PRACTICAL AND PRAGMATIC WAY TO DEAL WITH A SITUATION WHEN A CUSTOMER/CLIENT DOES NOT PAY UP YOUR BILL

 PRACTICAL AND PRAGMATIC WAY 
TO DEAL WITH A SITUATION 
WHEN A CUSTOMER/CLIENT 
DOES NOT PAY UP YOUR BILL 

One of my fellow alumni in a Premier Business School of India, a quite younger alumnus compared to me ( while I am from batch 5, she is from batch 26 ) raised a poll in my alumni community asking for questions what can be done in case a client does not pay up the bill.  I wrote the following part of this post (very little modifications, a few words may be here; to suit this Blog situation of public domain, while that is a private domain) as my practical and pragmatic advice to her and to my fellow alumni, placing here for the readers to read it for their use as well. 

Whether it is a Customer (in the context of Goods) or a Client ( in the context of Services), while dealing with, one must understand the Operating Zone and the Buffer Zone of the Client Entity/Organization as follows:

1.  Buffer Zone is the Highest Level in the Customer/Client Entity/Organization …..such as the Owner/MD (Managing Director, or CEO-Chief Executive Officer) or Chairman (in some countries the Chairman is also called as the President), of the Entity/Organization. Keep this Zone in Good Humour and in your Best of Contacts/Relationships. Because this is the Zone that can Bulldoze a decision or Supersede/Overturn a Decision if it comes to. Keep this Buffer Zone as stand by and never use it for realizing your bill payments under normal situations; therefore, if your payments fail ( or get unduly delayed ) you can climb to this Zone to get relief. Most of the times it will work.

2. Operating Zone is the 2nd Highest Level in the Customer/Client Entity/Organization or below it….. such as the COO (Chief Operating Officer), CFO(Chief Finance Officer) or below them, who will normally work with you and make your payments. Keep them also in good humour and relationship, but disputes or disagreements might happen at this zone, you will not be paid or your payment will be withheld.

3.  If you have already exploited (used or climbed and used) the Buffer Zone and your bill payment is not being made by the customer/client (the reason must be best known to you), it is a gone case. Keep trying with the Operating Zone in reconciliation (melting from your side) and if you get it by some melting from other side you are lucky.

4.  I have written the above lines to help, my fellow alumnus who raised the poll, and others who work in the business of goods or services. I have not participated in her poll parameters (by voting) and I am not going to, having explained as above. This is a piece of original thought of mine out of long experiences, the readers may not get it in any books or manuals, but it is my practical and pragmatic advice. I am putting it in my Blog also, for others in public domain who can use it. I saw her poll post and wrote it extempore from my mind only, but it will be correct far and wide.


( Just to put forward another relevant point further, she, my fellow alumnus herself had stated while raising the poll that "Legal Action" may not be an workable thing to do in such cases, and I agreed with her in that statement. Because, legal action against a Customer/Client, is an extreme step, only if the bill is such a sizable amount  that justifies the legal expenses and time involved; if one has delivered the goods/services perfectly and it has such fool proof contractual back up which can be enforced without flaws ).


About the Author : Dr. Nimain Charan  Biswal is a B.Sc.(Agri. Science and Technology), M.B.A. and Ph.D.(Management Area ) by qualifications and he has 36 years of work experience in both  industrial and development sectors in diversified fields of social importance. He has been educated at Orissa University of Agriculture and Technology (OUAT)-Bhubaneswar, Institute of Rural Management Anand (IRMA) and Gujarat University (with Resource Support of IIM-Ahmedabad). Dr. Biswal is further educated at IIM-Calcutta, XLRI-Jamshedpur, Apple Computer Industries and Spar Inc., USA. He has worked for reputed National and International Organizations in Senior/Top Management Capacities at Board level as well as Managing Director and CEO. He is a management expert covering extensive areas from management in agriculture, industrial management, development management to management of public systems. He is a prominent professional of India and known Internationally as well. He lives at Mumbai in India.



 


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