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Chapter11PPTkcedits-1.pptxChapter 11 Bad News Messages
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Chapter Overview
Delivering bad news impacts your credibility
Channels for delivering bad news
Guidelines for bad-news messages
In-person and written bad-news messages
Delivering negative performance reviews
Reviewing bad-news messages
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This chapter covers the following topics: how delivering bad news impacts your credibility; channels for delivering bad news; guidelines for bad news messages; in-person and written bad news messages; delivering negative performance reviews; and reviewing bad-news messages.
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Delivering Bad-News Messages
Stage 1: Planning
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Maintaining Credibility When Delivering Bad News (1 of 2)
Honesty and openness are key.
Although people do not like to get bad news, they expect the truth.
Research shows that honesty and openness can lead to more trust in the bad-news bearer.
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Communication specialist Dave Zielinski described how failing to effectively deliver bad news during tough times can damage credibility over the long term:
Employees, who have long memories, tend to remember how they were treated, not what marching orders they received, in times of corporate turmoil. When it comes to how they perceive the organization in the aftermath of such troubles, those who communicated openly, honestly and frequently will lay the foundation for future loyalty and overall organizational health.
Zielinski’s point is clear: honesty and openness are keys. Although people do not like to get bad news, they expect the truth.
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Maintaining Credibility When Delivering Bad News (2 of 2)
Many people assume that communicating bad news to customers shakes relationships and breeds mistrust.
Delivering bad news the right way can actually strengthen customer relationships and lay the foundation for increased trust when conditions improve.
Although one should never view the delivery of bad news opportunistically, those who deliver bad news appropriately enhance their credibility.
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The consulting firm Siegel+Gale conducted research about delivering bad news during the Great Recession. Through research involving hundreds of customers of financial service companies, the consultants concluded the following:
During this time of economic crisis, many organizations struggle to communicate unfavorable news—from lower earnings and shrinking market share, to cuts in service and increases in prices. While many assume that communicating bad news to customers shakes relationships and breeds mistrust, Siegel+Gale’s latest . . . survey reveals that delivering bad news the right way can actually strengthen customer relationships and lay the foundation for increased trust when conditions improve.
Although one should never view the delivery of bad news opportunistically, those who deliver bad news appropriately enhance their credibility.
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Guidelines for Bad-News Messages
Deliver the bad news in a timely manner.
Choose the right mix of channels.
Sympathize with the bad-news recipients and soften the blow.
Provide a simple, clear rationale.
Explain immediate impacts.
Focus on solutions and long-term benefits.
Show goodwill.
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Planning is critical to delivering bad news in a way that best serves all parties involved and leaves the door open for productive cooperation in the future. The guidelines for bad news messages are:
Deliver the bad news in a timely manner.
Choose the right mix of channels.
Sympathize with the bad-news recipients and soften the blow.
Provide a simple, clear rationale.
Explain immediate impacts.
Focus on solutions and long-term benefits.
Show goodwill.
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Goals for delivering bad news
Be clear and concise to minimize the chances of confusion or back-and-forth communication.
Help the receiver understand and accept the news.
Maintain trust and respect for the business or organization and for the receiver.
Avoid legal liability or erroneous admission of guilt or culpability.
Maintain the relationship, even if a formal association is being terminated.
Reduce the anxiety associated with the negative news to increase comprehension.
Achieve the designated business outcome.
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Understand How the Bad News Will Affect Your Audience
Delivering bad news often creates stress, anxiety, and other strong emotions.
More than with other types of messages, you may need to work hard to focus your message on serving others.
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Delivering bad news often creates stress, anxiety, and other strong emotions. You may feel eager to relieve yourself of these feelings. More than with other types of messages, you may need to work hard to focus your message on serving others. You can make the situation better for the recipients by understanding the nature of the bad news and its impacts on them, delivering the news in a timely manner, and choosing the right mix of communication channels.
