3 Steps to Enlightenment through Messing Up

Earlier this week, we had an issue at my company, Handwrytten (a handwritten note platform), where one client brought to our attention an ongoing issue with their account. I immediately investigated, and the client was right: we had screwed up… big time.

Now this mistake happened with (quite literally) our smallest corporate account. I could have sent a quick message to our account manager and had them handle; hey mistakes happen, right?

Instead, I followed my “3 Step Plan to Enlightenment Through Messing Up”. A lot of the below is obvious (like a lot of business advice), but I still think it’s worth reviewing. I have one more case study at the end that is one of my finest business moments, a true example of recovering from a mistake. I promise, it’s worth the read.

The 3-Step Plan to Enlightenment Through Messing Up

1. Own It. After investigating, I immediately emailed the client and let them know, yes, they were correct. The issue occurred, and we would be sure to put measures in place to ensure it never occurred again. I then made sure to check all other outstanding activity on the account to make sure any current issues could be mitigated. I expressed my deepest regrets, and meant it.
2. Over-Respond. In this case, we issued a credit on the account that was double the value of the issue that occurred. I made sure to orchestrate with my accounting department to send a separate email immediately after mine. We also provided the client with our plan to improve processes and quality assurance.
3. Learn, Correct and Do Not Repeat. Mistakes happen. Just make sure they don’t happen twice. This doesn’t mean (necessarily) firing an employee or even moving that employee off the account. Hiring and training employees is one of your most costly activities. Use this as a teachable moment for you and your employee. Isn’t it better to have an employee that has learned from his or her mistakes than one that hasn’t had any mistakes to learn from? This opportunity also builds deeper bonds between you and your employees.

About an hour after I sent the email to the client, I received a phone call from the client’s president. He was elated and blown away by the speed of our response and our actions taken. He didn’t care at all that the issue occurred, he was just thrilled that we responded so well. He said to me something worth repeating:

I don’t demand perfection from my employees (and vendors). I demand excellence.

I agree. In many ways, these are words to live by. Don’t demand perfection in anything: from your employees, from yourself, from your vendors or even your family. Just demand people to perform as best as they can, knowing mistakes will happen along the way.

A Case Study in Over-Responding

This was a minor issue that occurred with our client, but we used it to prove our mettle. A better example happened a few years ago when I was at Cellit, my first major startup, now part of HelloWorld. Cellit ran text messaging campaigns for major companies. We were working with a national spa chain, with locations in over 25 states. We had sent the wrong short code (the 5- or 6-digit texting number integral to the program) to their printing partner. This meant posters were delivered across the United States advertising the wrong information. My 3-Step Plan to Enlightenment was truly to be tested.

1. We owned it. Before the client even figured out an issue occurred, we contacted them to brief them on the situation. We explained it was our fault. It was a big, costly mistake. We assured them we would be in immediate contact with the print shop and pay for reprints and overnight delivery of the replacement posters.
2. We over-responded. Cellit was a small company, with just about 25 employees. We had half of the company, 12 employees, immediately on flights to each location, bringing gift bags and letters of apology. Some employees were flying to two places in one day or driving out to remote locations. Spa personnel were floored when we arrived.
3. We never repeated. New policies for checking collateral were immediately enacted. In this case, a new account manger was put on the account, as the other one had numerous issues. It was time for a replacement.

Our client was incredibly impressed. They joked that what we did — flying to each location — was ridiculous. It was ridiculous, but this was a very big account and had a huge future opportunity. In the end, nobody remembered what went wrong, just how we responded.

Like so much in life, it doesn’t matter what happens, just how you react. Create a company that owns up to its mistakes, and your relationships with your clients (and your employees) will be better for it.