Keeping up the business commitments is becoming increasingly important. Why? And what are the consequences if we fail to keep up with the business commitments?
“Commitment is an act, not a word.”, – Jean-Paul Sartre, a prominent French Philosopher
Have you ever experienced the frustration of a broken commitment in business? Needless to say, broken commitments break trust, the foundation of any business relationship. And then what happens? It simply affects the future of the entire business on a deeper scale.
Attracting new customers is just half the battle. To thrive in the competitive landscape customer retention has a prominent role. Here again, commitment, credibility, and trust emerge as the key influencing factors.
So, why should we prioritize honouring business commitments? Let’s look for further reasons and answers by analysing in depth, why honouring business commitment is a non-negotiable factor.
What constitutes a business commitment?
Commitment is a promise to execute a specified course of action or achieve a particular goal usually by investing time and resources. Honouring a business commitment involves fulfilling the promise by meeting the agreed terms and acting with integrity.
Business commitments go beyond just showing up for work on time. A willingness to go the extra mile and pursue the organization’s success even in challenging situations forms the core of commitment.
In any business, when commitments are made to the customers and stakeholders it implies a dedication to meet the expectations, deliver on the promise and create value. When commitments are broken, it can lead to devastating consequences for the organization, damage the organization’s reputation, and undermine the trust of the stakeholders.
Commitment – how it translates into business actions?
When an organization keeps its commitment it manifests in many ways:
- Delivering high-quality products and services that adhered to the SLAs and fulfills all contractual obligations.
- Exceptional customer service with proactive resolution of customer issues and ongoing support.
- Transparent communication with the customers about the pricing, challenges, and other limitations without hiding facts.
- Continuous improvement of products and services based on the feedback from the customer.
Commitment> trust > loyalty – the unbreakable link
Commitment is the steady dedication to keep promises made to customers. It encompasses everything from the quality of service to adherence to deadlines and integrity of business practices. Commitment is a communication to the customer that you value their business. It will reflect in your actions that include delivery of quality products and services and honouring the deadlines. Customers perceive a genuine respect for their time and trust your reliability.
When customers feel that an organization is committed to adding value to their business, they are likely to remain loyal to the business partnership. This makes them brand advocates who give repeat business, and share positive reviews and word-of-mouth recommendations. If there is a strong foundation of trust based on past experiences, they are likely to ignore minor errors that arise out of unforeseen events.
The cost of broken commitment
Broken commitments cost more than what you can imagine. Besides, the cost of gaining back the lost trust is often far more than just keeping the promise.
The cost of broken commitments happens in many ways:
- Customer’s discontent and loss of trust – When you fail to deliver as promised you end up breaking the trust. Be it delivery date, product quality, or service commitment – any disappointment will shake the trust and disappoint the customer. They are unlikely to return and damage your reputation through negative reviews. Considering the impact of online review platforms and social media, even a single negative review can cause a large negative impact. It can drive away other potential customers.
- Tarnished brand reputation and decline in market share – Broken promises tarnish the brand reputation. The negative perception can impact many aspects of the business from partnerships to sales. Customers will start looking for alternate solutions which leads to a decline in the market share.
- Financial consequences – Lost sales is just the tip of the iceberg. Apart from this, broken commitments also lead to legal battles such as breach of lawsuits, false advertising claims, and more. The legal battles involve huge costs in terms of legal fees and settlements. Apart from this, recovering from the damage requires rebranding campaigns which again requires financial investment.
How can you cultivate a culture of integrity in business commitments
Fostering a culture of integrity in business commitments is a fundamental necessity. Let’s see how we can achieve this.
- Make realistic commitments – Before you commit, assess your capabilities and available resources. Avoid overpromising by conducting diligent research and evaluating the potential risks. Further, ensure that the internal stakeholders are completely aware of the commitments and about their roles in fulfilling the commitments.
- Establish accountability and transparency – The terms of commitment have to be clearly defined and all parties involved should understand the expectations. Document everything by maintaining detailed records of the commitments including the deliverables and deadlines. Track the progress against the commitment regularly and share the updates with the stakeholders.
- Encourage a values-driven environment – Establish an organizational culture where fulfilling the commitments are rewarded. When there is a failure to meet business commitments hold the responsible individuals accountable for the same. Weak excuses should not be encouraged.
- Acknowledge, apologize, and take corrective action – When a commitment is not honoured, a sincere apology to the customer is the first remedy. Own the mistake – this can help a lot in rebuilding the trust. Be honest about the reasons for failure. The next step is to take corrective action so that similar issues do not occur in the future.
The way forward
In the modern world, trust is a scarce commodity. No wonder, the value of keeping promises is rising. With that in mind, we should understand that integrity in business commitments is not just an emotional factor of ethics, but a strategic necessity. A clear business culture driven by values and a proper prioritization of business commitments can lead to a powerful competitive advantage- strong and long-lasting business relationships!
So, invest in keeping your commitments, it’s an investment in the long-term success of your organization.
Frequently asked questions
Why is commitment important in any business?
Commitment is important in any business as it builds trust and credibility. When you honour your business commitments, the customers will see your business as a reliable one. This will in turn increase customer loyalty and repeat business.
Why is it important to honour commitments to stakeholders?
Honouring commitments that you have given to stakeholders creates trust. It will show that you value the customer’s time and investment. Further, it also creates an environment of mutual respect which will ultimately lead to long-term success.
Why is commitment important to goals?
Commitment provides the focus to take purposeful actions. It also creates a sense of responsibility and accountability. In the long run it reinforces sustained effort for achieving the goals.
