I happened to catch Treasury Secretary Henry Paulson's news conference to announce the Treasury Department's "recovery" plan on CNN the other day. I was so distracted by his delivery that I barely got the message that he was struggling to deliver. A sadly pathetic performance for a national leader and incredibly poor timing for such a performance on such a critical national, even global, issue. Only President Bush was more ineffective in providing both information and hope.
A lot of leaders (and financial professionals) are faced with the unenviable task of delivering bad news these days. We all know the bad news is coming--it is not going to be surprise to most of us. What we want from our leaders though, is hope and reassurance, and some indication that they have a larger perspective than we do and are working on a solution, even it they don't have one right now.
Television is a tough medium to master, and I am sympathetic to people with a range of public speaking challenges and skill deficits combined with the wide-spread fear of speaking in public who are thrust into the glare of the spotlight. These situations must give them nightmares. Nonetheless, there are concrete things that leaders can do that will convey that message of hope and reassurance without denying the challenges that must be faced.
First, whether in a meeting in a conference room or in a press conference, good leaders make eye contact with their audience. That means looking at the people in the room while you talk or into the TV camera--NOT reading a press release. Since most people judge credibility by the speaker's ability to maintain good eye contact, the failure to make eye contact undermines the message from the start. So either make good eye contact, so send someone who can.
Second, just talk. Have two or three points to make, on a note card, if necessary, and talk about them. If you are afraid of saying something stupid, then practice as much as necessary to reach a level of confidence. Save the details for the written press release, we all can read.
Third, focus on the factors that you can control and have a plan. While we would like to know who is to blame and how they might be punished, in truth, that won't help us much. So tell us about what you can actually do to get us all out of this mess, if you can, or if you can't, what we can do to make it better.
All the research on successful coping is summarized by the rule of the 3 C's--control, challenge, and commitment. That is, focus on the things you can actually control and control them. Second, intentionally see the crisis as a challenge to be overcome, and work to meet that challenge. Third, maintain your commitments to the things in your life that you value--faith, family, community, charity--and continue to keep those commitments as the foundation for living through the crisis.
Fourth, once you deliver the bad news, give the audience a chance to ask questions. Listen carefully to make sure that they heard your message. People under stress tend to distort what they hear, so expect miscommunication and correct those mis-perceptions as you answer the questions. Keep your answers, brief, clear, and direct--this is NOT like a Presidential debate where you can revert to "talking points" instead of answering a question. Be willing to say "I don't know, but I will find out and get back to you", then do it.
Finally, provide an honest, hopeful summary. No matter how challenging the crisis may be, nearly all problems can be solved and most challenges can be met. Markets are cyclical, disasters are short-lived, crises are resolved. Remind us of the big picture and of our ability to overcome--it is what we need from our leaders. Lead.
