Communicating Unhappy News

As more and more companies must make the difficult decision to reduce staff and send people packing, I’ve had many leaders come to me and ask for advice on what to tell people when they ask questions. When people suspect a lay off is pending, they shift into constant anxiety.

Yet too many top leaders, for their own reasons, insist on “keeping mum” as the official management policy. And it’s the leaders who are frustrated with that policy who come to me and ask, ‘what should I do?’

I usually tell them, “you may be asking the wrong person!” I’ve gotten myself in trouble on numerous occasions for sharing information with my team that was not “supposed” to be shared. Of course, on the flip side, I’ve generally had great trusting relationships with my teams, whether I was running a 12-person financial unit or a 100-member service team. So it’s a balancing game: please the boss and support secrecy, or improve loyalty and retention of team members. It’s not been a difficult choice for me, ever… but just so you know.

By now I’m sure you’ve guessed my counsel to those managers. Here’s my philosophy: In the absence of news, people will make up their own. Do you want them to believe the rumors or the truth? I also passionately believe that people prefer to hear difficult news directly from their manager. When you are sharing the bad news as well as the good news, people trust you more and won’t be looking for hidden agendas.

Plus, I happen to subscribe to the ‘they are all adults’ story… and they are not stupid or blind, so pretending nothing is happening is simply not a smart option.

Bruce Hennes is a local Crisis Communications expert — he goes in to help companies when big things blow up.  While his work is generally around embarrassment and scandal, I love how his tips for great crisis communication work for many common issues, as well.  Bruce’s coaching around any sort of bad news is to NEVER, EVER try to keep it secret — it will only blow up on you. So his top three rules are:

1. Tell the Truth (they are going to discover it, anyway!)
2. Be the First (let them hear it from you, not from others)
3. Tell it all (share what is known)*

*About #3: don’t wait till you have all the facts. Tell what you do know — and what you don’t know. And if you’re sharing opinion or conjecture, make it clear that it’s just your opinion/guess. That way if reality pans out differently, people will still trust you.

Bruce says that the more YOU talk about an issue (following the above), the faster it goes away.  But once the rumor mill (or the media) have it, they will make up anything that’s missing, and sometimes the story they create is much worse than the Truth!

Over the past month I ‘ve coached leaders at two companies thru this very process.  At one organization they had to eventually lay off 20% of their workforce, but the process was going to take two weeks to fully develop. I urged them to keep sharing everything that was firmly decided as it was decided (rather than waiting till the last minute as people were being sent home), and everyone — those laid off and those who survived — felt much better about the process. Sad? Yes. Betrayed? No.

For many who work in organizations today, the news is grim and the conversations difficult.  How can you keep from falling into depression?

Here’s how: Pay attention to how you’re carrying yourself. You and your coworkers/team may not be able to control the business, but you can always control you, how you respond, etc. You can still be an optimist. Some things are falling apart, yes, AND some things are still working. What you give the most attention to will determine your ability to function and lead through it all.

In happiness, J

Happiness and the Stock Market

There’s been very little happiness in the financial world.  In order to keep from slipping into the black hole of depression about our financial situation, I’ve withdrawn a bit.  Do I really need to know what is happening in the market on an hour to hour basis?  No.  Day to day?  Hmm.  One day it’s down 700 points (sadness) and the next day it is up 600 (yay!). Up, down; up, down. So much drama!

I’m only reading news about the market once a week.  I can’t control anything, so I’ve stopped pretending that I can.  I’m observing the activity from a distance.  And I focus on what Good News I can create:

• I’m happy that last year our broker convinced us to diversify our retirement savings, reducing our mix of domestic stocks.  We’ve still lost value, but a lot less than we might have otherwise.
• I’m happy that we converted half my 401(k) into a life insurance annuity.  We were nervous at the time about locking in the money for ten years, but were convinced to make the shift because the tradeoff was a guaranteed minimum balance.  With the market tanking we are now grateful for the lower floor on our dollars — we may not be making any money on that part, but we aren’t losing any, either.
• I’m happy that we are more than ten years away from retirement.  Ten years is a long time for things to recover.  And if they don’t recover, ten years is a long time to come up with a Plan B.
• I’m actually happy that the turmoil is causing everyone to look at “how the system works.”  We are pretty creative as a society, but we tend not to change things that aren’t broken.  The beauty of this crisis is that all the best creative minds are rising to the occasion and asking, “how can we change the system so that this never happens again?!”  Even if they don’t create the perfect solution, what shakes out of this crisis is likely to be better than what was.
• On that note, it’s actually kind of cool to be present at the birth/rebirth of something this big.  (and yes, I am an incurable optimist who believes that crisis can be a good thing)

So, what’s your take on the financial crisis?  Are you focusing only on the worst possible news?  Are you monitoring the market more than you ever did before?  STOP!  You ignored things before, and they went up and down, and you were fine.  Unless you are planning to retire this year, you’re probably going to be in better shape by then, so who cares what the value of your retirement plan is today?

Put down the statement.  Back away from your computer.  Take a deep breath.  Pay attention to the basics you should have been practicing all along:  live your life with joy, don’t buy what you can’t afford, save something out of every paycheck, eat healthy food, exercise your body, breathe deeply when you find yourself stressed.

Oh — did you notice that I mentioned breathing two times in the same paragraph?  Intentional.  Breathing always helps.  The financial crisis will not kill anyone — but the stress of it might.  Don’t make yourself a victim.