Tuesday, June 17, 2008

Communicating Strategically

It is essentially important that an organization connects its strategy with its communication. Communication should be a part of the strategy, and this considered, an effective organization strategy is to be set up. The organization strategy should include three subsets; firstly, to determine the objectives for a particular communication; secondly, to decide what resources are available for achieving those objectives; and thirdly, to diagnose the organization’s reputation.
By determining the objectives, it is important to determine what result the organization desires, what does the organization want each constituency to do as a result of the communication. The resources that are to be dedicated for achieving those objectives are not solely monetary. Human Resources are also an important factor in determining the success or failure of those objectives. And time, consuming both human and monetary resources, is a very important factor as well.
In addition to the allocation of resources, the company has to diagnose the organization’s reputation. Reputation needs a long time to establish and is based on the constituencies’ perceptions. The organization should therefore try to interact with the constituencies and release news and publish advertisement that helps enhancing the organization’s reputation. Sometimes the reputation can be damaged by external factors that are in the scope of the organization’s action. Especially in such times, where a crisis may occur, it is important for organizations to have a good reputation.
A part of the strategy is to analyze the constituencies by determining who they are, what they think about the organization, and what each knows about the communication in question. Constituencies usually consist of all stakeholders and in some cases even the general public is included. Constituencies comprise of various sets of people, and these people interact with one another. Sometimes a company has to communicate to certain constituencies through other constituencies.
Furthermore constituencies may have competing interests and perceptions about an organization. So, it is to be determined, what the constituency’s attitude is toward the organization. If the organization finds out what the constituencies think, it can adjust its communication respectively and implement the adjustments in its strategy. Those adjustments should also consider what a certain constituency knows about a topic. If the messages communicated are beyond knowledge of the constituency, the communication is likely to fail.
With this knowledge, the organization should now decide how it wants to communicate, by choosing a communication channel, and by structuring the message itself appropriately. Finally, the constituencies’ responses are to be analyzed. Did the constituencies respond to the messages the way it was desired by the organization? If not the organization should consider to revise the message in light of the constituencies’ responses; in this case the whole cycle starts over again.

Examples:
A good example of good corporate communication is Johnson & Johnson during its crisis in 1982, when poisoned Tylenol capsules killed seven people. Johnson & Johnson recalled 31 million bottles of Tylenol. The company set up a communication strategy during this crisis, pursuing an open door policy communicating frequently and honestly with the public. Johnson and Johnson showed big social responsibility and displayed that the people’s well-being is more important than any money. Johnson & Johnson could not only avoid losing its reputation, with a good communication strategy it took advantage of the situation and even improved its reputation. After the crisis Johnson & Johnson launched the same product with the same name again, and sales confirmed that people trusted Johnson & Johnson.
Another good example is the case of Coors. Coors has been for decades very reserved in communication or issuing information about the company. The result of this restraint, when Coors was accused of racism and discriminating women and homosexuals, was that its public image collapsed. After Coors changed its communication strategy into an open door policy, the public could have a look inside the company and get convinced that all those accusations were wrongful. Employees as the most important part of the company, communicated in the best manner about Coors. This is a good example of how important it is that not only the communications department is doing a good job, but all the employees.

References:
Argenti, Paul A. (2007). Corporate Communication (4th ed.). New York, NY: McGraw Hill, pp. 23-35.

Links:

http://www.biz-community.com/

http://www.watsonwyatt.com/

http://www.cbd.int/cepa/toolkit/html/resources/34/34404DBC-7BBF-48CA-BFCA-1F5A3BBD906D/Section%204%20_final_.pdf

http://www.carlisle.army.mil/DIME/documents/Eder.pdf

No comments: