After following the massive screw up that has been the opening of the new Terminal 5 at Heathrow, I asked myself a few questions. For those who do not know about the Terminal 5 debacle, all you really need to know is that this new terminal received a lot of hype, media attention, cost a bomb and caused a lot of controversy. This is all before even being opened. Once it did open, the baggage sorting software failed and nine days of chaos ensued. It is estimated this failure will cost £16m in lost revenue and caused thousands of disgruntled customers. Lets just say it is bad PR.

In my eyes it is a wasted opportunity. A new launch should be a big deal. It should be exciting and very positive. In this case, the opportunity for a lot of great brand building has been wasted. The damage done will take years to repair. The sheer amount of media attention revolving around this launch makes it hard to go unnoticed when a problem arises. This begs the question, how can something so central to the operation of one of the world’s largest airports go so wrong?

Software failures happen. Technical difficulties hit at the least convenient time, every time. The reality is that things are always going to go wrong that is why we prepare for events, we test our software or equipment and we create contingency plans for when things go wrong. Let me explain these parts.

Preparation

We have all heard phrases such as “prior preparation prevents poor performance” aka “the 5 P’s” or “failing to plan is planning to fail”. Planning and preparation come hand in hand. For the sake of the argument lets say they are they same thing. This involves deciding exactly what you want to happen, what you will do to make it happen, how you will do it, and doing anything that needs doing beforehand. We all know about this stuff. The problems arise when planning is insufficient and lacking in detail. Lack of information, lack of experience, and poor timing often get in the way of preparation. For these very reasons it is advisable to do this long in advance.

Testing

In a world dominated by IT and dependent on so many variables, testing is ever so important. Make sure everything is not only in place, but that is is also working perfectly. If you are launching new software, test is thoroughly. If you are using a new machine of some sort, test it. New product/website/whatever, test it!

I had a nightmare situation once whereby I had produced some T shirts, and I put them on sale immediately wanting to get stuff out of the door and everything going forward. I sold a few the first day and posted them off. Two days later I washed my own and the print ran. I phoned the printer and they realised they hadforgotten to run them through the dryer hot enough to fix the prints. No surprise I started getting emails regarding prints running. I had to recall everything and deal with customers. Luckily the printer accepted the mistake and resolved it in a matter of days. No big problem except I was wasting money paying for postage twice and refunding people for the charge of returning their garments. A simple test delaying the launch 24 hours would have prevented the whole situation. Lesson learnt!

Contingency Planning

No matter how much we plan, prepare, test etc, things will go wrong. It is a part of life. Contingency planning is a true sign of being serious about your business. A contingency plan covers what you will do and how you will do it should the worst happen. It is where you detail how you will troubleshoot. This prior preparation can seriously minimise your losses when something happens. All major businesses have contingency plans, but very few small and medium sizes businesses do, and it is the smaller businesses who suffer the most!

As we work online, we are more used to preparation and testing. Do you test everything thoroughly? Any lessons learnt? Have you planned for the worst? Do you have a contingency plan?

If you ask the majority of the population here in the UK, and probably in most countries, they do not consider those who make money online to be running a business. It is seen as shady and not proper. What is it that gives this impression? Does online business need to tidy up its act and become more transparent? Those of us who work online know that a business in the virtual world is not virtual at all. It is as real as any other business.

One example that could be contributing to public lack of belief in online business is identity theft. Identity theft has had a lot of press recently and is commonly associated with electronic use/storage of personal data and is at an all time high. It doesn’t help that the Government are constantly losing our personal data, but even without that so many people are still getting caught out by phishing attempts. We all get emails from a random bank we have never dealt with requesting we change or confirm our details – luckily most of us know better. The same goes for opening strange attachments which appear to do nothing but actually leak our keystrokes to unsavoury characters.

I think the biggest problem people have online is the low barriers to entry. Anyone can make a basic website and put the Paypal shopping cart onto it and sell something. Anyone can make a website and slap Adsense on it. This is true. A very basic website is something that you should be skeptical about, but no more so than a particularly flashy website. In these days scammers are capable of all sorts of things, and building a decent website is definitely not out of their reach. We as consumers need to be smart about these things.

How can we make our online business more transparent therefore putting our potential customers at ease? The best way is to provide adequate contact details and welcome questions. If someone has a query, and it is answered promptly and suitable information is provided it will go a long way towards giving the potential customer peace of mind.

