MANAGEMENT TIPS
DELIVER BAD EARNINGS NEWS WITHOUT MAKING IT W ORSE When results start moving in the wrong direction, your instinct may be to wait until you have every number, answer, and talking point in place. But delay creates uncertainty, and uncertainty invites people to assume the worst. As a leader, you need to communicate before speculation takes over, without getting ahead of the facts. The way you frame the message can shape what happens next. Speak up early. Share the news as soon as the facts are clear enough to support it. Avoid releasing negative information in stages, which can make people brace for more surprises. Define the size of the problem. State the shortfall against your previous estimates in concrete terms. If you leave the magnitude unclear, others will fill in the gap themselves. Don’t leave room for speculation. Anticipate and answer any obvious questions; explain what the setback means, set reasonable boundaries around its consequences, and make senior leadership ava...
