By Donna Butchko
There comes a time in every leader’s life when they have to deliver bad news to their people, especially lately. It’s part of the job that no one enjoys, but it is a critical role to a successful leader. Here are four simple rules to keep in mind when you find yourself in this position.
Rule 1: Talk to them. Most people’s natural tendency is to avoid telling people things they don’t want to hear; this includes giving your department/team/company bad news. This is probably the worst mistake you can make. You hired intelligent people and, rest assured, they can tell when things are not going well. Whether it’s the relatively minor message, “The company’s not doing well, so they’ve cut our budget and we won’t be able to accomplish all the things we had planned to.” Or the much more painful message, “The company’s not doing well and there are going to be some reductions in staffing levels” (or whatever terms your company uses for people losing their jobs). When times are bad you need to double the amount of communication you do (not hide in your office like you might want to).
If you don’t talk to them, the rumor mill will fill in the gap, and that will be much worse. While it’s true that the news may be bad, people will assume it is horrible if you don’t tell them otherwise. This will make it almost impossible for them to concentrate on their work, which has the potential to turn a bad situation into something much worse. One of the most important tasks of a leader is to communicate, and this is most difficult and most critical during bad times.
Rule 2: Be honest. This means both be honest with your people, but also be true to your position in the company. This can be a tough one, especially when you know things that you cannot tell your people. When it comes to headcount reductions you might not know what the future holds for your department. Sometimes the department manager is not part of that conversation (which can be a warning to you – but that’s not today’s topic). You know that cuts are coming, but you don’t know how they are going to affect your team. It’s better to say that than to say nothing. “We’ve seen the stock market and we all know that it’s hurting the company. At this time I don’t know how that’s going to impact our work group.” And make sure and do Rule 4 – don’t end there. Being honest with them will help them to trust you and to relax somewhat, and will keep the whispered speculation down to a minimum. It also will make it easier for them to include you in their speculation, which will enable you to quash rumors that you know to be untrue before they spread.
But what do you do when you are part of the decision making process, and you know exactly who is going to lose their job, but you’ve been told not to tell anyone yet? You have an ethical obligation to abide by that decision, even if you don’t agree with it. This is what it means to be part of management. However, you still have to communicate with your people – this is your moral obligation. Again, be honest about what you cannot tell them. They are grown-ups and will understand. “We’ve seen the stock market and we all know that it’s hurting us. At this time I cannot tell you how that’s going to impact our work group, but I will share information as soon as I am able to.” They may try to pump you for information one-on-one later, but at least they will be talking with you. Also, make sure you know what you can and cannot tell them. Don’t assume that everything is secret. It will hurt your credibility if they hear that another department was told the cuts will be 10% and you didn’t give them any numbers. Again, pieces of information will fuel the rumor mill, and you will not be included if you hid information that other managers shared.
The third part of being honest is not to make promises that you might not be able to keep. Don’t tell them not to worry if there is any chance that this might impact them in any way, including a co-worker getting cut and everyone having to pick up his portion of the work. For many people, this is something worth worrying about. So if there is any chance that anyone in the group might be cut, reassigned, or just have to do more with less, do NOT tell people not to worry. When the truth is revealed you will lose credibility. Don’t promise people that everything will be OK, because OK means different things to different people. If these cuts are only going to hit Sales, and your Marketing department is safe for now, (and you have been cleared to tell everyone that), then say that and only that. You don’t know what the future holds, and they will remember what you tell them today as binding.
Rule 3: Listen to them. In order for any communication to be effective, it needs to be two way. During tough times it is not enough to talk at your people, don’t focus on giving the company line – that’s only part of what you need to do. Listen and find out what their concerns are, and be sure your response addresses their concerns.
Don’t confuse the corporate “truth” with an individual’s reality. Everyone sees the truth through their own perceptions, and their perception defines reality for them. For example, it’s a truth that the factory burned down. For one person the reality of that is that they will lose their job. For another person reality is that they have unlimited overtime to rebuild the factory. Only by listening can you give your people a message that addresses both the truth of a situation and their individual reality. And when times are hard, that’s what they are looking for from their leader.
Rule 4: Tell them what to do now. This sounds a little odd, but it means don’t leave them at “Yes, the news is bad.” Even if the future is completely out of their control, give them an action plan. Frequently, the best plan is “What we all need to do right now is not let this distract us from our work and do the very best job we possibly can. Then even if they decide to eliminate our entire department (which I doubt), it will be a very hard decision for them to make. We don’t want our work now to make it easy for them to decide that our department is the place to make cuts.” Might this make it seem like you are not in control of the situation? You’re not. The leadership challenge is to be honest and inspiring at the same time. This is what Tom Peters calls the “paradox of the AND”, you need to deliver the bad news and be honest with them and give them hope for the future. This is the leader’s job.
So, sometimes the news is bad, and you don’t know what to tell them, and you want to hide in your office until it’s all over. This is when you need to double or triple your communication efforts. It doesn’t mean that you have to have three times more meetings. Get out of your office and talk to people. Be there, be visible and listen. Hear what their concerns are and communicate as much as you can about those issues. Their concerns might not be the same as yours or what your management thinks they are. Be the leader that your people need you to be.