The Real Cost of Catering to Toxic Clients: A Culture Perspective

Culture Matters, the monthly forum that tackles topics that impact company culture, tackled toxic customers in the conversation held last Friday, October 18, 2024.

Toxic customers, while rare (hopefully!) have a ripple effect on the company, people involved, and people who see the toxic behavior tolerated. The company can be impacted financially by scope creep, depleted morale, disengagement, turnover, and damaged reputation. Employees can be impacted when customers berate them, disrespect boundaries, and demand services beyond what is agreed upon.

When leaders allow disrespectful customers to continue treating employees poorly, they send the signal that their people do not deserve respect.

We have not had toxic clients in recent years, but some clients have. One executive client, Pam, shared about the client point person, Dwight, being so toxic that no one else will deal with him. Pam (names changed, obviously) said Dwight is rude, belittles the women account leaders, and demands they are available 24/7. No one wanted to work with Dwight, but his account brought in decent revenue. His account landed with Pam’s team because she was thick-skinned and could handle him.

And, she could. She did not take his treatment personally. The interesting thing Pam noted, however, was that her bosses would not speak with Dwight about how he treated their colleagues. Their lack of courage showed a side of leadership that discouraged her, and she lost respect for them saying, “They don’t respect me very much either.”

The Culture Matters conversation included a discussion around how to recognize the toxic behavior early so we can head it off before it gets out of hand. A few things to watch for…

◼️ Natural stages in the client relationship (i.e., new point people, account changes)
◼️ Consistent disrespect, boundary violations, or manipulation
◼️ Missed or constantly late deadlines, payments, meetings

To prevent toxic relationships, prevent them from occurring in the first place by onboarding clients to your company’s way of working. Include communication styles and expectations, boundaries (i.e., emails are read between 9am and 6pm), workflow, and confirming project scope.

 Seek to bond with clients early and often so communication is clear all along and relationships don’t have time to sour.

Here are a few other things discussed in this month’s Culture Matters:

◼️ Examples of Toxic Client Behaviors: Participants shared examples of toxic behaviors, including constant disrespect, unreasonable demands, aggressive communication, arguments about fees, and manipulative tactics.

◼️ What Non-Leaders Can Do: It’s important for employees to document interactions, escalate issues when necessary, and maintain professionalism while protecting their well-being.

◼️ What Leaders Can Do: Leaders have a responsibility to set boundaries, provide support to employees, and take decisive action when a client relationship becomes untenable. Discern how the values of the company align with the behavior you are tolerating.

The company culture will become the worst behavior you tolerate, so be careful what you expect your employees to accept. Be intentional about the behavior you accept.

 One of the worst statements in the history of business is: the customer is always right. They are not always right, and the pressure of that expectation contributes to toxicity. While there’s no need to be harsh when a client is wrong, bending over backwards for clients who are not only incorrect but also toxic goes beyond what’s reasonable for any company or employee to endure.

If you take care of your employees, they will take care of your customers. The Ritz Carlton, known for exceptional customer service, has this philosophy nailed.

"We are superior to the competition because we hire employees who work in an environment of belonging and purpose. We foster a climate where the employee can deliver what the customer wants. You cannot deliver what the customer wants by controlling the employee." 

Horst Schulze, Former Ritz Carlton President

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Join the Next Culture Matters Session!

Register for our next Culture Matters discussion on November 15, 2024, where we'll dive into “How to Boost Your Culture After a Setback.” It’s a perfect follow-up to this month’s conversation, offering strategies to rebuild and boost culture after challenging times. We look forward to seeing you there!

Unlock the power of your company culture

When I started working with companies on their culture 20+ years ago, every company had the same words painted in fancy fonts on their walls:

Our people are our most important asset.

It was one of the first indicators that they talked more than walked their company values, especially since most of the time, the CEO who met me in the lobby and walked to the board room did not even acknowledge colleagues we passed along the way.

The better indicator? The colleagues did not acknowledge the CEOs either.

Fewer companies have trite sayings like that blasted on their walls these days, but culture is more important now than ever.

Seven reasons company culture is so important right now are…

1. Changing market demands require speed of innovation, which can be slowed by internal functions with reams of red tape in a mediocre culture.

2. Employees today expect empathy from Managers, which many Managers do not have capacity or skills to provide. The increased pressure on Managers impacts their self-esteem, diminishes their productivity, and leads to burnout.

3. Increased time to hire for many key roles leaves roles unfilled, which strains current employees and Managers trying to maintain productivity and performance.

