Bad-News

Messages
 Maintaining Credibility When
Delivering Bad News
 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
Many 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

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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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 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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 Sympathize with the Bad-News
Recipient and Soften the Blow
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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 Sympathize with the Bad-News
Recipient and Soften the Blow
 Buffer
 a statement to
establish common
ground, show
appreciation, state
your sympathy, or
otherwise express
goodwill.

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Buffers for Bad-News Messages

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 Sympathize with the Bad-News
Recipient and Soften the Blow
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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 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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 Using the Inductive Approach
to Build Goodwill

Reasons easier to understand if given before

bad news
Reasons might be ignored if bad news given
first
Disappointment in bad news might interfere
with ability to understand reasons

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10-11
 Closing Positively
Avoid . . .
✓ Trite statements that may seem shallow
Thank you for your interest.
When we can be of further help, please do not hesitate to
write or call.

✓Statements that encourage further controversy

We trust this explanation is satisfactory.
We hope you will understand our position.

✓Statements that undermine the validity of

the refusal
If you have any questions, please do not hesitate to let us
know.

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10-12
 Learning Objective
Prepare messages refusing requests and
claims.

3
10-13
 Refusal of a Favor: Why It Works
Analysis
You are to be commended for your commitment to
restore Naperville’s historical downtown shopping Introduces subject
district. In this age of megamalls and Internet shopping, without revealing
the culture of a traditional main street lined with home- answer
owned and operated shops needs to be preserved.
Gives reasons
The success of this project depends on a good project that will seem
director. The organizational, leadership, and public logical to reader
relations activities you described demand an individual
with upper-level managerial experience. During the last Subordinates
year, Hilstrom has decentralized its organization, refusal—dependent
reducing the number of upper-level managers to the clause of a complex
minimal level needed. Although our current personnel
shortage prevents us from lending you an executive, we sentence. Alludes
do want to support your worthy project. to help in another
form
Kevin Denny in our senior executive corps has a keen
interest in historical preservation, having served on the Closes on positive
board of a similar organization while living in Vermont. If note by offering a
you can benefit from his services, call him at 555-8700, counterproposal
extension 142.
3
10-14
 Refusal of Employee Request:
What Does Not Work
Analysis
Subject: CD Players Out of the Question Reveals refusal in
We can’t afford to install CD players in our subject line
current fleet of trucks. States refusal before
explanation
I would really like to enable you to play your
music so your trips would be less boring. Uses negative
Unfortunately, the cost of installing a CD language and
player in our current trucks is exorbitant— condescending tone
over $500 per truck. Management would never without providing a
agree to spend that much money at this time. complete explanation
for refusal
I’ll do what I can to convince management to
include a CD player in the specifications of Offers possible
new trucks. alternative, but
reluctant tone doesn’t
seem sincere
3
10-15
 Refusal of Employee Request:
Why It Works
Analysis
Because providing our drivers a pleasant and productive
work environment is a priority, your suggestion to install CD Cushions bad
players in our current fleet of trucks has been carefully news with a
considered. Listening to your favorite music while trucking sincere
down the highway is a sure way to shorten a long haul. compliment for
suggestion
Installing a quality sound system in any vehicle can be a
surprisingly complex and expensive task. The estimated cost
for installing a CD player in one of our current trucks is $500. Transitions to
In contrast, installing a CD player as original equipment reasons and
adds only $75 to the truck’s cost, a much more realistic provides
expenditure for the company. complete
explanation for
Carie, in response to your feedback, I’ve submitted a refusal
proposal seeking approval for a change in the specifications Restates reason
for new trucks to include a CD player. With the normal for saying “No”
frequency that trucks are rotated within the fleet, you should to de-emphasize
be trucking down the highway soon with your favorite CD refusal
playing in the background.

3 10-16
 Learning Objective 4
Prepare messages handling problems with
customers’ orders and denying credit.

