Chapter 8 Writing Bad-News Messages There are videos embedded in the PowerPoint slides that are available at www.login.cengage.com.

Bad-News Messages Examples Planning Replying Announcing

Bad-News Messages Examples Planning Replying Announcing

High Stakes in Communicating Bad News Link to the full story on the blog. UBS CEO Memo Following $2.3B Loss: "The buck stops with me" A 31-year-old trader has caused close to $2.3 billion in losses for Swiss bank UBS. Unauthorized, speculative (means guessing) trades over three months apparently went unnoticed until the trader's recent arrest. UBS is expected to be able to take the loss, but authorities are investigating the firm for a possible downgrade. Search bizcominthenews.com for more about the UBS situation and internal emails.

Bad-News Messages Examples Planning Replying Announcing

Goals in Communicating Bad News Make your decision clear Help your audience accept the message Maintain a goodwill relationship Prevent further unnecessary discussion Preserve the company’s image Protect the company against lawsuits

What Is the Best Medium for the Message? Email Canceling a contract with a long-time supplier Letter Phone Call

What Is the Best Medium for the Message? Email Canceling a contract with a long-time supplier Letter Phone Call

What Is the Best Medium for the Message? Email Email Canceling a contract with a long-time supplier Firing a new employee who works across the country Letter Phone Call Phone Call In-Person Visit

What Is the Best Medium for the Message? Email Email Canceling a contract with a long-time supplier Firing a new employee who works across the country Letter Phone Call Phone Call In-Person Visit

Planning a Bad-News Message Organizing to Suit Your Audience Justifying Your Decision Giving the Bad News Closing on a Pleasant Note

Organizational Plans for Bad News When to Use the Direct Plan The bad news is insignificant The reader prefers directness The reader expects a “no” response The writer wants to emphasize the news When to Use the Indirect Plan The reader reports to you or is a customer The reader prefers the indirect plan You don’t know the reader

How to Use the Direct Plan Present a brief rationale along with the bad news Follow with explanations End with a friendly closing

How to Use the Indirect Plan What are the four elements of a bad-news message that uses the indirect plan? Bad news, apology, explanation, and close Buffer, apology, bad news, and explanation Buffer, explanation, bad news, and close Bad news, alternative, apology, and close

How to Use the Indirect Plan What are the four elements of a bad-news message that uses the indirect plan? Bad news, apology, explanation, and close Buffer, apology, bad news, and explanation Buffer, explanation, bad news, and close Bad news, alternative, apology, and close

Opening Buffer Statements Neutral Relevant Supportive Interesting Short What is the goal of a buffer statement in a bad-news message? To establish or strengthen the reader-writer relationship To apologize for the bad news To summarize the bad news To hint at the bad news

Opening Buffer Statements Neutral Relevant Supportive Interesting Short What is the goal of a buffer statement in a bad-news message? To establish or strengthen the reader-writer relationship To apologize for the bad news To summarize the bad news To hint at the bad news

Justifying Your Decision Stress reasons that benefit others State reasons using positive language Explain the rationale for the “company policy” State reasons concisely to avoid impatience Present strongest reasons first

Giving the Bad News Present bad news as a logical outcome State the bad news in positive and impersonal language Do not apologize unless you’re at fault Make the refusal definite

Closing on a Pleasant Note Approaches to Avoid Apologizing Anticipating Problems Inviting Needless Communication Repeating the Bad News Using a Cliché Revealing a Doubt Sounding Selfish Techniques to Use Offering Best Wishes Suggesting a Counterproposal Directing to Other Sources Referring to Sales Promotions

Bad-News Messages Examples Planning Replying Announcing

Rejecting an Idea Think about a time when you presented an idea that was not accepted. How did the person respond? How did you feel?

Refusing a Customer Request Use the indirect plan if the reader is emotionally involved in the situation Use impersonal, neutral language to explain the reasons for the refusal Offer a small compromise to help retain the customer’s goodwill

“United Breaks Guitars” Watch the CNN news story. Watch Dave Carroll’s first video. Read the Harvard Business case. Here are links about this situation: Dave Carroll’s video: http://www.youtube.com/watch?v=5YGc4zOqozo CNN news story: http://www.youtube.com/watch?v=-QDkR-Z-69Y HBS case: http://hbswk.hbs.edu/pdf/item/6492.pdf

Bad-News Messages Examples Planning Replying Announcing

Bad News about Normal Operations

What is your reaction to Yahoo!’s PowerPoint slides for managers? Yahoo!’s Layoff Plan Look at the PPT slides What is your reaction to Yahoo!’s PowerPoint slides for managers?

Link to the full story on the blog. Bank of America Will Cut 30,000 Jobs Bank of America is cutting more jobs. Following the 6,000 jobs lost earlier this year, a $5 million investment by Warren Buffett's Berkshire Hathaway Inc., and a management-team shake-up, the company will lose 30,000 jobs in attempt to scale down the largest bank in the country. CEO Brian Moynihan has some explaining to do. The stock is down 48% this year, and the Bank is still paying for what some believe were poor acquisitions of Merrill Lynch and, particularly, Countrywide. BofA wins the dubious honor of having the largest number of cuts this year. Search for “Bank of America” on bizcominthenews.com, or consider a more recent news story for Chapter 8.

Additional Video Suggestions

“United Breaks Guitars” How did United go wrong in responding to the Dave Carroll? Why do you think his video and story became so popular? What are the implications for other companies? http://www.youtube.com/watch?v=5YGc4zOqozo

Describing Layoffs in Up in the Air What is your reaction to Natalie’s “script” for communicating layoffs? Is this useful, unethical, or something else? What is your reaction to Ryan’s description of their purpose? Is this an effective analogy? You’ll find two clips on bizcominthenews.com under Videos for Chapter 8.