by Hal Lillywhite

Created on: September 04, 2007

What's worse than giving stakeholders bad news about a project? Having those stakeholders hear about via the rumor mill before you tell them. Or having them surprised by some problem they think you should have told them about. Either generates mistrust and even more problems. Resist the temptation to hide the bad news and hope you can fix it before someone finds out about it.

There are several things you should be careful of when you have problems:

1. Don't hide it or sugar-coat it. Give it to the stakeholders straight from the shoulder. Tell them exactly what has happened and the likely consequences as far as you are able. If there are unknowns, tell them that as well.

2. Try to work out a plan for dealing with the problem, but don't delay the news unduly for that purpose. If it's an internal project try to give serious bad news within an hour of learning it, or within two hours at most. If it is an external project, stakeholders may not be quite so in tune with your rumor mill so you might have a day to do this. Stakeholders will want to know what you are going to do about it, but sometimes you have to tell them the bad news before you can work out a plan. If such is the case, simply tell them that you don't know yet but that you are working on it. If possible, give them an honest estimate of when you will be able to provide the plan.

3. Identify as best you can what caused the problem, not to cast blame but to help solve it and to prevent such problems in the future.

4. Get all the inputs you reasonably can on how to fix the problem, don't get tunnel vision. Remember that anybody associated with the project (and others besides) might have the critical idea that will help you get back on track. Have an open mind.

I am reminded of a story told by Ron LeFleur who taught project management classes. He was managing a project for the navy in the Seattle area. All went well until they needed a tug boat. Unfortunately there was a major maritime event underway and tugboats could not be had for love nor money. He was honest with the naval officers and listened to lots of ideas. Finally he arranged for a friend who owned a yacht to bring it into the naval harbor. Of course that was strictly against regulations. He specified that the yacht come in dead slow and told the officer in charge that something to provide the tow would be there at a certain time.

Well, the time arrived and he was standing beside the officer when the yacht entered. The officer kept repeating, "You can't do this. You can't do this." Finally the yacht reached the dock, hooked up and performed the tow, then left. After it was over the officer said, "You shouldn't have done that."

Ron replied, "Why didn't you order me to stop?"

The response was, "I was afraid you would obey."

Mr. LeFleur was honest and gave the bad news as soon as he heard it. He listened to others and found a way to solve the problem. He went outside normal methods. The naval officer in turn knew he could not approve the unorthodox method but he knew it was the only way so he allowed it to happen.

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