4
10-17
 Denying a Claim:
Analysis
What Does Not Work
Begins with an obvious
Your message questioning your statement has idea
been received. I am sorry but we cannot adjust your Includes an
account as you requested. Clearly, the statement is unnecessary apology
for justified decision and
correct. provides refusal before
reasons
Each of the order forms you have completed states
that returns are subject to a 15 percent restocking Uses a patronizing tone
charge. Surely you saw this information printed in that may offend
bold print on the order forms, and our telephone receiver
operators also explain our return policy thoroughly Presents an explanation
when customers place orders. I am sure you can that focuses on writer
appreciate the cost and effort we incur to restock and is too brief to be
merchandise after the winter ski season is over. understood

Uses clichés that may

Thank you for doing business with us. If you have undermine the decision
any further questions, please do not hesitate to call and may lead to
or message us. unnecessary
correspondence
4 10-18
 Denying a Claim: Why It Works
Restocking of Returned Merchandise
The HighFly skis you stocked this past season are skillfully
Analysis
crafted and made from the most innovative materials
available. Maintaining a wide selection of quality skiing Uses subject line that
products is an excellent strategy for developing customer provides info without
loyalty and maximizing your sales. revealing bad news

Our refund policies provide you the opportunity to keep a Uses resale to cushion
fully stocked inventory at the lowest possible cost. You bad news
receive full refunds for merchandise returned within 10 Presents clear
days of receipt. For unsold merchandise returned after the explanation behind
primary selling season, a modest 15 percent restocking fee restocking policy with
is charged to cover our costs of holding this merchandise emphasis on reader
until next season. The enclosed check for $2,069.76 benefits
covers merchandise you returned at the end of February. Implies refusal by
stating the amount of
While relaxing from another great skiing season, take a enclosed check
look at our new HighFly skis and other items available in
the enclosed catalog for the 2007 season. You can save 10 Shifts emphasis by
percent by ordering premium ski products before May 10. presenting a silver-
lining sales promotion

4 10-19
 Claim Denial: What Does Analysis
Not Work
Deductive outline:
Dear Ms. Wax: Begins with the bad
Your request for a $144 reimbursement has been received, news.
and I am sorry to say it cannot be made. Clearly, the charge is
for import duties.
Uses receiver-
In the discussion that preceded the purchase and in the centered ideas to
documents you signed at the time, it was clearly pointed out convey the bad
that you would be responsible for import duties. Duties are not news. Points a
collected at the time of sale because they cannot be
finger at the
accurately predicted.
receiver.
I am sure you can understand my position in this matter.
Thank you for doing business with us; and if you have any
further questions, do not hesitate to call or write. Closes with an
idea that
Sincerely, encourages further
Ruben Lopez controversy
Manager
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10-20
 Claim Denial: Analysis
Why It Works Inductive
outline: Begins
Dear Ms. Wax: with a positive
Your hand-carved, cherry console table was delivered about a idea or the
month sooner than we had predicted when purchase papers were good news.
signed. The invoice you received with the shipment shows
prepayment of cost and transportation. Uses passive
voice to convey
Because the import duty can only be calculated on the shipping negative ideas.
date, the tax is paid when shipment is delivered. Before sales
contracts are written, buyers are told of their responsibility to pay
Implies the bad
import tax; this information also appears on the sales ticket.
news.
Ms. Wax, by ordering directly from the overseas manufacturer
rather than regional markets, you saved about 40 percent on this Closes with a
beautiful, exquisitely hand-carved furniture. positive idea
related to the
Sincerely, bad news.
Ruben Lopez, Manager

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 Credit Denial: Why It Works Analysis
Dear Ms. Murray:
Implies receipt of
The items listed in your order of May 6 have been selling very rapidly in order; uses resale
recent weeks. Supplying customers’ demands for the latest in electronic and implies
technology is sound business practice.
approval of
Another sound practice is careful control of indebtedness, according to business practices
specialists in accounting and finance. Their formula for control is to
maintain at least a 2-to-1 ratio of current assets to current liabilities. De-emphasizes
Experience has taught us that, for the benefit of all concerned, credit
should be available only to purchasers who meet that ratio. Because your refusal; uses
ratio is approximately 1 1/4 to 1, you are encouraged to make cash positive language
purchases and take advantage of a 1 percent discount.
for counterproposal
By continuing to supply your customers with timely merchandise, you Implies continued
should be able to improve the ratio. Then, we would welcome an business.
opportunity to review your credit application. Use the enclosed envelope to
send us your check for $1,487.53 to cover your current order, and your
order will be shipped promptly. Closes with a
sales promotion.
Other timely items (such as the most recent in video games) are shown in
the enclosed folder. Complies with fair
Sincerely, credit practices—
Kyle Dorsey reason for denial.
4 10-22
 Learning Objective 5
Prepare messages providing constructive
criticism and negative organizational news.

