When Business is Struggling: Best Practices for Sharing Bad News

In any corporate environment, difficult news is an unfortunate byproduct of doing business, especially in lean and uncertain times. There are a variety of unpleasant reports you may have to share with your team or your superiors: missed deadlines, unsatisfactory bottom lines, resource cuts, and, in extreme cases, contractions or redundancies. While you’d love to have nothing but good news to pass along to your associates, it just isn’t the reality, even in a successful business. But sharing hard news can be handled professionally and honestly, and these tips and scenarios can help you navigate these trying moments.

Share hard news face to face

At times, you’d prefer to send unpleasant notices via email, but effective leaders and employees must know how to communicate in real time. By sharing negative information in a meeting or a conference, you’re showing effective leadership and communication skills; even if the recipient has to process challenging information, they’ll appreciate the forthright delivery. In-person communication, even in less than ideal circumstances, displays your willingness to tackle setbacks head-on. Once this is established, then the focus can seamlessly shift to discussing how changes will be made going forward.

How to share the news.

We’re all human. Nobody likes to be told bad news, and certainly, nobody takes any pleasure in delivering it. Generally, most people will know bad news is at hand before the conversation begins; it’s rare for tough conversations to happen out of the blue. It’s best to prepare ahead of time. Make sure you have all the information at hand; understand that questions and rebuttals may come into play; and most importantly, share the news right away, as difficult as it may be. A recent study by Brigham Young University shows that people prefer to be told bad news immediately, without too much build-up or stalling. As you share the news, be empathetic, be willing to listen, and be ready with a plan. Don’t wallow in the negative moment, but be compassionate and engaged, even if you’re uncomfortable or stressed out by delivering the news at hand.

Give a way forward.

Once the difficult news is out in the open, and once the questions and answers begin, remain communicative. Understand that, depending on the news delivered, the recipients may not be happy, but having a plan will emphasize your leadership skills. If you’re reporting to your superiors or the board about less-than-stellar numbers or outcomes, outline how changes will be made going forward. If you have to tell a model employee they won’t be getting a promotion, highlight their value and listen to their concerns. If an employee has to be laid off, come prepared with all the tools they’ll have at their disposal (severance, unemployment benefits, recommendations) to soften the blow. If you’re in control with a concrete plan, there won’t be any confusion, which can help minimize immediate tensions.

Highlight the good.

The hard news is out in the open. You’ve dealt with the questions, the logistics, and the viable concerns. Without sugarcoating negativity, this will be a prime opportunity to focus on the good as you’re dealing with the bad. If earnings were poor, share the positives in your department that will positively affect future sales goals; if your workplace is dealing with reduced resources, focus on the tools and staff you have to work together and continue thriving. Even the smallest companies have several working components that come together to achieve goals; if one is faltering, the stronger ones can serve to elevate outcomes going forward. Bad news lends itself to tunnel vision; instead, work to keep everything in perspective.

Be open to change.

Bad news means something has to change. You can’t expect to do things exactly the same after delivering bad news, and as an executive, you should be flexible and adaptive. Going to your CEO or stockholders with tough news will also require you to show a willingness to change. There are several ways to do this. Examine your leadership style: you may need to switch your tactics, be willing to meet with team members one-on-one, or change your focus from one area of the business to another in order to facilitate better outcomes going forward. You may have to take on additional time to ensure goals are being met. The lines of communication between you, your superiors, and your employees might need to be reviewed for more consistency. Your willingness to adapt sets an example. If your team sees you openly changing your approach, it will make them more willing to change their own behaviors.

Giving bad news is a leadership skill.

Obviously, if you’re delivering bad news constantly, that’s a sign of serious problems top to bottom. But over years with an organization, trying times are bound to happen more than once. Therefore, as you become more comfortable discussing difficult news, you’ll be better prepared for future conversations. Ideally, delivering bad news will be very infrequent, but you can learn from your own mistakes along the way, and grow stronger as a leader as you reflect on your actions in trying times. As in everyday life, you have to take the bad with the good, and your proper handling of the bad will only serve to increase enthusiasm and productivity as you move toward more instances of sharing good news. Good leaders are respected through ups and downs. Once you have a strong grasp on handling the downs, you’ll confidently be able to handle anything that comes your way.

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