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The Bottom Line - August 2005

Communicate Your Value to Clients

Construction and design industry professionals often don't know the best way to tell their own story to prospective customers.

by Joan Capelin

Even the most noted leaders in design and construction sometimes feel inadequate when they have to communicate the benefit of what they do. Of course, there's the building, highway, plant, bridge, or green roof that results from their training, grit, and talent.

But in the end, design and building professionals seldom own what they have produced. Their "product" may be photographable, but a picture goes just so far. They still have to explain their contribution to others, very often to people with limited understanding of what's involved or how to evaluate it.

To help everyone in the construction continuum to communicate effectively, I wrote Communication by Design, a book of rules and strategies about public relations, marketing, and management for this industry. Among the key principles I discuss - and summarize here - are the ways to manage relationships with clients and prospective clients to let them know your value.

It's important early on to find out what your client's goals are for the project. How aligned are you with what your client imagines will be the progress of the work? Ask! Right after winning a job, for instance, debrief to learn why you were hired and why some other firm wasn't.

The flip side is making sure the client knows and values you. How many businesses suffer because their principals haven't asked for something that would really benefit the firm? Perhaps a higher fee that would provide needed breathing room? A better rate from a subconsultant? An introduction to someone? If you don't ask, you don't get.

Another way to show clients your caliber is how you act when you lose. Imagine receiving this letter from a worthy competitor: "I just learned that our office didn't succeed in getting the job we were both going after. However, I was really pleased to hear that your office got the commission. The client is in good hands. Congratulations!" Could there be any kinder words from another professional?

Now imagine the impact if you were to send a version of that letter to the lost prospective client? The client will remember the good sportsmanship and professionalism.

The best case study about losing well - I must apologize to HLW, but this is such a good story that I use it all the time - concerns Ted Hammer, the senior managing partner. A major high-tech company had considered HLW for a project and then went with another firm. Ted wrote to wish his contact all the best, noting that, though keenly disappointed, he respected the firm that was chosen.

But Ted also sent along a soft sculpture of a person with a very sad face. "That's what we feel like," read the card. For two years, the downcast doll was on display in that executive's office, and, sure enough, one day he offered HLW the assignment to be master planner and architect for the company's entire region.

Another subtler way to communicate your value to clients is by being firm about receiving your payments on time. "Whose money is it anyway?" asked BusinessWeek Online. "Tolerate uncollected debts and you might as well be giving your customers no-interest loans."

If you regularly cut some slack to "help" non-paying clients, you need to remind yourself why you are in business. Take the case of a Connecticut architecture office that was having cash flow problems - clients didn't pay it, and even joked about how easy it was to avoid the bill. The issue, as we finally assessed it, was that the architects didn't know how to ask for their money, because to them, talking about outstanding bills was "unprofessional." We coached them through every possible scenario and scripted talking points until they were comfortable enough to stand up to their deadbeat clients.

One last thought: Every firm has principles. Principles are why you do things, not how. Write down the principles that make you successful and be sure to communicate them to others. Having - and using - principles well is the mark of leaders.

Joan Capelin is president and founder of Capelin Communications, a New York-based consultant for professional service firms.

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