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8e

COMMUNICATING IN BUSINESS

Chapter 8Writing Bad-News Messages

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Bad-News Messages

Examples Planning

Replying Announcing

Copyright © 2013 Cengage Learning

Examples Planning

Replying Announcing

Bad-News Messages

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Examples | Planning | Replying | Announcing

High Stakes in Communicating Bad News

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.

Link to the full story on the blog.

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Bad-News Messages

Examples Planning

Replying Announcing

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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

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Examples | Planning | Replying | Announcing

What Is the Best Medium for the Message?

Canceling a contract with a long-time

supplier

Email

Phone Call

Letter

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Examples | Planning | Replying | Announcing

What Is the Best Medium for the Message?

Canceling a contract with a long-time

supplier

Email

Phone Call

Letter

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Examples | Planning | Replying | Announcing

What Is the Best Medium for the Message?

Canceling a contract with a long-time

supplier

Email

Phone Call

Letter

Firinga new

employee who works across the

country

Email

In-Person

Visit

Phone Call

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Examples | Planning | Replying | Announcing

What Is the Best Medium for the Message?

Canceling a contract with a long-time

supplier

Email

Phone Call

Letter

Firinga new

employee who works across the

country

Email

In-Person

Visit

Phone Call

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Examples | Planning | Replying | Announcing

Planning a Bad-News Message

Organizing to Suit Your Audience

Justifying Your Decision

Giving the Bad News

Closing on a Pleasant Note

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Examples | Planning | Replying | Announcing

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

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How to Use the Direct Plan

Present a brief rationale along

with the bad news

Follow with explanations

End with a friendly closing

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How to Use the Indirect Plan

What are the four elements of a bad-news message that uses the indirect plan?

a. Bad news, apology, explanation, and close

b. Buffer, apology, bad news, and explanation

c. Buffer, explanation, bad news, and close

d. Bad news, alternative, apology, and close

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Examples | Planning | Replying | Announcing

How to Use the Indirect Plan

What are the four elements of a bad-news message that uses the indirect plan?

a. Bad news, apology, explanation, and close

b. Buffer, apology, bad news, and explanation

c. Buffer, explanation, bad news, and close

d. Bad news, alternative, apology, and close

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Examples | Planning | Replying | Announcing

Opening Buffer Statements

Neutral

Relevant

Supportive

Interesting

Short

What is the goal of a buffer statement in a bad-news message?

a. To establish or strengthen the reader-writer relationship

b. To apologize for the bad news

c. To summarize the bad news

d. To hint at the bad news

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Examples | Planning | Replying | Announcing

Opening Buffer Statements

Neutral

Relevant

Supportive

Interesting

Short

What is the goal of a buffer statement in a bad-news message?

a. To establish or strengthen the reader-writer relationship

b. To apologize for the bad news

c. To summarize the bad news

d. To hint at the bad news

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Examples | Planning | Replying | Announcing

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

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Examples | Planning | Replying | Announcing

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

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Examples | Planning | Replying | Announcing

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

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Bad-News Messages

Examples Planning

Replying Announcing

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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?

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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

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“United Breaks Guitars”

Watch Dave Carroll’s first video.

Watch the CNN news story.

Read the Harvard Business case

.

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Bad-News Messages

Examples Planning

Replying Announcing

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Examples | Planning | Replying | Announcing

Bad News about Normal Operations

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Examples | Planning | Replying | Announcing

Yahoo!’s Layoff Plan

Look at the PPT slides

What is your reaction to Yahoo!’s PowerPoint slides for managers?

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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.

Link to the full story on the blog.

Copyright © 2013 Cengage Learning

Additional Video Suggestions

Video Example

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Examples | Planning | Replying | Announcing

“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?

Video Example

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Examples | Planning | Replying | Announcing

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?