How to Write a Bad News Business Letter

Sometimes in business you simply cannot avoid writing a letter that has bad news. However, you can try to write the letter in such a way as to maintain a good relationship with the recipient, as well as breaking the bad news in the easiest way. You don’t want to burn any bridges in business, so it really is to your advantage to write an effective bad news letter.

When writing the letter, your objectives should focus on:

1. Minimizing damage to the relationship: Bad , news should not define the relationship.
2. Showing that the decision is fair and reasonable: Imagine yourself in the reader’s shoes, and try to offer the best explanation possible.
3. Stating the bad news clearly and firmly:

• Opening should have a buffer to minimize any damage to the relationship. Use a positive or neutral opening to maintain goodwill.
• Body should include reasons to help the reader see it from your point of view. You want to show that you are being both fair and reasonable. Be clear and firm about the bad news, but also be brief, positive, and low key about it.
• Closing should contain an appropriate gesture of goodwill, and perhaps a potential solution for the reader’s problem.

Bad News Letter Example #1

Dear Bill,
Your invitation for me to act as chairperson for BCCJ’s upcoming Annual Auction Dinner is an honor. I enjoyed serving in that role last year. Your members are an excellent group with great ideas, and it was a privilege to work with them.
This year I am involved in developing a new department here at the clinic that is taking up all my time. As much as I would enjoy working with BCCJ again, I am afraid that I wouldn’t be able to give the duties the attention the project deserves.
Perhaps I may suggest one of my colleagues who would have the time to do the job the way it ought to be done. Give me a call if you are interested, and I will be happy to suggest some names for you. We want the industry to be well represented.
I wish you and the committee great success in achieving this year’s goal.

The letter was straight forward and polite. The writer provided an excellent reason for the refusal of the position, but also left the door open for a future relationship. As well, the writer provided a possible solution at the end.

Bad News Business Letter Example #2

Dear Ms. Hodges,

Thank you for ordering our professional Chinese wok set. You will find that wok-cooked foods are both delicious and quick to fix.
We have sent you an added bonus: 2 extra inches of cooking area, thanks to our supplier’s generosity. This 16-inch wok is more efficient than the advertised 14-inch wok. Now you can create Chinese meals with a professional flair with this package that includes cooking racks, chopsticks, a rice paddle, and a steel turner, in addition to a wok base and lid. To complete your collection, the skewers and cookbook will arrive by April 22.
Remember that Figby’s offers specialized items for all your cooking needs. Please stop by on May 10 for a free demonstration on preparing Japanese sushi. You may also want to take advantage of our special prices on Japanese cookware, which will only be available that week.
Sincerely,
Harry Figby

This bad news letter covers the fact that the wok Ms. Hodges ordered is not available by upgrading it to a better, bigger wok. As well, it is so positive in tone that the reader might not realize that the entire set she ordered hasn’t arrived on time, as two pieces of it will arrive later. This bad news letter did not focus at all on the negative, but delivered its message in a positive way. Harry Figby also extended an opportunity for a future relationship by informing Ms. Hodges of upcoming sales and events.

Examples of Business Letters That Deliver Bad News

 

Bad news is as much a part of business as balance sheets and finding new customers. It is the reality of business: not every transaction will go well. Business relationships run their course. Not everyone can be hired. Delivering bad news is not a pleasant experience, but there are ways to lessen the impact and avoid burning bridges. We have included some bad news business letter examples below.

When delivering bad news to employees or customers, it is important to soften the blow as much as possible. This is one of the few times in business writing when burying the lede is recommended. Most bad news letters consist of three parts, with each part being a paragraph. The first paragraph is used to provide a positive feeling about the letter. The second paragraph presents the bad news. The third paragraph offers any alternatives or solutions that might be available to the reader. We have broken down our bad news business letter examples in the three sections below.

·  First Paragraph

Use the first paragraph to thank the reader. For example, if the reader was a job applicant that was not hired, the first sentence could state:

"Thank you for your application to XYZ. We had many qualified applicants and we gave your application careful consideration. As you are aware, there were only a handful of positions, therefore the hiring decision was that much more difficult."
If the reader is a vendor whose services you will no longer be using, a sentence such as this could be generated:

"We have enjoyed a positive and profitable working relationship between [reader's company name] and XYZ. Over the last ____ years, we have found your company to be a great help in fulfilling our clients’ needs. Your assistance has been invaluable."

For a reader that applied for credit with your company, the first sentence could read:
"Thank you for your recent application for credit with us. We thoroughly reviewed your application and gave it careful consideration."

The key to the first paragraph is to make the reader feel as if their time, service and patronage was appreciated.

·  Second Paragraph

Delivering bad news is akin to removing a Band-Aid. It is better to remove it with one steady motion. At this point, there is no reason to not to get straight to the point. Using the examples from above, the second paragraph could read something like this:

Job applicant: "Although we were impressed with your qualifications and skills, we have chosen a different candidate for the position."

Vendor: "As you are aware, the economic climate is changing, and therefore we are forced to examine our current needs. Although we have enjoyed a successful working relationship in the past, we find that we are no longer in need of your services. This is no reflection of the quality of your goods -- we are simply going in a different direction."

Credit Application: "Unfortunately, we are unable to extend credit to you at this time."
It is best not to explain more than you have to. That approach could be construed as adding insult to injury to the reader.

·  Paragraph Three

Offer any alternative, solutions or suggestions you might have. Again, using the examples above:

Job applicant: "We will keep your application on file for six months and contact you if it is a match for another position. We appreciate your interest in XYZ and wish you well on your job search. Feel free to visit our job board anytime."

Vendor: "We greatly regret the ending of our working relationship. If the current situation changes, we will gladly contact your company in hopes of resuming our use of your services. We wish your company continued success."

Credit Application: If in a few months you would like to reapply for credit, we would welcome the opportunity to review your application. Until then, best wishes."
By giving the reader options, even though the reader is disappointed, it provides something to reach for in the future.


Source:  http://stacienaczelnik.hubpages.com/hub/How-to-Write-a-Bad-News-Business-Letter