Internal Communication

Part I: Definition and the Changing

Environment
Part II: Organizing Internal Comm Efforts
Part III: Implementation
Part IV: Management’s Role in Internal
Comm

Report by: Bryce Caluag-Oliveros

 Report Objectives
1. Review Corporate Communication Concepts learned so far.
2. Define the Importance of the subject
3. Discuss the Importance of Internal Communication in depth
to enrich the audience with the knowledge that will
contribute to the skills required to be an excellent
communicator.
– Internal Communications and the Changing Environment
– Organizing Internal Communication Effort
– Implementing an Effective Internal communications Program
– Management’s Role in Internal Communications
• Set specific and simple application of skills.
 Internal Communication & the
Changing Environment
In this Section:

3. Define what internal communication

4. Define and explain what a company
culture is.
5. Elaborate and discuss how the
environment changed and it has evolved.
6. Application
 What is Internal Communication?
• It is the transfer of information via
channels such as: memos, intranet,
publication or broadcasts, etc.

• An in-depth definition is creating corporate

culture that drives organizational change.
 What is Corporate Culture?
• As defined on BNET.com a management resource
center:

The combined beliefs, values, ethics, procedures,

and atmosphere of an organization. The culture of
an organization is often expressed as "the way we
do things around here" and consists of largely
unspoken values, norms, and behaviors that
become the natural way of doing things. An
organization's culture may be more apparent to an
external observer than an internal practitioner.
 Internal Communication Today
• Today’s employees are well educated, have higher
expectations of what they will get out of their careers
• We are in the information era where data and
information are a click away.
• According to one of the articles I have read, Gen Y
people seem to be job hoping not due to fickle
mindedness but according to recent human resource
behavior researches, today’s generation is more
passionate and the lack thereof encourage them look
for a job where they feel they belong where if ignited
spurs a very passionate and productive talent to keep.
 Internal Communication Today
• The increasingly complex and highly competitive
nature of today’s business environment puts
greater pressure on employees and also calls for
a more concerted effort in the area of internal
communications.
• Today’s employees increasingly are demanding
participation in the conversations that re driving
organizational change. This participation if vital
to keeping employees at all levels of the
organization
• Communication must be a two-way process.
 Survey Says!!!
According to Survey by TNS:
• 40% workers feel disconnected from their
employers;
• 2 out of every 3 do not identify with or
feel motivated on company Goals
• 25% “showing up to collect a
paycheck”
 Internal Communication Today
• If managers provided information to employees
and also listen to them, where such action are
key to building a strong connection with the
employees thus, good morale increases
productivity and drives the organization to its
vision, mission and goals.
• To focus and strengthen communication efforts,
the challenge is to ensure the sincerity of the
communication they are receiving through the
manager’s ability to engage employees in vision
and mission.
 Engage or not Engage at all…
• Same goes with a company you try to
engage with some and they yes, and
some, would say no, so the next question
is “pare, what would I do for you to
marry me?” same as communicate to the
employees, “this is the case, how can WE
MAKE IT WORK FOR A COMMON
GOAL?”
 So What is Internal
Communication?

• Strong internal communications –

productivity – will thus continue fostering
increased workforce loyalty and to play
a pivotal role in a company’s employee
retention and over all success.
 ORGANIZING INTERNAL
COMMUNICATION EFFORT

Part II: Organizing Internal Comm Efforts

Report by: Bryce Caluag-Oliveros
 How Do We Organize a Program?
In this Section:

3. Recap definition of Internal

Communication and the Changing
Environment
4. Demonstrate the next step to organize
and/or start and Internal Communication
Effort
5. Describe the business function
 How Do We Organize a
Program?
• The first step to organizing an Internal
Communication Effort is through a
Communication audit.

• Another way to assess the effectiveness

of a company’s internal communication
efforts is by determining what employees’
attitudes are about the firm
 Effective Internal Communications

What is the Goal?

