Page 54 - The Voice of Authority

down the chain, or laterally in an organization. With the
two-minute warning, you have a chance to mitigate the
damage. With no warning, the consequences can be severe.

Frame Negative News Positively
When You Can Do So Honestly

“Inside every cloud there’s a silver lining” became a cliché
for good reason. However, its truth should not be tossed
aside without due consideration in bad-news situations. If
your team sees the glass as half empty, you have every
right—even obligation—to help them see it as half full.
Instead of hiding the complete details, provide them in
such a compelling way that you gain buy-in for your ac-
tion plan. Case in point from a seasoned CEO who an-
nounced a salary freeze to his ailing organization in the
high-tech industry shortly after he took the helm: After
crunching the numbers, he became increasingly aware that
his predecessor had approved annual raises and bonuses at
the expense of capital improvements, research and devel-
opment, and marketing efforts. As a result, the competi-
tion had outstripped them, and they lagged far behind in
the industry. Armed with industry charts of compensation
studies, competitor pricing, R&D budgeting for prior
years, capital budgets and projects put on hold, he laid out
the facts to his employees. Then he summed up this way:
“In almost all job classifications, according to industry
averages, you’re overpaid. The good news: We’re not go-
ing to lower your salary. The bad news: We’ll not be giv-
ing any more cost-of-living raises for the next three years.
Any bonuses will be based on performance and contribu-
tion. We can’t afford to do otherwise or none of us will
have jobs five years from now. Take a look at the facts.
Punch holes in the information I’ve given you if you can.

42 The Voice of Authority