An Effective but Risky Strategy for Late-Paying Clients

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Project Infomation

Her email was in response to my asking her to give us a sense of when we can expect more project deliverables, as well as to ask if she could devote more time to our project.
  • Client : Insight Studio
  • Date : 20 Feb, 2018
  • Skills : Project Planning

Challenge & Solution

Her reply was a bit of a shock to us. We had paid her up front when we began work, and since put two checks in the mail. Apparently she had not received these two checks, which did not make sense. Also, while we knew she was awaiting payment, she never told us that she was on the brink of slowing down work on the project.
Grab the audience's attention
It got our attention. We scrambled to get her on the phone and resolve the problem. It used her leverage over us — our need to get work done.
Use the right strategy to call for action
We needed the project done, and so had some conversations about how to phase her out quickly (after all, we thought the check was in the mail). Her move could have cost her a lot of work.
Solve the issue in an appropriate way
She should have sent a warning first, so that we could have resolved the situation without taking it to the brink. After all, honest mistakes on both of our parts led to this problem.

Our Process

01
Improve sales & operations & production planning
02
Determine the right inventory level
03
Optimize the supply chain for perfect order planning
04
Improve sales & operations & production planning

Result Driven

So, we called her immediately to find out how we could resolve the situation. When we did, we learned that she had moved her office without our knowledge, and so her checks were most likely being forwarded. After our talk, she did accelerate her work, and in fact exceeded our expectations (Credit: sitepoint.com)
Reduced lead time by 43%
Decreased variability by 50%
Lowered the risk of back-order by 95%
Increased stock for finished goods by 10%