Corporate attorneys get nervous when managers or other agents offer apologies to internal or external customers. For good reason: an apology suggests guilt and a confession can cost a company a lot of dollars in a lawsuit settlement. Nonetheless, leaders make apologies!
Consider the Tylenol company that apologized to the nation when a crazy person altered products with death-producing results. The company was not responsible for the deaths, yet took full responsibility for the opportunity their products created. Tylenol recalled all of their products from America's shelves--a multimillion-dollar decision. Tylenol officials followed all the steps for an effective apology. Ultimately, hamper-proof caps and labels came out of the misfortunate situation, and American consumers had increasing respect for one company's board of directors. Their apology was "the right thing to do."
Also, consider Bill Clinton's apology to the nation for lying during his presidency.
The country was torn whether the broadcasted comments were really an an apolgy or just regret for getting caught in a lie. Clinton did not follow all of the steps for an effective apology. His apology was manipulative.
Steps for Making an Effective Apology:
• Thank the readers/listeners for their concern and willingness to bring the situation to your attention.
• Describe the situation as you understand it.
• State your regret and/or responsibility: "I am/We are sorry." "I was wrong."
• Optional: Explain why the situation occurred and what you will do to ensure it never happens again.
• State a suggestion for remedy or offer a choice for approval to correct the situation: refund, exchange, free upgrade, or something else of value to replace the loss.
• Offer a gesture of goodwill in addition to the remedy when possible: a coupon, gift certificate, or free service.
• Thank your reader/listener for the opportunity to mend the relationship and maintain trust.
According to research, if customer service representatives follow this procedure, 95%of disgruntled customers will remain loyal—even more committed to the organization than they were before the dissatisfaction!
Apology is strategic plan for damage control. Apology is also a sign of character. When a leader apologizes and explains a situation from his/her perspective, people listen and learn. The best leader I ever saw was my dad--a former US Navy pilot, American Airlines manager, and entrepreneur. When I had used poor judgment and dismissed my mom and dad's rules of conduct, I expected a spanking. (I was 12 when I was last diciplined with a spanking for jumping on the bed. Breaking a bed in a home with seven children or risking an emergency-room run was unacceptable.) Yet, after each spanking, within 15 minutes, Daddy would come to my room and apologize for being upset over my infraction, calmly teach me what I had done wrong, clarify his expectation for the future, hug me and say, "I love you." Not wanting to disappoint my dad, I rarely did anything that I thought would result in his displeasure. Still, he apologied to me and that always elicited tears and an apology from me!
How refreshing it would be for leaders in organizations to admit when and why they were wrong, disguided, misinformed, underinformed, or thoughtless in any way. No doubt, improving trust, relationships, loyalty, and retention would result!
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