Getting shafted by a client taught me a few lessons! Do you want to know?

I recently facilitated a workshop for an organization focusing on building a company culture. The exercise reminded me of a story of my own that helps reinforce why defining a culture is so important.

I had been engaged with a client for quite some time. As a business coach, this was one of my biggest success stories. Revenue tripled, profits went up five-fold, and customer satisfaction measured 3 out of 10 when we started and 9 when we wrapped up. At the end of the contract, I presented the bill. What came back was shocking.

It was silence.

“Sometimes you win, sometimes you learn” - John Maxwell

If you would rather listen to this as a Podcast, CLICK HERE, or keep reading below

We’ve all been stiffed by customers in the past. This one taught me a lesson. Whether or not there was a legal obligation to pay is not the purpose of this blog. What I failed to see was the culture of the management team was rotten. The intention of this blog is how to avoid it from happening to you in the future.

Is it shame on them? Or shame on me?

What did I miss along the way? As I started to think about the time we had spent together, I wrote down the instances where trust might be in question. But hindsight is 20/20, and after seeing the long list of signs, I answered my question. Shame on me!

What were some of those signs?

Not interested in the process, just the results
Complete abdication of responsibility
Unprepared for meetings
Multiple requests for information went ignored
Poorly attended events by management
Lack of ideas and accountability, having an “how does this affect me” mindset
Making commitments and not following through - “I was gonna do that”

We can point to each of these and easily make excuses. They were just too busy, or this wasn’t their responsibility. Heck, that’s why they hired me in the first place, right? To fix the problem!

As a leadership coach, one of my key areas of focus is developing the qualities in individuals that define integrity. I should at least be able to judge when those qualities are missing, shouldn’t I?

When you look at that list, what was missing was, trustworthiness, commitment, determination, and honesty. I went into this contract trusting these were in place. I know, never assume! I had heard that one was a bit lazy, and another was extremely self-serving. Those warnings didn’t stop us; we went ahead and worked on the issues they presented being; decreasing sales, poor margins, and customer retention.

The organization offered good value; that was not the problem. It became apparent that the lack of trust clients had in management to consistently deliver was the main issue. The management team was not taking ownership. Before our contract began, they consistently over-promised and under-delivered.

What my team spent its time on were the symptoms. We failed to identify the root cause of the problem. Therefore, it is shame on me. To effectively go through problem-solving, in the end, you must implement a permanent corrective action. In this case, KPG ended up being the corrective action. Removing our team from the equation caused the symptoms to recur. As a result, a leadership vacuum was created.

What is the solution?

My solution was to define what type of company and culture I would work with in the future. I interview the decision makers before I present a proposal. Do they have a reputation that they trustworthy and honest? Do they possess a growth and leadership mindset? If this team doesn’t meet my initial criteria, I recommend we start by fixing them before we begin on any organizational issues. They often say no at this point, but it is much better than getting stiffed later on.

As for the company that shafted me? To win with a management team like that, you must be willing to go lower than they are. I respect myself and my brand too much to do that. I am proud of what I accomplished and can point to that as a win. That was undeniable. There is such a thing as Karma, and we’ll just leave it up to that to square this circle.

How can this help you in the future?

Become the company where no one questions your credibility! Your organization can define its own culture. Describe what you want it to be in the future and make sure everyone knows what those expectations are. For example, if you want a team full of dedicated, innovative, service oriented, and ethical go-getters, let everyone know that these are non-negotiable. All decisions in the future are made with your culture in mind.

When it comes to core values, there is no policy that gives you 3-strikes, and you are out. If you see cancer on your team, you have to remove it. Leadership must show the entire organization that they take these values seriously. If you build your team around the correct core values and sift out the bad apples along the way, your company will be the winner you want it to be.

Externally, look for companies with which you want to do business that exhibit those same beliefs. As you interview new vendors, look for examples and references of how they incorporate them into their day-to-day operations. Remember, there are many options for suppliers; look for ones that reinforce your standards for excellence. Price is only one of the variables in determining cost.

In marketing and sales, define what your best customers look like and what new ones must have before you waste too much time on them. What qualifications must they meet for them to do business with you? If they cheat their customers, will they cheat you? If you have a long selling process, ensure there are many checks and balances along the way for you to get out if needed.

Struggling to understand what your core values should be?

Look at your team members; who are three or four of your best overall employees? Why do you value them? Do you think your performance would improve if you had an entire team of people sharing those qualities? Of course, that’s a rhetorical question; we all know the answer is yes.

After you find out what makes those key individuals tick, copy and paste that formula into your hiring decisions. Make sure your external suppliers share these values. When you want to increase your management team, promote only those that have exhibited these qualities. Reward examples of individuals exhibiting those key values. In the end, your company will be filled with Rockstars! And you just may avoid a shame on you moment!

We can work with your team at the Kole Performance Group to identify those core values. From there, we can work on ways to reinforce them continuously in your operations. It’s hard work today, but it will lead to a better tomorrow.