1. 7-1
You can start out by talking about the many different situations in business that require the communicating of negative news. Have your students help you think of some.
McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Overview Why Indirect Order for Bad News Messages
A General Indirect Order Plan
Adaptations of the General Plan to Specific Situations
Refused Requests
Claim Messages
Adjustment Refusals
Negative Announcements
7-2
This slide presents an overview of the chapter.

3. Bad News Message Usually in Indirect Order
Bad news is received more positively when preceded by explanation.
Why?
Bad news can be shocking.
Hearing the (good) reasons first prepares the reader for interpreting the bad news correctly.
7-3
Here is an explanation of why indirect order is usually right for bad news messages. See if students can come up with these on their own before revealing them.

4. But Exceptions Can Be Made
The following cases do not need indirect:
When the message will be routinely accepted
When you know frankness is wanted by reader
When it’s in the reader’s interest to present important bad news right away (e.g. safety warnings)
7-4
Exceptions to indirect order for bad news are listed here. Here, too, you might see if the students can generate these on their own.

5. The General Indirect Plan
Begin with a strategic buffer
Set up the negative news
Present the bad news positively
Offer an alternative solution
End with goodwill, specifically adapted
7-5
This slide presents the general plan for bad-news messages. Note that this plan will next be adapted to specific situations.

6. Brief Review of a Procedure for a Refused Request
Preliminary considerations:
The news is bad.
The reader wants something; you must refuse.
Your goals are:
to say no and
to maintain goodwill.
You must present reasons that will convince.
7-6
These slides summarize the procedure for writing a refused request.

7. Indirect Plan for a Refusal
The message plan:
Opening
Begin with words that identify the subject, are neutral.
Present reasons using positive language and you-viewpoint.
Refuse clearly and positively, embedding where possible to de-emphasize the negative.
Include a counterproposal or compromise when appropriate.
End with an adapted goodwill comment.
Body
7-7
Closing

8. A Tactful, Courteous Refusal (1 of 2)
Request for alumni information
Mr. Ren, Min Bi,
Your project studying the progress of Hong Kong University graduates is most commendable.
In reviewing the requirements of your project, we find that it would be necessary to search through the personnel files of each of our 10,000 employees. As our regular staff is already working at capacity, may we suggest that we make our files available to you or your representatives?
As another alternative, may we suggest that you use a part-time student worker Miss Pataca who is already acquainted with our file system. If you prefer this arrangement, we would be pleased to contact her for you.
7-8
The problem. In this case, the writer must refuse a request made by Mr. Bragg of the State University Alumni Office. Mr. Bragg has asked that the writer’s company cooperate in his study of progress made by State graduates employed by the company. The project is worthwhile. But it would involve looking through 10,000 personnel records and would take more time of its overworked employees than the company is willing or able to give. The company would willingly open its files to Mr. Bragg and his staff. Or it would get one of its part-time student workers to do the job for a nominal charge. With this information in mind, the writer composed the message.
We expect that these suggestions will help you in completing your project. We look forward to reading the results in the Alumni Bulletin.
Green Spam

9. Preliminary Considerations for Writing Claim Messages
You deserve an adjustment.
The fault lies with the reader.
Present your request convincingly without blaming/offending the reader.
7-10
These slides summarize the procedure for writing a claim message.

10. Brief Review of Procedure for Claim Messages (Direct Approach)
The message plan:
Opening
Introduce the problem but do not anger the reader.
Make the account factual, not emotional.
Make clear what kinds of damage or problems were caused.
Lead systematically to the adjustment request.
End with words that leave the door open for future relations with the reader.
Body
Closing
7-11

11. Sample Claim Letter Subject: Error on HKD007 Invoice
Dear Mr. Li, Sien Loong,
In looking over the bill for the services you provided our Association for its November 5-7 conference, I see that we were charged SGD15 per day per room for Internet access.
I’m sure you’ll recall that this fee was to be removed from our bill, as we agreed before the conference and as our contract stated.
Please send an adjusted invoice so that we will be paying the correct amount and our financial records will be accurate.
Thank you again for providing a wonderful venue for our conference. I’m sure it will be a memorable one for all who attended.
7-12
The problem: the Director of an association who recently held a conference at a hotel has been erroneously charged for something. As you go through the message, discuss the strategy used for each part.

12. Preliminary Considerations for Writing Adjustment Refusals
To refuse an unjustified claim.
To present the bad news in a positive way.
7-13
These slides summarize the procedure for writing an adjustment refusal.

