Be Diligent with Your Due Diligence--Your Reputation is on the Line

Dr. David Jeremiah, noted preacher and author, recently spoke about the meaning of Diligence.  Technically the definition is “to give yourself strenuously to something.”  When he spoke, he was referring to faith.  But his “formula”:

Faith + Virtue + Knowledge + Self-Control + Perseverance + Godliness + Brotherly Kindness/Love
made me think about what it takes to do “due diligence” these days. Some of the elements are the same.

So, let’s break it down from a business standpoint.

Knowledge. Research. Investigate.  Does the company really do what they say they do?  Do customer reviews back that up?  Are there stories in the media that cause you to question what you’ve learned? You want to build this relationship or develop a legal contract anchored in the truth.  You want to confirm what you are being told or sold. There’s a reason they say “knowledge is power.”

Perseverance. This is the trademark of every champion you know. Olympians.  Professional athletes. Business tycoons. Even politicians. They don’t give up.  So, don’t stop with the first story you read.  Dig deeper.  You want to know if this company, this leader, this consultant, this investor is worthy of your time and money. Not finding answers to your questions?  That’s a red flag too – persist until you do.

Risk Assessment. Some decisions involve very little risk; some can bring you (and your business) to your knees.  Know how much you stand to lose if an agreement goes south.  Is it money?  Is it your reputation?  Is it worth it? It’s important to know your risk tolerance.

Faith.  At some point, after you’ve done your research, you need to have a little faith. Believe in what you are doing and your capabilities.  Have faith that the skills of those with whom you are working will produce the results you want.  There’s a reason I put this last – blind faith, in business, is foolish.  But after you’ve done your homework, it’s time to believe.

I recently did something stupid.  Yes, I admit it. I signed up for a subscription with a company called Advisory Cloud.  For a one-time charge of $950, I would be given the opportunity to be an Advisor to any three start-up companies in their portfolio at a time.  I know what you’re thinking.  Shouldn’t they pay you?  Well, I was just starting my consulting company and thought I could automatically build my business starting as an Advisor.  And possibly even gain experience in industries where I currently have none.  If they hired me, great – but at the very least, I could add them to my “client list.”

So, I signed up, paid my $950 and chose three exciting sounding companies.  These companies pay Advisory Cloud to be listed and are obligated to provide quarterly briefings to their “advisors.”  The first thing you do is read their Boardroom Profile and answer their questions for the quarter.  I should have known something was amiss.  As I joined in mid-December, the fact that a chocolate company was requesting marketing advice “as we approach the holidays,” seemed a little too late.  But I thought, I’ll answer their questions anyway so they’ll see what great value I can add.

Months went by.  No interactions from these companies.  And no quarterly briefings.  When I questioned Advisory Cloud about this, they said they don’t guarantee the companies will hire me.  “But you do guarantee quarterly briefings from the companies on whose Boards I serve, right?”  I was told I could choose three other companies. I asked if I could just get a refund and the answer was “We don’t give refunds.”

Long story a little less long, after picking three more companies and waiting yet another 3 months for no activity, I did my due diligence.  Yes, I know, way too late.  And I discovered this company has repeated complaints with the Better Business Bureau; even some employees on GlassDoor’s site acknowledge it’s a scam to take people’s money.  I don’t believe the Member companies even exist. 

Had I done my due diligence to begin with, I never would have entered into this contract. Lesson learned. Pocketbook burned. Buyer be warned – from a customer scorned.  Do your due diligence FIRST. 

Patty Deutsche is a communications professional who has managed the reputations of Fortune 500 corporations and now helps small to mid-sized companies build and protect their reputations. To learn more, visit www.volterracomms.com.