Negative Messages as Strategic Communication: A Case Study of a New Zealand Company's Annual Executive Letter

Abstract

We argue here that being negative can, in certain contexts, make strategic sense. Making extensive reference to context, we analyze a single annual executive letter written by the director of a small New Zealand business. The letter appears to focus on problems. These problems are, however, relatively minor ones that had either already been solved or were in the process of resolution when the letter was written. These problems appear to serve three functions: to distract attention from more serious issues, to undermine the credibility of potential challengers, and to provide a context in which the writer can present himself and the other company directors positively as problem solvers. The writer's immediate objective appears to have been achieved: The business of the annual general meeting was conducted in eleven minutes, and each resolution was carried without amendment. The status quo was maintained. Focusing on negatives may, however, have proved to be a high-risk strategy in the longer term. Recent communications from the director to stockholders reveal that he is having difficulty in sustaining at least one of the positions he adopted in his executive letter.