Client Protection as Partnerships Go Pear-Shaped

Client Protection as Partnerships Go Pear-Shaped
As a profession, accountants are often criticised for their lack of communication with clients. In some instances, communication pieces are written with very little consideration as to how it will be received by clients. This is particularly the case when things start going pear-shaped amongst the partners. The success of a practice is based around its ability to attract, service and retain clients which is heavily influenced by relationships that exist between those clients and key contacts within the firm, often a partner.

Let’s just say, it’s a bit like a marriage. If things start to sour, the last thing you want to do is drag a third party into the dispute, unless of course it is from a professional standpoint.

So, the same applies with professional partnerships. Ideally, this is something that staff and clients will be protected from. The last thing that you want to do is share with clients the dirty laundry that is being ‘hung out’ in the firm. Certainly, some clients will be supportive, however others may reconsider whether your firm is really the best provider for them and your efforts may end up causing more damage than good to client relationships. So consider this when communicating with clients. Some issues are better kept in house.

Let me give you an example.

Let’s say that one of the firm’s partners is leaving to join another firm or start up on their own. This departure is communicated to clients of the firm by the exiting partner in a rather brief, non-descript e-mail or letter. A short time later, another communication piece is despatched to clients from a different partner. This is far more detailed and formal, outlining several issues this partner has with the proposed departure. It is confirmed that all obligations will be maintained, highlighting restraint conditions applicable to the departure as well as reassuring clients that contingencies are in place. WOW!

To begin, it is very clear why the second piece of correspondence has been despatched. Obviously the aim is to protect and reaffirm client relationships. No doubt some clients will be very understanding of the situation and the correspondence. However, what will be other clients’ perceptions? These issues have normally been kept in-house but now, all clients will be aware that something is a miss within the firm. What do the contents of the communication say to the clients about the firm; and is all of that detail really necessary?

No doubt professional advice has been sought in relation to these circumstances. However, it will be interesting to watch and observe what fall out, if any, results from what is now clearly a very public spat amongst the leadership of this firm. What was initially a fairly innocuous piece of correspondence has now given the client base far more to evaluate and consider, some of whom may never have been under potential risk in the first instance.