Which of the following is an ineffective way to soften the blow of a bad-news message?

After studying this chapter, you should be able to do the following:

LO10.1 Describe how delivering bad news impacts your credibility.

LO10.2 Explain considerations for deciding which channels to use when delivering bad- news messages.

LO10.3 Summarize principles for effectively delivering bad-news messages.

LO10.4 Compose effective bad-news messages in person and in writing for various audiences, including colleagues, external partners, and customers.

LO10.5 Deliver and receive negative performance reviews constructively.

LO10.6 Review bad-news messages for effectiveness and fairness.

Learning Objectives

Bad-News Messages C

h a

p t

er T

en

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Chapter Case: Bad News at Marble Home Makeovers

Situation 1 (Tuesday afternoon)

Cindy Cooper Informs Juan That Marble Home Makeover’s Credit Line Will Be Reduced Substantially Cindy is in charge of small-business loans. Bank officials just decided that the bank was holding excessively risky credit lines with the majority of its small-business clients. Cindy was told to rein in dozens of these credit lines by reducing them by 50 to 75 percent. She called and met with several of these clients over the past week, many of whom stated they did not know how to meet the bank’s sudden demands.

Who’s Involved

WHY DOES T HIS MATTER?

Business inevitably involves giving bad or disappointing news to people. Perhaps you need to turn down a proposal, reject the business of a supplier, deny the claim of a customer, give a negative performance review to a subordinate, reject the idea of a colleague, explain that you do not like a product or service, notify your boss of mistakes you’ve made, or even tell employees that they will be laid off. Not all communications in business are pleasant. Because business is competitive by nature, turning others down is common. Delivering really bad news is extremely stressful to most business professionals. In the Great Recession that began in 2008, 37 percent of human resource workers considered changing profession due to the frequency with which they were forced to deliver the news to employees that they were being laid off. 1 Management consultant Mark Blackham explained this uncomfortable predicament: “Bad news is bad news no matter how you spin it. It changes people’s futures. This is one part of life that is not much fun, and you cannot make it better with words.” 2 In this chapter, we focus on several principles for delivering bad news in person and in writing. In the majority of workplace situations, you and your organization will continue to hold a working relationship with the recipients of bad news—whether they are colleagues, external partners, or customers. Therefore, your overarching goal is to create a path forward that is in the long-run interests of each person involved in the situation. Moreover, one of your goals is to help bad-news recipients maintain a positive image of your organization. Read the following short case, which will be the basis for five examples of delivering bad news shown throughout this chapter.

?

Juan Hernandez, business manager at Marble Home Makeovers (The business fabricates marble countertops, tiles, vani- ties, and bathtubs. It also installs and remodels home bathrooms and kitchens.) • Overseeing fast growth as the

company transitions from a small, regional company to a large, nation- wide supplier

Cindy Cooper, loan officer at Wilson Citizen Bank • Has acted as a small-

business loan specialist for the prior four years

Jake Adelman, shift supervisor at Marble Home Makeovers • Promoted to shift

supervisor two years ago largely due to his ability to improve em- ployee morale

Hear Pete Cardon explain why this

matters.

bit.ly.com/CardonWhy10

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Situation 2 (Wednesday morning)

Next, Cindy needed to contact Juan and inform him that the bank would be cutting the credit line down from $100,000 to between $30,000 and $50,000. She knew this would be difficult news for Juan because Marble Home Makeovers faced some challenging cash constraints.

Juan Needs to Break the News to All Employees That Work Hours Will Be Reduced Juan Hernandez sighed in frustration. He’d slept poorly last night because of anxiety. Today was going to be a long day. He had lots of bad news to pass around—to employees, suppliers, and customers. Juan had delivered bad news many times before, but it never got easy. Juan gathered most of the employees for a 15-minute meeting. He broke the news that the company was temporarily suspending any overtime work and cutting back on shifts. Juan knew some of the workers lived from month to month and that these new changes would hurt them. The meeting, however, was cut short by a surprise safety inspection by an Occupational Safety and Health Administration (OSHA) officer. Thus, Juan needed to send out an email to clarify the news he had delivered in the meeting. He had not had a chance to answer all the questions, and some employees were not at work that day. He definitely wanted to get out more complete information right away.

Situation 3 (Wednesday afternoon)

Juan Needs to Tell a Supplier That He Has Selected a New Supplier Juan’s current supplier is a relatively small chemicals company run by Nick Jensen. Juan had relied exclusively on Nick’s company for chemical supplies for the past three years. However, Juan had decided that a rival company was a better fit.

Situation 4 (Wednesday afternoon)

Juan Needs to Inform an Unhappy Customer That He Is Rejecting Her Claim Juan needs to respond to an email complaint from a customer who complained that a mar- ble countertop the company had installed in her home had a crack. She requested that Marble Home Makeovers replace the countertop or pay her $495 (the original price). The countertop had been manufactured and installed five years previously, well beyond the two- year warranty.

Situation 5 (Wednesday afternoon)

Juan Delivers Negative Feedback to an Employee Juan conducts quarterly performance reviews for each of his shift supervisors. Today, he is meeting with Jake Adelman, who is one of the most popular employees in the company. Jake is outgoing, friendly, and inspiring to his workers. Juan has become close friends with Jake, and they regularly go out for lunch together.

One of Jake’s primary responsibilities is to ensure that each outgoing shipment to construction wholesalers is complete and that all items are free of defects. In the past few months, however, several wholesalers have complained that Jake’s shipments did not contain the correct items. In two cases, nearly every item in the shipments contained defects. Juan deemed Jake’s quarterly perfor- mance as poor and knew he needed to confront Jake about these problems.

Task 1 How can Cindy inform Juan of

changes to his credit line and also preserve business with Marble Home

Makeovers? (See the section on delivering bad news in person to

customers.)

Task 2 How can Juan write a message to employees informing them

that they will have reduced work hours without excessively reducing employee morale and commitment? (See the section on delivering bad

news in writing to colleagues.)