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Planning the message:
Consider 3 Important factors when planning the best channel to deliver the message:
Severity
How serious or detrimental the bad news is
Controllability
The degree to which the bad-news message receiver can alter the outcome
Likelihood
Relates to the probability of the bad event occurring
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As you consider which communication channels to use, analyze the nature of the bad news. In research from medical and social psychology literature, researchers have identified three aspects of the bad news that impact how you approach delivering it: severity, controllability, and likelihood. Severity is how serious or detrimental the bad news is. Controllability is the degree to which the bad-news message receiver can alter the outcome.
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Table 11.1 Advantages and Disadvantages of Bad News in Verbal and Written Forms (1 of 2)
| Verbal Delivery | |
| Advantages | Disadvantages |
| Can use and observe nonverbal cues | May hinder effective delivery, interpretation, and discussion of bad news due to strong emotions |
| Can more easily demonstrate intentions | Requires more time |
| Can more effectively clarify and explain the bad news | Less able to document the bad news |
| Can respond to concerns immediately | Less able to provide directions that bad-news recipients can reference later |
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Generally, bad news is best delivered in person. This allows rich communication, where you can use verbal and nonverbal cues to show your concern and sensitivity. You get immediate feedback from those receiving bad news and can respond to their discomforts right away. In many unpleasant situations, you can immediately come up with options and solutions. See Table 11.1 for a summary of advantages and disadvantages of delivering bad news in person.
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Table 11.1 Advantages and Disadvantages of Bad News in Verbal and Written Forms (2 of 2)
| Written Delivery | |
| Advantages | Disadvantages |
| Can craft message more carefully | Unable to demonstrate concern through nonverbal cues |
| Can document the message more easily | Unable to immediately respond to concerns |
| Can provide a message that serves as a reference (provide directions, suggestions, and options for future actions) | Unable to work out mutual solutions |
| Can deliver message to more people more efficiently | Less able to control long-term impacts on working relationships |
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Delivering bad news in writing also has advantages. By placing the bad news in writing, you can control the message more carefully and ensure that you state the bad news precisely and accurately. However, you do not have the ability to respond immediately if the message recipients misinterpret the bad news. Moreover, many people view bad news in written form as callous and impersonal. See Table 11.1 for a summary of advantages and disadvantages of delivering bad news in writing.
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Table 11.2 Types of Bad News and Richness of Communication Channels
Jump to Appendix 1 long image description
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As controllability decreases and likelihood and/or severity increase, richer channels of communication are most appropriate. When bad news becomes more controllable, less likely, and/or less severe, less-rich channels are more often justified. In Table 11.2, you can see appropriate responses in terms of richness for various combinations of severity and controllability.
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Planning: Indirect vs. Direct Approach
Jump to Appendix 2 long image description
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One choice you’ll make when delivering bad news is whether to make your message less or more direct. For most bad-news messages, you’ll ease into the bad news and allow the affected person to prepare for the potential shock. In less direct messages, you’ll describe the rationale for the bad news first, whereas in more direct messages, you’ll give the bad news and then provide the rationale. The boxes show the different components of indirect and direct bad-news messages.
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Indirect approach: Buffers
In person, most people make a judgment about your genuine concern for them based on many factors, including your past treatment of them and your nonverbal behavior.
You may use a one- or two-sentence buffer to start the bad-news message, which softens the blow.
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When bad-news message recipients know you are concerned about them, they generally respond without antagonism and even appreciate your honesty. In person, most people make a judgment about your genuine concern for them based on many factors, including your past treatment of them and your nonverbal behavior. For written messages, several techniques help the bad-news recipient prepare emotionally. First, using a neutral subject line often helps the reader recognize that the news will likely not be positive. Also, in some communications, you may use a one- or two-sentence buffer to start the bad-news message, which softens the blow.
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Indirect approach: Buffers
Buffer
A statement to establish common ground, show appreciation, state your sympathy, or otherwise express goodwill
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A buffer is a statement to establish common ground, show appreciation, state your sympathy, or otherwise express goodwill. When you show sympathy to your readers, you let them know you share their sorrow or trouble in some part.
