4 Rules For Revealing Bad News In a Crisis

I have counseled CEOs and senior management of companies for many years, and I have seen the struggles some of these individuals have gone through and know the sleepless nights they have suffered when the company is in a crisis.

There are four basic rules to keep in mind when communicating bad news. You or your leader should do so:

▶ Calmly. It will serve no one’s interest if anxiety, nervousness, uncertainty or perspiration shows through. It is important to draw some distinctions, though: Absolute calm will never be achieved and that should not be your aim. If one is too calm in the midst of conveying bad news in a crisis they won’t look fully engaged. They certainly don’t want to come across as bored or blasé. But the other end of the spectrum—mania—is worse. Seek a middle ground.

▶ Honestly. More than ever, tell it like it is. There is little worse than being caught in a lie when you are already conveying bad news. Why would you want to run the risk of compounding the severity of what you are saying with a falsehood?

This is why you don’t go off-script, and the lawyers should certainly be an integral part of the script-review process. However, there are other, often bigger communications issues at stake, such as the company’s reputation.

If something is almost certainly going to come out later, why not take credit for announcing it proactively, rather than reactively?

▶Succinctly. Don’t elaborate unless it is called for, and never speculate. Say what you have to say and leave the stage, unless you are prepared to answer some questions. A Q&A may be appropriate, and the PR staff should draft likely questions and rehearse responses. But if not, shut up. You have done your job; now let others do theirs.

Factually. Make certain that whatever you say is factually true and (if appropriate) provable. Giving wrong information is counterproductive to your goals.

As you convey the bad news, provide data-based statements and give a realistic and honest estimate of the situation. Never be afraid to say, “I don’t know,” provided you quickly add, “But I will do my best to find out and update you.”

Provide a positive statement about progress being made. Example, say you’ve just landed a substantial new contract that will mean sharply increased revenue. This is the news you want to headline in your remarks.

Deliver the bad news. However, the new contract and the jobs it will create won’t kick in until next year, which means another round of layoffs. Empathy and compassion are called for here.

Provide a positive statement and assessment about solutions going forward. But those laid off will be given priority status in the re-hiring process, and when fully geared-up, our projections for growth and expansion for the organization are high.

CONTACT:

Steven Fink is president and CEO of Lexicon Communications, a crisis PR agency, and the author of the just-published “Crisis Communications: The Definitive Guide to Managing the Message” (McGraw-Hill). Read his Crisis Blog at thecrisisblog.tumblr.com.