The Real Cost of Miscommunication

I am writing today's piece because I realize there's a problem.

A problem between the vendors and customers.

As they are hardly on the same page.

I am not talking about speaking different languages like English and tech jargon.

But I am talking about different priorities.

Customers and vendors often have their own goals.

And when those don’t line up, it can lead to misunderstanding.

And that eventually leads to disappointment.

Let me share with you today why this happens.

And also, how the usual fixes people try don't work.

But then also the ways you can avoid traps to keep your business safe.

Where Customers and Vendors Miss Each Other

As a customer, you’re probably focused on a few key things:

- What you’re getting: The product or service that solves your problem.

- How long it will take: The timeline for when it’s done.

- How much it will cost: The total cost and any impact on your budget.

- Whether it will be of quality: The standard of the final product.

On the other hand, vendors might have a different focus.

They’re often more concerned with delivering the technical requirements.

And that too, sometimes without fully understanding your specific expectations for time, cost, and quality.

And this is where the trouble starts.

Common Fixes Businesses Try and Why They Don’t Always Work

Many customers try to fix these issues in ways that seem logical but they don't work that well.

Here’s what people usually do and why these approaches can backfire:

1) Trusting the Vendor’s Expertise

It’s natural to think that the vendor, being the expert, will understand and meet your expectations without needing much direction.

And I agree to some extent.

Vendors might deliver on the technical requirements but miss the mark on what really matters to you.

For e.g., meeting deadlines or ensuring quality.

They may check off deliverables but overlook whether the project truly fits your goals.

This often leaves you with something that’s “technically” done but doesn’t fully meet your needs.

2) Thinking Details Can Be Sorted Out Later

Some customers believe that things like timelines or quality standards can be discussed as the project progresses.

But if these details aren’t clearly defined from the start, they can easily get lost or become less important.

As the project moves forward, what you consider critical might not be viewed the same way by the vendor.

And that leads to delays, higher costs, and lower quality than you expected.

3) Using Standard Contracts

Many businesses go with standard contracts provided by the vendor, without much review or customization.

Standard contracts are usually designed to protect the vendor’s interests.

They might have a lot of technical details but lack clear commitments on timelines, costs, or quality.

When issues arise, the vendor can point to the contract to show they’ve met their obligations, leaving you with little room to push back.

4) Skipping the Fine Print

It’s easy to skim over the details in the contract, assuming the main points are covered.

But important commitments on time, cost, and quality can be hidden in legal language or left vague.

This lack of clarity can cause major problems later on, as the vendor might technically fulfill their obligations while failing to deliver what you actually need.

The Real Cost of Miscommunication

Let’s say you hire a software company to build a custom solution for your business.

The contract is full of technical terms about deliverables and responsibilities.

But it doesn’t clearly define the timeline, total cost, or quality standards.

A few months down the line, the project is delayed, and costs are way higher than expected.

And the quality isn’t what you hoped for.

When you bring up these issues with the vendor, they refer back to the contract, insisting they’ve met their obligations.

Technically, they might be right. But the end product doesn’t match your expectations.

This is what happens when key commitments aren’t clearly laid out from the beginning.

The Approach I Would Take Instead

To avoid these common issues, what's important is to demand clarity from the start.

Here’s what I normally suggest to my clients and what I normally do too.

1) Ask for Clear Timelines

Make sure the project timeline is spelled out in the contract.

You can have specific milestones and deadlines, not just a vague “estimated” completion date.

Clear timelines help everyone stay on the same page about when the project should be done, reducing the risk of delays.

2) Get Detailed Cost Agreements

Make sure the total cost of the project is clearly outlined, including any potential extra charges.

Specify what’s included in the price and what could incur additional fees.

Detailed cost agreements help you avoid unexpected expenses and keep the project within your budget.

3) Set Quality Expectations

Make sure to define the quality standards the final product must meet.

This could include performance measures, design standards, or user experience requirements.

By setting clear quality expectations, you make sure the end result matches what you need and provides real value.

4) Customize Your Contracts

Final point. Don’t just rely on standard contracts.

Take the time to review and tailor them to your specific needs and expectations.

Custom contracts ensure that all the important aspects of the project—time, cost, and quality—are covered in a way that protects your interests.

Wrapping Up

Miscommunication between vendors and customers is common in the IT sector, and it can lead to serious issues.

But by demanding clarity on time, cost, and quality from the start, you can avoid the issues of vague contracts.

And also ensure that the final product meets your expectations.

Don’t assume the details will work themselves out.

Make sure these key commitments are clearly stated in the contract, not hidden in the fine print.

By doing so, you’ll protect your business from the risks of miscommunication and ensure you get the results you’re paying for.

Take the time to review and clarify your contracts before signing.

This proactive approach can save you from agreeing to a deal that looks good on paper but leaves you disappointed in the end.

If you need my help with drafting or reviewing such agreements, feel free to reach out.

Just reply with "REVIEW" and I will share with you the steps on how we can work together.

Talk to you soon.

-- Akhil Mishra