Tip Sheet: Bad News, Sans Lumps

By Mark Daly

As the old adage goes: Bad news travels fast. The worse the news is, the faster it seems to spread. There is something positive about bad news, however: It has bite, spreading

quickly and widely, offering a swift and powerful communications tool for practicing PR folks.

When PR practitioners have the undesirable job of communicating unfavorable news, it's time for them to incorporate alternative tactics aimed at mitigating the negative impact

while taking full advantage of the newsworthiness - or bite - of the news.

As some of us know from either watching major corporations topple to the ground in recent years or from your own experiences, there's just no room for lying. Besides, it's

unethical, and our profession already struggles with a reputation for unethical behavior. Spinning bad news is one possible way to handle bad news, though this tactic has a

negative reputation as well for a reason. Spinning - or creatively presenting - negative news is often unsuccessful, regularly coming across as biased to most savvy readers,

further damaging the company's reputation for integrity.

Good corporate governance cannot be ignored either. In fact, it's the law (i.e. the Sarbanes-Oxley Act of 2002). If you spin the news, people will generally see through the

deception and feel that they're being manipulated. Also, if you spin in the wrong kind of way (e.g. about financials) there's also a risk of shareholder lawsuits if you make

forward-looking statements that deviate from what actually happens in the future. A safe harbor statement - always a good idea at the end of a press release - is not a bulletproof

safety net for spinning financial news.

Creatively presenting the facts isn't always bad, but any hint of insincerity or untruth, and regaining stakeholder trust may be the least of your worries.

The Right Stuff

A better tactic for handling unavoidable negative news is to accept the bad news for what it is and report it plainly. The key is not to fret the negative and avoid putting

undue weight on it. Consider it sunk news, meaning it's already happened and can't be undone; the news will get out one way or another, and the public will interpret it as they

will.

The tactic for harnessing the power of the bad news, then, is to balance the negativity by embedding positive messages within the negative news release or positioning the

company favorably on industry issues that may or may not relate to the negative news. This tactic of piggy-backing positive with negative will give legs to the favorable news as

the negative news spreads. After all, the nature of language and journalism is not one of singular article tone, but dynamic tone.

For example, consider a nigh-released SEC 10-Q report is sitting on your desk, for which you're about to start writing a press release. The numbers look bad, but there's still

a glimmer of hope: At least the information hasn't been released to the public yet, giving you a modicum of control over its initial release. Before starting, consider the news

and the messages you are trying to communicate.

When you start writing, don't let them see any news until they've read a key message first. Here's an example:

For Immediate Release: June 30, 2006. Chicago. Bacons Inc., one of the world's most extensive media intelligence and information services companies, had horrible

things happen today ... Then immediately follow up the negative with a response to the bad news. Highlight the positive. Maybe, for example, the overall numbers were bad,

but there was a small success in one of the business units; mention it. Positive quotes from top company brass often can mitigate bad news, and are regularly picked up as sound-

bites in the media.

The key is to make sure they're saying something positive. Many companies make the mistake of releasing negative quotes from their own executives. (e.g. "This should have never

happened.") Don't make this mistake.

Also, don't forget to paste the company's boilerplate description - which should be laden with positive messages - right into the end of the press release. In many instances,

this section is never even clipped from the release before it's distributed (especially over the Internet or via syndicated news services), and is an excellent vehicle for message

communication and image definition.

When the bad news strikes and reporters call, someone needs to answer the phone. Saying "No comment" no longer seems to convey the neutrality it once did. Be ready if you can,

and say something, say anything; don't just let the bad news happen. Be proactive, nip it in the bud and use its bite to increase the reach of your positive positioning.

Eventually, the bad news will fade to neutrality or disappear, and then what will they remember?

Contact: Mark Daly is a PR analyst for the Delahaye division of Bacons, Inc. He can be reached at [email protected].