When you hire a doctor, mechanic or IT specialist, you assume they have a Plan B. But new research shows that when they reveal it can shape how competent they seem.
For professionals, transparency pays off, especially before trouble starts. Sharing a backup plan early builds trust and strengthens credibility.
A study led by Mauricio Palmeira, associate professor of marketing at the University of South Florida, finds that experts who disclose backup plans before problems arise are viewed as more competent than those who wait until after an initial failure. The research appears in Management Science.
Across 11 experiments covering health care, automotive repair, IT support and consumer
advice, the researchers identified a
consistent “competence penalty” for late disclosure. When experts introduced an alternative
only after their first approach failed, people judged them as less prepared and less
capable, even though most expect professionals to have contingency plans.
By contrast, early disclosure carried no downside. Experts who shared backup plans before failure, after success, or while the initial plan was still underway, were seen as more prepared and more competent. Clients were also more willing to stick with them after setbacks.
The penalty for late disclosure disappeared when participants were prompted to think explicitly about what an expert would do if something went wrong. Expectations, in other words, drive much of the judgment.
One caveat: Revealing multiple backup plans midstream can signal uncertainty and reduce perceived competence.
Authors: Mauricio Palmeira, University of South Florida; Evan Polman, University of Wisconsin–Madison.