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Table 11.3 Buffers for Bad-News Messages
| Type of Buffer | Example |
| Neutral statement | SUBJECT: Decision on Bid for Annual Contract with Marble Home Makeovers. |
| Appreciation | Thank you for submitting your competitive bid to supply and deliver plastic resins for the upcoming year. |
| Sympathy | We’re sorry to hear about the crack in your countertop. |
| Common ground | Reducing work hours creates unwanted financial challenges for our employees. |
| Compliment | Thank you for your excellent work, especially during this temporary period of cash flow changes. |
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Table 11.3 provides several examples of buffers, each of which is intended to draw connections between the message sender and message recipient and reduce the sudden emotional impact for the recipient.
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Indirect approach: Teasers
Teaser message
Signal to recipients that an upcoming conversation or other communication may involve unpleasant news
Prepares recipients emotionally, yet does not reveal specific information
Often written
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When delivering bad news, you may choose to use a form of buffer referred to as a teaser message. These messages, often written, signal to recipients that an upcoming conversation or other communication may involve unpleasant news. The teaser message prepares recipients emotionally yet does not reveal specific information.
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Planning: Getting the Tone, Style, and Design Right
Aim for a tone of genuine concern in a professional manner.
Inject some positive direction to the message, but don’t provide false hope.
Use a writing style that is simple, accurate, and jargon-free.
Maintain a simple design.
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When you write your bad-news messages, carefully consider tone, style, and design. Aim for a tone of genuine concern in a professional manner. Also, inject some positive direction to the message, but don’t provide false hope or seem out of touch with the impacts on message recipients. Use a writing style that is simple, accurate, and jargon-free. Doing so helps people process information quickly and accurately. Finally, maintain a simple design. If your message looks too slick, bad-news recipients may believe the message is designed more to impress than to meet their needs.
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Delivering Bad- News Messages
Stage 2: Delivery
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Delivering Bad-News Announcements (1 of 2)
Mum effect
Occurs when the chain of messages within an organization is filtered at each level to leave out or inaccurately state the bad news
The message that top executives often hear ends up being unrealistically rosy.
Your ability to deliver bad-news messages constructively will foster a transparent and open work culture.
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When many employees in an organization avoid sharing bad news, the result is the mum effect. The mum effect occurs when the chain of messages within an organization is filtered at each level to leave out or inaccurately state the bad news. The message that top executives often hear ends up being unrealistically rosy.
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Figure 11.1 Less Effective Delivery of Bad News to a Client
Jump to Appendix 3 long image description
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In the first situation from the chapter case, Cindy Cooper needs to inform Juan Hernandez that the bank will reduce the credit line to his business by between 50 and 75 percent within a few months. In Cindy’s less-effective approach (see Figure 11.1), she writes an email message, which is not as rich and personal as required based on the severity of this situation. It would be more effective for Cindy to call Juan, meet with him, and follow the principles for delivering bad news effectively.
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Figure 11.3 Less Effective Bad-News Message to Employees
Jump to Appendix 4 long image description
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Juan is delivering the news to the production workers that the company needs to reduce their hours for three months. He broke the news first in a rich environment—a meeting. Next, he is writing a follow-up to provide complete details and serve as a reference to employees. In the less-effective example (see Figure 11.3), Juan leaves out a buffer and focuses primarily on the needs of the company. This approach will anger many employees and reduce company loyalty.
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Figure 11.4 More Effective Delivery of Bad-News to Employees
Jump to Appendix 5 long image description
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In the more-effective example of a bad-news message to employees (see Figure 11.4), Juan focuses on the employees—their needs and concerns.
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Turning Down Requests and Ideas (1 of 2)
Your colleagues will often approach you with requests and ideas. Turning down colleagues is challenging because you want to preserve productive and comfortable working relationships.
When turning down requests or ideas with close colleagues, one of the most common mistakes is to offer token appreciation.
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Your colleagues will often approach you with requests and ideas. Turning down colleagues is challenging because you want to preserve productive and comfortable working relationships. Most often, you should use richer communication channels if possible—that is, in person or by phone. Writing makes sense, however, when the bad news is not severe, when your audience prefers corresponding in written form, or when you’re responding to a written request. When you break bad news in writing, you should generally follow up with a phone call or visit. When turning down requests or ideas with close colleagues, one of the most common mistakes is to offer token appreciation.
