Even your ‘good’ decisions might be bad — so learn to rectify them

Boris is the wise ol’ founder of TNW who writes a weekly column on everything about being an entrepreneur in tech — from managing stress to embracing awkwardness. You can get his musings straight to your inbox by signing up for his newsletter!

When you’re launching a new company, product, or service, there’s an incredible amount of little decisions to make.

Of course, you’d like every single decision to be the perfect one, but that never happens. Instead, most of your choices will be mediocre, with many bad ones and only a few good ones. At the end of the day, you just have to hope your mediocre and good decisions make up for your many bad decisions.

And, unfortunately, the same goes for ethical dilemmas. Although you’ll aspire to be a saint and always choose the righteous path, no doubt at some point, you’ll end up negotiating on your ethics.

The reason for that is that ethical dilemmas are rarely clear-cut. You’ll have to figure out the many variables and decide which choice is the ‘least bad.’ And before you know it, you’ll do something that’s not straight-up evil or unethical… but close enough to make you question the tally of your karma points.

I heard about one such example from a manager at a startup recently. He had hired a salesperson, who was performing very well. And I mean seriously well.

They continuously outperformed everyone else in the sales team and landed the most impressive clients. But… this particular person was highly aggressive, impolite, and often almost abusive to prospective clients and coworkers.

Whenever the manager would overhear one of those sales calls, he would cringe and feel uncomfortable with the whole thing — although the salesperson hadn’t crossed any clear boundaries. The numbers also seemed reasonable, so he didn’t interfere.

Over time though, it became too much, and the salesperson was let go at one point. Sure it was a bit of a setback in the short term losing a high-performing salesperson, but after a few months, the company started gaining momentum again. They even got coverage on their favorite tech review site, amazing!

The article was comprehensive and cheerful and everything you’d hope for in a review… but then came the comments.

The first and most visible comment was from a CEO of a respectable company who described how awful the reviewed company’s sales approach was. He went on to explain, in detail, the aggressive stubbornness of the salesperson who hunted him, and how for him it stood out as an example of how not to do sales . He then concluded that if this reflected the company’s culture, he would never want to do business with them.

This was an important moment in the manager’s career because he instantly knew he deserved the criticism.

He knew the risks of allowing the successful but questionable salesperson to continue working at the company — but he was blinded by the revenue it generated.

So was it unethical to keep the salesperson on? No, but it was close enough to make the manager consider his karma points, and by then it was too late, the damage was already done.

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Should you fire that customer?

Many startups believe they can’t end a customer relationship that is no longer a fit. That is a mistake. Accepting the need to fire a customer can be difficult, especially given most startups compete tirelessly to acquire and retain new business . However, there are circumstances when it is appropriate to consider parting ways. The integrity of the business is always a priority, and this means that business relationships that no longer serve the company’s goals can be ended, albeit as tactfully as possible.

Anticipate the possibility of problematic customer situations. The overall objective of every company should be to have mutually beneficial expectations for each customer relationship and to deliver on those commitments with dignity and respect. All customer relationships change over time. Recognizing and addressing problems in a customer relationship is an important aspect of delivering on commitments and operating with integrity.

Look for these warning signs

Be alert to these common situations. Assess the relationship before it progresses too far.

3 Signs your customer relationship might be headed for trouble

The customer falls behind on their bills.

The team can’t ever satisfy the customer.

The customer repeatedly demands a lower price.

The customer falls behind on their bills

There can be many reasons a customer doesn’t pay on time. The customer may be having cashflow issues. They may be unhappy with your products or people, or they may be a company that makes it a practice to pay late. The first step is to talk to the customer to find out who is holding up payment and why. Can you negotiate a payment plan that is equitable to both? Requiring electronic payment, instead of by check, streamlines the process and helps clarify whether or not the customer can pay on time. Specify payment terms in contracts with discounts or up-charges for early and late pay, respectively.

The team can’t ever satisfy the customer

Some customers will be perfectionists, but there is a difference between a customer who raises the bar and a customer who is never satisfied. Make it a practice to clearly define expectations up front. Create checkpoints, especially in business-to-business (B2B) projects and sales. At the first sign of mission-creep or disconnect between expectations and agreements, call a pause. Don’t wait until the invoice has been presented to have a discussion. Everyone benefits from high standards; no one benefits from moved goalposts or unachievable targets.

The customer repeatedly demands a lower price

Successful advanced technology business models are built on value-add. Startups that can’t convince a customer that the benefits of their solutions justify the price may be doing business with the wrong customer—one who can’t afford the solution or one who conducts business with a commodity mindset. Even if that is good for their business, it isn’t good for yours.

The five steps to take before firing a customer

Step back and involve the whole team before the company decides to fire a customer. Make a repeatable process part of the customer management process.

The five steps to take before firing a customer

Convene the team.

Ask each person to describe how they may have made the relationship better or worse.

Create a recommendation and action plan for dealing with the customer.

Delegate a team member to meet with the customer.

Ask if the team can bear the consequences of terminating the relationship.

