Don’t hide bad news!
by Miki SaxonAs we all know, the course of business isn’t smooth and even the most successful enterprises have hiccups along the way. Employees not only know this, they often foresee trouble more clearly than management would like and are quick to act—whether their information is accurate or not. The upshot is that, as boss, you need to communicate bad news effectively and completely if you expect to retain employees’ confidence, or, for that matter, the employees themselves.
Sadly, the tendency of many bosses, from Fortune 100 companies to mom and pop-owned small businesses is to clamp down, say nothing, run scared, freeze, bluster, or some combination of these.
So what/how do you handle it? Here are basic guidelines to follow—although they might not be totally comfortable!
- Bad news must be communicated—just like good news.
- Employees aren’t dumb—they know something bad is happening—and if they’re not explicitly told what it is, rumors will make any difficulty a catastrophe and a catastrophe a death knell.
- Management must be explicit about the ultimate potential consequences.
- Everyone hates uncertainty. The worst case outcome of any problem must be anticipated and addressed.
- Employees must be told of management’s plans for the outcome, whatever they may be—layoffs, plant closures, project cancellations, etc.
- Successful turn around plans are, in part, dependent on how well they are communicated to achieve employee buy-in.
Any solution to a crisis must be seen as fair, reasonable, and businesslike. If management’s reaction is illogical, petty, slipshod, unrealistic, draconian or any combination of these, then it’s likely that employees will conclude the ship is about to sink and leap off.
People understand that difficult situations demand difficult remedies, and they appreciate that management must at times step up to harsh challenges. But if solutions are irrationally or whimsically applied, they become a demoralizing factor, increasing the difficulties that people encounter in trying to do their jobs.
Lastly, management should attempt to find a positive note to leave with employees. Everyone already knows that things are bad, and its management’s job to find a potentially favorable course of action. However, don’t carry this to absurd lengths. Employees will easily spot propaganda masquerading as a solution. Predicting an impossibly favorable outcome will not only demean management, it may also bring a lawsuit.
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January 24th, 2007 at 1:32 pm
[...] I’ve commented in the past on how to handle bad news and that trust is the basis of a company’s street reputation and the importance of that rep in attracting and retaining staff. [...]
May 4th, 2008 at 5:53 am
I spend a lot of time speaking to executives and their companies on communication and I find it strange that corporate leaders think that they can “protect their people” from bad news.
The problem is that most employees are adept at reading body language and the general demeanor of their boss. So often the employee can detect when things are not going well or when “bloodletting” is taking place at board level.
The best strategy is to be as honest with people as possible and engage their help, if appropriate.
May 14th, 2008 at 9:16 am
Hi Stephen, thanks for visiting. I think the efforts are often more along the lines of self-protection, a la, “if they don’t know they won’t leave, mixed with a healthy dose of cowardice.
Sadly, ‘Honesty is the best policy’ seems to have morphed into ‘Honesty is the bets policy when convenient and comfortable’.
January 26th, 2009 at 5:31 am
[...] must become as competent at communicating bad news as it is at communicating [...]