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Maintaining Credibility When Delivering Bad News How you deliver bad news strongly impacts your credibility. Any perceived dishonesty or deception can damage your credibility. 3 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. 4

Zielinski’s point is clear: Honesty and openness are key. Although people do not like to get bad news, they expect the truth.

Among the most trusted and successful sports agents and business advisors, David Falk is often recognized for his straightforward and honest approach to business. Basketball star Michael Jordan, who signed on with Falk as his agent, stated the fol- lowing about him:

There are moments in everyone’s lives when you have to trust that your advisor will look you in the eye and tell you the truth, even when it’s not what you want to hear. I always knew that David would tell me what he truly felt even when it wasn’t popular or politically correct. As much as I always valued his skill for negotiation and his creativity in marketing, I especially admired his courage to express his convictions when it mattered most. 5

Falk earned credibility because of his courage to deliver bad news: “Failing to tell the truth is not simply dishonest,” he said, “it’s ineffectual. . . . It took me a while but I came to recognize the beauty in being blunt. While I always tried to be respectful and mindful of the other person’s feelings, I was also firm and to the point. . . . I believe being honest, even brutally so sometimes, creates the best atmosphere for long-term success.” 6

Falk’s comments highlight the idea that trust and long-term success in business are built on honesty in bad-news situations. His experiences are not unique. Research shows that honesty and openness can lead to more trust in the bad-news bearer. The consulting firm Siegel+Gale conducted research about delivering bad news during the Great Recession. Through the 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

LO10.1 Describe how delivering bad news impacts your credibility.

Task 3 How can Juan tell a

longtime supplier that he has chosen a new

supplier and still maintain goodwill? (See the section on delivering bad news

in writing to external partners.)

Task 4 How can Juan reject

this customer’s claim but retain her loyalty? (See the section on delivering bad news in writing to

customers.)

Task 5 How can Juan tell one of the most popular

employees that he is not performing well? (See

the section on delivering bad news in person for performance reviews.)

Bad-News Messages Chapter Ten 273

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274 Part Four Types of Business Messages

news the right way can actually strengthen customer relationships and lay the foundation for increased trust when conditions improve. 7

Although one should never view the delivery of bad news opportunistically, those who deliver bad news appropriately enhance their credibility. It shows character on your part to tell people the truth, even when it’s hard for all parties involved. In par- ticular, bearing responsibility for your own role in causing the bad news shows your commitment to transparency and honesty, further bolstering character. It shows caring when you do all you can to lessen the impact of bad news on others and exhibit for- ward thinking that considers their needs. It shows competence when you have a track record of success in tough situations and demonstrate a good plan for overcoming the challenges you face.

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. Yet, since bad news should be delivered in a timely manner, planning must be tackled as soon as possible. Many times, bad-news recipients are hurt less by the bad news than by how long it took to receive it. Your challenge, then, is to start planning efficiently as soon as you discover the unpleasant news.

Understand How the Bad News Will Affect Your Audience 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.

Deliver the Bad News in a Timely Manner The adage no news is bad news applies when colleagues, clients, or customers know you are in the process of making decisions that can impact them. In the absence of information, they often as- sume the worst. Sometimes, as people are wondering what the bad news may be, they may even pass their speculations on as part of the rumor mill. In these cases, you lose control of the message and can lose credibility if others think you have wrongfully withheld information. Never wait too long to deliver bad news. 8

On the other hand, don’t deliver bad news when you don’t know the details, since this can cause unnecessary anxiety. For example, announcing that there might be bud- get cuts or layoffs or pay cuts without any specifics could cause more alarm than is warranted. You will be the judge of this. 9

Choose the Right Mix of Channels 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 re- ceiving bad news and can respond to their discomforts right away. In many unpleasant situations, you can immediately come up with options and solutions.

However, 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 10.1 for a summary of advantages and disadvantages of delivering bad news in person and in writing.

LO10.2 Explain considerations for deciding which channels to use when delivering bad- news messages.

Applying the AIM Planning Process for Bad-News Messages

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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Bad-News Messages Chapter Ten 275

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. Likelihood relates to the probability of the bad event occurring. 10

As controllability decreases and likelihood and/or severity increase, richer channels of communication are most appropriate. For example, laying someone off should cer- tainly be done in person. There is no controllability (the employee cannot undo being laid off), there is complete likelihood, and there is high severity (the employee will be unemployed and potentially without income and other benefits such as health insur- ance). When bad news becomes more controllable, less likely, and/or less severe, less- rich channels are more often justified. In Table 10.2 , you can see appropriate responses in terms of richness for various combinations of severity and controllability.

Of course, your preferred communication channel is not always available. For ex- ample, if you work in a virtual team, you may not have the option of delivering bad news in person. Or if you hold a high-level leadership position, you simply cannot take time to speak to each person affected by your decisions. Where possible and appropri- ate, choose richer communication channels.

Develop Your Ideas Gathering the facts from a variety of sources is critical for bad-news messages. Often, you are dealing with emotionally charged issues, situations that are open to multiple interpretations, and/or situations where the potential consequences are severe. If you gather as much information as you can from a variety of sources, you’re more likely to make objective judgments and propose fair solutions. Make sure you are aware of your own emotions and how they impact your thinking. You might ask yourself whether your reaction to the situation involves any defensiveness, rashness, or favoritism.

Structure Your Message One choice you’ll make when delivering bad news is whether to make your message more or less 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,

LO10.3 Summarize principles for effectively delivering bad- news messages.

