Crisis communication: Explaining budget cuts to staff and stakeholders

1671962-poster-buggin-out-1So it looks like the American government will not be cutting back support to HIV/AIDS programmes in this country. In fact the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR) — which funds 70 per cent of Kenya’s HIV programmes — recently pledged to boost diagnostic facilities in ten counties. Great news given we have the 4th highest HIV infection rate in the world.

Still, it was a near miss with catastrophe. With insecurity still a problem in parts of the country, we’re bound to hear more grant-makers and donors talking about a “shift in priorities” and “budget re-alignments”. Already there have been reports of a significant scaling down of operations by the UN and USAID with staff being reassigned outside Kenya.

As we consider and implement cost-saving measures, and explore alternative funding, we should also be thinking about how we can communicate our financial difficulties to staff, stakeholders and the public without creating panic and/or erasing years of trust and good work.

Strong communication skills are essential in most situations but are especially critical in times of crisis. In fact an NGO leader’s (in)ability to articulate the challenges presented by a difficult situation could make or break the organization.

Of course, you could do the “easy” thing and let the rumour mills or the media deliver the news about your programme closures or budget cuts or layoffs or (insert bad news here). But that would take away any control you might have had in shaping the reception by your stakeholders. Since you’re a proactive, forward-thinking leader, your focus is on minimizing damage and protecting your mission.

bad-newsBelow are a few points to keep in mind when communicating difficult news to key stakeholders.

Honesty really is the best policy

Whether you’re communicating with staff, donors, or stakeholders, it’s important that you’re open and transparent. People are often satisfied with less information if they trust that the news is grounded in fact and can see that it has been communicated objectively.

Don’t point fingers

In sticky situations one often finds themselves caught in a blame-game. However, both you and your audience will find that it’s less exhausting when you’re focusing your energies on problem-solving rather than fault-finding.

Exhaust the silver-lining

In the movies they ask if you want the good news first or the bad news. I think it’s a good idea to cushion the bad news with something more positive. If there really isn’t anything positive to say (which is rare), then start off by briefly laying out the context. Launching straight into the bad news could alter the mood of your audience so profoundly that it prevents discussion of solutions or the way forward.

Melt-downs aren’t pretty

Financial challenges can be very stressful especially when you’re looking at significant job losses. Even so, it’s important to communicate in a way that doesn’t cause panic or raise doubts about you/ your team. Be aware of your own emotional state before and during the meeting. Also consider the language you use to convey the news. Think of the impact your words and demeanour are having on your audience.

In short, think about how you can minimize panic or loss of confidence, while calmly delivering a message that is factual, objective and solution-oriented.

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