The Client Relationship Achievement Zone

B E C O M I N G A S T R A T E G I C B U S I N E S S P A R T N E R W I T H Y O U R C L I E N T S

B Y

F R E D E R I C K C . M I L I T E L L O , J R .

S E N I O R T H O U G H T L E A D E R \

W W W . F U T U R E C H A N G E M A N A G E M E N T . C O M .

F M I L I T E L L O @ F U T U R E C H A N G E M A N A G E M E N T . C OM .

T E L : + 1 5 1 8 . 6 3 4 . 7 0 0 3

http://www.futurechangemanagement.com/

mailto:[email protected]

mailto:[email protected]

APPLICABLE AUDIENCES

For financial people in corporations looking to increase

their partnering relationships and get a seat at the

business table

For financial people in accounting and consulting firms

seeking to break-out of the commodity zone and into

the advisory zone

For relationship bankers seeking to differentiate

themselves and appreciate what it takes to have ―C‖

level conversations

C O P Y R I G H T 2 0 1 1 F U T U R E C H A N G E M A N A G E M E N T L L C 2

OPENING QUESTION


What does it mean to be a strategic

partner and climb the relationship

pyramid?

For insight let’s look at a client

perspective.

CLIENT PERSPECTIVE/CLIENT NEEDS

Here the client is a corporate financial executive

(CFO, for example) – a client that would be very

relevant to anyone working in the financial

services industry

To serve this client we must meet his/her needs and

those needs may very well be focused on the

client’s desire to build stronger relationships with

the business people in his/her company


THE CLIENT SPEAKS…

“TODAY, THE ONLY REAL POWER YOU HAVE AS A FINANCE

PERSON IS TO INFLUENCE BUSINESS DECISIONS IN THE

RIGHT DIRECTIONS AND TO MAKE AVAILABLE THE FINANCIAL

RESOURCES BUSINESS PEOPLE NEED TO ACCOMPLISH THEIR

GOALS. TO GET THAT INFLUENCE YOU NEED TO BE VIEWED AS

A STRATEGIC PARTNER. YOU NEED TO BE AT THE BUSINESS

TABLE….” GUY MERCIER, SOLVAY POLYMERS

ADAPTED FROM LEVERAGE COMPETENCIES: WHAT FINANCIAL EXECUTIVES NEED TO LEAD, PROF. MILITELLO/DR. SCHWALBERG FT/PRENTICE

HALL


STRATEGIC PARTNER

= INFLUENCE

BUSINESS CHOICES

+ DECISION SUPPORT

= SEAT AT BUSINESS TABLE

Being a Strategic Partner – A Client View


Key: Don’t forget clients

have their own internal

pyramids to climb.

Key: Don’t forget clients

have their own critical

success factors to

achieve.

Key: Help them climb,

help them achieve, and

you will likely climb and

achieve as well.

STRATEGIC PARTNERING QUESTIONS

Knowing that the client wants to be a strategic partner with

the business people of his/her company helps us to set our

compasses in the right direction

How can we help the client get a seat at the business table?

Are we having the right conversations?

How can we help the client keep his/her seat at the business

table?

Are we providing the right products, services and most

importantly ideas?


ACHIEVING STRATEGIC PARTNERSHIP:

IT’S ALL ABOUT THE RIGHT MIND-SET AND

BEHAVIOR! IT’S ABOUT GETTING INTO THE RIGHT

RELATIONSHIP ZONE AND STAYING THERE.


CLIMBING THE CLIENT RELATIONSHIP PYRAMID

There are three relationship zones:

1. The Vendor = The Danger Zone

2. The Consultant = The Comfort Zone

3. The Strategic Partner = The

Achievement Zone

Let’s look at each…


THE VENDOR – THE DANGER ZONE

Focus is more on: Selling products

Reactivity

Price

Transactional knowledge

Skills

Credibility

Vendor role/behavior


You are in the Danger Zone. There

is no sustainable differentiation

here. Expect to be treated like a

vendor because you are behaving

like one. You are on a

commodity-like trajectory and will

never be thought of as a strategic

partner or prospect for being so.

THE CONSULTANT – THE COMFORT ZONE

Focus is more on: Physiological needs

Proactivity/presentation

Fear

Informational knowledge

Skills/Cognition

Reliability

Consultative role/behavior


You are in the Comfort Zone. This is

where most of us are satisfied

being. But it is really not a

partnership state. It does not go

beyond physiological needs and is

fearful of emotions and intuition.

Most importantly, it leaves you in

the red waters of competition –

ironically not a very comforting

place to be at all.

THE STRATEGIC PARTNER – THE ACHIEVEMENT

ZONE

Focus is more on: Psychological needs

Interactivity/conversation

Value

Tacit knowledge

Behavior/experiential

Values identification

Strategic role/behavior


You are in the Achievement

Zone. Here we have

differentiation. We have

broken out of the Safety Zone

and are exploring less well

defined needs. Everything

becomes less clear (more

strategic). Our focus is clearly

on mutual needs, mutual

discovery, interactivity and

conversation. It’s a strategic

partnership.

