Sharing Financial Information with Employees Should be Priority

Keeping employees informed of their company’s financial performance would seem a given. With the explosion of available data online and the increasing mobility of Internet access – which makes financial information readily available – it’s critical that companies proactively keep their employees informed on their quarterly results and investor profile (if they are public.)

For one thing, many employees are themselves shareholders in the company (many through retirement plans) and have a vested interest in the earnings reports. Beyond that, ensuring employees understand company performance, and implications for the business, is important to help them connect the dots between their individual performance and company results. Updating staff on earnings also helps reinforce how the company is tracking against its strategy and business priorities (which themselves need to be explained and repeated) and provides important context for company decisions and policies.

Yet for all that rationale, a surprising number of companies seem to put little or no effort into driving internal financial literacy. [My observation is anecdotal – I can’t find any solid research to back this up.] It’s true that financial information is both complex and sensitive – and not necessarily considered sexy content – and has not historically been part of the communication menu for many organizations.  A common challenge is balancing employee interest and understanding on financial issues (which can be very low) with the need for leaders to be transparent and credible. Despite these inherent challenges, companies should err on the side of disclosure; I would argue it’s better for employees to complain they are bored or don’t fully understand financial information than accuse their leaders of not being candid or forthright.

Recycling external earnings content – an apparent easy fix – isn’t enough. Too often companies use materials and tactics aimed at investor audiences and simply share those unchanged with employees. This approach is shortsighted and often ineffective. The internal strategy and content should be customized for employees. Putting thought and effort into regular updates – using some of the best practices listed below – can help companies foster leadership credibility and increase financial literacy among employees. In the long run, this should help increase staff understanding, effort and engagement.

