 years as an employee and later as a consultant. During
this time, he managed advanced flight deck research projects, and
later, the Engineering Management Development function. In addi-
tion to developing and conducting a wide variety of management
development workshops, Dave was involved with a number of organ-
ization change initiatives.
In 1983, Mr. Po-Chedley began working as a consultant to organ-
izations in both the public and private sectors. During that time, he
has helped a variety of Fortune 500 companies to improve their per-
formance in the areas of project management, client relationship
management, customer service, coaching, team effectiveness, prob-
lem solving, decision making, quality, productivity, and conflict man-
agement. He has authored workbooks and developed course materials
in each of these areas for use in many fields including information
systems, financial services, high technology, pharmaceuticals, and
manufacturing.
Mr. Po-Chedley serves on the Board of Directors for Pioneer
Aerospace, a supplier of deceleration equipment to the U.S. military,
NASA, and foreign governments. He is also an active member of
Cambridge_book 4/4/01 12:34 PM Page 185

ABOUT THE AUTHOR

❈185

ASTD (American Society of Training and Development) and PMI

(Project Management Institute).

Related Services from Cambridge Consulting

For information about conducting in-house Client Relationship

Management workshops in your organization, contact Cambridge
Consulting at 800-621-5202 or 401-782-9222, or visit their web site at
www.CambridgeConsult.com
Workshops and support services offered by Cambridge Consulting
include:
❚ Client Relationship Management (one-day workshop)
❚ Project Management (one-, two-, and three-day workshops: basic,
intermediate, advanced)
❚ E Projects: Issues and Solutions (one-day workshop)
❚ Managing Problems and Decisions (one- and two-day workshops)
❚ Customer Service Excellence (one-day workshop)
❚ Coaching (one-day workshop)
❚ Customer Servey Development and Administration
❚ Project Strategy Sessions (to address systemic and environmental
barriers to project success)
❚ On-Site Project, Customer Service, and Client Relationship Consulting