TABLE 10.1

Advantages and Disadvantages of Bad News in Verbal and Written Forms

Verbal Delivery Written Delivery

Advantages • Can use and observe nonverbal cues • Can more easily demonstrate intentions • Can more effectively clarify and explain the bad news • Can respond to concerns immediately

Advantages • Can craft message more carefully • Can document the message more easily • Can provide a message that serves as a reference (provide

directions, suggestions, and options for future actions) • Can deliver message to more people more efficiently

Disadvantages • May hinder effective delivery, interpretation, and

discussion of bad news due to strong emotions • Requires more time • Less able to document the bad news • Less able to provide directions that bad-news recipients

can reference later

Disadvantages • Unable to demonstrate concern through nonverbal cues • Unable to immediately respond to concerns • Unable to work out mutual solutions • Less able to control long-term impacts on working

relationships

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.

Sh ow

c on

ce rn

.

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276 Part Four Types of Business Messages

TABLE 10.2

Types of Bad News and Richness of Communication Channels

Type of Bad News Example

W ri

tt en

O n ly

(E

x a m

p le

: Em

a il)

V er

b a l N

ot in

Pe

rs on

(E

x a m

p le

: P ho

ne )

V er

b a l +

N

o n ve

rb a l N

o t

in P

er so

n

(E x

a m

p le

: V

id eo

C a ll)

V er

b a l +

N

o n ve

rb a l i

n

P er

so n

(E x

a m

p le

: M

ee ti n g )

In P

er so

n

+ W

ri tt

en

(E x

a m

p le

: M

ee tin

g +

Fo

llo w

-u p M

em o)

Low Severity + High Controllability

Colleague’s idea is rejected * * * * *

Low Severity + Low Controllability

Customer claim is rejected ( Figure 10.8 ) * * * * *

Medium Severity + High Controllability

Vendor chooses another supplier ( Figure 10.6 )

* ✓ ✓ ✓ ✓

Medium Severity + Low Controllability

Employees given fewer work hours ( Figure 10.4 )

✗ ✗ ✓ ✓ ✓

High Severity + High Controllability

Employee receives poor performance rating ( Figure 10.10 )

✗ ✗ ✗ ✓ ✓

High Severity + Low Controllability

Employee laid off ✗ ✗ ✗ ✗ ✓

✗ = rarely acceptable; * = depends on communication channel in use or preferred by bad-news recipient; ✓ = preferred.

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.

Sympathize with the Bad-News Recipient and Soften the Blow When bad-news message recipients know you are concerned about them, they gener- ally 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. In writing, you are less able to use nonverbal behavior to show your sincere concern and appreciation.

For written messages, several techniques help the bad-news recipient prepare emo- tionally. First, using a neutral subject line often helps the reader recognize that the news will likely not be positive. However, since it is not direct (does not state the bad news), it allows the reader to momentarily adjust psychologically to accept the bad news.

Also, in some communications, you may use a one- or two-sentence buffer to start the bad-news message, which softens the blow. A buffer is a statement to establish common ground, show appreciation, state your sympathy, or otherwise express good- will. Table 10.3 provides several examples, each of which is intended to draw con- nections between the message sender and message recipient and reduce the sudden emotional impact for the recipient.

When you show sympathy to your readers, you let them know you share their sorrow or trouble in some part. However, limit such expressions to one or two sentences, and make them sincere and professional. Avoid taking responsibility if you are not at fault. For example, the statement “We’re sorry to hear about the crack in your countertop”

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.

Sh ow

c on

ce rn

.

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Bad-News Messages Chapter Ten 277

does not imply responsibility, whereas the statement “We’re sorry that the countertop we installed has malfunctioned” may.

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 mes- sage prepares recipients emotionally yet does not reveal specific information. Neutral statements such as “I have some feedback to give you this afternoon” or “I’ll share with you what our clients thought of your ideas” help employees prepare for news that may be partially negative. 11

Deliver the Bad News Throughout the delivery of bad news, find ways to express concern for recipients. By showing that you care, you may help them bear the news better and respond constructively. Generally, make the expression of concern brief, and stay attentive to the receiver’s response. Be aware that excessive displays of concern may sound like a pity trip.

Get to the point fairly quickly—that is, express the bad news and explain the rea- sons for it clearly. Recipients of the bad news generally expect an explanation for why a decision was made. Stick to the facts so recipients will not try to fill in the blanks and come to the wrong conclusions. If you skirt around the bad news, your audience often views your efforts as evasive, thus weakening your credibility. 12

In written bad-news messages, the neutral subject line and short buffer can soften the blow and show sympathy. However, make the buffer statement short, and, again, get to the bad news fairly quickly. You don’t want readers to feel you are purposely downplaying or hiding the bad news by burying it within the message. You also don’t want the readers to get their hopes up only to have them dashed later in the message. In these instances, bad-news recipients may even feel misled. If you find yourself writ- ing an extremely indirect bad-news message, ask yourself whether you should instead meet in person or pick up the phone.

Provide a Clear Rationale and Specific Feedback Recently, research about delivering bad news to customers in the financial industry has shown that when banks clearly explained the reasons for the bad-news decision, customers felt more trust toward the bank. In response to letters that offered little (i.e., “market conditions and maintaining profitability on your account”) or no explanation, customers made comments such as the following: “This makes me feel like the bank wants to squeeze me for all they can. They’re not interested in me as a loyal customer; I’m just a number to them.” By contrast, customers who received full explanations in the letters were twice as likely to consider the organizations credible. They used statements such as the following: “They seemed honest and up-front. They were forthcoming and direct with their information, which is always good.” Furthermore, the researchers showed

TABLE 10.3

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 challenges.

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278 Part Four Types of Business Messages

that clear, specific, and simple language built trust, whereas vague, general, and legal language created suspicion and anger. 13

The most obvious and primary benefit of using simple and specific language is that recipients are more likely to interpret the information as honest and up-front. An ad- ditional reason to use simple and specific language is that bad-news recipients struggle to process information in bad-news situations. Since many recipients may experience strong emotions and begin thinking ahead about what the bad news means for them, they are less capable of processing complex information.

