How to write a message delivering Bad News

1. Preparing Bad-News
Messages
Business Communication
Lehman – Dufrene -
Sinha

2. Disadvantages – Advantages –
Deductive Inductive
Approach Approach
O Disregarded before the O Identifies the subject of the
important point is even message
read
O Presents the reason before
the refusal
O Difficult to accept the
supporting explanations O Avoids negative reactions
O De-emphasizes the refusal

3. CHECKLIST
O Opening
O Neutral Statement that logically leads to bad news
O Body
O Presents fact, analysis & reasons for refusal or bad
news
O State bad news using positive tone
O Include a counterproposal or “Silver Lining” idea

4. CHECKLIST
O Closing
O Provide information that sifts focus away from bad
news
O Continuing relationship with the receiver

5. 1 Claim Denial
The HighFly skis you stocked this past season are skillfully crafted and
made from the most innovative materials available. Maintaining a wide
selection of quality skiing products is an excellent strategy for developing
customer loyalty and maximizing your sales
Our refund policies provide you the opportunity to keep a fully stocked
inventory at the lowest possible cost. You receive full refunds for
merchandise returned within 10 days of receipt. For unsold merchandise
returned after the primary selling season, a modest 15% restocking fee is
charged to cover our costs of holding this merchandise until next season.
The enclosed check for Rs. 20,069.76 covers merchandise you returned
at the end of February
While relaxing from another great skiing season, take a look at our new
HighFly skis and other items available in the enclosed catalog for the
2009 season. You can save 10% by ordering premium ski products before
May 10

6. 2
Audited financial statements will improve your ability to negotiate
contract with suppliers, banks, and customers, as well as provide your
stockholders with confidence regarding their investment. For this
reason, the auditor you select must be capable of providing quality audit
services
To eliminate the appearance of a conflict of interest, Rule 101 of the
Audit Council Code of Professional Conduct requires auditors to be
independent of their clients. One of our audit partners, Paresh Rawat, is
a significant stockholder in the First National Bank, which currently has
loaned a large amount of money to your company. Because of this
indirect financial interest, we recommend that you seek another firm to
perform the 2010 financial statement audit
Since the independence rule applies only to audits of financial
statements, we are available to provide other professional services. Our
tax accountants are ready to assist you in finding methods to reduce
your income tax liability. Please call me at 501-555-1245 to discuss these
services

7. Introductory Paragraph -
Objective
O Provide a buffer to cushion the bad news
O Let the receiver know what the message is all about –
without stating the bad news
O Serve as a transition into the discussion

8. Introductory Paragraph
O Avoid empty O Compliment
acknowledgments of the
obvious O Point of Agreement
O Good News
O Avoid signaling the bad
news too early O A Review
O Gratitude
O Avoid starting too positively
so as to build false hopes

9. Example
The HighFly skis you stocked this past season are skillfully
crafted and made from the most innovative materials
available. Maintaining a wide selection of quality skiing
products is an excellent strategy for developing customer
loyalty and maximizing your sales
Audited financial statements will improve your ability to
negotiate contract with suppliers, banks, and customers, as
well as provide your stockholders with confidence regarding
their investment. For this reason, the auditor you select must
be capable of providing quality audit services

10. Presenting the Facts, Analysis
and Reasons
O Provide a smooth transition from the opening paragraph
to the explanation
O Include a concise discussion of one or more reasons that
are logical to the reader
O Show reader benefit and/or consideration
O Avoid using “company policy” as the reason

11. Writing Bad News Statement
O Position the bad-news statement strategically
“Although our current personnel shortages prevents us from
lending you an executive, we do want to support your worthy
project”
O Use Emphasis Techniques

12. Example
Our refund policies provide you the opportunity to keep a
fully stocked inventory at the lowest possible cost. You
receive full refunds for merchandise returned within 10 days
of receipt. For unsold merchandise returned after the
primary selling season, a modest 15% restocking fee is
charged to cover our costs of holding this merchandise until
next season. The enclosed check for Rs. 20,069.76 covers
merchandise you returned at the end of February
To eliminate the appearance of a conflict of interest, Rule 101
of the Audit Council Code of Professional Conduct requires
auditors to be independent of their clients. One of our audit
partners, Paresh Rawat, is a significant stockholder in the
First National Bank, which currently has loaned a large
amount of money to your company. Because of this indirect
financial interest, we recommend that you seek another firm
to perform the 2010 financial statement audit

13. Closing Positively
O De-emphasize the O AVOID Trite statements that
unpleasant part of the may seem too generic or
message impersonal
O Add a unifying quality to O AVOID Statements that
the message could undermine the
validity of your refusal
O Include a positive, forward
– looking idea O AVOID Statements that
encourage future
controversy

14. Example
While relaxing from another great skiing season, take a look
at our new HighFly skis and other items available in the
enclosed catalog for the 2009 season. You can save 10% by
ordering premium ski products before May 10
Since the independence rule applies only to audits of
financial statements, we are available to provide other
professional services. Our tax accountants are ready to assist
you in finding methods to reduce your income tax liability.
Please call me at 501-555-1245 to discuss these services

15. 3 Refusal for a Favor
Dear Jon,
You are to be commended for your commitment to restore Naperville’s
historical downtown shopping district. In this age of megamalls and
internet shopping, the culture of a traditional main street lined up with
home-owned and operated shops needs to be preserved.
The success of this project depends on a good project director. The
organizational, leadership, and public relations activities you described
demand an individual with upper-level managerial experience. During
the last year, Hilstrom has decentralized its organization, reducing the
number of upper-level managers to the minimal level needed.
Although our current personnel shortage prevents us from lending you
an executive, we do want to support your worthy project.
Kumar Dev in our senior executive corps has a keen interest in
historical preservation, having served on the board of a similar
organization while living in New Delhi. If you can benefit from his
service, call him at 555-8700, extension 142

16. 4’ Poor example of a Refusal to an Employee’s Requ
Mallaya Wig, a junior accountant in your firm, has been working with
us for about three weeks, and her conduct is deplorable. Her
demeanor is absolutely unprofessional; her “no-problem” attitude has
generated so much friction that a valued employee refuses to work in
the same room with her.
Although extensive knowledge of auditing is important, Wig’s personal
shortcomings far outweigh der technical expertise. I seriously hope
Wig is able to take steps to correct the situation

17. 4 Good example of a Refusal to an Employee’s Req
Dear Prasad:
Mallaya Wig, a junior accountant in your firm, has been working with
us on site for about three weeks. She is a very proficient auditor and
did an excellent job of straightening out a technical tangle in our
electronic accounting system last week.
Her demeanor, while friendly and open, has caused some of our
employees to complain that she does not take her work seriously. She
jokes with other members of our audit team, which disrupts the
attention of our employees. Two or three of our managers also
commented on Mallaya’s dress – more appropriate for a round of
tennis that a business office.
Mallaya is obviously quite good at her job; I know from conversations
with her that she is sincere and has sound judgment. Please convey my
concerns to Mallaya a confidentially so that the rest of her time in our
office will go more smoothly for her and for us.

18. Exceptions
O Second Response
O Insignificant Matter
O Ridiculous, Unethical, Illegal or
Dangerous
O Satisfactory human relations can be taken
for granted
O Sender wants to demonstrated authority