Fresh off of the last podcast on reporting status to the client, we thought we would delve in a little deeper with the concept of reporting bad news to the client.  There are definitely some dos and don’ts involved with this delicate situation and we will explain it from several vantage points.

What are some of aspects of breaking bad news that needs to be considered that are different from simply reporting status?

You want to reveal bad news the earlier the better.  I’ve heard of people who wait until a planned meeting like a weekly status meeting with the client management.
Then they drop a bomb like the project is going to be delayed. Not only did you hold onto critical information.  But you also surprised them in a status meeting.
I think that’s the second biggest rule is no surprises.  When you spring that on them in the status meeting, perhaps with other executives or other employees present, they have to react to this news in front of them.
I’ve never met an executive that liked being surprised in an environment like that.  So I would recommend that if you’re going to report any type of bad news like a project delay, you give all of the executives involved some heads up so they can be prepared for it and perhaps even have a response for it in the meeting.
One other consideration for giving bad news to a client is diplomacy. When you tell them, you definitely don’t want to sugar coat it, but you want to make sure you present it in a non accusative way.  Especially if the bad news was caused by one of their team members.
You need to be careful to give them information on the situation and how you recommend going forward.  Whether it was caused by someone from your own firm or a client employee, the focus should be on moving forward rather than passing blame.
The goal is not to throw someone under the bus.

Sometimes bad news can’t help but be a surprise.  How do you deal with those sudden situations?

Well it’s true that anytime you give an executive bad news, it may surprise them.  On the topic of not surprising them in a meeting, even if you hear something right before a big meeting, I would try to either head the executive off before hand to warn them, even if it’s a hallway conversation prior to the meeting.
You also should be able to give an executive a heads up through your risk analysis.  If there is a chance of something going wrong, you should have a risk open for it and have some idea how you’ll deal with it through your risk mitigation plans.
But you can’t think of everything that could possibly go wrong.  That’s one reason that I recommend reviewing possible risks on a regular basis.  You can think of a lot of risks early on at the beginning of the project.  But if you consider risks regularly, you’re more apt to think of additional things that may cause problems.
Then you can increase your chances of being able to give a client executive the heads up of the possibility of something going wrong.
Outside of that, I think the key is not to surprise an executive in a meeting.  Find them alone and hopefully in a situation where you have time to discuss the issue so that you’re not rushed.  It’s also best to approach them with some possible alternatives for how to correct the situation.
That shows that you’re not just running to them with problems, but also have thought of some solutions.  Even if they don’t take the solution options, it shows you’ve thought about it and some of your ideas may give them an idea for something they will like.
The advantage of giving them the heads up prior to the status meeting, is that when you do report it in the status meeting to the larger group, you can potentially have the resolution to present to them at the same time.  The executive will be on board with it.  It makes you look better and it makes the executive look better.

What’s the worse bad news you’ve had to report and how did you deal with it