Explain Immediate Impacts Once you’ve explained the bad news and the reasons for it, discuss the immediate impacts on recipients. In most situations, avoid moving directly to a discussion of what the bad news means for the company. Your focus should now be on the bad-news recipients, who will naturally be wondering, “What does this mean for me right now?” 14

Resist the impulse to minimize the negative impact. By honestly describing the neg- ative impacts, you address the foremost concern in the recipients’ minds—themselves. If you skip this step, which many people prefer to do since it is not pleasant, you may lose the attention of the bad-news recipients for two reasons. First, they can’t process other topics. They are fixated only on the potential impacts on themselves. Second, they may be annoyed if you move immediately to what you consider the silver lining, showing you are detached from their immediate needs.

Focus on Solutions and Long-Term Benefits Most bad news is not permanent. In other words, it usually involves a temporary setback. So once you’ve described the immediate impacts on the recipients, move to a constructive, forward- looking approach. Where possible, describe realistic solutions, steps to overcoming the current problems, and/or the benefits that current sacrifices make possible. Ideally, you can describe solutions and benefits that the bad-news recipient can control. 15

Focusing on solutions and long-term benefits should take a positive tone. However, be careful about the good news/bad news approach. The recipients of bad news may react negatively if they perceive that you are downplaying the impact of the bad news on them. 16

Show Goodwill Keeping the door open to working together constructively in the future should be one of your top priorities in nearly all cases. You may be demoting an employee from a current position today but promoting that same employee two or three years down the road. You may be denying the claim of a customer today but hop- ing for that customer’s repeat business far into the future, and you’re definitely trying to ensure that customer tells others that you are credible. You may say no to a supplier today but expect good terms on contracts from that same supplier in the future. It’s not even uncommon for companies to ask laid-off employees to return to the company. In the process of delivering bad news, try not to burn bridges.

When you discuss bad news with others, use your tone and nonverbal behaviors to show your interest and concern. Notice the recipient’s nonverbal behavior as you deliver the news. Your ability to manage emotions—yours and others—during a bad- news discussion strongly influences your future working relationship. Research about providing feedback in performance reviews has shown that providing negative feed- back with a positive tone actually makes employees feel more positive than when they receive positive feedback with a negative tone. In other words, the power of delivery often outweighs the content of your message in feedback situations. 17

When you write your bad-news messages, carefully consider tone, style, and de- sign. Aim for a tone of genuine concern in a professional manner. Also inject some

Getting the Tone, Style, and Design Right

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Bad-News Messages Chapter Ten 279

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. Since bad-news recipients may be experiencing strong emotions and allowing their thoughts to wander, they are less able to process information accurately. Therefore, use clear language that they will not misinterpret. Finally, maintain a simple design. If your mes- sage looks too slick, bad-news recipients may believe the message is designed more to impress than to meet their needs.

Delivering Bad News in Person to Clients In any business, you develop close working relationships with clients over time. You become aware of their needs and hopes. In many cases, you’ve had to struggle to gain their business and you’re constantly working to keep them satisfied with your products and services. Providing bad news to these clients is stressful, since you do not want to let them down, and you know that your success depends on their business.

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. Since Marble Home Makeovers is currently in a poor cash position, this new policy is serious and could be viewed as medium severity. Since the bank has some flexibility in establishing the new credit line terms (reduction of between 50 and 75 percent within 60 to 90 days), Juan may be able to negotiate the best possible terms. Therefore, he does have some control. In Cindy’s less-effective approach (see Fig- ure 10.1 ), she writes an email message, which is not as rich and personal as required based on the severity of this situation. In the more-effective delivery (see Figure 10.2 ), Cindy calls Juan, meets with him, and follows principles for delivering bad news effectively.

To… Juan Hernandez

Subject: Lower Credit Line Effective in 60 Days

Dear Mr. Hernandez:

Effective in 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

Given the long-term working relationship between Cindy and Juan, this written message is impersonal. Furthermore, the message contains unnecessarily complex language.

FIGURE 10.1

Less-Effective Delivery of Bad News to a Client

LO10.4 Compose effective bad- news messages in person and in writing for various audiences, including colleagues, external partners, and customers.

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280 Part Four Types of Business Messages

FIGURE 10.2

More-Effective Delivery of Bad News to a Client

Cindy was tired of telling her small-business clients the disappointing news that their credit lines would soon be severely reduced. She sighed and called the next person on her list: “Juan, the bank is making some adjustments to small-business credit lines. I’d like to meet in person as soon as possible to explain what this means for your business.” Juan replied, “I can stop by this afternoon since I’m in town today.” Having worked with Juan for over five years, she knew meeting the bank’s demands would be challenging for his business.

[Later at the bank]

Cindy: Juan, thanks for stopping by on such short notice. The bank is making some major changes to the terms of our small-business credit lines, and I wanted to let you know about these changes right away. Because of so many recent bank failures around the country, we requested an audit to help us evaluate our situation. The audit results showed that we hold far too much debt, and we’re putting several policies into place to place the bank in a safer financial position. These policies will impact your business, so I wanted to explain the new terms and discuss how we can work together in meeting them.

Juan: This sounds serious. What are the changes?

Cindy: For most small-business credit lines, including yours, we’re reducing the credit line by between 50 and 75 percent. We expect to make the policy effective in between 60 and 90 days, and the bank will move to collect on outstanding credit above the new limits. Today, I’d like to discuss ways to lower your outstanding credit so that you’ll remain on good terms once the new policy goes into place.

Juan: Well, Cindy, this comes as quite a surprise. This will put tremendous strain on our business. Exactly how much do we need to pay back and in what time frame?

Cindy: In your case, you’re currently using nearly $94,000 of your $100,000 credit line. We will cut the credit line to between $30,000 and $50,000 in 60 to 90 days. Based on our conversation today, including your ideas for reducing your outstanding balance, I’ll make a determination this afternoon. What are your projections for cash flow over the next three to six months? What can you do to improve your cash situation rapidly?

