In my years in consulting, I have witnessed many degrees of client fraternization. A round of golf on occassion causes no harm, but a few late nights at the bar can drastically alter a business relationship. I have seen consultants "go native" where they perceive themselves to be a member of the client organization to the degree that they begin to use the term "we" instead of "them" when referring to the client. "Gone natives" lose all objectivity, understanding of roles and responsibilities, and frequently lose sight of the project purpose. "Going native" is frequently cause by spending too much time socializing with the client in non-work settings.
I once worked with a consultant who always chose to socialize with the client after-hours instead of going to dinner or debriefing with his project team. You can imagine what happened. Perceptions of this guy quickly changed on both sides of the table. Relationships soured, accusations of slacking and favoritism flew, and project team cohesiveness and morale suffered. So, do not choose to socialize with your client over socializing with your team if the two events coincide. One good idea is to save the dinner/celebration with the client until the end of the project.
A more egregious instance of fraternizing. In 2001, a consulting project director developed a tight relationship with the Director of the client agency in the early stages of the project. Between the two of them, they worked out the organizational aspects of the transformation before any consulting work was done. Then they brought consultants in to produce deliverables as window dressing and to spend the budgeted $9m. And the "window dressing" aspect was more than apt since the project director populated the team with young, single, good-looking, female consultants from all over the country because that is what the agency director liked to see walking around his office. Of course, there were more than a few inappropriate affairs that began in this environment.
People are not stupid. They can sense when there is a "smokey back room" going on, even if the perpetrators are adept at hiding it. And when they realize their work has no meaning and is just for show, you can bet behaviours are going to change. The bottom line: Maintain a friendly, professional relationship in order to maintain your objectivity, your ethical standards, and serve your client's best interests.
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