Preparing Bad-News Messages BCOM Chapter 07 Chapter 7 Lecture Slides Preparing Bad-News Messages

Learning Objective 1 Explain the steps in the inductive approach and understand its use for specific situations. 1

Channel Choice for Bad News: How to Show Tact BCOM Chapter 07 Channel Choice for Bad News: How to Show Tact Electronic messages are more honest and accurate and cause less discomfort for sender and sometimes receiver. Personal delivery says message is important, shows empathy for recipient, and is rich in nonverbal cues and feedback. 1

All managers must know how to deliver bad news with grace and tact. BCOM Chapter 07 All managers must know how to deliver bad news with grace and tact. Whenever possible, offer alternatives to “no” and always convey bad news with sensitivity and empathy. 1

Indirect Outline Used in Bad-News Messages OPENING: Begins with neutral ideas that leads to refusal or bad news BODY: - Presents facts, analysis, and reasons for refusal or bad news - States bad news using positive tone and de-emphasis techniques - Included counterproposal or “silver lining” CLOSING: Closes with idea that shifts focus away from refusal or bad news and indicates continuing relationship with receiver 1

Advantages of the Inductive Outline BCOM Chapter 07 Advantages of the Inductive Outline Identifies the subject of the letter without first turning off the reader Presents the reasons before the refusal, increasing understanding and acceptance Avoids a negative reaction because the refusal does not come as a shock Closes on a neutral or pleasant note 1

Exceptions to Using the Inductive Approach for Bad News BCOM Chapter 07 Exceptions to Using the Inductive Approach for Bad News Message is a second refusal to a repeated request An insignificant matter is involved The request is ridiculous, unethical, or illegal The writer wants to “shake” the receiver The relationship is so close that human relations can be taken for granted The sender wants to demonstrate authority 1

Learning Objective 2 Discuss strategies for developing the five components of a bad-news message. 2

Developing the First Paragraph BCOM Chapter 07 Developing the First Paragraph Begin with a buffer to cushion the bad news Avoid empty acknowledgments of the obvious Avoid tipping off the bad news too early Avoid starting too positively to build false hopes 2

Effective Openings for Bad-News Message BCOM Chapter 07 Compliment Gratitude Point of agreement Good news A review Resale 2

Guidelines for Writing the Reasons Section BCOM Chapter 07 Guidelines for Writing the Reasons Section Provide a smooth transition from the opening paragraph Include a concise discussion that is logical to reader Show reader benefits and and considerations Avoid using company policy as reason 2

Writing the Bad-News Statement BCOM Chapter 07 Writing the Bad-News Statement Position the bad news strategically Use passive voice, general terms, and abstract nouns Use positive language to accentuate anything good Imply the refusal, but only if receiver can still understand message 2

Offering an Alternative: A Way to Keep communication Lines Open BCOM Chapter 07 Offering an Alternative: A Way to Keep communication Lines Open A highway detour requires more time and may be less desirable, but drivers will reach their destinations. 2

Offering a Counterproposal or a “Silver Lining” BCOM Chapter 07 Offering a Counterproposal or a “Silver Lining” Counterproposal (tangible or intangible): States what you can do or offer OR “Silver” lining Provides a thought that turns the discussion to a positive direction 2

Techniques for Closing Positively BCOM Chapter 07 Techniques for Closing Positively De-emphasize the negative Unify the message Include positive, forward-looking idea Reference pleasant idea from discussion Use resale or sales promotion Express willingness to help in another way 2

Learning Objective 3 Prepare messages refusing requests and claims. 3

Types of Bad-News Messages Refusal of a request or favor Denial of a claim Denial of credit Message of constructive criticism Bad-news 3

When Refusing Requests: State what was done Avoid saying what was not done Use passive voice Include a positive idea Place bad news in a dependent clause of a complex sentence

Learning Objective 4 Prepare messages handling problems with customers’ orders and denying credit. 4

Guidelines for Communicating Bad News Cushion bad news with sincere compliment or suggestion. Transition to reasons and provide complete explanation for refusal. Restate reason for saying “No” to de-emphasize refusal. Include logical alternative and close with positive thought. 4

Formatting Guidelines for Communicating Bad News Use a correct document format Ensure that the document is appropriately positioned Include standard document parts Include special parts if necessary Ensure keyboarding, spelling grammar and punctuation are perfect

Include Resale Material in Credit Refusals Key Points Credit applicants may prefer your brand and be willing to buy it on a cash basis Suggests that the writer is trying to be helpful Makes the writing easier—negative thoughts are easier to de-emphasize when cushioned with resale material and when you seem confident of future cash purchases. Can confirm the credit applicant’s judgment. (Suggesting the applicant made a good choice of merchandise is an indirect compliment.) 4

Legal Implications of Credit Refusal Fair Credit Practices Equal Credit Opportunity Act (ECOA) Fair Credit Reporting Act http://www.privacyrights.org/fs/fs6-crdt.htm Avoiding Litigation: Invite applicant to call or come in to discuss reasons Provide credit reporting agency’s information

Learning Objective 5 Prepare messages providing constructive criticism and negative organizational news. 5

Constructive Criticism Though difficult, one person’s effort to communicate ideas for improvement can benefit many others’ experiences.

Preparing Constructive Criticism BCOM Chapter 07 Preparing Constructive Criticism Give the communicator a feeling of having exercised responsibility Allow management to learn of changes that need to be made Allow staff to modify techniques and become more successful Help staff perform better responsibility changes successful future 5 5

Communicating Negative Organizational News BCOM Chapter 07 Communicating Negative Organizational News Convey the bad news as soon as possible Give a complete, rational explanation Show empathy and respond to feelings Follow up Shred Immediately 5