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Delivering Bad News Positively
Lawrence Oliva, MBA, PMP Project Director, Army
Programs Group Computer Sciences Corp.

• PMI Washington DC Chapter Tools Meeting
• Tysons Corner, VA
• June 21, 2005

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Introduction

• Good news travels fast but bad news travels
  faster
• Delivering bad (unpleasant or negative) news is
  part of every PMs job
• Managing project perceptions is a part of a PMs
  job
• More and more of a project teams activities are
  impacted by external and uncontrollable events
• Communicating bad news in a positive manner
  reduces emotional and personal suffering for the
  Project Manager and project team

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Definition of Bad News

1. Unexpected, adverse changes from expected results
   or routine activities
2. Negative outcomes from corrective action
   activities
3. Unpleasant or disagreeable news that indicates
   personal penalty (money, vacation time, public
   recognition, promotion)
4. Loss of a customer or revenue source that
   provided large revenues and profits

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Current Examples of Bad News

• First Airbus A380 deliveries delayed six months
• Public Support for Social Security changes lower
  than expected
• Defeat of European Union Constitution in
  France/Holland in early June
• High levels of lead in Washington DC drinking
  water for many years
• Federal Government budget for IT equipment and
  services flat in GY2006

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Potential Audiences

• Project Team Members
• Your Manager
• Executive Management
• Customers
• Suppliers
• Investors
• Stakeholders
• News Media

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Preparing the Message For Semi-Bad News

• Key Points
• Could be worse
• Not as bad as it looks
• Recoverable problem, not fatal to business
• We did not cause problem
• Competitors equally affected by problem
• Demand not impacted, just production or delivery

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Preparing the Message For Bad News

• Key Points
• Could be worse
• No one was killed or injured
• Can recover from impact in two or three months
• No one blames the company (external factors)
• Employees still retain spirit of optimism
• Competitors not using problem against us in
  advertising or marketing

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Preparing the Message For Really Bad News

• Key Points
• Lets be blunt its bad
• It will require 110 dedication from everyone to
  recover from the problem
• We need to understand this is a critical threat
  to the business and treat it with respect
• Lets be direct about the scope of the problem
  with our customers, workers and suppliers
• If we cant recover, lets do the right thing for
  customers, workers and investors

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Delivering the Message (1)

1. Be businesslike and professional
2. Present the facts as known
3. Present consequences of the problem
4. Present possible solutions that may mitigate
   major negative impacts
5. Make your recommendation for the best solution
6. Accept direction from exec management or Board of
   Directors
7. Be prepared for emotion, passion and distrust

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Delivering the Message (2)

• As the messenger / sacrificial lamb / project
  leader
• you are in a difficult position
• Executives dont like bad news
• You become the single point of focus for the
  problem
• Your recommendations could cost the company a lot
  of shareholder or investor money
• Your recommended solutions could expose the
  company to a lot of negative media exposure

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Delivering the Message (3)

• Structure Your Presentation
• Current Status
• Root Cause
• Customer Impact
• Company Impact
• Short Term Solutions / Actions
• Long Term Solutions / Actions
• Costs

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Delivering the Message (4)

• Documents To Prepare And Bring
• Source documents about the bad news
• Financial analysis of extra costs and lost
  profits
• Potential technical and management solutions
• Project plans to implement solution (Gantt, PERT)
• Communications plan for clients, employees, stock
  holders, investors, suppliers, consultants
• Approval to proceed document (project charter)

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Example Message Airbus A380 Delay

• Current Status Unexpected production problems
  will cause a six month delay for first Airbus 380
  customer delivery
• Root Cause Extra weight caused by standard
  features such as showers, reclining berth seats,
  circular stairs, etc.
• Customer Impact High, may cause revenue loss and
  increased costs
• Company Impact High, huge loss of credibility
  after successful first flight
• Short Term Solution Work 24x7 to compute
  heaviest items and replace asap communicate and
  work with customers on delay
• Long Term Solution Need to improve computer
  weight calculation capabilities for all items
  assign engineers asap
• Costs Oooh La La! Hold on to your wallet 500
  million
• Next Steps Communicate status accurately, be
  flexible with customers and media attention
  highlight complexity of plane

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Presenting Bad News When It Is Your Fault

• Mea Culpa! Oops! Take the blame
• Dont be a weasel and blame others
• Do try to explain what you were thinking
• Do throw yourself on the mercy of the court, if
  the problem was an innocent mistake
• Do offer to assist in the project recover effort
• Do consider updating your resume ??

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Eight Steps To Preparing Presenting Bad News

1. Know the facts have accurate info
2. Use charts graphs to explain the problem
3. Develop alternatives and solutions
4. Involve workers in solution development process
5. Provide an accurate context of the situation
6. Be brief, but be complete in briefings
7. Accept criticism and direction, if appropriate
8. Be part of the solution, not more bad news

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Keep in Mind

1. Separate people from problems
2. Time is money (fix sooner than later)
3. Experience on difficult projects is valuable for
   obtaining your next job
4. Overkill communication with stakeholders is
   good
5. Every day is a new day
6. Things cant get much busier
7. You can earn PDUs explaining how you got
   yourself out of this situation

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Summary Delivering Bad News Positively

• Be honest but positive
• Be brief and complete
• Make sure the news has accurate context
• Provide positive options, alternatives and
  recommendations
• Dont take adverse reactions personally
• Tomorrow is a new day
• In the old days they used to shoot the
  messengertoday you get the assignment to solve
  the problem

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Delivering Bad News Positively

• Questions and Comments