Owning up to a Failure
R&M Machinery had for years provided XYZ with
sophisticated equipment and reliable repair service. XYZ
returned a failed piece of equipment. A meeting was held which
included Archie Hunter, a representative from XYZ, Norm Nash,
R&M's returned goods area representative, and, Walt
Winters, an R&M engineer intimately acquainted with the
kind of equipment XYZ had returned.
Norm Nash represented R&M's "official position": the
piece of equipment is all right. However, during the course of
the meeting it becomes apparent to Walt Winters that the
problem has to be R&M's. He suspects that the equipment was
not properly tested out by R&M, and that it failed because
of an internal problem.
Should Walt say anything about this in the presence of the
customer, or should he wait until after the meeting to discuss
this with Norm Nash?
II
Walt keeps silent during the meeting. After the meeting he
talks with Norm about his diagnosis. He suggests they tell XYZ
that the problem is R&M's fault, and that R&M will
replace the defective equipment. Norm replies, "I don't think
it's wise to acknowledge that it's our fault. There's no need
to hang out our wash and lessen XYZ's confidence in the quality
of our work. A 'good will' gesture to replace the equipment
should suffice."
R&M management decides to tell XYZ that they will adjust
to the customer's needs "because you have been such a good
customer all these years." Although R&M replaces the
equipment at its own exprense, it does not tell XYZ the real
nature of the problem.
Discuss R&M resolution of the problem. Should R&M's
way of handling the problem be of any concern to Walt Winters
at this point, or is it basically a "management problem"?
III
Many engineers eventually move into management positions. If
Walt Winters moves into management, what lessons, if any, might
he take with him from the above situation?