Managing Problem Clients

The defeatist is the pessimistic and cynical client. Whenever you present a strategy, idea or stock recommendation, he throws up his hands in utter despair and cries: “Your strategy is not aggressive enough,” or “your idea will never work” or “that is a terrible recommendation!”

Rather than try to defend your position and engage in a battle of wills, step over to the client’s side by asking: “What specifically about the strategy do you find lacks in aggressiveness?” or “What is it exactly that makes you feel that the idea will never work?” and “What is it about the recommendation that gives you cause for concern?” After allowing for some exchange around these questions, inquire further about ways to build on the strategy, idea or recommendation. For example: “How might we build on this strategy to make it more aggressive within reasonable limits of risk management?” or “How might we refine the idea that would make it more workable?”

This technique defeats the defeatist’s behavior by compelling him to justify his criticism, and by placing responsibility and ownership on the client to help brainstorm and resolve the very issues that he raised. You will have averted a potential battle of wills and artfully engaged the client in discussions around your strategies, ideas and recommendations without him even knowing.

Intercepting the Rambler

The rambler is the client who holds the floor with an endless, often pointless monologue quite oblivious to anyone else in the room. No one can get a word in edgewise and productivity is brought to a standstill. Left alone, the rambler could dominate the entire session.
To regain control, you should use the combination of a summary and a closed-ended question (one to which there is either a yes or no answer).

Let’s say, for example, your rambling client is holding forth about why his “well thought out” very short-term investment strategy is a no brainer and can’t possibly fail. He goes on endlessly about the merits of his innovative approach as you reach the breaking point of impatience and irritation. Begin by summarizing the key and relevant points by saying: “Chuck, so what I am hearing you say is that given the very volatile market conditions today, you feel that chasing today’s high performing stocks and then trading them for next week’s high performing stocks is perhaps a way to harness these unstable times. Have I understood you accurately?” After obtaining confirmation that you have indeed understood him correctly, follow up immediately with a closed-ended question: “Have you discussed this with anyone else who is knowledgeable in the investment area?” You have elegantly intercepted his counterproductive behavior and regained control. You can now lead the discussion in a useful direction such as the risks versus opportunities of such a short-sighted strategy.

As with any skill, competency is a result of disciplined practice; before long it will become natural and intuitive. The effort is well worth the rewards, however. There is a particular sense of satisfaction, accomplishment and confidence when one successfully redirects and manages difficult client situations. These techniques will go a long way towards this end. Furthermore, your competency in working with these challenging situations will be a true measure of your professional acumen and will set you well ahead of your competitors.  

Raphael Lapin is a Harvard-trained negotiation and communication specialist. He is the principal of Lapin Negotiation Strategies, a training and consulting company, and author of Working With Difficult People, part of DK Publishers’ (Penguin Books) Essential Managers Series. He can be contacted at [email protected].