Client

Achievement Zone

Comfort Zone

Danger Zone


The further away you move from the client, the less partnership becomes a reality.

When you are in the Danger Zone you are easily replaced. You are a vendor.

When you are in the Comfort Zone you are closer to your client; however, communication still tends to be one directional. Moreover, ―conversations‖ tend to be around questions of survival and safety and not of a higher-level nature. You are a consultant.

When you are in the Achievement Zone you are close to your client. Conversations tend to focus more on mutual agendas and more psychological goals such as belonging, recognition and actualization of one’s goals. You are an advisor and partner.

Strategic partnering only can exist when you are in the Achievement Zone.


Actualization

Recognition

Belonging

Safety

Survival


Maslow’s Pyramid of Human Needs best depicts the desired climb on the relationship pyramid. Basically, the climb is inherit in human nature and behavior.

Before we can join a society (become partners) we must first provide for our survival and safety. These are our most basic needs. This is also where most financial service providers feel the greatest comfort. It’s their Comfort Zone.

However, ―higher-level‖ needs are where true partnering opportunities arise. It is here where we begin to see the need to belong, to be recognized and eventually to actualize our lives. This is the Achievement Zone. It is where the greatest opportunities for strategic partnering exist and largely remains an opportunity of open space


The Achievement

Zone (Strategic

Partnering)

The Comfort Zone (Consultative

Selling)


Let’s focus on the most likely zones of relationship climbing.

The Comfort Zone feels safe like the needs we seek to provide; namely, survival and safety. These needs correlate more easily with our product offerings. They are more explicit and tangible. But they are not viewed strategically and they do not emanate from the desire to reach out to others. They are more physiological.

The Achievement Zone is where we really begin to climb the pyramid and leave the competition behind. Here we are dealing with the human needs for belonging, recognition and actualization. Here we have the greatest opportunities for strategic conversation and partnering.


Actualization = Legacy

Recognition = Social

Responsibility

Belonging = Affiliations

Safety = Insurance

Survival = Capital


As you climb the relationship pyramid client needs almost naturally become more outward looking. They scream out for partnership with others.

These ―higher‖ needs become more personal. They require more trust. They require more interactivity. As an advisor, they require that you have earned the right to give advice and become a partner.


EXPERIENTIAL OBSERVATIONS

The pyramid is not just an upward climb—as many

suggest Maslow originally implied.

The pyramid represents both an upward and downward

progression of client needs.

The goal is to capture the entire pyramid—making its

totality the Zone of Achievement.

The goal is to have strategic conversations where/while

others are behaving like vendors or consultants.


AN EXAMPLE/FROM VENDOR TO STRATEGIC

CONVERSATIONS

Risk management is usually thought of as a safety product. It’s in our comfort zone.

However, it is not the product that determines the zone of conversation—rather it is the nature of the conversation.

For example, a company may have the need for diversification (flexibility in its operations).

It can do so by getting larger—making acquisitions.

It can do so by focusing on growth—less emphasis on core competency growth.

It can do so by changing its capital structure—deleveraging.

But how about risk management? It too can provide the business with the flexibility that business operations do not.

Risk management becomes strategic when the conversation is strategic—it moves from the Comfort Zone to the Achievement Zone!


Having increased conversations with ―C‖

level executives.

Having conversations that are more

concerned with business choices

and support activities.

Having conversations that are more

concerned with belonging,

recognition and actualization.

Having strategic conversations about

needs that previously were in your

Comfort Zone.

Getting your client to the business table.

Being asked to join your client at the

business table.

Getting your client asked back to the business table.

Being asked to return to the business table with your client.

Being recognized as a business strategy and decision-support advisor.

Achieving an overall increase in client fee income.

Achieving a higher economic return on one’s client portfolio.

Achieving a far larger share of client portfolio business than one’s competitive counterparts.


ACHIEVEMENT ZONE INDICATORS

Rethink what it means to be competent.

You need more than skills – you

need behavioral competencies

Build trust – third tier trust. Such trust

requires that you put the needs of

others before your own. It requires

the identification and sharing of

mutual values.

Refrain from giving advice too quickly.

Remember, you must earn the right

to give advice.

Listen to others. When you listen to

people they feel you care about

them. They trust you.

Put your own agenda aside. Stop selling

products.

Leave the Safety Zone of physiological

needs. Needs are more than

physiological. The most important

to address involve the psyche.

Enter the Achievement Zone of

psychological needs, e.g., help

others to belong, be recognized

and actualize their goals.

Practice reinforcing Achievement Zone

behaviors e.g., mutual discovery,

art of conversation, intuition, etc.

Be willing to take risks and climb the

relationship pyramid remembering

that higher levels of trust bring with

them higher levels of responsibility.

Practice leadership. Call it service

leadership if you will.


ACHIEVEMENT ZONE TIPS

Business

The Client Relationship Achievement Zone