Working with the wrong clients can distract the firm’s key resources and negatively impact financial results.
Solution Path
There are times when it is best to fire a client.
Data should be generated to determine the profitability of major clients. This includes not only project profit performance but also the overhead cost associated with supporting challenging clients.
A market assessment should be performed to understand market segment sizes, growth areas, strongest competitors in each segment. The firm can then define market segments with an opportunity to expand existing services into new clients and/or expand new services into other existing clients.
Establishing successful movement into new markets and/or clients makes if far easier to release an existing client.