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Turning Down Requests and Ideas (2 of 2)
Token appreciation
An expression of thanks or gratitude for a request or idea while immediately dismissing the request or idea as implausible or even inappropriate
For example:
“I appreciate you sharing your idea, Jim, but I really think that’s a terrible proposal.”
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Token appreciation is an expression of thanks or gratitude for a request or idea while immediately dismissing the request or idea as implausible or even inappropriate.
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Delivering Bad News to Customers
Bad-news messages to customers contain the same essential components as other bad-news messages.
However, when writing this kind of bad-news message, you want to emphasize the options available—solutions the customer has control over.
In most bad-news situations, customers are only interested in solutions.
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Bad-news messages to customers contain the same essential components as other bad-news messages. However, when writing this kind of bad-news message, you want to emphasize the options available—solutions the customer has control over. In most bad-news situations, customers are interested only in solutions. They do not want long descriptions of why you can’t meet their demands. Also, they do not want to be blamed for anything. Even when customers are at fault, use neutral language (avoid you-voice and use passive verbs) to point out mistakes.
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Figure 11.8 More Effective Bad-News Message to a Customer
Jump to Appendix 6 long image description
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Juan is in a situation with a customer who has made an unreasonable claim, so he is not going to replace the product or provide a refund. You will often encounter similar situations. In the less effective example, Juan unnecessarily blames the customer. Because he uses you-voice, the tone is accusatory and even confrontational. In the more effective message (see Figure 11.8), Juan provides both a buffer and an expression of sympathy in the first sentence. Although Juan denies the claim, he provides thorough, detailed options for helping this customer. Most customers would be delighted with this level of responsiveness. This message expresses goodwill. In every part of the letter, the attention to detail and expressed hope to get the countertop fixed show goodwill.
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Delivering Negative Feedback
From Office Space (1999)
https://www.youtube.com/watch?v=jsLUidiYm0w
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Delivering Negative Feedback
Adopt a team-centered orientation.
Avoid sugarcoating the bad news.
Explain the impacts of the individual’s poor performance on organizational performance.
Link to consequences.
Probe for reasons performance is not higher.
Emphasize problem solving rather than blaming.
Be firm.
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When evaluating poor performers, you should be clear about the need for improvement. You can generally apply the principles we have discussed earlier in the chapter regarding delivering bad news. In addition, keep the following in mind:
Adopt a team-centered orientation. Even when you are evaluating a poor performer, maintain a mentality that you are working together as a team. Maintain a constructive, forward-looking tone.
Avoid sugarcoating the bad news. Make sure that poor performers understand that they must improve.
Explain the impacts of the individual’s poor performance on organizational performance. One major goal of performance appraisals is to help poor performers understand how they are hurting organizational performance.
Link to consequences. Another major goal of performance appraisals is to help employees understand how poor performance impacts their employment opportunities at the organization as well as their ability to meet their career goals.
Probe for reasons performance is not higher. Ask employees to discuss their perspectives on their poor performance. Often, you will identify root causes of poor performance that will help the employee improve rapidly. You may even uncover issues that impact the organization more broadly.
Emphasize problem solving rather than blaming. As much as possible, adopt a positive, forward-looking tone. You are seeking solutions that help the poor performer improve. This is good for the poor performer’s career, work relationships, and morale.
Be firm. Many managers want to shrink from delivering negative feedback, especially when poor performers are defensive. Remain firm that the employee must improve.
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Delivering Negative Feedback
Avoid Sandwich Approach 1. Compliment
2. Bad News
3. Niceties
Ineffective:
Jake, as usual, I’d like to thank you for how supportive you are of the employees. You really boost morale around here more than anyone else…. One thing I want to raise for the review is that on several of your shipments, our customers have complained. I think we should talk about how to avoid shipments that contain any items with defects....Well, again, thank you for your efforts for the company and all your great work. See you later on for lunch.
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Delivering Negative Feedback
Focus on Clear and Targeted feedback
Effective:
Jake, for today’s performance review, I want to focus on one issue: making sure all your shipments contain the correct items and that they are all defect-free…[spends most of time discussing how to improve in this area].