Use a well known and reputable payment gateway. Companies like Paypal make big profits but that is fine because we prefer to pay via a system we know and trust. These payment gateways take your customers details and process the payments. The benefit for the customer is that they have the peace of mind that their card details are safe (hopefully) with a big company as opposed to being held by a smaller business, that might not have the same levels of protection in place.

Prompt delivery of orders is something customers remember and is one of the major points they will make when referring you. A good customer experience is remembered. On the flip side, a bad customer experience is remembered for a lot longer! Make sure the correct order is delivered on time and make sure you have suitable systems in place to achieve this and to deal with any other issues that might arise.

What does your business do to give customers peace of mind? Do you believe online business needs to become more transparent? Please share your opinions.

This is the same whether it is a business or on a personal level. The single most annoying thing that you can do is to say you will do something, then not do it. The worst part of all this is that to some degree we all do this with alarming frequency. We can all draw examples from our personal lives where we can see quite clearly the massive disappointment that results from being let down. It may be a small thing, which we deem unimportant, or it may be a massive thing. Either way the key is that we let someone down. One offs can destroy relationships, but it is quite likely you will survive a one off. The repeat offenders however stand little chance.

Looking at it from a business standpoint

Business is all about relationships. Two parties agree on specific terms of trade then the exchange of goods or services can happen. There is a relationship. As is often the case, where money is involved, the parties are more likely to be more uptight and less than impressed when they are let down. Their living and that of their family relies on the well being of their business.

An example could be between you and your Internet service provider. You agree to certain terms then they provide the service in exchange for your money. If they have a technical problem, and you are left without an Internet connection, then they will have let you down. As a once off, you will probably forgive, but not forget. If the problem occurs with any regularity, you will end the relationship. The more heavily you depend upon the service the less forgiving you will be.

No one is perfect

True. Very true. This is however not an excuse that will work out very well for you. Your customers will expect you to be a lot closer to perfect than you are. The problem in this case is that you have promised something that you maybe can not deliver. Have you ever noticed how hosting companies never promise 100% up time? Have you ever noticed disclaimers on products that tell you not to do things that it would appear the product has been designed to do. The best example I have of this occurs on extreme sports equipment. As a kiteboarder into the freestyle aspect of the sport I regularly use my kites to jump high into the air, as the riders in all the commercials for the kites do. On the kite itself however is a disclaimer saying not to use the kite for these purposes.

These examples of companies not promising a certain level of performance can be incredibly complicated as they enter into legal territory.

What can we do as entrepreneurs, small business owners and individuals?

This is simple really yet at the same time very hard. We need to think about this constantly. Your thinking “like I need something else to worry about” but unfortunately yes you do. If you try your up most to not let people down, chances are people will develop great relationships with you and trust will grow leading to both greater profits and a more pleasant working environment. Do not confuse not letting people down with trying to please everyone.

Try to please everyone?

Do this and you will fail. It is impossible to please everyone. Every decision you make will return an outcome that will not be what someone wants so get used to that. The difference between this and letting someone down is that in this case, you never said or agreed or promised you would do anything. You can not let someone down if you have not promised to do anything. This last statement is not entirely correct. Failing to commit to anything is not going to impress anyone. This is the same problem, but just the other end of the spectrum.

How can anyone achieve this?

The answer to this is a pretty personal one. Everyone will have their own way of working but two constants will prevail: planning and communication. Know what your schedule and workload is like. Know if you can realistically take on board more tasks without neglecting something else. If you can not, and you do, you will end up letting someone down. Communicate with your clients and suppliers and employees and whoever else it may concern. It is often possible to move certain projects and renegotiate terms in order to suit everyone. Very little is actually set in stone when it comes to business, so do not be afraid to ask.

Say for example, I had a deadline for project X in two weeks time, but one of my best customers wanted something done immediately, I would have no problem contacting those behind project X and seeing if they were still on track or whether there was room to maneuver. It is not uncommon to find that others are running behind schedule and delaying by a few days may suit both of you.

Once you run an organised business, where everyone knows exactly what needs to be done and by when you put yourself in a strong position whereby you can strive to satisfy your customers. If your own house is not in order you are setting yourself up to fail. A lack of communication can break even the strongest relationships. In the same way great communication can keep relationships together even under the most stressful of times. Even that simple one line email to let people know you received a fax, or another email can be a big thing.

Personally I found organisation to be a week point in my past which over time I have developed. This awareness has led me to make sure I have everything in order. You need to find a system which works for you. I find Google calendar is amazing. It is wherever I need it to be. What is your secret to an organised life?