Strategy Consultants: How to Spot a Bad Client Before It’s Too Late

Strategy consultants often have a front row seat to the good, the bad, and the ugly parts of a client’s business. It’s part of the job: getting to know a client well enough to provide strategic assistance in their decision-making. However, there is such a thing as clients who are a little too bad, and a little too ugly.

While consultants may work regularly with clients who are less than ideal, there are many of those projects that start off rough, and turn into unmitigated disasters. In hindsight, the warning signs for these types of clients are always there. But how can strategy consultants anticipate when a client relationship is about to go south?

Strategy consultants should look for these three red flags when considering a new client.

1. They don't understand what a strategy consultant does.

The first bad sign? They make requests that don’t align with your specialty or focus. Often you’ll find them overly involved in day-to-day operations, minutiae, and meetings that aren’t particularly relevant. Worst of all, they ask you to deliver something out of scope. A client asks you to change your business to get theirs, or asks you to perform a service you haven’t originally agreed upon in the contract. These are clients who will likely get greedy and suck your energy, time, and resources. A warning: once you do something for a client, they’ll continue to ask for more of your time. These types of strategic consultancy projects turn into a black hole from which it’s hard to emerge.

On a practical level, trying to bend over backwards to perform something you can’t will lead to cutting results or overstretching resources.

How can you escape overpromising to an insatiable client? Know what services you will and will not offer up front. Delineate how your role as a strategy consultant fits with the rest of their business development and operations. Draw clear lines, and have outside options at hand to recommend if they ask you for services outside those lines. Likewise, be strong in your convictions: say no to prospects that need something you can’t provide. Your clients will respect your strategy recommendations later in your working relationship if they see you steer the project with confidence from the get-go.

2. They aren’t respectful of your time.

This warning sign can appear in a variety of forms – and in the world of strategy consulting, it can be hard to tell when a potential client is going to monopolize your time. Most strategy consultants work between 60-70 hours each week to begin with. Long hours and excellent client service is part of the deal: but, again, there have to be limits.

These are the time-related indicators that a potential client is going to go from bad to worse:

• They micromanage your time
• They make demands without regard to your schedule or agreed upon timeline
• Everything is (unnecessarily) urgent
• They waste time in meetings and hold you accountable for lack of progress
• They set impossible deadlines

If you see any of these symptoms early on in your client relationship, beware. These are clients who will be very difficult to satisfy, even if you are meeting (and exceeding) the terms of your contract. Likewise, working with demanding clients can increase burnout, lower motivation, and affect your other client work.

Should an existing client become high-maintenance, take control of the situation ASAP. Set clear boundaries around your schedule. Include deadlines and timelines in the contract, so there can be no future negotiation or manipulation. You might also consider placing a ceiling on their billable hours, or specifying precisely what they can ask you to do as billable time. Take charge by setting meeting agendas (or having actual meetings as little as possible). Invest in a proper time tracker and track the time it takes you to do literally everything they ask so if there’s ever a dispute on your hours, you have the evidence to make your case.

3. They communicate poorly.

The first two warning signs can be a bit tough to spot in a potential client. However, if you see a lead communicating poorly from day 1, that’s a good sign they will continue to be difficult.

While scoping out a project, observe whether a client can clearly state their goals and business needs. Do they have a vision of what their expectations are? Are they answering your questions with insight and detail? Or are they vague about where they want you to advise?

The biggest red flag is the disappearing client. Clients that vanish when it comes time to sign the contract are the worst sign yet. Some clients wait too long to make a decision, don’t follow up, and won’t respond altogether. Let these potential clients go – it’s going to drag down your team and make it nearly impossible to finish a project.

Bottom line? Trust your instinct. If your spidey-sense is telling you that a client is going to be more trouble than they’re worth, move along. A client that monopolizes your time and energy is going to impact your other relationships. Don’t let a potential client tank your business!