Communicating Bad News

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, or
  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!

Ravi Patel

http://www.patelCFOservices.com

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Don’t Ignore the Facts

Facts can be brutal. They often pour cold water over an Entrepreneur’s vision and path to imagined success. Entrepreneurs, especially hard-headed ones without wise counsel, forge ahead regardless of reality.

You might not like the facts but you can’t ignore them!

It would be unwise for Entrepreneurs to ignore facts. Facts present a true portrayal of the situation and not taking them into account in your action plans could be critical. Entrepreneurs sometimes have a vision fixed in their mind and if anything detracts from that scenario, they tend to discount it if not completely ignore it.

Use facts to bolster your plans. Facts rather than assumptions build a robust case for you . It is not wrong to make reasonable, calculated assumptions when facts are not available. If the available facts don’t fit your case, it would be devastating to ignore them and use your assumptions.

Use facts, and if they pose a challenge to your plans build in options to address such situations. That would a wiser course of action than ignoring the facts altogether.

Ravi Patel

http://www.patelCFOservices.com

 

Forgive Yourself

Entrepreneurs are driven people and work hard to achieve their goals. Most of them want to do everything right and are impatient for results.

Like everyone else they too make mistakes. Some of these are relatively minor while others can be major and might even result in losing their company. When they make mistakes Entrepreneurs are hard on themselves as they feel totally responsible. How should they react?

Learning from mistakes is the correct thing to do and these blogs have stressed that point. Learn why the mistake was made and implement processes and controls to prevent future occurrences.

Depending upon the nature and impact of the mistake, Entrepreneurs often dwell on it. Entrepreneurs need to learn to forgive themselves for such mistakes. Forgiving one’s self doesn’t mean absolving you from responsibility. As long as it was a mistake and not a calculated act of unethical or unlawful behavior, forgiving themselves would allow Entrepreneurs to move forward positively instead of drowning in guilt.

Accepting responsibility, taking corrective action and forgiving yourself for mistakes is the right thing to do for yourself, your company, employees and family. Do the Right Things!

Ravi Patel

http://www.patelCFOservices.com

Published in: on June 10, 2014 at 3:14 am  Leave a Comment  
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Leading from Beside

Leaders are supposed to lead from being in front of their people – not only in their thinking but also sometimes physically. Some leaders lead from behind – an oxymoron for sure.

However, if you are always ahead of your people, they might not follow. This could be for many reasons. You might not have fully convinced them of the reason for the task at hand; they might have previously seen you in action and are hesitant; or they don’t fully know you yet as they have not seen how you work.

Entrepreneurs might want to lead their people by being and  working besides their employees to mitigate these reasons..

Leadership by example can only happen if you are willing to roll up your sleeves and work with your employees in doing tasks that are necessary. That means physically working besides your people rather than isolating yourself.

Leadership does not always mean that you decide and your people follow. Work with your people to tackle issues and develop with them solutions that need to be implemented. Think with them by involving them in the process.

Situational leadership demands different styles – leading from beside your people is one of them.

Ravi Patel

http://www.patelCFOservices.com