Ask Echidna: Delivering Bad News

From the Ask Echidna mailbag we received this question from Ben A., "Is there a good way to deliver bad news in business?"

It's an important question because 99 per cent of the time, we're focused on highlighting the positives – new products, exciting new ventures, new hires – both internally and externally. But business doesn't always move in a positive direction. Sometimes there are negatives: cutbacks, job losses, failed projects. Sometimes it's even worse: embezzlement, criminal charges, fraud, product recalls caused by illness or death.

The natural instinct is often to put your head in the sand and hope the storm passes. But that rarely, if ever, works. And when it doesn't, it only exacerbates the problem in the first place.

I'll go into a few key points, but when it comes to communicating bad news, I live by this credo: "Tell them what you can. And tell them what you can't. But tell them why."

Honesty Works

Tell them what you can is pretty intuitive. But tell them what you can't. And why? What does that mean?

You have to start with the fact that the majority of people are fairly rational. They will react emotionally to certain issues, but they will react viscerally if they feel they're being lied to.

Whether you're talking about reaching your customers in regards to a recalled or tainted product, or talking to employees about internal restructuring that's resulted in job losses, be as honest as you can.

Don't use Biz Speak; don't be vague. Be honest. People will respect the fact that you're treating them as adults.

People also respect the fact that there are certain things that we can't discuss in public. That's where the "Tell them what you can't. And why." comes in to play. There may be valid legal or regulatory reasons that prevent you from sharing the whole story. And that's fine. Let the people impacted know about that and promise to provide them as much information as possible, as quickly as possible.

Don't Add Grist to the Rumour Mill

Nature abhors a vacuum. So if you're not filling the space with information and updates, someone will do it for you. That's how rumours and negativity spread.
Like most situations, the reality of one's motivation is rarely as bad as what we can imagine in our worst-case-scenario-creating minds. So by being honest and providing as much information as you are able to, you can help to eliminate the insidious effect of rumour mongering and fear of the unknown.

Think about it: what would you rather hear?

• Don't eat our Product X as it has been proven to cause adverse effects in humans; or
• Don't eat our Product X as it has been shown to cause gastrointestinal distress in people who are predisposed to shellfish allergies.

Option one? The hypochondriacs out there instantly think they're dying. Option two? It frames the extent in a way that's not going to create any psychosomatic distress.

Own Up to It. Quickly. From the Top.

Do you have a crisis communications plan? Should you? It all depends on the size of your company, but in general it's a good idea to at least discuss how you are going to handle media attention.

But the first statement on that plan should be "Don't hide."

From the aforementioned job losses and product recalls to physical issues (death of an owner/president; your building blows up), it's important to get in front of the issue, make a statement from the top, and set realistic expectations.

Make a statement not just for media, but for your employees. Understand that there's a trickle-down effect on any issue and it's important to establish a sense of security. You don't have to have all the answers, but you at least have to be aware of the questions. And there's nothing wrong with scheduling updates: "We're working on this and we appreciate your interest/concern. We will reconvene here at 3 p.m. and I'll provide you with an update."

And who should say this? Your first face should be the company's owner/president or ranking official. In subsequent updates or releases, you can appoint a PR point person, but key statements should come from the top.

Be Consistent

It's always better to keep communications funneled to one person, or a select group. Remember the telephone game back in the day? You'd start with one message and by the end it was something completely different? Well, in crisis communications you don't want that.

It is Personal

The worst thing you can say during business events that impact someone's livelihood is, "Remember, it's not personal. It's not about you."

Au contraire. It is personal. You are dealing with the way people put food on the table, the efforts in which they take pride, and the job that they've likely spent more time at over the past few years than they have with their families.

The reasons behind a decision may be all business, but its impact is 100 per cent personal.

Be Sensitive

And because of that personal nature, you need to be sensitive. If your product has killed someone, don't be flippant or callous. Your lawyer may advise you not to admit culpability, but you can respectfully keep the attention on the people, "First and foremost, we must recognize that a family has lost..."

When it comes to layoffs, generally companies are aware they're coming a few months in advance. So it may behoove you to not have your management bragging about their shiny new jet or other expensive toy in print, when a quarter of his or her staff are going to be jobless in a couple of months. Obviously, there is no direct correlation between the two, but the optics are bad.

Don't minimize what's happened. Just because "it's not as bad as..." to you doesn't mean it's not earth shattering to the person directly involved.

Just look in the media: few things get as visceral of a reaction from the public than a prominent figure making a callous or flippant remark about a tragedy.

Talk, Talk, and Talk Again.

There's the old communications adage that you have to communicate bad news three times as often as good news. And while that may, in fact, be the case, by keeping the aforementioned thoughts in mind, you can ensure that communication is as effective as possible.

Keep the lines of communication open. Don't just issue a release and sit back and wait. Follow-up, schedule regular updates, keep key stakeholders in the loop. And ensure the lines of communications work both ways. Be open and available to answer all questions as often as possible – and do it personally. Don't refer people to an FAQ or a site. You can have that information there, but if someone's taken the time to approach you, respect that time and the situation accordingly.

Conclusion

Ideally, we'd never have to deal with bad news in a corporate environment, but the reality is that we'll be faced with challenges. Hopefully, they'll be small, but regardless, they won't go away on their own.

Be open, honest, sensitive, and react quickly. Tell people what you can and tell them what you can't (and why). And, most importantly, listen.

And now I turn it over to you. How do you handle crisis communications? And if you have a Web design, Drupal, digital marketing, or content question you'd like answered, feel free to Ask Echidna!