Juan: We are facing some challenging cash constraints, but the long-term position looks strong. We’ve expanded during the past two years from a regional market to a national one. Our revenue has grown by 400 percent in just one year, and we’ve increased the number of employees from 15 to 50 in a year and a half. With all this growth, we’ve moved into a new building and invested heavily in new equipment and facility improvements. We currently have five bids on several large projects. I expect us to get at least two of these. If we receive any of the five bids, we could immediately pay back the credit line.

Juan: In that case, our only option would be to lay off employees or reduce work hours. We do currently hold some excess inventory. We could temporarily reduce work hours and thus lower payroll expenses by relying on this inventory. . .

Cindy: What if you do not receive any of the bids?

Delivers the BAD NEWS.

Provides RATIONALE for changes in credit line terms.

Explains IMMEDIATE IMPACTS.

Adopts a listening orientation.

[After continued discussion, Cindy decides to cut the credit line to $50,000 in 90 days since Juan has agreed to temporarily reduce payroll expenses. The employees will not be happy about this change.]

Focuses on the FUTURE and shows GOODWILL.

Phone call with a somewhat urgent but neutral tone serves as a BUFFER and allows Juan to prepare emotionally.

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Delivering Bad News in Writing to Colleagues One characteristic of high-performing organizations is that employees volunteer infor- mation with one another, even when it is bad news. In many organizations, however, employees are reluctant to share bad news. They do not want to disappoint others, and they do not want to be blamed. When many employees in an organization avoid shar- ing 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 unreal- istically rosy.

One tragic example of the mum effect is the 1986 space shuttle explosion. During the investigation, Nobel laureate Richard Feynman found that engineers had pre- dicted the probability of a main engine failure at between 1 in 200 and 1 in 300. Top decision makers at the National Aeronautics and Space Administration (NASA), however, had been informed by reports that had progressively gotten more positive through several layers of bureaucracy, and they had thus believed the probability of main engine failure was closer to 1 in 100,000. While the shuttle disaster is an ex- treme example, businesses repeatedly underperform and even fail on projects due to the mum effect. 18

When most employees deliver bad news and negative feedback to one another in open, honest, caring, and rich environments, organizations tend to exhibit higher morale. On the other hand, when most employees do not share bad news or do so impersonally, organizations tend to exhibit lower morale. In practice, many compa- nies have cultures of delivering bad news impersonally. In a survey of 292 employ- ees, only 37 percent stated that the primary means of delivering bad news in their companies was face-to-face meetings. The other primary means of bad-news delivery were emails (29 percent), letters and memos (12 percent), internal employee websites (8 percent), teleconferences or videoconferences (6 percent), and company newslet- ters (3.5 percent). 19

McGraw Wentworth, a consulting firm, recently issued a report about delivering bad news during the Great Recession. The report explained, “Using an impersonal e-mail format to deliver bad news is very poor business form. Your employees will feel your organization has no respect for them. They will not forget the callous way they received bad news and when the economy turns around, they may be the first people looking for new opportunities.” 20

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 mes- sages constructively will foster a transparent and open work culture. As appropriate, internal bad-news messages should show appreciation for the efforts of employees and look to the future.

In Juan’s case, he is delivering news to the production workers that the com- pany 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 10.3 ), Juan leaves out a buffer and focuses primarily on the needs of the company. This ap- proach will anger many employees and reduce company loyalty. In the more-effective example (see Figure 10.4 ), Juan focuses on the employees—their needs and concerns. He does not sugarcoat the news. He clearly describes the reasons for reducing work hours. He also clearly explains the likely negative impacts (specific ranges of loss in income). Many employees will likely respect him for his openness and honesty. Juan concludes the message with forward-looking and positive thoughts about op- portunities for the employees. This is appropriate as long as Juan can deliver on these promises.

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To…

Subject:

Marble Home Makeover Employees

Reduction in Work Hours for Factory Workers

B I U F TT T 1 —2 — 3 —

________________ __________

_______________ __________

_______________ __________

________________ __________ _______________ __________ _______________ __________

________________ __________

_______________ __________

_______________ __________ Plain Text

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.

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, they’ve 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.

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.

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

Ends without expression of GOODWILL.

Immediate IMPACTS insufficiently address employees’ concerns.----------------

No BUFFER.

RATIONALE dwells only on negative news.Show of CONCERN for employer, not employees.

FIGURE 10.3

Less-Effective Bad-News Message to Employees

In most business positions, you will work extensively with external partners. External partners can include suppliers, consultants, or joint-venture partners. These are people you interact with often over extended periods. You will often have deep working re- lationships with them. Most often, you are better off breaking bad news to them in a rich communication channel—that is, in person or by phone. Writing makes sense, however, when you are providing a formal notice (i.e., rejecting a bid or proposal), when the bad news is not severe, or when your audience prefers corresponding in writ- ten form. When you break bad news in writing, you will generally follow up with a phone call or visit.

Juan has purchased extensively from Nick Jensen over the years, so rejecting his bid is not easy. In the less-effective example (see Figure 10.5 ), Juan does not provide useful feedback and does not indicate any interest in future work together. In other words, Juan has directed the message away from any business interest of Nick’s. Nick may decode Juan’s excessively personal display of concern (thanking him for

Delivering Bad News in Writing to External Partners

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To…

Subject:

B I U F TT T 1 — 2 — 3 —

________________ __________

_______________ __________

_______________ __________

________________ __________

_______________ __________

_______________ __________

Plain Text

Marble Home Makeover Employees

Temporary Change in Work Shifts over Next Three Months

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.

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, they’ve 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.

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.

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 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

Neutral subject line as BUFFER.

Provides RATIONALE.

Concludes with statement of GOODWILL.

Shows CONCERN.

Explains immediate IMPACTS.

Discusses the FUTURE.

