Delivering Bad News Successfully in Stakeholders' Eyes
The smarter, higher-probability approach to connecting well with stakeholders
It develops: news that people won't like hearing, for a variety of reasons, whether their emotional reaction is reasonable or not. How a leader and organization goes about communicating it plays a significant role in how it is experienced and judged.
The question is the “how” for maintaining or restoring trust in the relationship and objective.
The Follow Up email newsletter recently addressed it.
“No one likes being the bearer of bad news.
And a lot of people try to avoid it...
But no matter how hard you try, at some point in your career, you’ll have to deliver bad news.
It's never fun.”
The writer of the article suggested setting expectations (really) early and not keeping potentially upsetting facts secret.
“Think of it like a first date. You wouldn't wait until the wedding day to mention you have 17 cats and live with your parents. Same goes for business,” the writer stated. “Be upfront about delays or roadblocks, price increase possibilities and things that could go ‘wrong.’”
“Former FBI negotiator Chris Voss has a rule: deliver bad news exactly 1 second after you say you have bad news,” TFU wrote. “‘Sarah, I need to share some news about the project timeline that you won't be happy about. We're looking at a 2-month delay due to supply chain issues.’ Rip the Band-Aid off as soon as you can.”
Being transparent gets pushback from some leaders yet TFU wrote that talking yourself into avoiding it is an unwise mindset and practice.
“Sugarcoating bad news is like putting sprinkles on a burnt cake. It's still burnt,” the writer communicated. “When you have bad news, you need to share it in it’s entirety. Give them the full story, clear reasons why (it happened), next steps or solutions and a timeline for resolution.”
It’s additionally going to be helpful, even if it’s not your fault, to extend sincere, believable understanding.
“Instead of, ‘Sorry about that!’ try "‘I understand this puts you in a difficult position. Here's what we're doing to fix it...’” TFU advised.
Being upfront, with character and professionalism, provides you with higher odds of mitigating damages.
“Bad news doesn't destroy relationships,” TFU said. “How you handle it does. Some of the strongest business relationships are built on how well you handle tough situations, not just the good times.”
“It's never easy, but what you do with this information and how it's communicated makes the biggest difference in maintaining credibility and preserving those relationships that you value,” said Nneka Etoniru, the executive vice president of global brand strategy and a crisis communications and reputation management expert, especially with fintech clients, at Avenue Z.
“The most important steps are stating the issue, acknowledging the impact it's having and expressing a commitment to ensuring a resolution.”
There can be different thought processes about how to move forward yet there are common threads.
“The overarching goal is always trust and stability but the way you get there varies,” asserts Natalie Le, founder at Ormi Media, a boutique digital marketing agency.
“When breaking bad news to a client, they need assurance and a plan. Their primary concern goes beyond what went wrong; whether they can trust you to fix it.”
She mentions what not to believe is acceptable and end up doing instead.
“The worst approach is delivering bad news without a solution,” Le warns. “The conversation needs to center on why it happened, what’s already in motion to fix it and what they can expect next. The language should be decisive and forward-focused so they feel they’re in good hands, not left in damage control mode alone.”
If the bad news is internal to the organization, taking into account the humanity of your people is important.
“They need to feel heard before they hear the next steps,” Le advises. “If it’s addressing performance issues or company-wide challenges, the conversation should give them clarity on what’s happening but also show that you recognize their position in it and that they’re supported.”
“Trust disappears immediately after you choose to hide information or put a rosy twist on it,” says Marin Cristian-Ovidiu, the CEO at OnlineGames.io.
“Openness requires a straightforward explanation. It is important to recognize the emotional impact (as well), which requires avoiding its minimization.
“Describe future plans by offering actions that will happen or show current progress on solutions. In follow-ups, consistency and presence count. After the announcement, you should not become invisible. Stay available for communication while listening twice as much as you speak and perform all promised follow-ups.”
Proving that you are understanding of the impact of the situation and are ever-present to help them successfully respond, stands out.
“Once bad news has been acknowledged, the real proof that you understand and are in it together comes from the action plan,” Le says.
“Words alone don’t maintain trust. You need decisive follow-through. People need to see that you have a clear path forward. A problem without a plan feels like a crisis. A problem with a structured next step feels like a challenge that can be managed.
“A strong action plan restores control. Bad news creates instability and people instinctively look for something to hold on to,” Le adds.
Perspective taking is the act of communicating to someone that you too can feel what they are going through in a difficult time. It is a helpful communication interaction.
“You need to put yourself in their shoes,” Etoniru says. “Do this by actively listening, sharing relatable experiences and demonstrating commitment with real-life examples and proof in data to back it up. Clearly outline the support measures being put in place and consistently ask for feedback to show you value their perspective.”
It’s going to shine more brightly if you are willing to engage in the difficult moments.
“Addressing tough questions, listening and realigning resources to support staff,” Cristian-Ovidiu says.
“People remember if you were in the room when the chips were down. If they see you taking the hit with them, bearing some of the weight, rebalancing budgets, making concessions, they’ll believe you when you tell them, ‘we’re in this together.”
There is greater influence over how stakeholders will respond to bad news than may be believed.
“People’s reactions depend on how the news is delivered: tone, honesty and accountability are key,” Etoniru says. “That is why it’s so important to communicate with empathy and transparency and provide a clear plan forward. Showing a commitment to resolution helps maintain trust and encourages positive responses.”
The connection component is vital and is has to be built into a strong foundation before challenging times occur.
“The way bad news is received is influenced by the quality of the relationship that existed prior to the delivery of that bad news,” Le says.
“If you have a history of transparency, honesty and have built trust then the news will be far better received than if you have avoided or deflected issues in the past.”
Of course, the “how” in the present remains important.
“The delivery itself still matters,” Le adds, “but it’s working within the framework of what already exists. A leader who has always been upfront can deliver tough news and it will be better received. This is why good relationships in business are a top priority.”
Cristian-Ovidiu agrees.
“What determines the response is how much relational equity you’ve already built in the bank,” he says. “If your folks already know you as someone who listens, does the right thing, and speaks with integrity, they’ll extend you grace even when the news is bad.
The converse is also true.
“If communication is only reserved for when there’s a problem or if folks are shocked, the response will be defensive or disengaged,” Cristian-Ovidiu says.
“Long-term trust is a byproduct of consistency in the everyday. Bad news doesn’t have to kill that. It can strengthen it, if done with honesty, empathy and accountability.”
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