4. Increased remote and hybrid work environments, where face-to-face interaction is limited, culture becomes even more critical. It bridges the gap between physical distance and helps create a cohesive, unified team.

5. Different generations in the workforce bring different skills and expectations. The expectations Gen Z and Gen Alpha have of Managers, workplace rules, development, and career paths are changing company cultures and how companies function.

6. Increased expectation of trust on all fronts. Customers, employees, and companies expect to trust each other, and they need to build and reinforce the trust all the time. Their culture nourishes the trust and reveals when it’s not there too.

7. Companies who take an hour to decide what to serve at the summer picnic or leadership teams who need three meetings to choose brochure colors do not have a strong enough culture to implement and capitalize on AI safely or successfully.

There are many more reasons. What would be on your own list?

Company culture is not just about perks or the atmosphere at work. When cultivated intentionally, it influences everything from employee engagement, retention, and performance to management capacity to innovation and company performance.

The organizations that thrive are those who understand culture as a strategic asset—not just something that happens organically, but something to be shaped and nurtured. All. The. Time.

Today’s Culture Matters topic was, “How to unlock the power of your company culture.” The group of business owners, leaders, and professionals talked about the changes happening in the world and inside companies and what we can do about it.

If you want in on relevant, modern conversations like this, join Culture Matters next month. (Find out more here)

When you’re ready to talk about how to nourish your culture and treat it like the strategic asset it is, email us. We can help. 

Culture drives performance.
Don’t leave it to chance. Join us!

How real is your purpose?

People are more motivated to work when a company's purpose is meaningful and aligns with them. Just know this: you can't trick your people for long.

For example, if you work for a tech company in the health and wellness space, your company's purpose is probably something related to better living or longevity.

You would expect to serve people, thus, generate revenue related to better living or longevity. Right?

But, if revenue is generated not by providing valuable resources but by annoying customers to death with pop-up ads, so they sign up for premium accounts just to stop pop-ups, is that really in alignment with the purpose?

If your company can't make money at its proclaimed purpose, maybe there is no market for it. Or, perhaps, something else is wrong.

In the tech health company example, if they can't make money helping people live better or longer, and they spend resources on algorithm maneuvers instead of building expert reputations, the purpose is not real.

The employees know it.

They won't fall for gut-wrenching speeches about how much you care about your customers, when all you're doing is minimal service then badger customers to get them to subscribe.

The employees see it, and it won't take long before customers see it too.

So, if you wonder about mediocrity or employee engagement, here is one thing to assess: How real is your purpose?

Are you All-In or not?

One of the keynotes I share is The All-In Way: 5 Strategies to High Performance in Life and Leadership. The presentation includes the five strategies, along with lots of stories and examples of companies and people who are All-In or out.

One of the All-In examples is Dr. Michael Ackerman, M.D., Ph.D., Pediatric Cardiologist with the Mayo Clinic in Rochester, MN. If you’ve been part of The All-In Way, you may remember Dr. Ackerman’s story and his treatment of my nieces and nephews.

Early in his career, he was preparing an eight-year old girl from Michigan for a heart transplant, and she questioned him about surviving the surgery. He said she would survive and he would dance with her at her high school prom. Ten years later, her mother got in touch with Dr. Ackerman when it was time for her daughter’s prom.

Ten years later?! Don’t you think the mother would have understood if he explained his busy schedule? After all, by then, he was a well-known cardiologist with a schedule full of patients, transplants, teaching, and speaking events.

Dr. Ackerman remembered the promise he made to the little girl, and he made the trip to Michigan for the prom. The healthy patient and her cardiologist shared a dance to Rascal Flatts' Bless the Broken Road. After the dance, the young lady’s father drove the doctor five hours to the Detroit airport so he could catch a flight to Florida where he had a speaking engagement the next day.

Dr. Ackerman showed up.

He kept his word.

He lives and leads All-In, and he has the reputation to match.

Last month, LeBron James’s son, a freshman at USC, had a cardiac arrest during a basketball workout. Bronny was taken care of by Cedars-Sinai Medical Center in Los Angeles and recovered. The family released an update saying Bronny has a treatable congenital heart defect just this past weekend.

The statement said Bronny had follow-up evaluations at the Mayo Clinic led by Dr. Ackerman and at the Atlantic Health/Morristown Medical Center. (Source: Sports Illustrated)

LeBron James could take his son to any cardiologist anywhere in the whole world.

He took his son to Dr. Ackerman.

💥 It’s not about dancing at the prom. It’s about keeping your word. Even when you’re busy.

