Did all the work, presented $24K in findings, and client disappeared

Started by Marcus W. — 11 years ago — 14 views
Marcus W from Memphis, TN. MLGW territory. Spent 3 weeks auditing a mid-size hotel. Found a rate classification error and a demand billing issue totaling $24,200 in recoverable savings. Presented the findings to the hotel GM in a nice report with graphs and everything. He said this is fantastic, let me talk to the owner and I will get back to you. That was 6 weeks ago. He will not return my calls or emails. I know the hotel is still operating — I drove by last week. What do I do? I have a signed engagement agreement but I cannot force him to file the claim.
Marcus, client ghosting after a presentation is frustrating but not unusual. There are several possible reasons: the GM presented it to the owner who decided to handle it internally (same issue Nancy described in the fee protection thread), the ownership is in financial distress and cannot deal with it right now, or the GM simply got busy and your project fell off his priority list. The engagement agreement protects you legally but enforcement is a nuclear option.
Marcus, before you escalate to legal threats, try a different contact at the hotel. Is there a controller, a CFO, or an accounting manager? Sometimes the GM drops the ball and a financial person will pick it up because they understand the money involved.
Terry, good idea. I found the hotel controller on LinkedIn and sent a professional message explaining that I had completed an audit showing $24,200 in savings and was having trouble connecting with the GM to finalize the claim. She responded within 2 hours.
LinkedIn is underrated for reaching people who are ghosting you. Nobody ignores LinkedIn messages from someone who can save them $24,000.
Reggie, it worked. The controller had no idea about the audit. Turns out the GM never told the owner or the finance team about my findings. He had been sitting on my report for 6 weeks doing nothing. The controller scheduled a meeting with me and the owner for next week.
This is a perfect example of why you should always confirm that your contact has the authority to act on the findings. A GM might be enthusiastic in the meeting but if he needs the owner approval and does not want to admit to the owner that the hotel has been overpaying for years, the report goes in a drawer.
Randy, I think that is exactly what happened. The GM did not want to tell the owner that a $24,000 billing error had been running on his watch. He buried my report rather than deliver bad news.
Met with the owner and controller. The owner was thrilled about the findings and furious with the GM for sitting on them. Authorized the claims immediately. MLGW processed the refund within 30 days. My fee: $10,890 (45% of $24,200). The owner also asked me to audit his 2 other hotel properties. And the GM no longer works there — unrelated to my audit, supposedly, but the timing was interesting.
The GM getting fired is a cautionary tale for another reason. Sometimes the person who engaged you has a reason to suppress the findings. Always make sure your engagement agreement specifies that you can present findings to the property owner or a senior financial officer, not just the person who signed the LOA. That protects both you and the client.
Mike, adding that to my engagement letter immediately. Going forward, the agreement will specify that findings are presented to the account holder or a designated senior financial officer, with a copy to the person who engaged my services. No more single-point-of-contact risk.