• Be accurate and consistent: The most important factor in updating employees on financial performance is the imperative to be accurate and use consistent figures and messages across all audiences. This isn’t just good communication, but in many jurisdictions it’s a legal priority.
• Avoid the hype: Many employees are cynical and skeptical of financial updates because they are too often overly positive and wrapped in hype – particularly if the messages are geared to investors. Resist the temptation to hold back information when the news is bad, or employees may jump to their own conclusions. To be credible, the updates must be regular, balanced and candid. Leaders can be optimistic and positive, but the core information should be direct and devoid of cheerleading.
• Story behind the numbers: While it’s important to share some of the core financial information with employees, it’s far more useful to share the story behind the numbers – What happened to the key metrics? What drove the results? What does it mean to the business/strategy? What is the internal context for these results (e.g. internal cost-cutting.)? What does it mean for investors/Wall Street or private owners? What does the team need to do as a result? More importantly, show employees how their daily work contributes to companywide growth.
• Provide context: Use quarterly updates – and ongoing staff and department meetings – to share business and industry trends and put them in perspective. This will provide important background for the financial/earnings outreach.
• Segmented cascade: Though it’s appropriate to have a CEO lead the communication effort with the broad workforce (perhaps a company memo, blog post and/or short video statement) that should be complemented by more targeted outreach by functional and regional leaders who can make the information more relevant by adding targeted results for their teams. This approach can/should be used down to the level of manager, who may have information on a factory or facility level that can provide additional detail for employees. This effort should be supported with solid direction and support from Communications (e.g. cascade toolkit) and be coordinated to avoid massive duplication.
• Know your audience: Content should ideally be tailored to the interests, routine and requirements of the various employee segments. Leaders shouldn’t “talk down” to their employees assuming they can’t understand basic financial concepts, but conversely they should consider that many front-line employees aren’t interested in, or familiar with, the nuances of financial results. A good approach is creating core messaging/content that appeals to the majority of employees and adding complementary content for specific internal segments. Senior leaders typically can be expected to receive and understand a fairly detailed and sophisticated earnings update.
• Avoid jargon: Building on the point above, it’s important any financial information for employees be simple, clear and devoid of unnecessary jargon. Terminology that’s important to an analyst is not relevant to most employees.
• Dialogue: In order to spur conversation and provide an opportunity for explanation and discussion, it can be useful to have senior leaders (perhaps the CEO and/or CFO) participate in an online panel/webcast or video interview where the “story behind the numbers” can be explored and employee questions can be addressed. This is particularly true is the financial results are a surprise or disappointing. Latent employee questions or concerns can proactively be addressed in these sessions. The content of these calls can also be promoted and archived after the fact. Similarly, any internal social platforms (Yammer, leadership blogs) should be featured during the financial updates to foster discussion.
• Be timely: It’s good form to inform your employees at the same time – if regulations allow – as the financial update is shared externally. A delay will erode credibility and usefulness of the update.
• Think visual: Some of the most effective examples of financial communication feature simple, compelling visuals (graphs, scorecards, info graphics) to represent key concepts and results. This approach ensures the information is presented in a clear, consistent fashion without being boring.
• Bring the outside in: Though it’s important the outreach to employees be tailored for them, companies should also leverage/promote their key investor events internally through news features, social media updates, links and/or posting on the intranet (e.g. investor days, shareholder meetings, annual reports.)
• Voice of the customer: It can be useful to include comments from investors, customers and/or analysts in the financial updates to provide a third-party perspective on the performance. This can help company leaders to emphasize certain themes or messages with employees.
• Humanize the numbers: Examples and anecdotes that illustrate the company’s performance – for example stories of employees or teams achieving savings or big customer wins – can help humanize the financial results and make the information more relevant and interesting to employees. Having these employees tell their own story is even more compelling.
• Education through repetition: Employees can/should be educated on key terms (EBITDA, cash flow) through simple examples and repetition of these definitions across all references and materials. A glossary of terms should also be easily available (e.g. intranet) and promoted with employees.
• Use sound bites: The use of short summary headlines with links (like Twitter updates used externally) can be an effective way to get out updates to a broad employee audience in a convenient, timely fashion. This allows interested staff to obtain more detail but ensure all staff has some awareness of the key results.
• Think pull vs. push: Though leaders should proactively share (or push) custom highlights of quarterly performance, a good approach to promote transparency is to make more detailed information available to all staff – usually through the intranet and/or press materials. Along these lines, all regional and functional updates (be they presentations and/or memos) should be posted on the intranet for easy access to all employees.
• Communication beyond/after the quarter: Companies should consider reinforcing the key financial concepts, targets and even results beyond quarterly updates via bulletin board scorecards, digital posters or other collateral to reinforce this information beyond the quarterly updates. Use of compelling visuals can help drive awareness, understanding and engagement on these topics.
• Educate staff on disclosure rules and best practices: All updates on financial performance with company staff should include reference to the legal requirements and limitations to ensure employees don’t breach any SEC regulations or company rules (e.g. disclosure of confidential information, media contact). This information should also be easily accessible on a permanent basis on the intranet.
• Foster an ownership mentality: Employees should not be a passive audience when it comes to financial updates. Encourage staff to adjust their priorities and activities given the company’s overall business situation. Invite their input on process improvements, cost-cutting and new business sources. Recognize and reward ideas that lead to greater efficiency and growth.

 

CES Confirms PR Blind Spot For Technology

Each year at this time the gigantic Consumer Electronics Show occurs in Las Vegas. This is like the Super Bowl of the technology industry with equal parts hype, illusion, innovation and debauchery in the program. What strikes me every year, however, is not necessarily the news or products coming out of CES – here’s one summary of the key trends at CES – but that the event is virtually ignored by the PR industry.

As I read article after article in the business, marketing and technology media outlets, there is nary a mention in PR industry publications. (PRWeek US does have one article, but it focuses on how brands are adapting their promotions to drive buzz at the event rather than the actual technology.) There’s a similar trend on popular PR blogs and discussion groups, with those leaning on communication (or broader, related topics like engagement and dialogue) virtually ignoring the event and related discussions.

