Q. Client Handling Query.
I am a self employed professional and working for IT outsourcing company. We got couple of big projects last month and after completing every formality the development team started working on them. Before project startup, the clients were in regular contact and giving timely replies. But, now whenever I ask them to send their comments on a milestone they use to reply very late which is effecting our schedule and developer keep on waiting for comments.
A. I'm assuming that you are doing all you can to get their response... but it is simply not working. This is a classic problem even within organizations.
Hence, the SLAs that I have with clients clearly state that there would be a penalty involved if a client delays response beyond a point. Either, I would let go of a dedicated resource, or I will put the project on HOLD for a certain duration of time or I will bill the client at a certain rate for blocking my time and keeping it idle.
Typically I would re-instate these terms to all stakeholders concerned at the beginning of the engagement itself. That would also give me a fair sense of how the client is going to respond to such terms.
Resorting to legal help is the very last resort, as such a move may almost ensure that you do not get any more business from this client... at least in India.
I am a self employed professional and working for IT outsourcing company. We got couple of big projects last month and after completing every formality the development team started working on them. Before project startup, the clients were in regular contact and giving timely replies. But, now whenever I ask them to send their comments on a milestone they use to reply very late which is effecting our schedule and developer keep on waiting for comments.
A. I'm assuming that you are doing all you can to get their response... but it is simply not working. This is a classic problem even within organizations.
Hence, the SLAs that I have with clients clearly state that there would be a penalty involved if a client delays response beyond a point. Either, I would let go of a dedicated resource, or I will put the project on HOLD for a certain duration of time or I will bill the client at a certain rate for blocking my time and keeping it idle.
Typically I would re-instate these terms to all stakeholders concerned at the beginning of the engagement itself. That would also give me a fair sense of how the client is going to respond to such terms.
Resorting to legal help is the very last resort, as such a move may almost ensure that you do not get any more business from this client... at least in India.
Good post mate!
ReplyDeleteThe answer sounds good in theory but how practical can it be. Normally in negotiations the client is in the driver's seat. Also imposing penalties would break down the entire relationship.
This is a common problem in our industry and I have yet to come across an elegant solution for this.
Ron
Agreed. This is easier said than done.
DeleteBut this is exactly where one's client handling skills come into play. I've been able to pull this off on multiple occasions without damaging relationships. On the contrary, a good client will appreciate the experience and foresight you display in handling such risks. The trick is to bring this up earlier in the day, i.e. around the time of drawing-up contracts, not when you are well into production.
The point I'm trying to make is that one should at least proactively propose such checks and balances to ensure a fair negotiation. Even if your approach did not work, you at least tried.
All the best !