The story

Our team had been entrusted with testing the customer’s unique prototype gearbox.  Despite meticulous preparations and installation on our test rig, the unthinkable happened: at the end of one day, while shutting the rig down, the dynamometers ran out of control unexpectedly and destroyed the prototype gearbox. The timing couldn't have been worse - just before the Christmas break.

My colleagues suggested waiting until after the holidays to break the news. This would give us time to investigate the reason for the rig malfunction and it would avoid disrupting the customer's holiday with the devastating news. 

How we responded

However, after careful consideration, I advocated for immediate transparency.  My argument was simple: the sooner we tell the customer, the sooner they can start planning their response.  Despite the discomfort, I convinced my colleagues that we needed to make that difficult call right away.

The conversation was as challenging as anticipated. The customer's initial reaction was one of shock and disappointment given the significance of the prototype and the investment it represented. However, what happened next validated our decision.

Outcome

Instead of spending their Christmas break in blissful ignorance only to start the new year with a crisis, the customer had time to process the news and develop an alternative strategy.  They used the holiday period constructively, developing a recovery plan that would help us move forward once business resumed.

Months later, whilst the project was back on track, the customer visited our test facilities.  To my surprise the leader of the customer delegation sought me out and thanked me for our transparency about the incident. What could have destroyed our relationship with the customer had instead become a foundation for trust.

Lessons learnt

This experience taught us several valuable lessons.

1. Transparency shouldn't wait for convenient timing.

2. Bad news do not improve with time.

3. Trust is built in moments of crisis, not comfort.

4. Giving customers time to react is as important as the news itself.

In business, the temptation to delay or soften difficult messages is strong. However, immediate transparency, while initially painful, often proves to be the best long-term strategy for building and maintaining strong relationships.

When we choose immediate honesty, we demonstrate respect for our customer and for their confidence in our ability to weather challenges. In the end, it is not our successes but how we handle our failures that truly defines our professionalism.

I can help you

I work with overstretched leaders of engineering SMEs to help them prepare their business so they can achieve profitable growth.

To explore how I could help you, please use the link below to arrange a free 30-minute conversation.

http://tinyurl.com/HerveJardonCalendar