MANAGEMENT TIPS

DELIVER BAD EARNINGS NEWS WITHOUT MAKING IT WORSE

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 available to provide context. Pair accountability with a plan. Be clear about what went wrong, then explain what you’re doing in response. Whenever possible, include specific actions, owners, or timelines. Cut the sales pitch. Include evidence that helps people assess the path forward, but leave out promotional material that feels phony. In a difficult moment, a focused message is more credible than a falsely optimistic one.  Excerpt from Harvard Business review on Management  Ref: Noble Leader's initiative network