Studies show that project managers spend most of their time communicating, whether it’s with the project team, management, or, most crucially, the client. Yet, turning a satisfied client into a truly happy one is a challenging task, demanding not only strong communication and negotiation skills but also other highly refined “power” skills.

We sat down with Oliver F. Lehmann, a veteran in project management and project business management training, to uncover the secrets behind client happiness. From pinpointing bottlenecks early on to crafting a product that exceeds expectations, he reveals strategies for effective negotiation and achieving the ultimate goal: a delighted, loyal client. With decades of hands-on experience, Oliver shares his invaluable insights on what it takes to master the art of project success.

How to accurately identify bottlenecks early in the project lifecycle? What techniques or strategies do you recommend?

Every project has a bottleneck, a concept rooted in Liebig’s Law, which states that the limiting factor (like a scarce nutrient in agriculture) will constrain productivity. This applies to project management, too, where bottlenecks often reveal themselves through time, resource, or personnel shortages. The most common bottleneck I encounter is management attention, often the scarcest resource.

Even with ample time, money, and staff, resources may go underutilized without dedicated focus from management. My first question in addressing bottlenecks is whether management attention is present and if leaders are fully invested in the project. Managers today frequently overcommit, taking on too many projects to effectively champion any single one. The relationship with your project champion is crucial, as they help mitigate bottlenecks, but it's essential to accept that bottlenecks will always exist.

How should one proceed when internal management makes decisions that don’t align with the customer’s expectations, potentially putting the team in a position where the customer may lose trust?

I've faced challenging situations in customer projects where I had to explain decisions I disagreed with. Maintaining the customer’s trust is crucial, and establishing personal trustworthiness without compromising loyalty to my organization is essential. While I owe my primary loyalty to my company, I can still tell the customer, “That wasn’t my decision, but I’m here to explain it.”

One issue arises when companies take on too many projects concurrently, leading to inadequate attention for some. Often, it's the least profitable or lowest-pressure project that suffers. This becomes problematic when demanding customers are prioritized, creating a dangerous cycle.

Ultimately, companies should aim for a work environment that fosters strong relationships and team spirit. High-pressure projects can erode morale and undermine collaboration.

What are some of the most frequent mistakes project teams make when assessing customer needs? Can you share good practices to help project managers better understand and anticipate customer expectations?

Problem One: Over-Reliance on Existing Solutions

A common error contractors make is relying on pre-existing solutions. Teams often reuse products from past projects, thinking it saves time and cost. However, this can fail when the solution doesn't meet the new customer’s specific needs. Selective listening plays a role, as teams may focus on what aligns with existing solutions and ignore the customer’s actual requirements. This leads to products that meet the contractor's convenience but not the customer’s expectations. A similar issue occurs in proposal management, where contractors skim requests and use AI tools, resulting in misunderstandings.

Problem Two: Failing to Address Emotional Frustration

Customers may assume certain details are obvious, leading to frustration when they are missing. This frustration can overshadow overall satisfaction, especially if small but crucial details are overlooked. Even if the contractor excels in other areas, a minor oversight can dominate the customer’s perception.

Good Practices for Project Managers:

• Listen Actively: Understand the emotions and expectations behind customer requests, not just the words.
• Ask the Right Questions: Don’t assume customers will provide all details; ask probing questions to uncover unstated expectations.
• Tailor Solutions: Avoid reusing solutions; create custom ones that fit the customer's needs.
• Prioritize Communication: Maintain open communication, especially regarding compromises or changes.
• Minimize Frustration: Pay attention to small details that might seem trivial but are crucial to customer satisfaction and happiness.

By addressing these common mistakes and following best practices, project managers can better anticipate customer expectations and reduce dissatisfaction.

What are the secrets behind creating a product or service that genuinely satisfies customers' needs? Are there specific methodologies, tools, or best practices that help in ensuring that customer expectations are not only met but exceeded?

The key to creating a product or service that exceeds customer needs is understanding both the individual and the customer organization. Forming personal connections with decision-makers—discussing family, hobbies, or vacations—helps you grasp what truly makes them happy. It’s not just about fulfilling contract specifications; it’s about delivering an experience of real value.

This involves providing beneficial services that align with the customer's needs, beyond the immediate purchase. By understanding their organization, you may identify problems or bottlenecks that are easy for you to address, even if they seem unrelated to your initial scope. Going the extra mile means offering solutions the customer didn't specifically ask for but that can make a significant difference.

Addressing specific challenges your customer faces is powerful. For example, if productivity is a bottleneck, providing a small solution to improve it could be immensely valuable. Conversely, if market acceptance is the main issue, focus on helping them sell more effectively.

While you may not solve all of your customer's challenges, concentrating on areas where you can make a difference will help you exceed their expectations. Aim to satisfy their needs consistently and go beyond whenever possible to build trust and loyalty.

When a customer's demands or expectations are unrealistic, how can project managers push back diplomatically while still maintaining customer satisfaction? What strategies can be used to ensure that the relationship remains strong, even when the customer may not be "right"?

Few years ago I dealt with a situation where a software company was building a digital payment system for a customer with legal requirements for a credit-card-based system. The customer kept insisting on changes, driving the project into financial losses under a fixed-price contract. Based on their belief that change is always beneficial, the project manager didn’t even try to contain these demands, while the increasing costs and the blocking of resources that otherwise could have generated income drove th company into the insolvency zone.