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Delivering Negative Feedback
Don’t focus on emotions or intentions.
Don’t make it personal.
Ineffective:
Jake, we’ve gotten a number of complaints from wholesalers that your shipments are not correct. I think this shows that you’ve been careless, and you’re not really looking out for our customers. None of the other shift supervisors have had these problems—only you.
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Delivering Negative Feedback
Focus on actions and results. Less Likely to produce defensiveness.
More effective:
Jake, we have received four complaints about your shipments in the past month. In the most serious complaint, your shipment to Carnegie Homebuilders contained 14 sinks of the wrong size. The invoice you placed in the shipment did show the correct order, however. In addition, four of the sinks you shipped were cracked or chipped.
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Delivering Negative Feedback
Don’t deliver vague and unclear standards and expectations.
Ineffective:
Jake, we need to really focus on getting everything right from now on. I know you and your crew will do great and turn things around for our next performance review.
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Delivering Negative Feedback
Establish measurable expectations:
More effective:
Jake, in our next quarterly performance review, we’ll discuss how well you’ve done with your shipments. The standard will be to receive no complaints from customers for incorrect orders or for deficient products. Also, we’ll discuss your progress on the goals you’ve outlined for managing your production crew. Thanks, Jake, for your ideas today, and I look forward to discussing your progress during the next few weeks and months.
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Receiving Negative Feedback
You will have many opportunities to get feedback about your performance and potential.
Seeking and receiving feedback, even when it’s negative, will help you develop the skills you need to make an impact in the workplace and move into new positions.
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In nearly all business positions, from entry-level to executive, you will have many opportunities to get feedback about your performance and potential. Seeking and receiving feedback, even when it’s negative, will help you develop the skills you need to make an impact in the workplace and move into new positions. To accept negative feedback and respond to it well requires high emotional intelligence, since you may feel many emotions, including fear, anxiety, and perhaps even anger.
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11.7 Reframing Your Thoughts to Initiate Feedback Conversations
| Possible Negative Emotion | Counterproductive Response | Reframing Statement |
| Anger (I’m mad at my boss because she doesn’t pay attention to my work.) | Acting out (complaining, showing irritability) | It’s my responsibility to get feedback and guidance from my boss. |
| Anxiety (I don’t know what to expect.) | Avoiding (I’m too busy to get feedback.) | Getting feedback can provide me with opportunities. |
| Defensiveness (My boss doesn’t know what he’s talking about.) | Not supporting the boss (I’m not going to make him look good.) | Being defensive prevents me from knowing what he thinks. |
| Fear of Reprisal (I don’t want to do this.) | Denial (I’m doing fine so I don’t need feedback.) | Getting an honest assessment of my work will help me. |
| Fear of Personal Rejection (I’m worried she doesn’t like me.) | Withdrawal (being quieter than usual, feeling demotivated) | My performance on the job isn’t related to whether she likes me. |
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To avoid counterproductive responses to negative emotions, learn to recognize and name these emotions. Then develop a reframing statement to respond more effectively. See Table 11.7 for ideas about reframing statements.
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Reviewing Bad-News Messages (1 of 2)
When writing bad-news messages, always reread them several times.
Place yourself in the position of the recipients so you can try to imagine how they may feel and react.
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When writing bad-news messages, always reread them several times. Place yourself in the position of the recipients so you can try to imagine how they may feel and react. An extra 10 to 30 minutes of proofreading can lead to constructive work together in the future and avoid time lost resolving an unnecessarily escalated difference. Also, if the message does not need to be delivered immediately, consider writing it, waiting a few hours or days, and then rereading it.
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Delivering Bad News Messages
Stage 3: Review
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Reviewing Bad-News Messages (2 of 2)
Consider asking trusted colleagues to review your message and give feedback.
They may be able to give you a neutral and objective view of the situation.
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In some situations, consider asking trusted colleagues to review your message and give feedback. They may be able to give you a neutral and objective view of the situation. Generally, it is appropriate to talk to colleagues about bad-news messages that you plan to deliver to groups of customers or employees. However, it is not appropriate to ask others to read messages that include confidential matters.