This lack of interest, and coverage, reflects a dangerous blind spot for the PR industry, which still focuses on churning out content and traditional techniques and tools and lacks interest and expertise in emerging technologies. I’ve witnessed the same “leading from behind” trend with the industry’s uneven, tentative reaction to the social media revolution, which has resulted in sporadic deployment and glaring knowledge gaps across the industry. It’s as if the technology side of the equation has been outsourced to digital agencies or even IT teams (though the latter also lag badly in some organizations.)

I recognize CES is about consumer technology and products, but I believe the concept of marketing to consumers carries some relevance to marketing – or communicating – to other audiences, including employees. At minimum, should professional communicators not track what new technologies are impacting various products and industries – particularly those directly grounded in communication areas like digital content and collaboration?

This is one area where marketing and advertising firms seem to have the upper hand. They realize, it seems, that they risk irrelevance and oblivion if they don’t seek to understand and implement new technology to inform and engage customers. I like the approach of the Starcom/Publicis agency team, which hosted hundreds of clients at CES to expose them to emerging trends and partner in discussions on the implications for marketing. Their message on the event is perceptive and telling:

“CES is about more than just technology.  The agency views it instead at the Consumer Experience Show. […] One of the underlying messages from CES is that technology is a major contributor to a culture and business climate that is evolving at warp speed. Ultimately, creating a compelling experience is what we’re all struggling to do.”

I keep hoping that the PR industry will stop playing catch up on these major trends. Maybe I’ll see more interest and participation at SXSW in Austin, which is ostensibly more relevant to PR professionals. Getting informed and engaged is in the interests of our industry, and our clients.

The Sad State of Online Commentary

A recent war of words – played out on the Web between Gawker and Reddit – was only the latest example of the argument surrounding the right approach for screening comments on the Intranet. In this case, the folks at Gawker helped to out one of the most notorious trolls on Reddit, which is a popular hangout for anonymous users who like to push the envelope on what is appropriate content. The discussion surrounding this issue raised important questions about privacy, conduct rules and the quality and scope of free expression. I have to admit I’m glad Gawker “outed” the troll in question – since I found his work toxic – but I wish Reddit would have more taken proactive steps to purge their site of the most egregious abuses.

This online polemic brought to light an unfortunate truth about the Web; the sad state of commentary of many sites and platforms. Several years ago, when new social platforms greatly expanded and facilitated the process of online commentary, I was optimistic that communities (both large and specific to sites and authors) would generate a fairly useful and candid exchange of ideas.  There would always be outliers and pesky critics who seem to spend all their waking hours on sites, of course, but on balance the community would self-regulate and provide a range of reasonable ideas and arguments.

Unfortunately, based on what I’m seeing online lately I have to admit that is often not the case. Many comment sections – even for websites and platforms where you would expect good self-regulation and informed users – are a wasteland of trolls, spammers and perverts. Some of the worst offenders are political hacks that don’t even bother with original content, re-posting their canned message numerous times with little logic. If there are rules of conduct and filters for inappropriate language, they are not immediately apparent. I suspect many of the sites are rarely if ever moderated or edited. I realize that some topics invite strong opinions – notably news and political sites – but the noise has spread well beyond the expected sites and platforms. Take a look at this recent example on CNN, where a seemingly innocuous (and positive) news post about Drake getting his high-school diploma sparked a nasty, racist diatribe of abuse.

Most communication professionals would agree the ideal is to foster robust dialogue on the Web – and to allow questions, comments and suggestions that help extend and enrich the discussion (or related products and services.) But that choice is no longer automatic given the bottom-feeder trash on many comment sections. The key question for many has become – is it even worth it to try to manage the comment sections? More pointedly, how do you encourage and filter comments without coming down too hard on either censorship or chaos? This question is a critical issue not just for individuals and organizations on the web, but also for companies striving to engage their employees through internal platforms behind the firewall.

