
In business, we can’t escape bad news. Whether the topic is layoffs, poor earnings, a deal that fell through or any number of business or workplace challenges, communicating a negative outcome is sometimes as difficult as living with the outcome itself. There is no silver bullet to best communicate bad news, but it is the responsibility of business owners and spokespeople to manage the impact of that bad news on stakeholders and the business.
Communicating internally
When communicating bad news to your team, it is important to remember that for some, the news can be upsetting. Keep the following in mind when communicating bad news within your business.
Do: Be clear
A bad news announcement is stressful under the best of circumstances. A confusing announcement only makes the problem worse. When communicating, take extra steps to avoid generalities and include whatever specifics can be shared to ensure the news cannot be misinterpreted. For example, rather than saying “layoffs are expected,” consider “Due to economic conditions, we are planning to reduce the number of staff in our New York office by 15% by year end. The specific roles impacted by this decision are still being considered, and we expect to know and share more details by the end of the quarter.”
Do: Provide resources
After bad news breaks, team members will have questions. Consider putting together a FAQ or other fact sheet that managers and team members can turn to for more information. Also, consider giving your team members access to leaders who may be able to best answer common questions.
Don’t: Sugarcoat the news
Don’t belittle the intelligence and maturity of your team members by utilizing flowery language. The first instinct to soften the blow of bad news can be useful, and compassion has a part to play in delivering bad news. However, being overly sweet can come off as disingenuous.
Working with partners
Bad news will usually impact more than just your business. It often impacts the businesses and clients with which you work. For example, downsizing can reduce your capabilities, leading to partner concerns about being underserviced. When planning for bad news, consider the following as it relates to your partners.
Do: Be proactive
The people and businesses that work with your company expect they will be kept in the loop about news that impacts them. If a staff reduction is planned, they should hear it from your business first — not from news headlines or via the gossip mill.
Do: Plan
Communicating with partners involves more than just messaging. It involves timing. When preparing partner-related messaging, ensure all materials are developed before an announcement. Depending on the nature of the news, it may be beneficial to communicate with partners before sharing with the public. However, the time between the two announcements should not exceed 24 hours. Any longer risks a leak and losing control of the message.
Don’t: Overshare
While being proactive is important, it does not mean a business should share every detail of a bad news announcement. Businesses need to tailor partner messaging to only include information that pertains to the partner. If a partner has questions, schedule a time to speak with them one-on-one after the news breaks.
Talking to the public
Sharing bad news with the world can create opportunities for error, misinterpretation and even crisis if not handled correctly, especially in today’s world of instant digital communication. That said, when sharing bad news businesses should work through a medium like the news media or their website. When working with these mediums, keep the following in mind.
Do: Be Transparent
Generalities and vague comments create doubt. At worst such vagary provides opportunities for bad actors to take bad news and make it sound far worse than the reality. While being open about bad news can be painful, it is far better to keep control of the facts and remain transparent.
Do: Be Responsive
Public response to a bad news announcement could include anything from a reporter on a deadline or a social media post. Regardless of the source, responsiveness is critical for managing a negative announcement. Just like transparency can help reduce the chance of misinformation about a negative announcement, responsiveness can ensure facts and truth remain at the center of the conversation.
Don’t: Lie
You will be caught. It may not be immediately, but it will happen. Misstating facts and hiding critical information are sure ways to not only lose the trust of the public but create new problems as well. This goes for guessing or speculation, too. When announcing bad news, stick to the facts.
While these tips will help to better manage the impact of bad news on a business, they are all focused on mitigating the potential damage to the business and its reputation. There is no way to fully negate the impact of bad news. However, by following the above tips businesses can better survive delivering bad news, and work to grow in the long term.