About Business Ethics: Articles by Jeannine Clontz

Gaining the Ethical Edge

I am so fortunate this month to have the opportunity to share an actual ethical problem and solution…thanks to Kimberley Thomas of Bookkeeping & Secretarial Services (www.on-linesecretary.com).

Kimberley had a bookkeeping project she'd spent 27 hours on, that encompassed three months of data on a nine month project. She discussed her invoice with the client just prior to delivery of this portion of the project, to find that he was upset with the amount of time she'd expended, as well as, his feeling that the project was not completed by the agreed upon deadline. He was so upset he said he'd have to discuss it with his partners to decide whether he is going to pay ANY, or some of it.

She received the project on December 3rd, and had a conversation with him in the first week to let him know how many hours she'd already expended, and how things were progressing. He instructed her to continue the project and finish as soon as possible, but never indicated a deadline. She'd even explained that she could NOT work on his project full-time due to other client obligations and the holidays. She completed this portion of the project on January 5th.

There was still six months of data input on this project, which she figured she'd lose, and asked what I thought she should discount off her invoice to smooth things over, since in retrospect, she realized she may have been able to cut some of her hours by exporting some of the old information into the new file. She was also concerned with the fact that she had no signed contract with him, and knew that once she turned the files over, she would lose her leverage and the ability to negotiate a fair and equitable solution.

I'm happy to say that Kimberly did the most ethical thing she could, and gained a long-term client in return. She decided to discount the invoice 35% to cover what she felt was a fair assessment of the time she could have saved had she considered exporting some of the information.

I think she probably over-compensated her discount, but the result was a happy client, a fair invoice payment, a signed agreement for the remainder of the work, and the opportunity to maintain their bookkeeping data once the rest of the project is completed. Too cool!

The lesson in this situation is one we can all benefit from: don't start work for any client without a signed agreement; for almost all projects, but especially with large projects, give clients a clear expectation of the time necessary to complete the project (use Industry Production Standards or whatever system you have in place); when projects don't seem to be coming together as anticipated, ALWAYS touch base with the client to be sure you communicate where you are and how this will effect delivery and costs; when an issue comes into play try to take a look at it from their point of view and take a step back to see what you might have been able to do differently to have alleviated the situation; and be willing to sit down and find the best solution for you and the client. Even if you can't, and you end up taking a hit on the payment, you leave the relationship knowing that you considered what was fair and equitable to both parties.

Kimberley was right on the mark, and handled it perfectly. I've always said that the best way to find out how ethical a company is, is to see how they handle a problem. Kudos, Kimberley! Your honest, ethical assessment and handling of the situation has gained you a client for life. Thanks again for allowing all of us to learn the value of ethical business practices.

Wishing you continued success and the wisdom to consider ethical options.

©Copyright Accurate Business Services February 2004