If You Are Going to Eat Shit Don't Nibble

When you have to deliver bad news—like resetting revenue guidance or announcing layoffs—there is a temptation to soften the blow by being overly optimistic or downplaying the severity of the situation. This is a mistake.

The principle, "If you are going to eat shit, don't nibble," means you must deliver the bad news in its entirety, all at once.

Why "Nibbling" Fails:

It Destroys Credibility: If you lower your forecast by a small amount and then have to lower it again the next quarter, you lose all credibility with investors, your board, and your team. They will never trust your forecasts again.
It Prolongs the Pain: A small dose of bad news followed by another creates a death by a thousand cuts. It fosters an environment of constant anxiety and uncertainty.
It Signals Weakness: It shows that you, as the leader, are not facing the brutal reality of the situation.

The "Eat Shit" Approach:

Take All the Pain at Once: When you reset expectations, reset them to a number you are absolutely confident you can hit. It's better to take a massive, one-time hit to your stock price or morale and then consistently beat the new, lower expectations.
Be Radically Honest: Acknowledge the full extent of the problem. Don't sugarcoat it. Your team can handle bad news; they cannot handle being lied to.
Rebuild from a Realistic Baseline: By taking all the pain at once, you create a new, realistic baseline. This stops the bleeding, ends the uncertainty, and allows you to begin the process of rebuilding trust and momentum.

This is one of the hardest things for a CEO to do, as it requires admitting a significant failure. But it is the only way to preserve the long-term health and credibility of the company.

Tags: #leadership #management #communication #crisis-management #honesty #credibility #hard-things