Best Practices For Client Conflict Resolution

If you’ve been an accounting firm owner long enough, you’ve probably received a threatening email from a client or former client to be.  I know I have- sometimes for something we did (or didn’t do) and sometimes for something completely the fault of the client.  Regardless of who did or didn’t do what, how you respond will greatly dictate the results of the issue and how painful it becomes.  I had all ends of the spectrum from a client acknowledging their mistake to litigation. To start with, you don’t win a client crisis in the inbox. You win it with speed, structure, and calm conversation(s).  I’ve had the unfortunate experience of learning and watching a 14 reply email thread make things worse.  Ignoring or procrastinating the issue will generally make things worse as well although there can sometimes be benefits to giving those involved time to cool down.     This is what I’ve found worked best over the years if you find yourself in this situation, do this as soon as you can:: -If error and omission exposure is possible, notify your carrier and get guidance.  -Acknowledge the issue and schedule a live call as soon as you can that week.. -Stop the back-and-forth emails until that meeting. -Pull the timeline, scope, deliverables, and messages. You need to understand the facts as well as feelings. -If it appears potential for litigation, start an incident log documenting all communications and preserve every record.  Stop communicating internally electronically on the matter. As soon as you can: -Meet live. Clarify expectations vs scope. Define what acceptable resolution means. -Offer a narrow make right approach if warranted. Keep it specific and time bound. -Document and confirm next steps in an email after the call.   Within 5 days: -Diagnose, identify, and fix the root cause of the issue, not just the symptom. Examples would be tightening a checklist, review step, or handoff. -Review similar clients for the same failure point. -Decide your fee stance. Only discount if it buys closure and learning. -Close the loop with a short lessons learned note to the client and your team. In short, meet fast, map facts, make it right, then make it better. Often, top-notch handling of issues can result in stronger client / firm relationships.  What would you add from your playbook and/or experience?

Yesterday I was on a call and a dispute over a SOC 2 audit finding got borderline unprofessional. The crux of the issue wasn't the audit finding itself (both parties actually agreed with the basic facts), but rather how the conversation went down. And after 2000+ engagements here are a few tools to handle conflicts like these. 𝗧𝗛𝗘 𝗖𝗢𝗡𝗩𝗘𝗥𝗦𝗔𝗧𝗜𝗢𝗡 Consultant: Explains audit finding. Client: I agree, but it is so low risk we should just call it an opportunity for improvement (OFI) and not include it in the formal report. Consultant: I agree it's low risk, but it is an exception from the control, so I have to include it in the report. Client: Further defends why it's low risk. Consultant: Goes on to explain 5 ways client could have avoided the issue. Client (Voice Raised): Are you willing to fight me on this? Consultant (Intensity matched): Yes. 𝗛𝗢𝗪 𝗜𝗧 𝗪𝗘𝗡𝗧 𝗕𝗔𝗗 1. Because a challenge was issued (and accepted) it didn't leave either party much room to save face. That never turns out well. 2. In fairness to the auditor, this was a pretty cut and dry finding. In fairness to the client, it was not socialized in advance and caught a lot of people off guard. 3. This was a routine meeting for the auditor, but the client felt like it was career ending. 𝗖𝗢𝗔𝗖𝗛𝗜𝗡𝗚 It is worth saying that this conversation was between two decent and competent people who would otherwise get along great. Yet, this is a situation that happens all the time with security, audit, and GRC pros. There's just a lot of conflict to navigate in this career and we have to learn to do it. So, here are a few tools I've seen work to find resolution and avoid escalating: 𝟭. 𝗔𝘀𝗸 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀 𝘁𝗼 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝘁𝗵𝗲 𝗼𝘁𝗵𝗲𝗿 𝗽𝗲𝗿𝘀𝗼𝗻'𝘀 𝗽𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲 - Do both parties agree on the facts? - Do both parties understand the options (eg. Change control language, add a management response)? - Are there hidden factors (eg someone's job or reputation on the line)? Seek first to understand. Always. 𝟮. 𝗚𝗲𝘁 𝗮 𝘁𝗵𝗶𝗿𝗱 𝗽𝗮𝗿𝘁𝘆 𝗶𝗻𝘃𝗼𝗹𝘃𝗲𝗱 Sometimes a trusted third party will see things more clearly, or at least have a voice both parties respect. Try saying something like: "I can see this is important to both of us, let's pull in Christian and see if he can add some perspective that helps. Is that ok with you?" 𝟯. 𝗦𝗹𝗲𝗲𝗽 𝗼𝗻 𝗶𝘁 Create some space to cool off. Try saying: "This is too important for me to answer on the fly. I really need some time to think on this one. Would it be okay if I sleep on it and give you a detailed response tomorrow?" 𝟰. 𝗗𝗼𝗻'𝘁 𝘁𝗮𝗸𝗲 𝗶𝘁 𝗽𝗲𝗿𝘀𝗼𝗻𝗮𝗹 If someone starts to get emotional or lobs a verbal punch your way - just remind yourself there's probably something going on in their life you don't see. A bad day. A personal issue. Who knows. I often use that as a mental trick to summon a little more patience. --- Good luck out there!