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Figure 11.11 Are Your Bad-News Messages FAIR?
Jump to Appendix 7 long image description
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For all bad news, spend time reflecting on each component of the FAIR test before delivering the message. Since bad-news messages impact others in undesirable ways, take the time to make sure you have been as fair as possible. Read through some of the questions you might ask yourself in Figure 11.11.
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Reviewing Bad News Messages
After the delivery, evaluate the success and effectiveness of the message and your delivery. What did you learn? Is there anything that would you do differently next time?
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Delivering Bad News Messages
One more thing…..
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Chapter Takeaways
Delivering bad news impacts your credibility
Channels for delivering bad news
Guidelines for bad news messages
Indirect and direct bad news messages
Delivering negative performance reviews
Reviewing bad-news messages
©McGraw-Hill Education.
After studying this chapter, you should understand the following topics: how delivering bad news impacts your credibility; channels for delivering bad news; guidelines for bad news messages; indirect and direct bad news messages; delivering negative performance reviews; and reviewing bad-news messages.
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Image Description Appendix
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Table 11.2 Types of Bad News and Richness of Communication Channels Appendix
A table lists six types of bad news, an example of each, and whether a communication channel is rarely acceptable, depends on the communication channel in use/preferred by bad-news recipient, or is preferred.
The five communication channels presented are written only (example: email); verbal not in person (example: phone); verbal and nonverbal not in person (example: video call); verbal and nonverbal in person (example: meeting); and in person and written (example: meeting and follow-up memo).
Low Severity, High Controllability. Example: Colleague’s idea is rejected. Written only: depends on channel in use or recipient’s preference. Verbal not in person: depends on channel in use or recipient’s preference. Verbal and nonverbal not in person: depends on channel in use or recipient’s preference. Verbal and nonverbal in person: depends on channel in use or recipient’s preference. In person and written: depends on channel in use or recipient’s preference.
Low Severity, Low Controllability. Example: Customer claim is rejected (figure 11.8). Written only: depends on channel in use or recipient’s preference. Verbal not in person: depends on channel in use or recipient’s preference. Verbal and nonverbal not in person: depends on channel in use or recipient’s preference. Verbal and nonverbal in person: depends on channel in use or recipient’s preference. In person and written: depends on channel in use or recipient’s preference.
Medium Severity, High Controllability. Example: Vendor chooses another supplier (figure 11.6). Written only: depends on channel in use or recipient’s preference. Verbal not in person: preferred. Verbal and nonverbal not in person: preferred. Verbal and nonverbal in person: preferred. In person and written: preferred.
Medium Severity, Low Controllability. Example: Employees given fewer work hours (figure 11.4). Written only: rarely acceptable. Verbal not in person: rarely acceptable. Verbal and nonverbal not in person: preferred. Verbal and nonverbal in person: preferred. In person and written: preferred.
High Severity, High Controllability. Example: Employee receives poor performance rating (figure 11.10). Written only: rarely acceptable. Verbal not in person: rarely acceptable. Verbal and nonverbal not in person: rarely acceptable. Verbal and nonverbal in person: preferred. In person and written: preferred.
High Severity, Low Controllability. Example: Employee laid off. Written only: rarely acceptable. Verbal not in person: rarely acceptable. Verbal and nonverbal not in person: rarely acceptable. Verbal and nonverbal in person: rarely acceptable. In person and written: preferred.
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Components of Indirect and Direct Bad-News Messages Appendix
Components of Indirect Bad-News Messages:
Ease in with a buffer.
Provide a rationale.
Deliver the bad news.
Explain impacts.
Focus on the future (as appropriate).
Show goodwill.
Components of Direct Bad-News Messages:
Ease in with a buffer.
Deliver the bad news.
Provide a rationale.
Explain impacts.
Focus on the future (as appropriate).
Show goodwill.
©McGraw-Hill Education.
Figure 11.1 Less-Effective Delivery of Bad News to a Client Appendix
An email to Juan Hernandez is shown. Given the long term relationship between Cindy (the sender) and Juan (the client), this written message is ineffective because it is impersonal. Furthermore, the message contains unnecessarily complex language.
