The Sunday Mail
Taurai Changwa Business Forum
TECHNOLOGY and capitalism’s answer to minimising the potentially damaging frailties of an error-prone human workforce has been increasing the influence of artificial intelligence (AI) in the production process, and this has worked to some extent.
But technology, which relies heavily on algorithms and lacks the intuitive and discretionary traits of human beings, can only do some much. This is precisely why the involvement of AI has not been as pervasive as initially thought.
It however lays bare one of the most critical failings of a human workforce: they are liable to make errors and some of these errors can be very damaging to business.
Companies can potentially lose millions of dollars each year as a result of typographical mistakes.
Experts say most often than not disasters that have created ill-will, angered entire countries and become costly operational disasters can be traced to fatal human errors. Also, as is often said, in an age of global exposure and instantaneous connectivity, errors in written communications can have a hugely negative impact on consumer perceptions and create a lasting impression of carelessness.
There are obviously countless examples.
Events on June 27 when gold prices plummeted after an erroneous order was made on the market are quite instructive.
For business, errors can sabotage a first impression, reduce credibility, compromise brand positioning and diminish reputations.
They undermine the clarity of branded messaging, create confusion, suggest poor communication skills and convey a lack of attention to detail.
Furthemore, they can result in misleading or factually inaccurate information and cause consumers to question the integrity behind offerings or the abilities of a brand they perceive as uneducated and unprofessional.
Samsung Galaxy Note 7’s disaster is one of the most notable mistakes ever made in business history.
In their drive to innovate and become market leaders, companies often push the envelope perhaps a little bit more than they ought to do.
In this case, Samsung had to stop production a couple of times and undertake extensive and expensive recalls.
And the costs were staggering. A Reuters report indicated the South Korean company could have lost more than US$17 billion. In this case, it is quite clear that apart from losing money in aborted sales, the company will also spend more in trying to repair its brand and regain trust from market that is now increasingly skeptical.
For business, trust is as valuable as currency. With hindsight, it can be concluded that it is rather better to put off selling something that is not yet ready for the market than to risk losing a fortune selling a half-baked product to the market.
This is obviously an invaluable lesson, including for local start-ups.
Most importantly, it is however important to note that it is not the end for Samsung, and admitting to their mistake was the first step to correcting their error.
Wishing the mistake away will only add to it. Those in the field of marketing often say if you have messed up on a customer order, ignoring the failure won’t make it seem less important; it will just make you look crooked.
Put simply, be straightforward. The secret lies in acknowledging the mistake. State specifically what you did and how much you regret it.
Well, it might seem trite to ask: Do we have such business people who own up in Zimbabwe, or when things go wrong we blame each other or go into hiding?
The automatic response of human nature is to jump into self-defence mode.
There is honour in resisting the urge to find somewhere to hide or someone to blame – even if it’s justified. There are always extenuating circumstances, and most of us don’t mean to err.
But all the good intentions don’t change the fact that we made a mistake.
Don’t point fingers or use circumstances to make an excuse; doing so only makes you sound like you care more about getting out of trouble than really dealing with the problem you have caused, however unintentionally. Take responsibility and deal with the problem. Always apologise when you make a mistake.
It is also of utmost importance to offer a practical way to make up for the mistake.
Once that offer has been accepted, you need to timeously follow through. Failure to do this will only add to the mistake, damaging your reputation even further.
These are all some of the low-hanging fruits that do not need any monetary investment for them to be practiced and implemented.
It is time local companies do the same as it lies at the heart of customer relations and building one’s brand equity.
Taurai Changwa is a member of the Institute of Chartered Accountants of Zimbabwe and an estate administrator with vast experience in tax, accounting, audit and corporate governance issues. He is a director of Umar & Tach Advisory and writes in his personal capacity. Feedback: [email protected] and WhatsApp +263772374784
