Informing Clients of Bad News - by Ravi Patel

  

All Entrepreneurs at one time or another are faced with situations where they might have to share some bad news with clients. What do you do?

 

If you are faced with a situation where you cannot deliver a product/service to a client per the original scope, there is a quality problem, a delay in performance, cost overruns, and so on; if or when do you communicate this news to the client?  

  1. Inform them right away that you are facing a problem situation and the company is actively working on a plan for correction
  2. Communicate the problem situation and the corrective action plan after it has been developed
  3. Do not communicate this to the client until they find out. At that time inform them that you were aware of the problem and were working on the solution.
  4. Never inform the client hoping it will go away. If it surfaces, blame someone else in your company.   

The Entrepreneur's consistent philosophy in addressing the above situation with either one of these or other scenarios determines the long-term relationship with clients and success of the company.

  

What do you do when faced with such a situation? Do the Right Things!

 

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