Setting Boundaries: How Clients And Advisors Improve Their Professional Relationship

Good communication around expectations forms the baseline for a successful relationship between ... [+] getty

As in many relationships, the continuity of a client / advisor relationship depends on the strength of the connection. Working with a professional advisor who provides the professional guidance and expertise that it needs to perform at a high level could help catapult a business.

Longstanding relationships are usually characterized by mutual give and take. However, businesses often face an interesting dilemma – navigating the unknown boundaries in a trusted client / advisor relationship. While some boundaries may be explicit, others can fall in a gray area and may require a conversation.

Successful businesses celebrate business milestones differently. They may show their appreciation to the professional advisors who have helped them achieve their success in ways outside of the payment of the agreed professional fee.

Many, especially family businesses whose advisors may have worked with the family for a long time might have a relationship that borders on personal. Appreciation can be seen as a sign of trust and gratitude. But not all advisors accept such gestures with open arms. Some do so politely, but unwillingly, in order to not risk offending the offerer. Others will decline an invitation from the client to attend a celebratory social event.

Take, for example a client who, after experiencing a legal victory, presents his lawyer with a very expensive watch as a token of appreciation. This present is offered in addition to the regular fees that the pays. In declining the present, the legal advisor understands that the client may take offense, but more may be at stake.

In some instances, a certain professional designation may actually preclude an advisor from accepting such gifts. In others, the advisor may decline based on personal or professional preference. Depending on the jurisdiction, if the lawyer, for example is an officer of the court, accepting presents may endanger his professional independence and violates model rules of professional conduct.

Some quick rules of thumb around managing these types of boundaries, are:

• Communicate your ‘ways of working’. Advisors should consider establishing a standard policy around preferred ‘ways of working’ and communicate this with clients respectfully and as soon as possible. For longstanding clients, an explanation may be requested. Since old habits die hard, you may still be approached with gifts and social invitation that you may need to decline. But then it would be easier to reference your ‘ways of working’ policy as you politely decline.
• Don’t become offended As a client, recognize that professional boundaries could exist. if an advisor declines your offer or invitation, don’ t become offended. If your advisor did not share their professional code of conduct at the beginning of your working relationship, one may not exist. Ask for clarity. Many advisors typically welcome the opportunity to clarify their ways of working.

Advisors, on the other hand risk harming the close cooperation of a trusted relationship if they are perceived to be arbitrarily declining gestures of appreciation. Some workarounds to ensuring that the trusted relationship remains in tact without abandoning standard human niceties, include:

• Showing genuine interest. The key to relationship building is in showing interest in your clients, not as humans and not purely transactional. If you are aware of an upcoming celebratory event, ask about it politely and conversationally. Showing genuine interest helps to foster the client/advisor connection even if you cannot accept a present or attend a social event hosted by the client.
• Know your boundaries. Decide what you would deem as an appropriate way to celebrate with your clients. You should be able to apply this to all clients without fear of blurring the lines. Maybe you don’t accept gifts but you send them a card thanking them for their cooperation in working towards the victory; Maybe you establish a threshold for gift spend and record gifts received in a gift ledger for transparency.
• Know your client. While it may be easier to treat all clients as transactions, knowing the client’s business – its mission and values – and being able to connect with its key decision-makers across multiple generations cannot be ignored. This is often the key to building a connection that withstands the test of time.

While professional client / advisor boundaries can exist, knowing what they are and taking steps to proactively manage the client / advisor relationship within these bounds could help both parties pave the way for a relationship that lasts long into the future.