💥 It’s not about platitudes like, “Let me know if you need anything.” It’s about showing up with spaghetti dinner the fifth week after the funeral when the freezer is empty of casseroles. It’s about showing up for collaborations and commitments because you said you would.

💥 It’s not about what everyone else does. It’s about your standard of excellence.

A high standard of excellence for skill and care is ideal for a cardiologist, right?

Is less acceptable in your job?

It’s not about the job, it’s about you. It’s about what you choose as your own standard. You set the standard of excellence high because that’s who you are, not because that’s what you get paid or that’s what the boss requires. Because who you are.

Do not lower your standard for your own behavior because people around you have low standards. Or because some out-of-touch geezer boss gets a bonus off your work. Keep your standards where you want them to be because that is who you are.

You’re All-In or not.

Choose what All-In means based on who you are.

Live and lead accordingly, and you will have a more fulfilling life.

3 lessons learned from McDonald’s Kiosk Training Level 1 (that I made up for my Dad)

My dad has been quite a trailblazer throughout his career. He had an office in our home long before WFH was the hot demand. He created new models for sports management and auto financing, among other things that became commonplace years later. In recent years, he has worked to become as tech savvy as he needs to be—no less, no more.

Last week, was a big one: Dad wanted to learn how to use the kiosk at McDonald’s.

He goes to the same McDonald’s every morning and called upon me as the family leadership development expert to teach him how to order from the kiosk. Here are the three key lessons I learned throughout this ordeal, I mean, wonderful experience😊:

Lesson #1: Put others at ease by linking the new experience to a familiar one. In advance of the training he asked of me, we spoke about similar experiences he had. For example, he had ordered from Amazon online. He described the steps he took during that process, and I said it would be similar on the kiosk. He had seen the kiosk, so we also talked about how it might differ. The discussion gave him comfort and calmed any internal anxiety he may have had. We all have some anxiety when tackling something new, right? Putting him at ease in advance was helpful because he was less anxious when we arrived at the kiosk training.

Lesson #2: Confirm the intention and purpose. Repeat the purpose to ensure clarity, and listen to the other person. We had some confusion about this one. I thought the purpose was to learn to order on the kiosk, but the very specific purpose Dad had was to get coffee for $.99 using the kiosk.

In my excitement for him to learn something new, I did not listen well, and it impacted the training.

Once the lesson began, Dad was rolling along pressing dine in, coffee café, regular coffee, and hold up! The price was $1.39. The kiosk did not say anything about $.99 coffee. He realized an ad he saw for the app promised the lower price for coffee. I offered to download the app on my phone right then, but he was frustrated already. He could not accomplish his purpose, so he was finished with the lesson.

I was frustrated because he still wanted the coffee—and so did I!—but he did not finish the order. He walked away from the kiosk to use his gift card at the counter instead.

I was bummed because he did not finish learning how to use the kiosk. He was bummed because coffee would not be $.99. There would have been less frustration if we had been perfectly clear about the intention ahead of time.

(For the record, the frustration level was like a two out of ten. We were laughing, not angry. We realized the moment and were not taking it seriously.)

Lesson #3: Be clear about the measure of success. Clarity of purpose impacts measure of performance. Since he did not complete the training, the special pretend Certificate of Achievement made especially for him on Canva sat secretly in my handbag. He was not going to get the certificate because he did not complete the order via the kiosk.

He did learn some of the steps, and that was a big deal for him. He got far enough to view the menu, select his preferred item, and place the order. Upon further consideration, he did earn the certificate for McDonald’s Kiosk Training Level 1!

Acknowledging progress was important. Look how proud he is! (He was being extra corny, but still!) There was no need to hold back the fake certificate just because the training did not go as planned.

Lighten up and look for opportunities to praise progress. Don’t be stingy with praise when it has been earned.

The praise, along with clarifying the purpose and connecting the training to something familiar, will help when we return in a few days for McDonald’s Kiosk Training Level 2!

Are there situations you’re facing when the same three lessons would be useful:

1. Put the other person at ease by linking the new thing with something familiar. This could be if you are asking for a budget increase for new staff or to improve a product feature.

2. Clarify the purpose of meetings. Wow, this is an enormous time-saver. I bet it would reduce the need for half of the meetings on our calendars! If the purpose is to give information, send an email instead. If the purpose is to gain support, do the topics and timing align with that purpose?

3. Link purpose to metrics to performance. Be clear with everyone about what success looks like. This can save time also because people will be working together to accomplish one thing instead of having different goals.

 A little reflection about those in advance can save time, build relationships, and speed progress. Every leader can use those now, including trailblazers learning new things.