________________ __________ _______________ __________ _______________ __________

FIGURE 10.4

More-Effective Bad-News Message to Employees

being such a great friend and asking him out to lunch) as a less-than-straightforward way of saying no and an end to a working relationship. In the more-effective ex- ample (see Figure 10.6 ), Juan keeps it short, but he accomplishes the basic goals of a bad-news message. He expresses goodwill, explains why Marble Home chose another supplier, and leaves the door open to future business. Providing the ratio- nale for this decision is helpful to Nick. It gives him an opportunity to improve the competitiveness of his company by focusing on these weaknesses. This professional

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FIGURE 10.5

Less-Effective Bad-News Message to a Supplier

To…

Subject:

To…

Subject:

B I U F TT T 1 —2 — 3 —

________________ __________

_______________ __________

_______________ __________

________________ __________

_______________ __________

_______________ __________ Plain Text

Plastic Resins

Nick Jensen

The BUFFER and show of CONCERN are vague and excessively personal.

RATIONALE is not specific or constructive and does not lay out possibility of FUTURE professional cooperation.

As you know, we recently accepted bids for annual contracts from a variety of companies, including yours, to supply and deliver plastic resins for the upcoming year. We received bids from four companies and looked at a variety of factors in determining what was right for us. Your bid was excellent. We were particularly impressed with your commitment to providing products on shorter notice than in the past. Clearly, you are improving your already fantastic delivery system.

Hi Nick:

Nick, we have always appreciated working with your company. This has been an extremely difficult decision- making process. But, we have decided to go in another direction. You have always provided your products reliably, but in today’s economy, we simply have no choice but to go on price alone. You have been a great friend to me, and I hope to see you around town. Let’s stay in touch and go out to lunch when you’ve got a chance.

Juan

________________ __________ _______________ __________ _______________ __________

FIGURE 10.6

More-Effective Bad-News Message to a Supplier

To…

Subject:

B I U F TT T 1 —2 — 3 —

________________ __________

_______________ __________

_______________ __________

________________ __________

_______________ __________

_______________ __________ Plain Text

Nick Jensen

Decision on Bid for Annual Contract with Marble Home Makeovers

Hi Nick:

Thank you for submitting your competitive bid to supply and deliver plastic resins for the upcoming year.

We reviewed the bids with three chief criteria in mind: price, delivery schedule, and inventory management.

We have accepted Hunter Chemical’s bid to supply and deliver plastic resins for the upcoming year. Hunter Chemicals offered us slightly better pricing. Also, we were impressed with Hunter Chemical’s ability to deliver product on shorter notice and link its online order system directly to our online inventory system.

Nick, we have always appreciated the dependable service your company has provided. We will continue purchasing lumber supplies from you, and I will notify you next year when we are ready to accept bids again for chemical supplies.

Best wishes,

Juan

Neutral subject line and show of appreciation as BUFFERS.

Specific RATIONALE shows CONCERN and provides basis for FUTURE cooperation.

________________ __________ _______________ __________ _______________ __________

Concluding paragraph contains statements focusing on the FUTURE and GOODWILL.

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courtesy is not always appropriate or necessary. You’ll be able to make this judgment based on the corporate culture where you work. Although Juan and Nick generally correspond by email, a follow-up phone call from Juan could strengthen their work- ing relationship.

Delivering Bad News in Writing to Customers In many positions, you will have direct contact with customers. You have probably already worked in jobs where you interacted extensively with customers and likely had to deliver bad news. You certainly have been an angry customer who has re- ceived bad news, so you can relate! 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.

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 (see Figure 10.7 ), Juan unnecessarily blames the customer. Because he uses you-voice (“since you did not purchase the countertop with a warranty, you will not receive a refund”), the tone is accusatory and even con- frontational. Furthermore, the message is not helpful enough. It offers some hastily written, vague advice. The customer will likely decode this response as uncaring.

In the more-effective message (see Figure 10.8 ), Juan provides both a buffer and expression of sympathy in the first sentence. Although Juan denies the claim, he pro- vides 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.

In jobs where you interact often with customers, you are unlikely to have enough time to write an original bad-news message like Juan’s to each customer. However, you probably face three or four broad types of complaints. By using templates with common explanations and solutions, you can quickly tailor a message to individual situations. For example, Juan could create a template that contained two options—one for customers who might fix the products themselves and the other for customers who might want a service visit. Then he could rapidly modify various details for the indi- vidual situation.

Delivering and Receiving Negative Performance Reviews Nearly all professionals engage in regular performance appraisals; sometimes they are appraising others, and sometimes they are themselves being appraised. Face-to-face reviews are often among the most stressful experiences for employees and sometimes for managers. These situations are particularly stressful when the manager must de- liver negative performance reviews. 21 In this section, we will first consider the ap- praisal from the manager’s point of view and then turn to the employee who is being appraised.

Delivering Negative Feedback In most performance appraisals, you are evaluating excellent or good performers. In these cases, you should focus on an overall positive message. When evaluating poor performers, however, you should be clear about the need for improvement. You can

LO10.5 Deliver and receive negative performance reviews constructively.

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To…

Subject:

B I U F TT T 1 —2 — 3 —

________________ __________

_______________ __________

_______________ __________

________________ __________

_______________ __________

_______________ __________ Plain Text

Naomi Gregory

Denial of Claim #615A

Naomi:

We’re sorry that there is a crack in the countertop we manufactured and installed. Unfortunately, since you did not purchase the countertop with a warranty, you will not receive a refund.

We have two options for you. First, you could repair it yourself. This process is simple if you are handy at fixing things around the house. Just go to various online websites and see how to repair the crack. The other option is to have one of our experts come out and fix it. We would charge a minimum fee for a service visit and probably would not charge for materials. We make no money on these visits. The charge basically covers our expenses. But, we are dedicated to your satisfaction and will provide this service to make your countertop just like new.

Good luck,

Juan

No BUFFER.

Nondetailed advice shows poor attention to immediate IMPACTS and solutions for the FUTURE.

________________ __________ _______________ __________ _______________ __________

Show of CONCERN emphasizes company’s reputation rather than customer’s problem.