The email reads: Dear Mr. Hernandez: Effective 60 days from now, the outstanding credit line for Marble Home Makeovers will be reduced to $30,000. Your current outstanding balance of $94,345 far exceeds this new limit. We will move to collect if you are unable to meet these new requirements. As you know, recent economic situations have resulted in changes in regulation standards as well as banks taking a closer look at the risk they bear. Accordingly, it has been deemed important to adjust our outstanding loans so that we bear an acceptable level of risk. In exhaustively examining our small-business loans and credit lines, it was determined that our credit lines should be lowered to achieve a more acceptable risk level. Due to the fact that we have deemed your credit line excessively risky, this adjustment is necessary. Please call if you have any questions about the new credit line limits. I will be happy to help in any way. Cindy Cooper.
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Figure 11.3 Less Effective Delivery of Bad News to Employees Appendix
An email is presented with a subject line, which reads: Reduction in Work Hours for Factory Workers. This is a less effective element because there is no buffer.
The first paragraph of the email is less effective because it shows concern for the employer, not the employees. The first paragraph reads: We have been forced to disallow overtime shifts and reduce the number of shifts available for the foreseeable future. While these changes mean less take-home pay for each of you over the next three months, they do mean that our company can get back onto strong financial ground as quickly as possible.
The email’s second paragraph is less effective because the rationale dwells only on negative news. This paragraph reads: As we’ve expanded rapidly over the past year, we’ve spent far more cash than we’ve received in revenues. The bank has extended us a $100,000 credit line. Twice over the past few months, it has allowed us to exceed our limit. As of last week, we had used $96,000 of our credit. Our banker has informed us that our credit line will drop to $50,000 within 90 days. We’ve decided that the only way we can improve our cash position to meet this new credit line limit is to cut our production and rely on some of our excess inventory for orders.
The third paragraph is a less effective element because the immediate impacts insufficiently address employees’ concerns: We have applied the following changes to all production workers: we will not allow any overtime shifts and we will provide two fewer 4-hour shifts per employee per week. With the savings that the company gets from lower material and payroll expenses, we will emerge in a much stronger cash position.
The concluding paragraph of the email is less effective because it ends without expression of goodwill. It reads: Our poor cash position is a direct consequence of our fast growth. Contractors throughout the country want our products, and none of our competitors can duplicate our products in the near future. Our company will become increasingly profitable as we continue to gain market share. Juan Hernandez. Business Manager. Marble Home Makeovers.
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Figure 11.4 More Effective Delivery of Bad News to Employees Appendix
An email is presented with the subject line “Temporary Change in Work Shifts over Next Three Months.” This is a more effective element because the neutral subject line serves as a buffer.
The email’s introductory paragraph is effective because it shows concern. It reads: Hello Marble Home Makeovers Team: I want to further explain our temporary policy of eliminating overtime shifts and reducing the number of shifts available. While these changes mean less take-home pay for each of you over the next three months, I want to assure you that we are doing all we can to quickly get back to normal work hours.
The email is then broken into four major sections. The first section is effective because it provides rationale. It reads: Why We Must Change Work Shifts. Your great work has contributed to our rapid expansion over the past year. Expansion has brought growing pains, and we’ve spent far more cash than we’ve received in revenues. Our bank has extended us a $100,000 credit line. Twice over the past few months, it has allowed us to exceed our limit. As of last week, we had used $96,000 of our credit line. Our banker has informed us that in 90 days, our credit line will be lowered to $50,000. To meet this new credit line limit, we need to make some temporary changes. Working with our banker and our four shift supervisors, we’ve decided that the only way we can improve our cash position is to cut our production and rely on our excess inventory for orders. Production expenses, including payroll, account for nearly 75 percent of our expenses. So, temporarily lowering production is our only option for improving the cash position quickly.
The second email section is an effective element as it explains immediate impacts and shows concern: What These Temporary Changes Mean for You. The changes in work shifts will be applied to all production workers. The following two changes apply for the next three months: No overtime shifts. Two fewer 4-hour shifts per employee per week. We estimate that these changes will cost each of you between $175 and $325 per month. We know many of you depend on your full wages, and this temporary change creates an unwanted burden. We are putting these changes into place as a last resort. We will do all we can to get your take-home pay back to normal as quickly as possible.
