Friday, August 8, 2008

The norms of business


Roy, a service rep, is told one of the salesmen forgot to send an order for window blinds to the factory and, as a result, they won’t be available for another ten days. Roy is asked to call Jenny, the customer, and tell her the blinds won’t be delivered on the date promised.

Roy has a decision to make: What should he tell the customer?

Telling Jenny the real reason will likely infuriate her and cause her to demand a refund or deep discount. This isn’t a good result, so he devises a plausible but false excuse that shifts the blame onto Jenny’s credit-card company. He even makes himself a hero by convincing her he did everything possible to solve the problem and, though his company wasn’t at fault, he convinced his manager to give Jenny a 10 percent discount for her inconvenience.

Jenny is angry at the credit-card company and upset about not getting her blinds, but she’s impressed with the professional way Roy handled the situation. Her loyalty to the company is actually strengthened.

Should Roy be praised or penalized?

The case for praise is that he took a lemon and made lemonade. He turned a bad situation into a good one, and no one was hurt (except, maybe, the credit-card company – and who cares about them?). His little white lie yielded great dividends and was well within the norms of business.

The case for reprimanding or firing Roy is that a good decision must be ethical as well as effective. He was dishonest and, whether his solution worked or not, a company that values trust should not permit dishonesty to be used as a problem-solving tactic.

If you were Roy’s boss, what would you do?

1 comment:

Schmoop said...

I don't like it. He should have just told the truth. I may have fired the salesman. No tfo rthe mistake but for lying. Cheers Al!!