Promises are a double-edged sword for businesses – and evidence shows that simply keeping them works better for customers than surpassing them.
The dangers of a business stockpiling its promises and over-committing itself have been thrown into sharp relief by the traumatic collapse of infrastructure giant Carillion. Following the 15 January announcement that the firm was going into liquidation, the finger pointing began in earnest. No wonder: as the UK’s largest supplier of municipal facilities for a host of different public services, Carillion had instilled in its primary customer – the government – a major dependency, becoming pivotal to the fulfilment of numerous policy programmes.
Its failure bodes ill for the delivery of projects in both the near and long term – and for the health of the public purse, should the taxpayer be required to step in.