FIGURE 10.7

Less-Effective Bad-News Message to a Customer

generally apply the principles we have discussed earlier in the chapter regarding deliv- ering bad news. In addition, keep the following in mind: 22

● 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 construc- tive, forward-looking tone.

● Avoid sugarcoating the bad news. Make sure the poor performer realizes she/he must improve (see the upcoming feedback section).

● Explain the impacts of the individual’s poor performance on organizational per- formance. 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 em- ployees 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 per- spectives 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 per- former 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, espe- cially when poor performers are defensive. Remain firm that the employee must improve.

You will undoubtedly need to deliver negative performance reviews from time to time. Your overall approach to these conversations and your choice of words are important in determining how useful the reviews are. Thus, use statements that offer clear and

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To…

Subject:

B I U F TT T 1 —2 — 3 —

________________ __________

_______________ __________

_______________ __________

________________ __________

_______________ __________

_______________ __________ Plain Text

Naomi Gregory

Repairing Your Countertop

Dear Ms. Gregory:

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.

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.

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

Positive subject line as BUFFER and show of CONCERN cushion the claim denial.

The majority of the message focuses on the FUTURE– solving the customer’s problem.

Level of detail and expression of GOODWILL show CONCERN for the customer.

RATIONALE is accurate and brief.

________________ __________ _______________ __________ _______________ __________

FIGURE 10.8

More-Effective Bad-News Message to a Customer

targeted feedback, focus on actions and results rather than attitudes and intentions, and establish measurable and realistic expectations.

In the final situation from the opening case, Juan needs to give a negative perfor- mance evaluation to Jake, one of the shift supervisors. Juan does not want to harm his working relationship with Jake, and he’s nervous about how Jake will react. In the next few pages, you’ll find Juan’s less-effective and more-effective approaches to

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talking to Jake. You’ll also find abbreviated versions of the performance appraisal in Figures 10.9 and 10.10.

Giving Clear and Targeted Feedback When providing feedback for poor performance, many managers want to soften the bad reviews so they employ the sandwich approach of good news–bad news–good news (compliment–negative feedback–niceties). However, the sandwich approach may inadvertently encourage poor performers. Instead, the review should emphasize the bad news so employees know how important it is for them to improve (see Table 10.4 for less-effective and more-effective examples of giving clear and targeted feedback).

Focusing on Actions and Results, Not Attitudes and Intentions Provide feedback only on that which is observable. You can accurately observe actions and results; however, you can never know the thoughts and feelings of others with certainty. Furthermore, if you focus on attitudes and intentions, you are far more likely to be perceived as judgmental and provoke defensiveness (see the less-effective and more-effective examples in Table 10.5 ).

Establish Measurable and Realistic Expectations Negative perfor- mance reviews without measurable and realistic goals may demoralize employees. Employees who receive negative reviews generally want a clear path to regaining posi- tive ratings; they want to be on good terms with their supervisors, and they usually take pride in doing well. Make sure to discuss how they can improve performance in

TABLE 10.4

Giving Clear and Targeted Feedback

Less Effective More Effective

Juan: 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.

Juan: 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].

This sandwich approach to bad news (compliment–bad news–niceties) combined with Juan’s roundabout language dilute the primary message that Jake needs to improve his performance. Juan may inadvertently send the signal that Jake’s performance is not poor or that his mistakes are relatively insignificant.

This approach is clear and targeted. Jake will recognize the importance of improving in this area.

TABLE 10.5

Focusing on Actions and Results, Not Attitudes and Intentions

Less Effective More Effective

Juan: 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.

Juan: 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.

This critique focuses exclusively on characteristics of Jake— carelessness and inattentiveness.

This critique focuses on Jake’s actions and the results of those actions. These comments are less likely to provoke defensiveness or a counterproductive response from Jake.

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TABLE 10.6

Establishing Measurable Expectations

Less Effective More Effective

Juan: 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.

Juan: 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.

This closing statement is vague. Jake does not know the standard by which Juan will evaluate him for the next performance review.

This closing statement is specific and measurable. Jake knows the standards by which Juan will evaluate him for the next performance review.

specific ways. You might even set up a development plan that includes action steps, timelines, specific goals, training, and resources needed. By setting clear expectations for improvement, you lay the groundwork for accountability later on (see Table 10.6 for less-effective and more-effective examples).

Increasingly, companies provide options for all or part of performance reviews to be conducted online. Typically, these online reviews allow you to give more frequent feedback to your employees. Read the Technology Tips section on page 292 for guide- lines on delivering feedback with these systems.

Receiving Negative Feedback 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 re- ceiving 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. To avoid coun- terproductive responses to negative emotions, learn to recognize and name these emo- tions. Then develop a reframing statement to respond more effectively. See Table 10.7 for ideas about reframing statements. 23

TABLE 10.7

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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Juan: But, Jake, you’re the one responsible for inspecting and approving the shipments, not the employees on your shift. Remember, every time our shipments have mistakes, it comes back on me. I have to take the fall for it with our owner. And I’m the one who has to hear the complaints from our customers.

Juan: Jake, did you watch last night’s game? Jake: Yeah, that was awesome . . . [talk about sports for several minutes].

Juan: Well, let’s get down to business. I’d like to thank you for how supportive you are of the employees. You really boost morale around here more so than anyone else . . . [continues talking about accomplishments and strengths for ten minutes].

Juan: One issue I want to raise for the review is that our customers have complained about several of your shipments. I think we should talk about how to avoid shipments that contain any items with defects.

Jake: I’ll try to make sure that we don’t have any mistakes on future orders. The other shift supervisors and I have talked about some ways of avoiding any future problems.

Juan: Jake, none of the other shift supervisors have had these problems—only you. I think this shows that you’ve been careless, and you’re not really looking out for our customers.

Jake: Look, I’m sorry that there were some mistakes. But I’m not the one who packs the shipments. Those who are careless are the employees packing the shipments.

