Friday, January 1, 2010

Morality tales in business: from AIDS to Fox and Cable System Providers

So what the heck do AIDS and the current Fox/Time-Warner, et al payment disputes have in common with each other? A Shakespearian wish for a “pox to befall your both your houses?” A tempting thought, perhaps, but that’s not it. What they have in common are metaphors, morality tales determining what the facts are, how a “problem” should be resolved, and who gets to decide who wins. And it’s how business gets done more often than we probably realize.

Here’s why you might want to care:
Disputes must be resolved on the first attempt or you will lose even if you win. When customers feel powerless, confused or both they turn to morality tales, look for white knights, and you lose control. They will either:

  • tell their version of the story to their friends.
  • look to either a white knight (a competitor) to give them what they want or a white knight (laywer/regulator) to compel you to do what they want.
Result:
Money out of your pocket—either in lost revenue or time and money spent in court

So, how does AIDS tie in?
It’s a perfect example of how this process works and it’s a time-proven process I first identified over 15 years ago. Reading it may help you be aware of if/when that’s happening to you in business so you can take steps in time to stop the spiral.

When AIDS first came on the scene people were scared. Nobody really knew how it was spread or how to protect themselves. They just knew they could die from it. People filled the vacuum with guesses, pseudo-experts, and looked for someone to blame. People who had AIDS started out with the role of immoral disease carriers and, over the years, were given the new role of victims. Either way, they largely lost power over their situation and the public lost valuable time in effectively responding as virtually everyone got caught up in the blame game. More people died and millions were spent on medical care that could have gone elsewhere if effective treatments had been developed sooner.

The dispute isn’t nearly as significant in the Fox/cable-provider drama on today’s stage. The process, though, is very similar. Consumers don’t have a clear, objective view of the facts and they feel they have limited to no power in the situation. Many to most want to make someone wrong for this so they can be punished and everyone can move on. Whichever side they dislike the most is turned into the perpetrator and the other side is still covered with negative emotional residue simply because they’re part of this too so they must have done “something” to allow this to have happened in the first place. The consumer gets to be the victim and everyone loses.

So, what to do?
  1. Paraphrase the customer’s complaint: make sure they know you understood what they said and what they want.
  2. Give the consumer some power: This doesn’t mean a blank check. Just acknowledge they can choose who they do business with and give them some choices in resolving the matter.
  3. Get the facts clear without bias or judgment: you might try a timeline approach and acknowledge that even if you disagree what to do about it, you want to be sure you and they are working from the same information. Just be sure to get agreement up front to work through the full timeline before you discuss what to do about what happened.
  4. Be clear about what you need and want: unless it’s 100% your fault, it’s legitimate to share what you need and want for this to work for you too.
  5. Leave the consumer with some kind of win. Even if they walk away completely, consider something like a thank you card for past business. Just be sure it’s sincere and they know it. Otherwise it’s salt in the wound and it’s worse than doing nothing.
  6. “Keep it in the family." Sour-graping disputes to a broader audience only guarantees that you get a reputation for bad-mouthing others when things go bad. Vent with a trusted friend or colleague but never be the first to take a dispute public.
You’ll never resolve every dispute successfully, but in the end if you can resolve most successfully and keep the damage to a minimum on the rest you’ll be well on your way to continued growth and prosperity!

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