My take is that allowing anonymous comments – particularly inside a secure, corporate platform – opens the door to the worst abuses. Even without formal identification or registration requirements, the quality of dialogue would greatly improve with more diligent moderation. Set common-sense rules and enforce them. Where abuses do occur – whether based on a site’s conduct guidelines or broader legal restrictions – site managers should take responsibility and remove and/or punish the offenders, rather than taking a hands-off approach with a blanket defense of freedom of speech. Whatever the response, something has to change or I fear many comment sections will be left to a vocal, vitriolic minority that erodes the credibility and relevance of the conversation, as well as the sponsoring sites and organizations.

Communication Activities that Defy Evolution (and Logic)

I’ve been in the communication business a long time; now well into my second decade. Though I’ve witnessed many changes as the profession has evolved – most of them positive – there are also several industry characteristics that seem to stubbornly resist progress, almost like anachronisms. These aren’t so positive. Granted, this is just an unscientific tally from my personal perspective, but here is a list of communication quirks, or habits, that I’m surprised to still be seeing in the workplace:

1. I’m amazed at the prominence of much-maligned PowerPoint as a communication tool. Even harsh critics seem to use the tool – with minor variations and embellishments – even as they attack the platform. Despite the introduction of plenty of new technology and platforms over the years – including more dynamic PP tools like Prezi and new visual options – the tried-and-true model remains ubiquitous.
2. Interactive, digital 3-D environments like Second Life have a very low profile, and usage, despite the early hype and promise.  A few cutting-edge firms use the platforms for a wide range of communication activities (including secure, enterprise versions for internal use) but many pros seem to have little awareness or interest in this technology.
3. Corporate communications content is almost devoid of humor, which is so prominent in our digital lives and a key ingredient in the best marketing and entertainment campaigns. I understand some topics are serious, but the PR industry seems to have a deathly fear of humor that fuels work that is needlessly boring and forgettable.
4. I still see much more “push” communication – or talking to/at our audiences – than “pull” activities, where users can access information they want, when and where they want to.  Genuine conversation – which can be fostered through a range of new social media tools – is even more rare.
5. Many companies still have no social media strategy. And I’m not talking about a proactive, intervention plan. Many don’t even have a defensive, passive social media program – with a basic employee policy and/or rudimentary monitoring.
6. While the internet is truly global – a virtual community where distance and borders are irrelevant – many companies are still surprisingly insular and lack basic knowledge of global communication trends and differences. (One example: no awareness or recognition of the dominance of languages other than English on the Internet.)
7. With apologies to my friends in IT… most IT departments in organizations remain a reluctant partner and barrier to progress, rather than a technology leader or facilitator. Yes, they have to consider costs and risks. But IT’s lack of attention to new technology and thin excuses (we can’t support that third-party platform) has made the function less relevant in many organizations.
8. Finally, perhaps the most surprising…too many professionals still lead with a tactic at the expense of strategy. It’s the old shoot, fire, aim adage…with a checklist mentality focused on deliverables and activity and not on driving impactful, relevant objectives.  The new version – “can you set us up with a Facebook page” – is simply an updated variation of pushing out the old employee newsletter (without clear purpose or metrics.)

Like in any industry, it can be hard to change entrenched habits. And our bosses or clients – senior executives – are often the ones pushing back on untested, new approaches. But if we hope to position ourselves as smart, agile consultants we can’t fall back on excuses and inertia.

Every Picture Tells a Story

Through my career as a communication professional, one mantra that’s provided me with sustained inspiration and direction is the need to consider all five senses while communicating. In other words, though we tend to spend most of our time in written words (only using sight) there is benefit in using other senses as appropriate – particularly sight and sound – to try to reach and affect our target audiences.  As it happens, I got a great reminder the past few weeks of the impact and effectiveness of compelling visuals.

