“The first quality for a commander-in-chief is a cool head to receive a correct impression of things. He should not allow himself to be confused by either good or bad news.” – Napolean Bonaparte
“One should always play fairly when one has the winning cards.” – Oscar Wilde
One of the most important skills needed to effectively run any size of organisation, but especially a small- to mid-sized company, is the ability to communicate effectively. It’s not enough to be able to pen a pithy memo or to simply lay down the law.
Ideas have to be promoted and sold at all times to the target audience, inside the company and out. Usually, or at least, hopefully, most of what’s being communicated by the Chief Cook is good stuff – there’s a lot of work on, so we’ve got to pull together or we’re moving into new markets or our technology’s being upgraded and there’ll be a bit of a learning curve, but if we pull together as a team . . .. Sometimes, the news isn’t so good: health insurance costs are rising, the company’s having some cash-flow issues, the big account that made up a third of our profit just left. So, how does the guy or gal in charge of just about everything deliver the not-so-good news without risking being burned at the stake?
Be Honest and Get To The Point
It’s tempting to put off delivery of bad news to clients, partners and staff. After all, maybe something will change or maybe the problem will go away. Bad events can be scary, but the CEO, with both rights and responsibilities that come with leadership, has to have the fortitude to share the information even if he or she can’t share the burden. It’s the price of entry and will need to be paid from time to time. So, knowing there’s an issue and dealing with it in a timely and balanced way is important. And don’t panic
First, assess the problem. How did it come to pass? How is the target audience affected? What solution is proposed? You will have to present at least one plan. What is your culpability? Forget about pointing fingers when delivering bad news, like blaming departed staff or the competition: you may want to consider those things privately, but don’t plan to present it. Understand what you’ll be talking about in a concise way.
Then, prepare to deliver the news, that is, prepare yourself. How a thing is communicated is as important as the thing itself. Proof of this is the fact that American companies spend billions of dollars a year on public relations and advertising, so calling a company meeting where your tear-streaked cheeks and bloodshot eyes will give away your internal meltdown will likely not be very inspiring and will certainly frighten a vendor into COD. Create a set presentation that outlines circumstances as you understand them. Recognise that you may inadvertantly inject subjective hopes and fears of that will frighten or demoralize your audience and just leave that stuff out. Remind them that you are truly “in it together” and that it can be possible to work it out, if that’s the truth. If The End is truly near, say so and be direct but be sure to reiterate that, either way, you are committed to making a solution work.
Feel The Burn
If you’re not particularly empathetic, realise that your audience will feel emotion that will colour how they consider your bad news. So, even if you feel you should just be able to cut and run, don’t. Take the time to fully communicate how it is that you can appreciate that the news you’re delivering is not pleasant, but that you feel honesty benefits all and that you sympathise with those receiving your Doomsday prognostications.
Also, understand that you will take heat. It’s part of your job to accept both laurels and rotten fruit from time to to time. Take any backlash and channel same into your message. Stand your ground, calmly, and keep on delivering your message. Explain it in a different way, but don’t give up. People want to be convinced that what you’re telling them, that is, the bad news with the good news of how you’re going to make it all better, is real. Otherwise, you would have been strung up from the rafters a long time ago. So, stand and deliver.
Get Professional Help
Not matter your level of business experience, there are certain things that require expert help, unless you want to look like an idiot or worse, expose your company to legal entanglements. For instance, if the bad news has to do with possible layoffs, consult with an attorney that specialises in labour law. In the U.S., the WARN Act makes regulations specific to layoffs over a certain size that must be followed and those rules must inform your presentation. If it’s a financial matter, discuss the scenario with your CPA to get an objective, outside analysis or if it’s contractual, review with an attorney who did not have a part in drafting the document. Public companies are subject to Securities and Exchange Commission rules regarding any announcement or forward-looking statement that may affect shareholders. Fresh eyes often yield fresh ideas. Do not discuss your issue with your golf buddies because everyone loves a rumour. If you have a board or partners, keep them fully informed and seek their feedback. This is no time to be a diva. Finally, when putting together your presentation, consider whether a public relations specialist can help you maximize the penetration of your message. Remember that you’ll only get one chance to make the right impression, that it, to get across exactly what you mean to communicate with as accurate information as is possible.
Stay On Message And Expand The News
Once the bad news is deployed, be aware that it can’t be left to fester or there will be a very real risk of demoralising everyone affected. So, unless you want your banker to start looking for a replacement customer to your account or for your copy click charges to sail through the roof as employees tune up their resumes, progress on the issue, well described and promoted with positive news, if and as available, is required. Let “them” know what’s happening, but don’t predict. If you’re making the right moves (a topic for a different article,) un-hyped reports at appropriate intervals will demonstrate that progress is occurring and that the problem is being attacked. This also prevents guesswork on everyone’s part and curiosity will be satisfied at least long enough for you to get back to fixing the problem. At the same time, promote the company’s good stuff. Are sales quotas coming close to expectations or being exceeded? Did the company gain new or different business or not lose more business? Did any department do anything remotely notable? Are there new efficiencies that are yielding results? Say so.
Crises happen and how they’re dealt with leave a lasting legacy that describes an organisation’s culture. It’s a quality of leadership to understand and communicate news, both good and bad, and by virtue of doing so, engage all concerned in the potential for success.
