The Transparency Edge. How Credibiltiy Can Make or Break You in Business

Delivering bad news does not have to be demoralizing or damaging to morale or relationships. Doing it well probably requires forethought and planning, however. It is important to know your purpose and expectations before you inform the troops of disappointing or potentially controversial news. In approaching each situation, ask yourself

People will have a range of emotions that you have to anticipate. What might their reactions be? What questions could they ask? Prepare yourself by putting yourself in their shoes.

When you are ready to deliver, make sure that you do it in person whenever possible, and keep these guidelines in mind:

Offer as much information as you can. Some people believe that “less is better,” but this approach can backfire. Employees may feel as if they are not able to be trusted with all the information or that they do not deserve to have it. Lack of information also can cause the remaining employees to fear the unknown, thereby affecting the quality of their work and the quality of their lives.

Allow for questions. Not giving people a chance to ask questions sends a terrible message. You should have already anticipated what they might ask, and you should be prepared and willing to answer any question as openly as possible.

Deliver as soon as you can. Do not get too hung up on choosing the right timing for delivering bad news because waiting and delaying can be inconsiderate and disrespectful and could cause the recipient to feel that you are being less than forthcoming. The best time for bad news is usually now.

During a major reorganization, Anne, a plant manager for a large telecommunications company, had to face her five direct reports with information regarding their termination or reassignment packages. Anne had already received her package; she was headed to South America to a larger plant and was looking forward to the experience. However, while she also knew what was in store for her team, she had not told them. It was December 14, and Anne did not want to tell two of them that they were being terminated. She also did not want to tell the other three that they would have to move their families if they wanted to stay with the company.

Several members of her team had already been to her and said, “Anne, we know you know, so why don’t you just tell us?” She had been evasive, and said, “Look guys, it’s almost Christmas. Just go home, enjoy the holidays, and we’ll deal with the packages when we get back.”

After 11 months of working hard to build credibility with her team, Anne was getting ready to make a major mistake. I coached Anne and told her that she needed to deliver the bad news immediately. The next day, she told me, “I did what you told me to do. I called everybody in this afternoon, sat down with each of them, and told them about their terminations or relocations. It was tough. I was trying to sugarcoat it a little bit by waiting and letting everybody enjoy their holidays first. But that was my agenda, not the right agenda.” Anne also believed that her team appreciated her being candid as soon as she could, and several thanked her for doing what they recognized was difficult but allowed them to spend their holidays without the burden of uncertainty.

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