– The main goal to reinforce employees’ beliefs

that they are important assets to the firm
 Understanding the Business Function
• In the past, Internal Communication was
handled by the Human Resource Department
(HR), although the business function crosses
over to Corporate Communication department.
• Some companies perceive it more beneficial to
delegate the internal communication to the
Corporate Communication department to create
continuity between both general and HR-
related communication strategy and execution.
• Large, multidivisional firms on the other hand
have a representative in every department or
division that reports to the Chief of Staff.
 Understanding the Business Function
• In some companies they outsource all communication
tasks to experts
• The internal communication strategy must work closely
in conjunction with external communications to integrate
the messages disseminated to both internal and external
audiences.
• “David Verbraska, corporate communication general
manager at Pfizer explains: “Employees wear many hats
– they’re stockholders, recruiters, customers and
memers of the community… Management must
understand that the internal audience could be even
more important to a company than external for all the
right business reasons, andthere are consequences in
not aligning the areas”
 How To Suceed with Employees
1. Open and honest exchanges of information
2. Clear, easy-to-understand materials
3. Timely distributions.
4. Trusted Sources
5. Two-way feedback systems
6. Clear demonstrations of senior leadership’s
interest in employees
7. Continual improvements in communication
8. Consistent messaging across sources
IMPLEMENTING AN EFECTIVE
INTERNAL COMMUNICATIONS
PROGRAM

Part III
Report by: Bryce Caluag-Oliveros
 Implementing an Internal
Communication Program?
In this Section:

3. Recap of the changing environment that

affects internal communication and how to
organize efforts to strengthen communication
efforts with in the company and its connection
to external communication
4. After making a communication audit that
identifies the strengths and weaknesses of the
communication effort, discuss the next steps to
implementing an EFFECTIVE internal
communication program.
 Channels of Internal
Communication
• Personal one-on-one through counseling,
coaching, team meetings
• Programs that use technology like email
blasting
• Intranet
• Office Activities
Communicating Up and Down
What is the Importance of Communicating from
UP to Down?
• When high-level managers isolate themselves
physically and psychologically from other
employees, effective communication cannot
happen therefore there is need to communicate
from ‘up and down
• Communicating up to down is opening
communication lines from senior management
down to the front-liners of the firm which are key
driving force that leads a firm to success and
lower employee turnover
 What does survey and studies
say?
Nationwide survey of over 5,000 employees in U.S.
shows the following data:

• Greatest criticism employees have of companies is that

they do not encourage upward as well as downward
communications
• Less than half (45%) of employees think senior leaders
opens and/or creates a two-way communication line
• Less than half (49%) of employees say there are existing
communication systems to raise questions and issues
with senior leaders.
 Best approaches and examples
of Two-Way Communication
• The best approach to communicating with
employees is through informal discussions
between employees and supervisors
• Employees need to feel secure enough in their
positions to ask question and offer advice with
out fear or reprisals from top management.
• The kind of open communication and care for
employees as a hallmark of his leadership style
(Continental Airlines) CEO Gordon Bethune has
been credited for a significant improvement in
employees morale and overall corporate culture
at Continental
 Best approaches and examples
of Two-Way Communication
• Jet Blue has a low annualized employee
turnover rate of between 10-12 percent
compared to the industry average of
approximately 20 to 24 percent.
• Conversations with management promote
feeling that employees themselves are serving
as catalysts for organizational change
• Respecting employees as well as listening and
interacting with them form the basis for an
effective internal communication program.
 Making time for Face-to-Face
Meetings
Why is it important?

• When Colgate-Palmolive Mennen deodorant plant in Morristown

was handled by Rob Frazier one of the problems involved “no
communication going on” where one of the consequences was loss
of $10 million a day and morale was at an all-time low.