1. Convene the team

Encourage every member, from sales to customer service, from accounts receivables to product support, to air their frustrations. Let them vent for as long as it takes. Then ask each person to say one positive thing about doing business with this customer. If no one has anything good to say, the relationship may have reached the breaking point.

2. Ask each person to describe how they may have made the relationship better or worse

What have they learned that they’re doing differently with other customers? The discussion may help the group look at the situation differently and apply lessons learned.

3. Create a recommendation and action plan for dealing with the customer

When it comes to customers, repair can be easier than replacement. What would it take to repair the relationship? Is the problem with one or two individuals or across the board? Does either the team or the terms need to be changed? Would revisiting expectations with the customer help? Is the situation a one-off or is it chronic? What are the pros and cons of keeping the customer versus exiting the relationship?

4. Delegate a team member to meet with the customer

Listen to their perspective. See if they’ll listen to yours. Are they amenable to tuning the relationship? Depending on the outcome of the discussion, adjust the action plan and implement.

5. Ask if the team can bear the consequences of terminating the relationship

It’s very difficult to lose a customer. Well-intended sales and support people have a lot invested, not to mention individual compensation and the company’s bottom line. The company will have to adjust expenses or increase revenue from other sources. Sometimes this reality makes a team willing to work a little more toward rebuilding the relationship with an existing, if somewhat troublesome, customer.

Cases in which the customer must be fired

Unfortunately, there are some scenarios in which firing a customer is the correct and only option. These situations demand swift action.

2 Scenarios that must always result in firing the customer

They’re engaging in bullying or harassment.

They’re doing something illegal or unethical.

They’re engaging in bullying or harassment

Fire the customer if they’re making your people uncomfortable or unsafe. It’s the company’s responsibility and duty to ensure that your employees are treated with dignity and respect on company premises as well as in any environments where the company asks them to go. This includes interactions (in person or online) with customers, suppliers, consultants, etc.

They’re doing something illegal or unethical

There can be no tolerance for illegal activity and actions that are unethical or violate the intent of the law. This one is simple. Do not do business with any firm or individual who is breaking the law. Don’t look the other way. Don’t hesitate. Seek legal counsel immediately.

This article was originally published by Tom Walker on Built In . You can find it here .

Micromanaging sucks — especially when it’s about your ‘Zoom shoes’

Approximately seven months ago the world of work — as most of us knew it — was turned upside down.

As offices shut down and people were sent home to work , the lines between personal and professional became increasingly blurry. Employees had to get used to this new normal but… so did employers.

Some managers have embraced the opportunity to take stock of their leadership style, making an effort to ensure their employees feel trusted and appreciated. Others are showing symptoms of micro-managing and paranoia.

And if you don’t believe me, take a look at this tweet:

Can you think of anything more awful, or pointless?

Aside from the obvious fact that no one on Zoom can see your feet — if they can, you might be doing video conferencing wrong — this is absolute lunacy.

Several months ago (although it feels like years), I wrote a piece that looked at four things managers should avoid while their staff is working remotely.

One of the things I spoke about was how there was nothing like a crisis — such as a global pandemic — to highlight a managers‘ trust issues.

Here’s the thing: we’re all adults. We don’t need to be told what to wear during a Zoom call in order to seem professional and we certainly don’t need advice on finding a quiet place to work from at home.

What we do need, though, is empathetic, trusting, and transparent leaders who will let us and encourage us to do our best work.

Why it feels like an attack

It can be easy to lose sight of the bigger picture when you’re faced with a crisis.

Yes, having to suddenly send your entire workforce to work from home can be unsettling, I get that. But just because your employees are out of sight, it doesn’t mean they’re not working.

Why would you stop trusting someone to do their job just because you can’t see them?

“Micromanaging is linked to anxiety and hyper vigilance. It is caused by anxiety and it can cause anxiety and frustration,” Olivia James , a London-based performance and confidence coach, tells me.

It’s an attempt by an employer to have control and avoid serious problems with productivity or quality of work, she adds.

The reason why it feels like an attack is because we, the employees, perceive it as a questioning of our professional integrity and competence.

“Our confidence , identity , and self-worth are linked to our pride in our work ,” James explains. “This can re-activate the dynamic we may have had with a hypercritical parent, teacher, or partner — making us even more anxious.”

Why managers micromanage

As I’m an empathetic person (read control freak)I can sort of understand why some managers tend to micromanage — especially now.

COVID-19 has caused a lot of stress and uncertainty. Our health — both physical and mental — is under threat and in some instances, job security is hanging in the balance. This is exactly the type of situation where people might subconsciously drift towards micromanaging as it creates a comforting illusion for them.

“Micromanaging can be an attempt to re-establish a level of control,” James says, adding “It’s also motivated by self-preservation.”

What James means is that employers may think that by keeping a close eye on their newly remote staff they can secure their own survival within a business.

So it wouldn’t be far-fetched to say that if you’re being micromanaged, it’s likely due to your manager feeling anxious too. And if you’re a manager, make sure not to let your own insecurities affect your employees and management style.

Overall, micromanaging can have devastating effects on employee morale, staff turnover, and productivity. It sends a signal of distrust — and let me tell you, in 2020 trust is the cornerstone of survival.

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