Juan: We need to really focus on getting everything right from now on. I’m counting on you. Well, again, thank you for your efforts for the company and all your great work. See you later on for lunch.

Jake: OK, well, I’ll make sure the employees on my shift are more careful.

The sandwich approach to delivering bad news dilutes the message and gives Jake a false sense that his performance is acceptable. Feedback and expectations are vague.

Juan encodes: I value you as an employee.

Jake decodes: Juan values my positive impact here.

Juan encodes: You have performed poorly with shipments. I want you to improve.

Jake decodes: Juan is making a blanket judgment by calling me careless. He is overlooking all the good work I do.

Jake encodes: You need to hold everyone responsible.

Juan decodes: Jake is making excuses and blaming others.

Juan encodes: You are the supervisor; you are responsible.

Jake decodes: Juan wants me to spend my time micromanaging my employees. And, he just cares about making himself look good.

Jake encodes: OK, I’ll watch out for problems.

Juan decodes: Good, Jake’s gotten the message he needs to improve.

Juan encodes: Now that you know my position, let’s go to lunch.

Jake decodes: Great. Juan is generally happy with me and my performance.

FIGURE 10.9

Less-Effective Delivery of Bad News during a Performance Review

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Bad-News Messages Chapter Ten 291

FIGURE 10.10

More-Effective Delivery of Bad News during a Performance Review

Juan: Jake, for today’s performance review, I want to focus most of our attention on one issue: making sure all your shipments contain the correct items and that they are all defect-free. 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. Four of those sinks were cracked or chipped. What do you think are some of the reasons for the incorrect shipments and the defective items?

Jake: I rely on my crew to produce defect-free items and pack the shipments. As a result, I don’t actually see every shipment that goes out. Since I don’t micromanage, I believe that my approach shows trust in the employees. Even though we have made a few mistakes, overall I think the working climate results in higher overall productivity.

Juan: Jake, for this quarter, I’ve given you an overall performance rating of 2, which indicates poor performance. This means that in the short term you’re unlikely to receive a promotion or bonus. However, I’m confident in your ability and that of your crew to get all shipments correct . . . [Jake and Juan continue discussing the rating].

Juan: I appreciate your focus on the employees, and I do think morale is high in your production crew. Ultimately, you bear responsibility for their performance, so I would like to discuss how to avoid costly shipment mistakes. The problems with the shipment to Carnegie Homebuilders cost us approximately $5,000 due to material and labor costs. I’m also concerned that they’ll be less likely to choose us in the future. What are some ways you can manage your crew to avoid shipment mistakes in the future?

[Jake and Juan discuss approaches to managing the crew and improving quality for 30 minutes.]

Juan: 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 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.

Jake realizes the severity of his poor performance. Juan’s open, clear, specific, and problem-solving approach is not threatening and shows his commitment to supporting Jake’s improvement efforts.

Juan encodes: I want to focus on your ability to get shipments correct.

Jake decodes: Juan is serious that I need to improve my shipments.

Jake encodes: My management style may cause some problems, but it also results in higher morale and productivity.

Juan decodes: Jake is not taking responsibility for the mistakes.

Juan encodes: Your management style has many benefits. It’s still your responsibility to make sure shipments are correct. Incorrect shipments harm the company. Let’s discuss ways to manage employees and avoid mistakes.

Jake decodes: Juan is looking out for the best interests of the organization.

Juan encodes: Your overall performance was poor for this quarter. I want you and your crew to succeed.

Jake decodes: I need to avoid any mistakes on shipments if I’m going to get promoted. Jake will support me if I show positive results.

Juan encodes: This is exactly how we will evaluate your performance.

Jake decodes: I know what Juan wants me to do.

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292 Part Four Types of Business Messages

Technology Ti ps

PROVIDING PERFORMANCE FEEDBACK WITH APPRAISAL SOFTWARE Most companies require performance reviews—some monthly, some quarterly, some annually—for all employees. Some innovative companies are now doing real-time performance reviews with social software. The social software allows supervisors and their employees to more regularly and interactively review employee performance. When you are in a supervisory position, you will be responsible for providing both positive and negative feedback to employees. Increasingly, you will provide this feedback with the use of appraisal software of some form. As you provide feedback in online appraisal systems, keep in mind the following tips: Provide regular and frequent feedback. One major benefit of appraisal software, particularly platforms that include social software, is that you can efficiently give your employees more feed- back so they can increase performance. Establishing a regular pattern of feedback can increase your employees’ motivation and performance. Prepare your feedback carefully. Most appraisal software allows you to directly enter your comments into fields in a database. Once you enter the information, it is available to the employ- ees and other managers. So, prepare your comments carefully. Consider drafting your comments in a word processing program first. If you’re delivering negative feedback, you may first want to draft the feedback, wait a few hours or a few days, and then review your comments to ensure they are accurate and productive. Also, if you are giving negative feedback, first notify your employee in person. Use the moment to establish goals for improvement. Avoid blindsiding your employees by entering negative feedback in the performance database without first talking to them about it. Keep your feedback objective and personal. Some employees feel that receiving feedback via appraisal software is too automated and impersonal. This is especially likely when the software is mostly composed of quantifiable and standard metrics that are used for all employees. These metrics do help provide consistency in feedback across the organization, but they lead some employees to “feel like a number.” However your company’s evaluation software is set up, find ways to provide more nuanced and open-ended feedback to recognize your employees’ unique achievements. Make sure to include a shared, open-ended, goal-oriented, and positive discussion that keeps your employees motivated and productive. Set up a face-to-face meeting as soon as possible if you detect hard feelings. Even in a social software environment that allows more interaction than do Web 1.0 communication tools, some em- ployees may become discouraged with negative feedback or feel that feedback is not fair. Stay alert to such situations. When you notice this, set up a time to meet in person so that you can use a richer communication channel to reestablish rapport and reenergize your employees to focus on work goals.