The Solution: Rob Frazier met with employees by ten to understand

their challenges (communication audit) then this was followed by
morning “check-ins” where in those short meetings they talked
about how the previous day was, also a chance to find problems,
raise questions and solve problems.
– The Effect: Employees went back to work ready to contribute to
the plant’s success.
– Cost: 15 minutes of Frazier.
 Communicating Online
• The technology of company intranets in the late
90’s provided a new channel through which
companies could reach their employees quickly
and broadly with important news on events and
key management initiatives.
• The intranets also serve as interactive
platforms where employees can rally together
and share their views on company programs and
activities that contribute to building trust.
 The IBM Case
• Since IBM serve clients in 170 countries, the firm created
the “JAM” technology which enables the employees to
log in and input real-time comments in a discussion
forum that tracks thousands of discrete conversational
threads during a companywide “Jam” Event.
– CEO Sam Palmisano followed a six-month review of IBM’s
management organization with the topic on IBM’s culture and
how those values would drive innovation and industry leadership
going forward.
– After the detailed analysis Palmisano announced IBM’s new set
of corporate values, essentially written by the employees
themselves through the ideas expressed via the jam.
• EFFECT: Employees where hungry for the new values
that they authored: in the 10 days following the
announcement of the new values, more than 200,000
people downloaded the document on the intranet
Maximizing Intranet and the Effective Mix
of Communication Channels
• The new digital technology that brought about the
internet, while extremely powerful, must be used
thoughtfully if it is to enhance communication rather than
detract the impact of management’s messages.
• A strategic approach is required to mix different
communication channels based on the communication
audit.
• Companies need to invest a considerable amount of
thought to make sure that their messages are getting
through to employees and information is easy to find to
always ensure high productivity.
Maximizing Intranet and the Effective Mix
of Communication Channels
• An effective internal communication strategy
should focus on both content and channel,
recognizing that use of multiple channels offers
the best potential for success.
• While video and online communication channels
are often expedient and engaging, they should
not be used as a substitute for personal, face-
to-face communication between all levels of
management and employees.
 Create Employee-Oriented
Publications
What is it and Why is it important?

• Another communication channel is the print

medium. This is a channel that can be used for
employees with no email access.
• A point of consideration for company is to
ensure that the company publication provides
materials that will be able to communicate with
the employees and make them feel that they are
part of the firm’s success
 What is it and Why is it
important?
• Like any other publication, a strong
communication is required that is creative
enough to get the attention of the audience who
are sophisticated consumers.
• Other print materials are produced in lieu to
important events, and/or subsequent thereof
• The tone of publications also should be realistic
as many employees will see through and distrust
anything that seems more like a propaganda
than a genuine communication.
 Back to Pfizer Case
• When Frazier took over the Mennen plant
where no internal communication was
present, he took over the newsletter and
soon posted the “12 Characteristics of an
Excellent Manufacturing Operation where
the no. four entry was on excellent
communication.
 Communicate Visually
What is it about and Why is it important?

• Communicating a message that will bring about

pride, motivation and relevant information can
be done effectively through different channels
and one of them is through the use of visuals
considering that employees are becoming more
visually oriented
• There is a higher probability of recall when
communicating a message is done using the
sense hearing and visuals which stimulate the
brain’s retention
 Let the creativity Flow
• With the technology today, big companies
have studios that produce that is made
available “Video Magazines” employees.
• Web casts from the head quarters are
also ways to commune a message.
• Visual communication need not to be
high-tech. It is a question of what will
work for the firm and the target
audience.
 Cases Cases Cases
• Jet blue holds meetings on the last Friday of each
month, when the president spends two hours discussing
industry happenings and hosting a live Q&A session.
While 200 employees attend in person, the other
thousand can access the video via the intranet.
• Citigroup hosts the longest-standing quarterly employee
broadcast—reviewing financial performance, other key
company initiatives and accomplishment.
• Colgate-Palmolive’s Mennen plant uses a whiteboard
that reveals details about breakdowns, production goals,
sick leaves, birthdays, vacation schedules, etc. also a
visual measure of success and a source of motivation
and pride using a race car scale. It is an inexpensive,
easy to implement yet, it works for the firm.
 Focus on Internal Branding
What is it?

• From the marketing word ‘branding’ It is

creating a brand that has a recall
• A web definition from
businessdictionary.com is: Branding aims
to establish a significant and differentiated
presence in the market that attracts and
retains loyal customers.
 Why is it Important?
• Just as branding campaigns aim to create an emotional
tie, in the same sense with internal communication
where the connection is created with employees.
• Internal branding is also important to building morale and
creating a workplace where employees are “engaged”
with their jobs
• Most of the time, and internal branding campaign should
be simultaneously happening with external
communication efforts done by the firm.
• Internal Branding’s goal is to improve employee morale
and ultimately, better results for the company.
 Understanding vs. Believing
• Employees may understand the
company’s brand promise or key services
but until they believe it can they really
help the company carry it out excellently.
 Essence of time
When is the best time to start an internal branding campaign?

