As an independent Web designer and strategist, I wear a lot of hats, one of which is a firefighter’s helmet. Sometimes, despite your best efforts, a project explodes in your face. Whether or not you are at fault, you have a seriously unhappy client on your hands.

How do you put out the fire effectively, professionally, and in a manner that yields a fair resolution both for you and your client?

1. Clearly Explain What Went Wrong

Give the client a concise summary of the issues that caused the problem. I recommend a bulleted list. You probably don’t need to include every last detail (excepting developer documentation you provide). The client is already overwhelmed (and, more often than not, unversed in technical issues). Just tell him what The Point is.

2. Don’t Point Fingers at Anyone (Including Yourself)

Avoid blaming others, but don’t admit fault if you feel you acted with due diligence. Think of it this way: even if you did not cause the problem, the hot potato is in your hands, and your client is counting on you to help him out of a jam.

3. Always Propose a Solution

Identifying what went wrong is a great start, but it doesn’t help a whole lot if you don’t follow it up with an action plan for fixing the problem. Do everything you can to avoid leaving a client hanging. You don’t want to be remembered as the problem causer; you want to be remembered as the go-to guy (or girl) who saved the day.

4. Empathize

Acknowledge the client’s anger, frustration, worry, or disappointment. Express your concern for their success. You may not regret anything that you did, but it’s always appropriate—and kind!—to express regret that someone is feeling rotten.

Should You Fix the Problem for Free?

To take a hit to your bottom line or to walk away while you can; that is the question. Remember, you’re holding the hot potato at this point, no matter how the problem was actually caused. As far as the client is concerned, you’re responsible. You may want to continue working with the client at low or no cost until she is satisfied.

Is this an exploitation of your services or an investment in your business? You have to weigh the immediate loss of profit against the potential payoff of making that client deliriously happy.

5. Consider your reputation

Your reputation needs to stay golden. Will fixing the problem mean the difference between the client (a) badmouthing you all over town versus (b) becoming your biggest cheerleader (or at least keeping his mouth shut!)?

6. Consider the Potential for Future Business

Will salvaging the relationship with your client bring about future business with him and/or referrals? If so, you might want to go the extra mile for him and consider that effort an investment.

7. Is This a Client You Want to Work With?

Face it, some people are nightmare clients—narcissistic, controlling, impossible to please, or extraordinarily high-maintenance. If you feel that you simply cannot resolve the situation, or if you would rather chew on broken glass than spend one more minute with the client, it might be better to cut your losses, accept whatever consequences come your way, and move on.

What Clients Really Want

Every firestorm presents the opportunity to win a new fan for your business—IF you always keep in mind your core obligation: to fix the client’s problem and take away the pain.

(Hsieh’s comments on values and culture echoed the work of Richard Barrett, author of Building a Values-Driven Organization: A Whole System Approach to Cultural Transformation, whom I met last year when he held an organizational development seminar here in Austin.)

Zappos has made superior customer service its primary goal. They offer a 365-day return policy, “surprise” upgrades to free overnight shipping, and 24/7 warehouse operations to ensure that products are shipped on time. Zappos does  not rely on traditional advertising; instead, they aim to convert happy customers into brand ambassadors who spread the word far more effectively than a banner ad or a commercial. The money that might have gone toward advertising is invested in company culture.

Hsieh outlined seven steps to building a successful brand.

1. Decide if you are willing to build a long-term, sustainable brand.
2. Figure out your values sooner rather than later. Build a team whose personal vales are aligned with corporate values.
3. Commit to transparency.
4. Chase the vision, not the money.
5. Build relationships (as opposed to networking).
6. Build your team thoughtfully.
7. Think long-term.