5
10-23
 Constructive Criticism:
Analysis
What Does Not Work
Lacks adequate
Dear Preston: buffer; first sentence
launches negative
Mallory Welch, a junior accountant in your firm, has discussion.
been working with us on-site for about three weeks,
Uses judgmental
and her conduct is deplorable. Her demeanor is
terms and overly
absolutely unprofessional; her “no-problem” attitude
has generated so much friction that a valued negative words.
employee refuses to work in the same room with her. Provides no
justification for
Although extensive knowledge of auditing is important,
claim that she is
Welch’s personal shortcomings far outweigh her
technical expertise. I seriously hope Welch is able to causing friction
take steps to correct the situation.
Ends with reminder
Sincerely, of negative factors
Janette Nowicki but lacks sufficient
information for
changes
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 Constructive Criticism:
Analysis
Why It Works
Dear Preston: Written with
positive intent to
Mallory Welch, a junior accountant in your firm, has been working
with us on-site for about three weeks. She is a very proficient help
auditor and did an excellent job of straightening out a technical Includes specific,
tangle in our electronic accounting system last week.
verifiable facts
Her demeanor, while friendly and open, has caused some of our Acknowledges
employees to complain that she does not take her work seriously.
She jokes with other members of the audit team, which disrupts
both good and
the attention of our employees. Two or three of our managers also bad points;
commented on Mallory’s dress—more appropriate for a round of conveys fair-
tennis than a business office. mindedness
Mallory is obviously quite good at her job; I know from Ends with a
conversations with her that she is sincere and has sound pleasant note
judgment. Please convey my concerns to Mallory confidentially so
that the rest of her time in our office will go more smoothly for her
that seeks to add
and for us. credibility to
preceding
Sincerely, negatives
Janette Nowicki
5 10-25
 Announcing Negative Organizational
News: What Does Not Work
Analysis
Reveals bad news in
COMPANY WILL RELOCATE MARCH 5 subject line
Effective March 5, 2008, we will relocate our plant Begins bluntly with
facility to Mason, Ohio. Approved by the Board of bad news
Directors at its last meeting, this relocation will
enable the company to reduce its operating Explains company
expenses by 15 percent. benefits but nothing to
help employees
All employees wishing to relocate should notify understand
their supervisors by the end of next week. We
appreciate your support in this move. Is clear on the next
step but shows no
Sends highly sensitive empathy and ends
information via email with insincere cliché

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 Announcing Negative Organizational
News: Why It Works
Subject: Proposed plan for increased manufacturing Analysis
capacity
Uses subject line
Growth presents its challenges. As projected, to introduce topic
increased demand for our product will soon exceed the but does not
capabilities of present production facilities as you know reveal bad news
from information included on the company intranet. For Uses buffer to
some time we have been studying whether to expand introduce familiar
our current manufacturing facility or relocate to another topic and lead to
site. reasons
High property taxes and transportation cost increases Provides rational
each year are compelling reasons to consider explanation,
alternative sites. Likewise, attracting new talent into including benefits
this high-cost metro area has become more difficult for company and
each year. In fact, both of our newly hired unit employees
supervisors are commuting over one hour just to obtain
affordable housing.
cont.
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 Announcing Negative
Organizational News: Why It Works
While relocating could provide a long-term economic benefit to
the company, moving out of New York City could enhance the Analysis
quality of life for us all. In a suburban city, we could enjoy day-
to-day living in a relaxed, small-town environment with all the Presents bad news
benefits of a large city only a short drive away. These factors while reminding of
have convinced us that moving the manufacturing facility to receiver benefits
Mason, Ohio, a thriving suburb located approximately ten miles
north of Cincinnati, would benefit the company and our Shows empathy by
employees. assuring jobs not
in jeopardy
You may resume your duties at the same structure should you
choose to relocate. Your supervisor will explain the logistics of
Follows up
the relocation at your unit’s next meeting. In the meantime, visit
assuring continued
the Mason link on the company intranet to read preliminary
information about the move and more about what Ohio can offer exchange of timely
us and our families. You’ll also want to visit this link periodically information
for relocation updates and to check the FAQ page that responds
Ends with positive
to your concerns as they arise. Now let us all work together for a
appeal for unity
smooth transition to the challenging opportunities awaiting us in
Mason.
(cont.)
5 10-28
 Delivering Bad News in
Writing to Colleagues
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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 Delivering Bad News in
Writing to Colleagues
In all management positions, you will need to
give bad news to your boss, your peers, or
those you supervise from time to time
Your ability to deliver bad-news messages
constructively will foster a transparent and
open work culture.

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 Reviewing Bad-News Messages
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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 Reviewing Bad-News Messages
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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