We often find ourselves having to break bad news. It's a common human reaction to feel afraid to disclose how bad things are. However, if a ship strikes an iceberg, it's a good idea to know if there's a hole below the waterline.
Working from a position of knowledge is the important first step to solving most issues. Adopting a position of denial is a sure recipe for disaster. I often suggest to clients that if they are receiving or giving bad news, to do so without judgment. Keeping focused on solving the problem, and letting go of the need to judge, is the first step on the path to a solution.
The 'why did this happen' comes afterward, if necessary. First plug the leak. You'll find that if you can do that, people around you will admire your control, and follow your leadership.
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