Tag Archives: #hardtimes

Bad News Everyone

You can’t lead wearing rose-colored glasses.

That means talking about bad along with the good.

We live in world of crisis. And whether people are looking globally, or just locally, they would need to be six feet under not to have noticed.

Here are a few examples, in case you’ve been traveling off-planet recently.

  •        The Russian economy has been in a deep and painful recession for the last 18 months. Our national economy is down 6% second quarter 2016 compared to 2015.
  •        Dozens of tech companies are laying off.
  •       Official unemployment stands at 4.9, but the government numbers are notoriously low, since it only counts those actively looking (millions have given up).

Bad news, be it internal, regarding products and process, or external, with regards to your markets or the general macro-economic trends, will happen. Period.

But many leaders don’t like receiving bad news, which is really stupid.

Start with internal bad news.

According to Darrell Bracken, C.E.O. of Logitech, “The most dangerous thing is to be sitting in an office and nobody’s telling you what’s wrong.”

If you don’t know what’s wrong it can’t be fixed.

GoodNewsEveryone

OpenTable’s CEO Christa Quarles, whose team was wasting time trying to make everything perfect before showing her, passionately believes news should be “early, often, ugly,” which allows for faster course correction.

But that only works if your company culture is built on the precept that the messenger won’t be killed, which is also the basis for innovation, especially if it disrupts anything.

Avoiding external bad news is even stupider.

Why?

First, because companies put enormous effort put into hiring the smartest people possible, so expecting them to be dumb and not notice the economy or how the company is doing is downright idiotic.

Second, because what you don’t address will give rise to rumors that are far worse than the actual news — particularly when it comes to layoffs.

This is also the time when age plays against many founders, because they have little-to-no experience communicating any kind of bad news.

good news1

While there are dozens of approaches to communicating bad news, a good place to start is with Miki’s six basic steps.

Finally, the one sure thing about bad news — you can’t make it go away by ignoring it.

But you can make it worse.