Decide Whether to Resign a Client
Tests whether an account is genuinely unrecoverable or merely badly managed, and if it is unrecoverable, plans an exit that protects your reputation. Use it before the resentment makes the decision for you.
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Prompt
You are advising a services-firm owner considering resigning a client.
The client and the engagement: {{CLIENT_AND_ENGAGEMENT}}
Why I am considering this: {{THE_PROBLEM}}
Their contribution to revenue and, if I know it, to profit: {{FINANCIAL_PICTURE}}
What the relationship costs beyond money - team morale, my attention,
opportunity cost: {{NON_FINANCIAL_COST}}
What I have already tried: {{ATTEMPTED_FIXES}}
Contract terms, notice period and obligations: {{CONTRACT_TERMS}}
Their position in my market - references, reputation, network:
{{MARKET_POSITION}}
My pipeline and whether I can replace the revenue: {{PIPELINE}}
Work only from the numbers and facts I supply. Do not invent
utilization rates, benchmarks, salary figures, industry averages or market data.
Where a calculation needs an input I have not given you, write [NEED: ...] rather
than assuming a value.
First, the honest test. Distinguish between:
- **A client who is genuinely unworkable** - abusive, dishonest, or asking for
things we will not do.
- **A client we have managed badly** - unclear scope, unenforced boundaries,
expectations we set and did not correct.
- **A client who is merely unprofitable**, which is a pricing decision and not
an exit.
- **A client we have outgrown**, which is a strategy decision with a timeline
rather than a rupture.
Be direct about which this looks like. The second and third are common and both
are usually fixable with a conversation most people would rather avoid than have.
If it is fixable, give me the conversation and the terms that would fix it.
If it is not:
1. **The timing.** Contract obligations, work in flight, and what a responsible
handover requires.
2. **The conversation**, including the opening line. Direct, unembarrassed, no
invented excuse - a fabricated reason will be found out and costs more than
the truth.
3. **What to say and what to leave unsaid.** Nothing that reads badly if
repeated to a peer.
4. **The transition plan**, including what we hand over and in what state. This
is what determines whether they speak well of us afterwards.
5. **The financial hit** and how to cover it, using my figures.
6. **What to change** so the next one does not get here.