𝗖𝗼𝗻𝗳𝗹𝗶𝗰𝘁 𝗮𝘁 𝘄𝗼𝗿𝗸, 𝘄𝗵𝗲𝘁𝗵𝗲𝗿 𝗱𝗶𝗿𝗲𝗰𝘁 𝗼𝗿 𝗽𝗮𝘀𝘀𝗶𝘃𝗲-𝗮𝗴𝗴𝗿𝗲𝘀𝘀𝗶𝘃𝗲, 𝗶𝘀 𝘂𝗻𝗰𝗼𝗺𝗳𝗼𝗿𝘁𝗮𝗯𝗹𝗲, but it’s inevitable. Yet, many don't know how to handle it effectively. Once I got curious about what causes conflict, I realized most are rooted on 3 sources: 𝟭. 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝗔𝘀𝘆𝗺𝗺𝗲𝘁𝗿𝘆: Conflict often happens when parties lack access to the same data. Their decisions clash because they’re not working with the same information. At Google Home, the e-commerce team and I didn't see eye to eye on a new service launch strategy. The economics impacted their channel performance, but after I shared the roadmap of future services that would offset the challenges, we aligned. With both teams accessing the same "data set", the conflict dissolved.     𝟮. 𝗣𝗵𝗶𝗹𝗼𝘀𝗼𝗽𝗵𝗶𝗰𝗮𝗹 𝗗𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝗰𝗲𝘀: Sometimes, everyone has the same facts but different priorities. One side might focus on quality vs. speed. Having a common set of principles or philosophies helps drive alignment.     While leading the transition from G Suite to Google Workspace, we restructured features across 20+ apps. Each app team had different approaches, making alignment difficult. But once we agreed on principles—like target customers profiles per subscription tier—decision-making became much easier.     𝟯. 𝗘𝗴𝗼: Sometimes it's not about data or principles— it's personal. A party may feel slighted or passed over, leading them to derail plans (consciously or unconsciously). In such cases, escalation is often the best solution.     At Adobe, I worked to align product leaders on a strategy, but some personal grievances and turf wars slowed progress. Even with shared data and principles, the conflict persisted. Escalating to senior management helped resolve the impasse and get everyone on board. 𝗛𝗲𝗿𝗲’𝘀 𝗮 𝗺𝗲𝘁𝗵𝗼𝗱𝗼𝗹𝗼𝗴𝘆 𝘁𝗵𝗮𝘁 𝗵𝗮𝘀 𝗵𝗲𝗹𝗽𝗲𝗱 𝗺𝗲 𝗿𝗲𝘀𝗼𝗹𝘃𝗲 𝗰𝗼𝗻𝗳𝗹𝗶𝗰𝘁: 𝟭. 𝗦𝗲𝗲𝗸 𝘁𝗼 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱: Identify the root cause: data gap, philosophical difference, or ego? Approach with empathy, curiosity, and zero judgment. 𝟮. 𝗔𝗹𝗶𝗴𝗻 𝗼𝗻 𝘁𝗵𝗲 𝗙𝗮𝗰𝘁𝘀: Share all relevant info. Ensure both sides work from the same set of truths. 𝟯. 𝗔𝗴𝗿𝗲𝗲 𝗼𝗻 𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗹𝗲𝘀: Once aligned on facts, agree on guiding principles. Debate principles, not the issue itself. 𝟰. 𝗪𝗼𝗿𝗸𝘀𝗵𝗼𝗽 𝗦𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝘀: Collaborate on options, weighing pros and cons together. 𝟱. 𝗖𝗼𝗺𝗺𝗶𝘁 𝗮𝗻𝗱 𝗗𝗼𝗰𝘂𝗺𝗲𝗻𝘁: Choose a solution, document it, and share with all involved. Include names and dates—this adds accountability and prevents reopening the issue. 𝟲. 𝗘𝘀𝗰𝗮𝗹𝗮𝘁𝗲 𝗶𝗳 𝗡𝗲𝗰𝗲𝘀𝘀𝗮𝗿𝘆: If all else fails, it's likely ego-driven and escalation might be necessary—and that’s okay when done responsibly. Next time conflict arises, don’t rush to fix it or let frustration take over. Step back, identify the cause, and handle it methodically. #leadership #conflict

Had an interesting conversation last week with a founder who was ready to walk away from a client a few months ago. The issue? A massive misunderstanding on project scope that spiraled into a heated argument. Instead of calling it quits, he did something simple but worked- He called the client and started with, “I think we’re misaligned. Help me understand where things went off track.” No defensiveness. No excuses. Just a question. It defused the tension immediately. They laid out all the frustrations, and he just listened. Next question - “What does success look like from here?” That one shifted the conversation from blame to solution. They ended up not only saving the relationship but also closing a bigger deal with them the following month. It made me realize this: Most client conflicts aren’t about the actual problem. They’re about feeling unheard and misunderstood.. Similar to personal relationships outside of work. I’ve seen this happen and workout by doing the following- Acknowledge the frustration. Even if you disagree. Ask what success looks like. It shifts the focus from the past to the future. Make a commitment—and follow through. Even if it’s just a small step, action rebuilds trust. Conflicts are going to happen. But if you lean into them with curiosity instead of combativeness, you’ll not only solve the issue but also strengthen the relationship. What do you do when you're lost in the woods ? Start with one step.