Delivering Bad News

According to surveys conducted over recent years, giving bad news to employees, customers, and vendors is rated one of the most challenging tasks small leaders perform during the work week.

These same surveys indicate that small business leaders believe the task has become more difficult due to the recipients’ changing attitudes.

When it comes to employee reception to negative statements on the part of managers, some small business leaders report extremely distressful reactions bordering on physical alterations. While stopping short of violent personal attacks, employees have been known to destroy property, equipment, or paperwork in reaction to conversations that impart discharge notices, position changes, promotions or demotions, or compensation reductions.

When dealing with clients, small business leaders report rising intolerance on the recipient’s part of even one misstep. Where, in the past, loyalty to the provider would enable the negative information in the context of overall performance, in today’s world, a single step is enough to cause total separation.

When giving bad news to vendors, the reaction can range from cutting off services and deliveries early, bad-mouthing in the industry to the threat of legal action.  While the impact of negative information can be softened, it can’t be erased.

Here are some ways of lessening the impact of negative communication on the company’s internal and external communications.

For employees, the most critical element of imparting negative information is for the company to do the telling. Rumor mills can outrun corporate decision-making and can never communicate all of the details.

What’s more, according to communication experts, rumors feature the worst possible scenario first. Make sure information about the company’s decisions, such as whether to fire, demote, cut salary, or retrain employees, is the first heard from the company.

The delay means the company grapevine will work to undermine whatever positives are possible.

No matter how dire or menial the negative news is, ensure there is some positive associated with its implementation. But don’t emphasize the company’s benefit; rather, emphasize whatever positive will accrue to the individual affected and to his or her closest workmates.

Whatever news is being imparted, repeat it at least twice in the initial meeting. Tests have shown that in workplace situations, employees do not hear all of the relevant information when receiving even trivial bad news. It is essential to repeat the news at least twice in the initial discussion; put it in writing and then repeat it verbally one or two days later. At all times, solicit feedback from the employee, who is in no mood to provide any, let alone positive feedback. Accept the fact that accurate feedback will only come in the future.

Communicating bad news to customers requires additional finesse. The customer relies on price, quality, and consistency. When bad things happen, such as a price hike, product scarcity, or missed delivery, the experience affects the buyer-seller relationship far more than positive events. There is an adage: One damn is equal to 10,000 bravos.

The best way to lessen the impact of one bad event is to sandwich the imparting of this news between two positives for the customers. For years, this was the hallmark of IBM sales and servicing. For example: “Your dry cleaning will be free next month. We are sorry, but we burned a hole in your shirt. We have repaired the hole, and it is no longer visible.”

As with employees, it is best to convey the negative information immediately rather than wait until the client asks. The recent run on the nation’s banks was triggered in part by the banks under review’s failure to adequately inform depositors of the difficulties they faced. Had the banks been readily forthcoming, some experts believe, some of these failures could have been avoided.

While vendor relations are usually contractual, providing bad news, such as cutting back on products/services or ending the relationship, needs to be done in accordance with the contract and handled with finesse. Explain why the business is going in another direction, why the quality has slipped, and why we have tried to work with you without success.Above all, remember what the purveyor of bad news wants: Acceptance.

Acceptance is often the most challenging response to obtain.

Nevertheless, bad news cannot wait; share it openly and honestly and be prepared to answer questions.