First, I finally joined the Pinterest bandwagon. I’d heard the increasing buzz about the booming site (or app?) from peers and friends alike, and now use it regularly to “pin” and share a wide range of images. I’m still not sure if it’s a fad or adds any lasting value to the on-line conversation, but from my perspective the images (most of them photographs or posters) are as compelling and informative as the best blog posts or Twitter comments – though it’s true the format limits the detail and nuance the images can convey. Still, I’ve discovered several stories and campaigns – including the much-hyped KONY story – through their Pinterest “windows.” And for what it’s worth my peers and friends have a much richer understanding of my personality and preferences from my selection of images.

The past few months some of the best blog posts I’ve read – or seen – involved info-graphics on a wide range of topics – ranging from the growth of the Internet to the DNA of social media. And by the way, they are much more compelling, memorable and user-friendly than equivalent white papers on similar topics. Check out this one as an example. I’ve also noticed a strong trend towards peers and friends sending me (or posting) photos and videos – often with little or no text.

My best personal anecdote of the power of visuals is about a simple photograph. While working several years ago in a global organization undergoing a massive transformation (both cultural and structural) we convinced the CEO to focus on several stark, bold photographs to convey the key themes behind the change. Over time these photos became widely recognized and even used as unofficial brands for the various facets of the program. One photo in particular – a fish jumping from a safe, small bowl of water into a larger one – came to symbolize the essence of the company’s revolution and was prominently displayed in the CEO’s office as a reminder. Of course, there was content behind the photo – without meaning using photos can easily invite sarcasm and even parody.

I’m not the only one thinking about this visual trend; this blog post in AdAge argues the shift to visual is part of a greater cultural trend sparked by technology: Smarter devices are prompting more occasions for people to create and consume visual content, while social media is encouraging that content to be shared on multiple platforms.

While the use of strong visuals and design has long been a best practice in advertising and entertainment (which could be described as both a form of marketing and communication), it remains nascent and uneven in the PR industry.  For many organizations, the focus on visuals (and related emphasis on graphic design) is limited to primitive PowerPoint slides and esoteric debates about fonts. Even simple internal branding or program collateral is rare in many corporate settings.  Where visuals exist, they are too often functional and lacking attention to creative, original design.  (When is the last time you’ve seen content on bulletin boards with any hint of imagination and visual originality?) Video also seems limited in many companies – at least in terms of internal use – despite the fact new technology makes shooting and editing content ridiculously easy and inexpensive. Even photography seems to be an after-thought in communication platforms and plans.  Years ago this might be explained by the cost of design and printing, but in this digital age there is no excuse for the paucity of pictures.

While one could argue the external world bombards us with too much visual stimulus – think a Blade Runner dystopia where imagery overload drowns out even compelling ideas – many organizations are stuck too far in the other direction. In a commendable effort to avoid hype and be direct, they have become too serious and formulaic, even boring.  Another possible factor behind this visual gap is the lingering firewalls between related disciplines like marketing, IT, design and PR. While it seems like a no-brainer to walk down the hall to your marketing team to leverage them in an internal promotion – one of many examples of potential cross-pollination – it seems to be a rare occurrence.

The result of this lack of visual imagination is predictable: many internal communication programs have limited resonance and impact on employee awareness and engagement. While our focus as communication professionals should always remain the message, we need to expand our thinking about how we communicate with our audiences. The power of images is too potent to ignore.

Komen Crisis Caused by Bad-to-Worse Decisions

Well, another one bites the dust. Add one more name to the long list of organizations undone by poor decisions and even worse crisis management. In the space of one week the Susan G. Komen Foundation – famous for being the brand behind the ubiquitous pink campaign against Breast Cancer – has done serious, perhaps irreparable damage, to its reputation and brand. Check out this article in Fast Company for a good summary of the imbroglio.