• The launch of new advertising or re-branding campaign is also an

appropriate time to think of internal branding campaign
Example:
– Nike links internal and external marketing by granting numerous
senior executives the second title of “Corporate Storyteller” –
talking them to share stories with Nike employees that echo the
company’s ad campaigns, instead of focusing solely on financial
results
– Volkswagen took a similar approach when it introduced its
“Drivers wanted” advertising campaign. IN lieu of electronic
communications and PowerPoint presentations, staff and
dealers watched a creative file that brought the campaign’s
slogan and essence to life, instilling in them the spirit of the re-
launched brand they would be selling to customers around the
world.
 Essence of time
• During mergers
– Example: The merger of British Petroleum with
Amoco and then ARCO it re-branded itself as BP
evangelizing that the merger was “beyond petroleum”.
The Campaign reinforced a company that is an open,
collaborative, “new-economy” culture.
• When the results of the internal communication
audit reveal that employees are not connecting
with the company’s vision or when morale is
low.
 Consider the Grapevine
What in the world is a grapevine in context of
communication???

• An informal communication network including everything

from private conversations between two employees to
the latest anecdotes shared in the cafeteria.
• In the local context, “Chismis”, “Chikka”
• This informal communication can either help a firm or
break a firm
• The firm should take into consideration that half of all the
employees credit the grapevine with bringing them word
of major corporate changes. This informal medium
distributes messages faster and more credible forms
than formal channels.
A deeper look into the Grapevine
• 17% of employers think that workers rely on the
grapevine for information.
• Statistics reveal that over 90% of companies do
not have a policy for dealing with the grapevine
or for managing any other informal
communication network.
• 89% of managers conceded that the grapevine
transmit negative information which is an
indicative of a lack of trust concerning other
employees, supervisor, or organizational policies
Implications of the Grapevine
• If employees do not receive complete or timely
information from their employers, they will have
not choice but to rely on one another – as well
as external sources – to fill in the gaps.
• The stronger the sense of trust, commitment,
and engagement between employees and
management, therefore the less often
employees will resort to the grapevine as the
chief means of expressing their voice nd hearing
those of fellow employees.
 MANAGEMENT’S ROLE IN
INTERNAL COMMUNICATION

Part IV
Report by: Bryce Caluag-Oliveros
 In this Section
1. Another Recap on what has been
discussed about internal communication
2. Define what the management’s role in
Internal Communication and driving the
firm to success
3. Integrate the concepts that was learned
as well as application for future
references,
 The Driving force of the Senior
Management
• The CEOs are the “CULTURE CARRIERS” and
visionaries within the company, and all
communications relating to organizational strategy
start with them.
• Robert Dilenschneider, founder of The Dilenschinieder
Group describes the new CEO as: Men and women
who shod the trappings of imperial power, work with
their boards of directors in new, dynamic relationships
and find fresh ways to unleash the creative potential
of their people, from middle managers to front-line
workers.
• Physical presence and interaction are an important
start.
 Putting Effective Practices on
the Floor
• J.P. Morgan’s CEOs and senior managers
position their desks in the midst of their
employees physically, working at standard desks
and in cubes, to boost camaraderie, engage
employees more directly, and create a sense of
shared culture and responsibility among
employees from the bottom to the top of the
ladder.
• Senior Managers need to work closely with
internal communications professionals to ensure
their messages are received and, most
importantly, understood by all employees
 Putting Effective Practices on
the Floor
• To achieve a ‘micro’ level understanding
of what strategic goals or initiatives mean
to individual, internal communication
professionals should work with front-line
managers to help make messages
relevant to the employees who report
directly to them.
 Integrate it Baby!!!
• Managers need to get out from their desks, put
down their cell phones and get away from their
computers and go out and get to know the
people who are working for them.
• Everybody has a basic need for interactions
• The most important factor in internal
communications begins with the manager who
has a basic responsibility to his or her
employees, the responsibility to listen.