How missing and extending deadlines affect your business

When the Governor of the Central Bank of Nigeria insisted that the deadline of 31 January 2023 is sacrosanct, I believed he will not "shake". 

But alas! he succumbed to the pressure. Maybe he and his team did not plan the process well. Maybe he was sabotaged. Anyways, he could not honour the deadline. He missed the deadline and subsequently extended it.

Let's leave Mr Emefiele and his troubles and go to the lessons. 

How does missing and extending deadlines affect businesses?

I will start with the effect of missing deadlines will have on the customer doing business with you in future. Then I will look at how the deadline extension affects your staff and business

EFFECT ON CUSTOMER

Trust Becomes Weak

Missing deadlines brings up the question of incapability. The client begins to think that you may not be the best fit for the project. 

This feeling introduces weakness in the already established trust.

Reputation is at stake

Whether you are rendering service or tangible goods, missing deadlines repeatedly will damage your reputation. 

The negative impact will also hurt your brand image.

Loss or reduction of Patronage

When you are known for late delivery or missing deadlines, customers are unlikely to do business with you.

Remember that word of mouth can spread quickly to prospective clients.

Premature termination of Contract

If a customer is not satisfied with the milestones of a particular project, he is likely to terminate the contract before the due date. 

The more these deadlines are missed, the more your customer base depletes.

If a client terminates their contract or chooses not to renew, this can result in a financial loss for your business.

Legal Redress

Customers have different levels of temperament and patience threshold. 

In the instance of a missed deadline causing damages to the client, the customer will take legal action.

Re-negotiation demands 

When you miss a deadline, sometimes the client may want to force a review of terms which may not be favourable to your business.

Reduced client satisfaction

Even if the client reluctantly accepts your reasons for extending the deadline he may be dissatisfied with the service delivery.

Reduced ability to retain top talent

Missed deadlines can lead to frustration and dissatisfaction among team members, which can make it more difficult to retain top talent.

Difficulty in meeting deadlines can make it difficult to scale your business.

It's crucial to communicate effectively and take proactive steps to prevent and mitigate missed deadlines.

EFFECT ON YOUR BUSINESS

Productivity Drops

Imagine when you are hoping a task will be completed at a particular date and you had done your part, but suddenly the deadline is extended. 

Immediately, some team members will become less motivated and less productive.

The overall morale of the team may decrease if the deadline is extended multiple times.

Additional Cost

The project may experience additional delays and setbacks, which can lead to increased costs and resources.

The project budget may be impacted, as additional resources may be required to meet the new deadline.

You notice that at the end of the project, you must have spent more than you would have initially.

Direction is affected

With deadline extension, you run the risk of losing the sense of direction. 

The team may lose sight of the project's original objectives and goals.

Along the line, additional tasks may be added which lead to a change in the scope of the project. Mistakes will begin to occur more often.

Quality May be Affected

The quality of the final product may suffer as team members rush to complete the project.  

The fear of not meeting the second deadline sets in and the next thing people cut corners to deliver.

It encroaches into break time

The team may have to work longer hours or over weekends to meet the extended deadline.

Off days will be cancelled. Breaktime which is normally 1 hour goes down to 15 minutes. 

The project manager may have to re-plan and re-schedule the project timeline and milestones.

Contractors come in

You may need to bring in extra hands like contractors to help with the project.

You will spend time and money explaining the project to them. You may mistakenly reveal some of your trade secrets to total strangers who may "sell" them to your competition.

Stress and Communication issues

The project may experience communication breakdowns as team members struggle to keep up with the new timeline.

The team may experience increased stress and pressure as they try to meet the new deadline.

The team may have to work under more pressure, which can lead to burnout.

It's important to note that, an extension of a project deadline can have a significant impact on the project and the team members, and should be avoided if possible. When it becomes necessary, it should be done in a way that minimizes the negative effects and maximizes the chances of success.

So you know now.

To avoid future missing deadlines, try to implement the suggestions listed below.

1. S.M.A.R.T Goals.

2. Understanding the Scope of the project.

3. Get a skilled team.

4. Right tools.

5. Start working on it early.

6. Time Management.

7. Teamwork.

8. Motivation.