Managing perceptions: how and what you communicate will form the basis for how others perceive situations, so have a strategic, proactive communication plan for elected officials, staff, and the public.

• Author: Knutson, Kevin
• Position: Management & Careers

While managing fiscal distress, it is important to keep in mind the impact of individual perceptions on the development of policy decisions. How and what you communicate will form the basis for how others perceive the situation. Have a strategic, proactive communication plan for elected officials, staff, and the public. Being careful about how messages are developed, constructed, and distributed makes it possible to shape the discussion toward productive decisions and mutual understanding.

For governments that are in fiscal distress, the first goal of communications is to present an honest and transparent picture that realistically assesses the severity of the situation without inducing undue fear or even panic. Providing information that is specific and detailed, but does not necessarily tie the government to a rigid course of action, helps achieve effective outcomes.

BENEFITS OF EFFECTIVE COMMUNICATION

Effective communication helps build a team-based approach to problem solving that works on credibility and trust, an outcome that helps advance a finance officer's efforts in dealing with fiscal distress. Without credibility and trust, for example, it can be very difficult to negotiate with unions, employees, vendors, taxpayers, and legislative bodies.

Another key benefit of effective communication is avoiding rigid reactions. Clear and honest communication can assist both an organization's leaders and the organization itself to be more open and receptive to different perspectives and solutions.

Creating an effective line of communication helps ensure the accuracy of information being distributed. Both correct information and misinformation can spread like wildfire. Putting the story in perspective or filling in the correct facts can help avoid rumors and misinformation from becoming accepted as reality.

MANAGING EXPECTATIONS

Managing expectations is an integral part of shaping perceptions. Be honest and sincere about what can be achieved--and don't leave out citizens and the governing body. Employees take their cues from leadership's ability to credibly portray reality. For example, employees who are asked for their opinions and suggestions usually respond with creativity and ingenuity, if they believe their suggestions will be heard and valued.

To help manage the perceptions and expectations of constituents--as well as other stakeholders, including employees, oversight boards, investors, ratings agencies--it is useful to provide context...