Saturday, July 31, 2004
Management: How do you deliver bad news?
Another Longhorn delay? Word has been leaking out about another possible slip in the schedule for the release of the next version of Windows, codenamed Longhorn.
A major OS beta can take 18 months or more. With Longhorn as complex as it is, this beta could be a long one. If the beta slips to the last half of 2005 or later, the next version of Windows may not be released till 2007, 2008, or even 2009.
If true, what does another delay in the Longhorn schedule mean to Microsoft's channel? Is their channel prepared? What does another Longhorn delay mean to you? What does it mean to Microsoft? How should Microsoft communicate this type of news?
One way to handle bad news is to level with people outside the company as soon as possible, and prepare them to deal with it. Most companies need to work on this kind of transparency. Microsoft has made progress on this front through employee blogging. With bloggers like Robert Scoble a company can mitigate the pain associated with bad news, by delivering it as early and painlessly as possible. We actually found out about this possible new delay through Scoble. What does it mean to you when you get important news directly instead of getting it from second hand sources? Blogging is making a difference at Microsoft.
The Channel Pro has previously noted Scoble's good communication work on several different occaisons. And of course, these things don't work if they don't get support from the top. Communication to the channel should be a strategic opportunity and not an afterthought.
So, what's your plan? How good is your communication?
Bill Weir Channel Ventures
3 comments
Another Longhorn delay? Word has been leaking out about another possible slip in the schedule for the release of the next version of Windows, codenamed Longhorn.
A major OS beta can take 18 months or more. With Longhorn as complex as it is, this beta could be a long one. If the beta slips to the last half of 2005 or later, the next version of Windows may not be released till 2007, 2008, or even 2009.
If true, what does another delay in the Longhorn schedule mean to Microsoft's channel? Is their channel prepared? What does another Longhorn delay mean to you? What does it mean to Microsoft? How should Microsoft communicate this type of news?
One way to handle bad news is to level with people outside the company as soon as possible, and prepare them to deal with it. Most companies need to work on this kind of transparency. Microsoft has made progress on this front through employee blogging. With bloggers like Robert Scoble a company can mitigate the pain associated with bad news, by delivering it as early and painlessly as possible. We actually found out about this possible new delay through Scoble. What does it mean to you when you get important news directly instead of getting it from second hand sources? Blogging is making a difference at Microsoft.
The Channel Pro has previously noted Scoble's good communication work on several different occaisons. And of course, these things don't work if they don't get support from the top. Communication to the channel should be a strategic opportunity and not an afterthought.
So, what's your plan? How good is your communication?
Bill Weir Channel Ventures
3 comments
Comments:
This post asks the question, "How do you deliver bad news?" Our human nature inhibits us from delivering bad news. When we do, we know that we are likely to get a negative reaction and we can be very uncomfortable. We may feel a sense of failure. This concern about giving bad news is even greater when the recipient has the power to take away our income, as a customer does.
This reluctance to give bad news is increased by the thought that if we deliver the bad news early it is easier for the customer to get the goods or services from a competitor. This is a common consideration in situations where products or services have lead times. Here, if we wait to tell someone the order is late, we may commit the customer to us, for the current order at least.
The larger question is, 'How do we perceive our customers, as partners or adversaries?' Many sales people perceive customers as adversaries. The pressure to close the immediate sale can be great. Many organizations put intense pressure on their sales staffs to ‘make the sale’ without equal attention to considering the customer’s needs. This style is more likely in sales environments where the sales person is unlikely to meet the customer again. In this mode delaying giving customers bad news is much more likely. When the customer is an adversary anything that helps close the sale, even if it hurts the customer, is acceptable.
However, if we perceive our customers as partners our approach is entirely different. We approach every sales prospect as a future returning customer. Our focus is to build relationships not close the immediate sale. We want to tell our customers about bad news as soon as humanly possible. Their interests are our interests.
Customers want bad news as soon as possible. This allows them to make adjustments. In business-to-business sales delaying the delivery of bad news can be disastrous. Customers often are coordinating supply from several different sources. The failure of one component to get delivered on time can shut down an entire manufacturing line. This can have far more negative long term consequences than the loss of one sale. It can mean the loss of a customer.
Customers often make commitments to a supplier bigger than the immediate sale. They may build systems around one supplier’s specifications. This locks them in for at least a period of time. Even in this situation, if a supplier is disappointed enough, they may make the costly decision to change their system to another supplier’s specifications.
One last point is the psychological aspect. People are most disturbed when they carry a notion for a long time, build their future plans upon that notion and then have that notion taken away from them. A classic example of this is a marriage. When someone makes a commitment to someone else and that commitment is betrayed, the effects can be devastating. Many people faced with the betrayal of a partner become passionate enemies.
So is your customer relationship a one night stand or a marriage? If it is a marriage then you better work through your problems instead of hiding them if you want the relationship to be a good one and to last. Either way, I think it is better to treat the other person right and be straight with them. The sooner we address the problem, the sooner we can move beyond it and focus on solving it.
This reluctance to give bad news is increased by the thought that if we deliver the bad news early it is easier for the customer to get the goods or services from a competitor. This is a common consideration in situations where products or services have lead times. Here, if we wait to tell someone the order is late, we may commit the customer to us, for the current order at least.
The larger question is, 'How do we perceive our customers, as partners or adversaries?' Many sales people perceive customers as adversaries. The pressure to close the immediate sale can be great. Many organizations put intense pressure on their sales staffs to ‘make the sale’ without equal attention to considering the customer’s needs. This style is more likely in sales environments where the sales person is unlikely to meet the customer again. In this mode delaying giving customers bad news is much more likely. When the customer is an adversary anything that helps close the sale, even if it hurts the customer, is acceptable.
However, if we perceive our customers as partners our approach is entirely different. We approach every sales prospect as a future returning customer. Our focus is to build relationships not close the immediate sale. We want to tell our customers about bad news as soon as humanly possible. Their interests are our interests.
Customers want bad news as soon as possible. This allows them to make adjustments. In business-to-business sales delaying the delivery of bad news can be disastrous. Customers often are coordinating supply from several different sources. The failure of one component to get delivered on time can shut down an entire manufacturing line. This can have far more negative long term consequences than the loss of one sale. It can mean the loss of a customer.
Customers often make commitments to a supplier bigger than the immediate sale. They may build systems around one supplier’s specifications. This locks them in for at least a period of time. Even in this situation, if a supplier is disappointed enough, they may make the costly decision to change their system to another supplier’s specifications.
One last point is the psychological aspect. People are most disturbed when they carry a notion for a long time, build their future plans upon that notion and then have that notion taken away from them. A classic example of this is a marriage. When someone makes a commitment to someone else and that commitment is betrayed, the effects can be devastating. Many people faced with the betrayal of a partner become passionate enemies.
So is your customer relationship a one night stand or a marriage? If it is a marriage then you better work through your problems instead of hiding them if you want the relationship to be a good one and to last. Either way, I think it is better to treat the other person right and be straight with them. The sooner we address the problem, the sooner we can move beyond it and focus on solving it.
Well, something had to give, and in technology management you have three constraints: schedule, features, resources. They are mutually dependent.
Microsoft announced on August 27, 2004, that to improve the release schedule for the next version of Windows, they have cut down the feature list.
But this doesn't mean they can ease off their communication efforts. See the Channel Pro's comments on the channel ramifiactions of this announcement.
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Microsoft announced on August 27, 2004, that to improve the release schedule for the next version of Windows, they have cut down the feature list.
But this doesn't mean they can ease off their communication efforts. See the Channel Pro's comments on the channel ramifiactions of this announcement.
