May 15, 2024

Lessons in Leadership: Navigating Toxic Client Relationships with Integrity

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Reading last week that Baidu, the Chinese search giant, fired its head of public relations for raging against Gen Z team members, I was reminded of the outrageous behaviors of certain clients and prospective clients through the years.

I remember when the public relations leader of a Midwest beverage client called with a complaint against our New York media relations team during Rosh Hashanah, the Jewish New Year. “Hey, Burton!” the client yelled into the phone in an annoyed tone. “Can’t your agency hire some Protestants on the media relations team so that we have somebody to work with?”

Appalled at her insensitivity and reckless style, I responded that I wouldn’t dignify this conversation with a response.

Lesson 1: Respect for diversity and sensitivity towards different cultures and religious practices are non-negotiable in professional settings. Leaders must uphold these values to foster an inclusive work environment.

This same executive regularly dressed down and insulted her team and ours, leading to heavy turnover and morale casualties on both sides. When her best people moved on to escape the madness, she claimed they now were better prepared to lead in their new endeavors. My retort was, "Whatever doesn't kill you, makes you stronger." She wore as a badge of honor the description of “ballsy” that had been given to her by a C-Suite colleague.

​Always remember that a leopard never changes its spots.

Lesson 2: Toxic leadership styles that rely on intimidation and insults may yield short-term compliance but result in long-term damage, such as high turnover and low morale. Respectful and supportive leadership is essential for sustainable success.

During a frenetic reengineering project for a Philadelphia-headquartered service company, I met with our client, a McKinsey & Co. alum, to discuss our team’s work on the engagement. While we were on-site three of five weekdays and clocked 12- to 14-hour days aggressively driving the workload, he dressed me down for what he characterized as a lack of commitment by our team – despite the reality that we were killing ourselves for their cause and enduring a relentless shifting of deadlines.

“Why can’t you guys be more like the team at (major consultancy)?” he said with a sneer. That consulting team literally slept on couches in the client’s office, awoke for meetings in wrinkled garb, dined on unhealthy snacks from vending machines, and never left the building. No individual on my team ever slept on couches or would tolerate these behaviors.

Lesson 3: Unrealistic expectations and comparison to other teams can demoralize and demotivate employees. It's crucial to recognize and appreciate the efforts of your team and maintain reasonable work conditions to prevent burnout.

When I met the feisty founder of a major telecommunications firm on a new business pitch in Dallas in the early ‘80s, he spent a full hour using every expletive in the book and chain-smoking. In his heyday, this leader was known for his 15-hour workdays, during which he would smoke up to three packs of Larks and drink two dozen cups of coffee. I thought my Dad, who had sharpened his profanity as a Marine Corps aviator in WWII, had quite the vocabulary, but his was tame in comparison to this man. I tried to imagine the two women on our team working with the client and knew from their pained faces and frightened glances that it could never happen.

We didn’t pursue the business.

Lesson 4: Cultural fit and mutual respect are critical in business relationships. Sometimes, it's better to walk away from potential clients who do not align with your values and standards.

Then there was the chief communications officer at a major brewing company in the Western U.S. who sat with folded arms and raised eyebrows while we delivered our pitch, and then proceeded to unmercifully “roast” every member of our team as blood-sport. It was the first time I ever heard my wonderful Chicago executive colleague referred to as “Sellin’ Ellen,” and our New York office head asked how he made a living when he wasn’t writing bad prose for new business meetings.

Lesson 5: Constructive criticism is valuable, but humiliation and disrespect are unacceptable. Leaders should provide feedback in a manner that fosters growth and maintains dignity.

Finally, one of our agency teams had reached its breaking point with the head of communications at a major pharmaceutical company in Chicago. Team members who had endured verbal pummeling and humiliation at the hands of this client were threatening to rebel against our firm. Instead, I asked them to await my meeting with her to address our concerns.

Calmly, I advised the client that if she persisted in haranguing our team over petty issues, we would resign the business, which was sizable. She listened, nodded her head, and we finished the meeting on a positive note.

Two weeks later, the client fell back into her bad behavior. I immediately went to our agency’s corporate leaders, advised them that we would be resigning this client relationship, and then pulled the plug. It was an important action that sent a signal through the entire firm that character, integrity, and the honor of your team are more important than the income.

Lesson 6: Upholding your team’s dignity and well-being is more important than any financial gain. Sometimes, taking a firm stand and resigning from toxic client relationships is necessary to preserve the integrity and morale of your team.

Have you ever faced a client who made you question your career choices? Share your stories so that others can learn important leadership lessons from them.

Ultimately, these experiences underscore that a leader's character and respect for their team are paramount, far outweighing any potential business gains from tolerating toxic behavior.