You can't do good. Paradox in communication is something well known if you're quoted on the stockmarket. If you do react to rumors, a company might be forced to reveal more than they initially want to - unvalidated quarter results, strategic decisions still under discussion, etc - putting the stock price even more at risk. On the other hand, if you don't react, rumors may spiral out of control - also putting the stock price at risk.
It is no different as a manager. Nicely squeezed between your management and your team, the same paradox of communication applies. The stakes here are obviously not stock price, but the amount left on the credibility account you hold as a manager with your team and supervisors.
Today was such a day of paradox as part of a reorganisation plan had to be communicated. And I can't say I was nicely suprised with the maturity levels within my team. But of course, you can't say that. And stock tumbled down.
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