The Komen leadership team did so many things wrong it’s difficult to know where to start. Let me try…

• Think before you act – First and foremost, if you are going to make a policy decision that will have a big impact on your operations, make sure there is a solid rationale behind the change. The argument used by Komen for the suspension of payments to Planned Parenthood – that changes were dictated by a new policy prohibiting organizations under investigation from funding – appeared disingenuous. Buried in the policy legalese – our desire was to fulfill our fiduciary duty to our donors by not funding grant applications made by organizations under investigation – is the reality that the “investigation” in question was seen by most as a partisan witch-hunt by one anti-abortion member of Congress. Observers were further led to believe the dramatic impact of this policy on Planned Parenthood was a mere coincidence.
• Don’t try to bury the story – The story of the policy change broke with an article by Associated Press, and quickly picked up steam on Twitter and Facebook before becoming a top story for traditional media outlets. The Komen team didn’t announce the policy broadly – presumably trying a stealth approach – preferring to inform it’s various affiliates directly. (By all accounts Planned Parenthood was not informed in advance of the change.) When the story broke Komen leaders were slow to react, and their initial responses were brief, formal and defensive. Some PR observers suggest the battle was lost in those initial 24-hours, when Planned Parenthood mobilized its fans and led a smart, vocal PR counter-offensive.
• Don’t ignore social media – The failure of the Komen team to acknowledge, and adequately respond to, the uproar on social networks is seen by many as the biggest failure in their crisis management strategy. The outrage was swift, viral and overwhelmingly negative. Many of my female “friends” on Facebook, some big supporters of Komen over the years, expressed their disappointment and disavowal. The Komen team did use Twitter for updates (largely repeating their canned messages) but anchored their response through more traditional “push” channels like written statements and YouTube videos. To make matters worse, they were accused of scrubbing the most negative responses from their branded Facebook pages and websites.
• Remember who you are – Somewhere along the way it appears the Komen team forgot they were a charity whose stated purpose was promoting the health of women – including poor women – and that they are a non-profit dependent on their supporters and fans for revenue. Their funding decision – at best an awkward decision based on dubious legal reasons – and their subsequent response seemed totally at odds with the feel-good, compassionate image of their brand. Whatever the merit of their decision, the impact of cutting off thousands of women from low-cost access to breast screening was anathema to their stated mission.
• Listen to others, not your own story – One lesson that Karen Brinker and team may still not have learned is that stubbornly repeating an argument that few believe is not courageous, it’s counter-productive. In fact, the Komen team continued their defensive, almost defiant stance even as several officials resigned in protest – surely not a good sign. Even after reversing it’s decision, Komen tweets and comments stubbornly continued to defend their original decision and argue politics was never a factor. The battle had been lost, but the lesson was not learned.
• Back what you say – The Komen team never provided solid evidence to counter the strong circumstantial evidence, supported by claims from former staffers, that the reason for their policy change was political. It didn’t help that previous statements and recent tweets by new policy VP Karen Handel made it clear she was an ardent critic of Planned Parenthood.
• Don’t treat people as idiots – Perhaps the most egregious error by the Komen team in this crisis is their attempt to position the response to the policy change as positive, even as any casual observer could see the overwhelmingly negative social media reaction and related media coverage. This blatant attempt at spin was as misguided and incredulous as it was ineffective.
• Build and protect your goodwill – Another potential factor in the quick fall from grace for the Komen organization was that its goodwill may have eroded over the past few years due to some very uncharitable behavior – including its hard-ball legal stance against any hint of copyright infringement. The brittle, arrogant demeanor of Komen founder – and main spokesperson – Karen Brinker probably didn’t help their cause.

Of course, Komen did have the wisdom to change their decision – albeit belatedly and without totally letting go of their delusional narrative. In fact, they continue to be defensive about the “incorrect presumption” behind their ill-advised policy, and pointedly did not promise to renew the cancelled grants to Planned Parenthood.

