1. Chapter 8 Writing Bad-News Messages
There are videos embedded in the PowerPoint slides that are available at

2. Bad-News Messages
Examples
Planning
Replying
Announcing

3. Bad-News Messages
Examples
Planning
Replying
Announcing

4. High Stakes in Communicating Bad News
Link to the full story on the blog.
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.
Search bizcominthenews.com for more about the UBS situation and internal s.

5. Bad-News Messages
Examples
Planning
Replying
Announcing

6. 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

7. What Is the Best Medium for the Message?
Canceling a contract with a long-time supplier
Letter
Phone Call

8. What Is the Best Medium for the Message?
Canceling a contract with a long-time supplier
Letter
Phone Call

9. What Is the Best Medium for the Message?
Canceling a contract with a long-time supplier
Firing a new employee who works across the country
Letter
Phone Call
Phone Call
In-Person Visit

10. What Is the Best Medium for the Message?
Canceling a contract with a long-time supplier
Firing a new employee who works across the country
Letter
Phone Call
Phone Call
In-Person Visit

11. Planning a Bad-News Message
Organizing to Suit Your Audience
Justifying Your Decision
Giving the Bad News
Closing on a Pleasant Note

12. 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

13. How to Use the Direct Plan
Present a brief rationale along with the bad news
Follow with explanations
End with a friendly closing

14. How to Use the Indirect Plan
What are the four elements of a bad-news message that uses the indirect plan?
Bad news, apology, explanation, and close
Buffer, apology, bad news, and explanation
Buffer, explanation, bad news, and close
Bad news, alternative, apology, and close

15. How to Use the Indirect Plan
What are the four elements of a bad-news message that uses the indirect plan?
Bad news, apology, explanation, and close
Buffer, apology, bad news, and explanation
Buffer, explanation, bad news, and close
Bad news, alternative, apology, and close

16. Opening Buffer Statements
Neutral
Relevant
Supportive
Interesting
Short
What is the goal of a buffer statement in a bad-news message?
To establish or strengthen the reader-writer relationship
To apologize for the bad news
To summarize the bad news
To hint at the bad news

17. Opening Buffer Statements
Neutral
Relevant
Supportive
Interesting
Short
What is the goal of a buffer statement in a bad-news message?
To establish or strengthen the reader-writer relationship
To apologize for the bad news
To summarize the bad news
To hint at the bad news

18. 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

19. 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

20. 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

21. Bad-News Messages
Examples
Planning
Replying
Announcing

22. 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?

23. 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

24. “United Breaks Guitars”
Watch the CNN news story.
Watch Dave Carroll’s first video.
Read the Harvard Business case.
Here are links about this situation:
Dave Carroll’s video:
CNN news story:
HBS case:

25. Bad-News Messages
Examples
Planning
Replying
Announcing

26. Bad News about Normal Operations

27. What is your reaction to Yahoo!’s PowerPoint slides for managers?
Yahoo!’s Layoff Plan
Look at the PPT slides
What is your reaction to Yahoo!’s PowerPoint slides for managers?

28. Link to the full story on the blog.
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.
Search for “Bank of America” on bizcominthenews.com, or consider a more recent news story for Chapter 8.

29. Additional Video Suggestions

30. “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?

31. 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?
You’ll find two clips on bizcominthenews.com under Videos for Chapter 8.