The solution was to focus on the customer’s constraints, especially the legal deadline for the implementation of the solution. The general manager diplomatically explained that while the team was committed to current requests, they couldn’t accommodate new ones without jeopardizing the deadline, which would create significant issues for the customer.

The team proposed freezing the current backlog to meet the deadline and gathering new requests in a separate backlog for potential future projects. This approach positioned the contractor as a partner invested in the customer’s success. By clearly communicating the risks of constant changes, the customer recognized the potential damage to their interests, allowing for effective management of expectations while maintaining a strong working relationship.

Breaking bad news to a customer can be challenging, but it’s essential to handle it with honesty and empathy. What steps should project managers take to ensure that the message is delivered effectively, while maintaining a positive relationship with the customer?

One effective way to soften the impact of bad news is to deliver it early, giving the customer time to respond without feeling overwhelmed. Being upfront about potential problems allows customers to react calmly, fostering mutual respect. While bad news will never make customers happy, early communication can help them adjust their strategies and schedules.

When delivering bad news, avoid mixing it with good news in an attempt to soften the blow, as positive news cannot fully counterbalance the emotional impact of bad news. Frustration often overshadows happiness, making it difficult for customers to process both emotions simultaneously. Instead, deliver good news separately to allow customers to fully appreciate it before presenting bad news along with a clear path forward.

Communicate with empathy when sharing bad news and propose actionable solutions. Acknowledge the seriousness of the situation and assure the customer that your team is working to mitigate the problem. This proactive approach demonstrates your investment in their success, even amid challenges.

But probably this also goes hand in hand with well-organized risk management, right? Because project managers must manage risks effectively and know those risks, identify them early, so they are able to communicate it with the customer early on as well.

Yes, risk management is essential in project management, and discussing risks early is crucial for success. Unfortunately, many managers—both contractors and customers—often avoid these discussions, mistakenly believing projects should be risk-free. This misconception can be detrimental, as ignoring risks doesn't eliminate them and can lead to larger issues later.

As a project manager, it’s vital to educate stakeholders about the inherent uncertainties in projects. While some risks may be beyond your control, effective risk management involves preparing for uncertainties. Identifying risks early and developing strategies to address them is key.

However, not all managers welcome discussions about risks, as they may focus solely on their vision or business idea. In these cases, it’s important to frame the conversation around their concerns, explaining that some risks—such as budget or resource issues—are theirs to manage. Positioning the discussion this way may encourage a more constructive dialogue.

How do you manage cost and profitability in customer projects? While it’s important to make the customer happy, how do you navigate challenges when scope changes or additional requests begin to impact the budget and long-term relationships?

In customer projects, managing cost and profitability hinges on effective relationship management, which is crucial for success. This relationship involves balancing contractual and relational aspects, especially when scope changes or additional requests impact the budget.

The type of contract significantly affects cost management. With a cost-reimbursable contract, managing changes is easier, as the customer covers extra costs. However, in a time-and-material contract, scope changes may complicate matters, necessitating fee renegotiation.

Clear delineation of what’s included in the original price is vital for managing scope changes and setting customer expectations. Communicate upfront that additional requests will incur costs, ensuring customers understand that value comes at a price.

Effective change request management is crucial. When customers request changes, conducting a thorough impact analysis on budget, timeline, and resources is essential. This step keeps everyone aligned and prevents the project from being derailed by unplanned changes. While the analysis requires time and resources, it helps avoid rough estimates that may overlook the work needed.

A primary task of a project manager in a customer project is to protect the project's cash flow. However, what should one do if a customer refuses to pay, but we still want to maintain a good relationship with them? What’s the best course of action in such situations?

This is a multifaceted problem with several aspects to consider. Many companies assume there’s no valid reason for a customer’s refusal to pay, complicating matters. Contractors often face a tough position: team members dedicated to the project may be left idle if work stops, potentially leading to legal action if unresolved.

If there's no clear justification for non-payment, it's crucial to acknowledge that the customer may see the situation differently. This difference in perspectives can create a conflict neither party can resolve alone.

In such cases, it's advisable to involve a third party. When conflicts escalate beyond the ability of the two parties to manage, a mediator can facilitate discussions, while an arbiter can solicit or even make binding decisions. Engaging a trustworthy third party can help restore the relationship and find a mutually beneficial solution, especially if damage has already occurred.

As we wrap up our conversation on client happiness, I’d like to pivot to a broader yet equally vital aspect of project management. In your view, what are the top three skills that project managers should develop to lead projects effectively in today's evolving landscape?

Skill Number One: The Ability to Integrate Project managers must integrate various elements—time, budget, personnel, customer requirements, legal obligations, and contractual requirements. A well-integrated project has a coherent plan that, while success is not guaranteed, can lead to a better outcome. Conversely, a poorly integrated plan filled with inconsistencies can lead to failure. For example, promising a four-month delivery after eight months of work or failing to account for team vacations can jeopardize success. Integration means planning and executing tasks under the assumption that if everything would go as planned, no element in the plan could cause failure.

Skill Number Two: Empathy Empathy involves understanding the emotional states of others, recognizing the impact of your actions on customers and stakeholders. It requires awareness of their frustrations and joys, as well as how your decisions affect them. This understanding helps navigate the emotional landscape of a project, influencing rational decision-making and assessments.

Skill Number Three: Openness to Learning Project managers should cultivate an openness to daily learning. Each project is a learning experience, yielding new knowledge that may be immediately useful or significant for future endeavors. Embracing this learning process is vital for both the project's success and the manager’s long-term growth.