The third and fourth sections conclude the email. The fourth section is especially effective as it not only discusses the future, but it concludes with a statement of goodwill. These two sections read: How We’ll Keep You Updated. I will update you weekly about progress we are making to improve our cash position. Please feel free to drop by my office anytime if you have specific questions. I expect that we will emerge with a strong cash position within three months. What the Future Holds at Marble Home Makeovers. Our poor cash position is a direct consequence of our fast growth. Contractors throughout the country want our products, and none of our competitors can duplicate our products in the near future. As we continue to grow, we will need experienced employees to move into management and other exciting positions, creating many opportunities for each of you in the next few years. Thank you for helping us grow so quickly in the past year and helping us get over this temporary financial hurdle. Juan.
©McGraw-Hill Education.
Figure 11.8 More Effective Bad-News Message to a Customer Appendix
An email is presented with the subject line, “Restoring your countertop.” The neutral subject line is effective as a buffer.
The email opens with: “We're sorry to hear about the crack in your countertop. Fortunately, the countertop can be repaired, and it will appear as new as the day it was installed.” The show of concern cushions the claim denial.
The email continues: “Since the countertop in your home was not purchased with a warranty, we are unable to provide a refund or fix the countertop without charge.” The rationale is accurate and brief.
The email continues: “You have two options for inexpensively returning your countertop to its original, beautiful appearance. The first option is for you to repair the crack yourself. The second option is for us to send one of our repair technicians to your home on a service visit ($75). Option #1: Repairing the Crack Yourself: To repair the crack yourself, purchase a cultured marble repair kit (typically $30 to $40). You will likely need to purchase the kit online since none of the local stores carry them. If you are willing to drive 20 miles, Jack's Hardware Shop carries the kits at a price of $44.95. When you purchase the cultured marble repair kit, make sure to carefully match the colors to your countertop. You may need to purchase some tints to modify the color slightly. If you choose to repair the crack yourself, I suggest that you watch a video tutorial of this process. You can find video tutorials on the websites of companies that sell these repair kits. You can also find dozens of video tutorials on YouTube. Option #2: Scheduling a Service Visit ($75). We would be more than happy to send someone out for a service visit. Our service technicians can repair the crack in less than an hour. As long as the crack is routine (which it is, based on your description), our repair technician would charge no additional amount for materials. This option is a good choice if you're worried about repairing the crack yourself. Our repair technicians can repair cracks and other routine problems quickly. Your countertop would look just like the day we installed it. I recommend the service visit option for one additional reason. The most difficult part of repairing cracks is getting an exact color match, and our service experts can do this reliably. Please let us know if you would like a service visit. I could have someone there within one day of your request. Best wishes, Juan Hernandez. “ The level of detail and expression of goodwill show concern.
©McGraw-Hill Education.
Figure 11.11 Are Your Bad-News Messages FAIR? Appendix
Facts (How factual is your communication?)
Have I gathered all the relevant facts? Have I examined various accounts of the same events?
Is my perspective of the facts influenced by defensiveness, favoritism, or some other bias?
Is the rationale for this bad news based on sound facts and conclusions?
Access (How accessible or transparent are your motives, reasoning, and information?)
Are my motives clear, or will others perceive that I have a hidden agenda?
Is it clear how the decision was made?
Am I giving enough information to bad-news recipients for them to respond well?
Am I hiding any information that casts me in a better light or concealing the real reasons for the bad news?
Impacts (How does your communication impact stakeholders?)
Have I considered all the ways in which this message will impact others in the near term and long term?
What have I done to lessen the negative impacts on recipients?
Am I doing what I can to provide opportunities—as appropriate—to the bad-news recipients?
Respect (How respectful is your communication?)
Would recipients consider my communication respectful?
Have I stated the message in a way that recognizes the inherent worth of others?
©McGraw-Hill Education.
Business Communication Chapter 11
The End
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