Maintaining Goodwill in Bad-News Messages

chapter Eight
Maintaining Goodwill in
Bad-News Messages
McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc. All rights reserved.

Overview
 Why Indirect Order for Bad News Messages
 A General Indirect Order Plan
 Adaptations of the General Plan to Specific
Situations
– Refused Requests
– Adjustment Refusals
– Credit Refusals
– Negative Announcements
Bad News Message Usually in Indirect
Order
 Why?
Bad news is received more positively when
preceded by explanation.
But Exceptions Can Be Made
Examples
 When the message will be routinely accepted
 When you know frankness is wanted
 When goodwill not a concern (a rare case)
The General Indirect Plan
 Begin with a strategic buffer

– Words that set up your strategy and
– Acknowledge any preceding messages
 Develop the strategy
 Present the bad news positively
 End with goodwill, specifically adapted.
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.
 The first goal is easy; the second requires tact.
 You must present reasons that will convince.
Indirect Plan for Bad News
The message plan:
Opening  Begin with words that identify the subject, are
neutral, and set up the message.
Body  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.
Closing
A Tactful, Courteous Refusal (1 of 2)
[email protected]
Request for alumni information
Mr. Bragg,
Your study of the progress of State University graduates is most commendable. We
are pleased that you would ask our help in your efforts.
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? We ask only that you protect the confidentially of the
information in the files. We would be pleased to give you working space in the records
center. And we would assure you of the cooperation and assistance of our records
personnel.
As another alternative, may we suggest that you use a part-time student worker who is
already acquainted with our files. From time to time, Ms. Mary Mahoney
A Tactful, Courteous Refusal (2 of 2)
[email protected]
Request for alumni information
has worked in our records center. And we would assure you of the cooperation and
assistance of our records personnel.
As another alternative, may we suggest that you use a part-time student worker who is
already acquainted with our file system. From time to time, Ms. Mary Mahoney has
worked in our file center. We estimate that she could do your work in about five weeks,
working her customary twenty hours a week. The cost would be about $900. If you
prefer this arrangement, we would be pleased to contact her for you.
We expect that these suggestions will help you in completing your project. We look
forward to reading the results in the Alumni Bulletin.
Terry
Preliminary Considerations in Writing
Adjustment Refusals
 The decision has been made to refuse an
unjustified claim.
 The news is bad.
 The goal is to present the bad news in a
positive way.
 Thus, you must think through the situation to
develop a strategy to explain or justify the
decision.
Brief Review of Procedure for
Adjustment Refusals
The message plan:
Opening  Begin with words that
– are on subject,
– are neutral, and
– set up the message.
Body  Present the strategy that will explain or justify.
 Make it factual and positive.
 Lead systematically to the refusal.
 Then refuse--clearly and positively.
Closing  End with off-subject, friendly words.
An Indirect, Courteous, and Clear
Adjustment Refusal (1 of 2)
[email protected]
Special paneling concern
Mr. Luce,
Certainly we understand the concern expressed in your May 11 letter about getting
just the right material for your new office building. We share this concern with you.
And we are determined to do our part about it.
To see whether we have done our part about your special paneling, we reviewed the
facts of the case. We find that your architect specified a most unusual and distinctive
finish. His specifications were in careful detail, and we followed them to the letter.
Although the finished paneling is genuinely beautiful, it is unique and could not go into
our regular stock. For this reason, we feel that any adjustment in this case must be
between you and your architect. I am confident that you will see the justice in our
decision.
We are grateful for the role we have played in constructing your distinctive building.
An Indirect, Courteous, and Clear
Adjustment Refusal (2 of 2)
[email protected]
Special paneling concern
be between you and your architect. I am confident that you will see the justice in our
decision.
We are grateful for the role we have played in constructing your distinctive building.
We stand ready to meet your future needs to the letter.
Dominic Terrado
Preliminary Considerations in Writing
Credit Refusals
 Refusals of credit are very negative, tending to
reflect on one’s personal qualities.
 They should be handled tactfully
– because it is the friendly way to do it, and
– because it is profitable.
 Begin by developing an explanation.
– If finances are weak--can be fairly direct.
– If morals are weak--should be tactful.
Brief Review of Procedure for
Credit Refusals
The message plan:
Opening  Begin with words that
– are neutral, and
– tie in with document being answered.
– set up the strategy (explanation).
Body  Present the explanation and/or justification.

 As a logical follow-up--refuse tactfully.
– If to a bad moral risk, may be by implication.
– If to one with weak finances,
• should refuse positively, and
• look hopefully to the future.
Closing  Close with goodwill words that fit the one case and
are friendly and forward-looking.
Tact in a Credit Refusal (1 of 3)
Opening
Dear Ms. Herrera:
Your March 29 order and accompanying request
for credit were genuinely appreciated. We are
Click to view
full letter at
especially grateful for your pleasant frankness in
once. presenting your request for credit. The
statements, trade references, and explanations
were most helpful.
Body
In checking over them, we find that you have an
unusually heavy burden of invoices to pay within
the next few months. As we see it, burdening
you with more bills to pay at this time simply
would not make good business sense. Thus, we
can sell to you only for cash now. By buying for
cash and taking advantage of the cash discount,
you would be taking a sound step toward
improving the financial health of your business.
Just as soon as your situation is improved, we
shall open your account.
Closing
We look forward to receiving your check for
$730.69 ($745.60 less the $14.91 discount).
When we get it, we’ll rush your merchandise to
you.
Sincerely,
Susan Yassine
Susan Yassine
Refusal Strategy Adapted to Another
Situation – Refusal of a Discount
Jason Mertz
Payment on Invoice C2008
Mr. Mertz:
Thank you for your check for $945.07 on Invoice C 2008.
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 ten days of billing. As Invoice C2008 is now 45 days
past this date, we are crediting your account with $945.07, leaving an unpaid balance
of $29.23. I am confident you will understand.
Working with you and your excellent organization, Mr. Mertz, is always a pleasure. We
look forward to serving you again real soon.
Ray Rojas
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.
– Thus, they follow the strategies previously
reviewed.
Typical Indirect Strategy for Negative
Announcements
The message plan:
Opening  Start with a buffer that sets up an
explanation of the bad news.
Body  Present the justification.
 Cover the bad news positively but
clearly.
 Help resolve any problem the bad news
creates.
Closing  End with appropriate goodwill.
Direct Negative Announcements
 Sometimes justified
– if news is expected
– when news is insignificant
– when news may have positive possibilities
“ To speak kindly does not hurt the
tongue.”
--Unknown

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chapter Eight

McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc. All rights reserved.

 Begin with a strategic buffer

Request for alumni information

In reviewing the requirements of your project, we find that it would be necessary to

Request for alumni information

Special paneling concern

Special paneling concern

Body  Present the explanation and/or justification.

• look hopefully to the future.

Payment on Invoice C2008

 They are the presentations of bad news to

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