13. Brief Review of Procedure for Adjustment Refusals
The message plan:
Opening
Begin with words that are on subject and neutral
Make it factual and positive.
Lead systematically to the refusal.
Then refuse--clearly and positively.
End with off-subject, friendly words.
Body
7-14
Closing

14.
Re: Special paneling return
Ms. Julia Jillard,
Certainly we understand the concern expressed in your May 11 letter about getting just the right paneling for your new office building. That is why we do everything we can to ensure that our clients are pleased with the materials they purchase from us.
In cases where customers have purchased from our regular stock, it is usually a simple matter to allow product returns. In your case, your architect specified a most unusual and distinctive finish. His specifications were very detailed, and we followed them to the letter. Although the finished paneling is genuinely beautiful, it is unique and cannot go into our regular stock. For this reason, we must consider the sale final. At this point, any adjustment in this case must be between you and your architect.
7-15
The problem. In this case, the writer is a manufacturer of paneling. Mr. Luce, through his architect, placed an order for a very unusual paneling. The company made it precisely to specifications. But after seeing the paneling, Mr. Luce decided he did not like it. So he wrote the company asking them to permit him to return the paneling. As the company could not sell such merchandise (it doesn’t fit into their regular stock), it must refuse. Get the students to describe the strategies that the writer uses at each point.
We are grateful that you chose AUD products for your distinctive building. We stand ready to meet your future needs to the letter.
Jengghis Khan

15. Negative Announcements
They are the presentations of bad news to customers or employees.
Generally, they follow the indirect pattern – especially if news is very disappointing.
7-16
Sometimes a company may need to announce bad news internally and externally. Much of the time it is handled indirectly.

16. Typical Indirect Strategy for Negative Announcements
The message plan:
Start with a buffer.
Present the justification.
Cover the bad news positively but clearly.
Help resolve any problem the bad news creates.
End with forward-looking, friendly words.
Opening
Body
7-17
Closing

17. Refusal Strategy Adapted to Another Situation – Refusal of a Discount
Dominik Kahn
Payment on Invoice C2011
Mr. Dominik Kahn:
Thank you for your check for EURO on Invoice C 2011.
Although it is a small matter, I feel that you will want to look over this invoice. Probably you just looked at the wrong column, but you will see that you wrote the check for the amount less the discount. As you know, the discount is allowed only when payment is made within 10 days of billing. As Invoice C2011 is now 45 days past this date, we are crediting your account with $945.07, leaving an unpaid balance of EURO I am confident you will understand.
7-18
The problem. The customer, Mr. Mertz, has mailed the writer a check in payment of the past-due account – and he mistakenly took the two percent discount allowed for early payment. Now the writer must inform Mr. Mertz that the discount is refused – and an unpaid balance remains. The invoice was for $ – the check for $ Of course, the refusal must be courteous. See how well the students think Mr. Rojas succeeded at each stage of this message.
Analysis of the message. The message begins with a thank you for the check – a time-worn but effective beginning in this case. Then it moves smoothly into a courteous yet clear explanation of the facts of the situation. They explanation justifies the refusal. The refusal is clear, yet positive. The ending is goodwill.
Working with you and your excellent organization, Mr. Kahn, is always a pleasure. We look forward to serving you again soon.
Timothi Gaithner

18. USA Training Staff
Smarter Use of Our Travel Money
As you know, USA Training succeeds because of you, our expert staff. Thanks to your efforts and the positive reputation you’ve built for our company,
To ensure our success through this economic slump, we need to minimize expenses while also staying at the top of our game. One item in our budget that I believe we can trim without compromising our competitive edge is our travel expenses. Last year, travel to industry seminars cost USA over USD320,000. These trips enabled us to learn about the latest tools and teaching strategies. On the other hand, spending so much on this budget item takes support away from other functions that are also critical to what we do.
Fortunately, many of the organizations and companies who host the seminars we attend also offer online equivalents. For example, through Train.Com, one can purchase a two-hour webinar on training strategies for USD200, which not only saves all travel expenses but also lets several people participate for one registration fee.
7-19
The problem: A company is spending far too much on travel. The president decides this has to stop and writes the employees to tell them so—in a way that will encourage their cooperation.
Overall, USA is holding steady, even in this challenging economy. I appreciate your efforts to trim expenses where possible while continuing to deliver the kind of training that keeps our clients coming back and recommending us to others.
Jim
7-18

19. Direct Negative Announcements
Sometimes justified
if news is expected
when news is insignificant
when news may have positive possibilities
7-21
But sometimes, it is handled directly. See if your students can come up with examples.