Corporate Communications Lags Internet Trends

Every year, I pay close attention to Mary Meeker’s annual presentation on internet trends. Meeker, one-time analyst at Morgan Stanley and now partner at Kleiner Perkins, has become famous (some would say infamous) for her internet analysis and market projections. Her presentation and commentary is always worthwhile for any PR professional – particularly given the critical and growing impact of the Web and technology on communications and advertising.

Once again, my reaction to Meeker’s analysis is focused not so much on her conclusions, which are cogent and important, but in the apparent gap between technology trends and the state of corporate communications. Allowing the caveat that my perspective is totally subjective and anecdotal (based on recent first-hand experience with perhaps twenty organizations largely based in North America) I see some notable gaps.

Let me start with a snapshot of relevant trends from Meeker’s presentation:

• Globalization – More than 80% of users of the world’s top internet properties (including Facebook and Google) live outside the United States. In 3 years, China added more internet users than exist in the U.S.
• The Web is social – Social networkers around the world now outnumber internet users.
• Mobility – Mobile technology (led by 3G Smartphones and the unprecedented adoption of tablets) continues to grow at historic rates. Mobile search and access to social networks is growing rapidly. Mary suggests the mega-trend of the 21st   Century is the empowerment of people via mobile, connected devices.
• Digital content – User interfaces and digital content is moving from text and icons to a new combination of sound/touch/video. Content is now accessed, moved and altered through a simple touch on the screen.
• Content aggregation – Content is increasingly being packaged, and accessed, though sites that aggregate rather than create original content.

Now let’s compare each of these trends to what I typically see in my communication work:

• Globalization - Most companies struggle with truly global communications, and rarely make a concerted effort to ensure their content is representative and relevant across their international locations. Call it the HQ syndrome. Many don’t bother to address the most obvious challenge of foreign language in their corporate outreach; English is the default language, even in organizations with a majority of staff outside North America.
• The Web is social - Despite the tremendous growth and opportunity of social technology, many organizations still hesitate to introduce even the most basic social platforms (such as internal blogs) despite the fact most intranet platforms now come with built-in social capabilities. Even fewer encourage and train their staff to be online ambassadors or interact with customers. Some organizations have yet to introduce employee Web policies.
• Mobility - Despite the proliferation of mobile devices, only a hand-full of companies I’ve worked for/with use company-supplied or personal devices for communication purposes, and that is often limited to text digests. Even organizations with many remote staff and/or manufacturing environments where workers don’t have access to computers, mobile outreach is limited. Many companies still ban use of iPhones or other Smartphones that aren’t officially supplied.
• Digital content - Text pushed out via email is still king in corporate communications, with a surprising paucity of original video content, and even less packaged audio (though I’ve seen…or heard…some innovative programs that leverage podcasting and DVDs to train or inform staff.) The ubiquitous Powerpoint slides, which can now feature interesting visuals and compelling design, are often limited to busy, generic text. Photos are becoming more common, but there is rarely a proactive program designed to help create and share original photography. In terms of interfaces, I’ve yet to see an intranet (or many external websites) that’s anything close to the iconic, visualized interface used by many technology providers.
• Content aggregation – Too many companies still believe in the build-it-and-they-will-come come mantra, limiting their online presence to official corporate sites with dubious prospects. (The obvious exception is companies that market and sell online.) Most content on corporate sites is usually produced by the organization, and often self-serving. On the internal side the same trend applies, but with even less access to external content or feeds. Usually, a fairly rigid hierarchy of approved authors prevents staff from being active content contributors.

Even allowing for aversion to risk and cultural differences across workplaces, I’m surprised our profession appears so out of step with emerging trends. From personal experience, I know it’s difficult to go against corporate inertia, but we risk losing our credibility and relevance if we don’t counsel our clients/leaders to consider these trends and look for opportunities to innovate and improve.

Social Media: Be Careful, Not Fearful

It’s rare a day goes by without another example of an employee getting fired or reprimanded for posting something inappropriate on their Twitter account, or a company being forced into damage control due to an off-color comment or tone-deaf message. I read this example of Congressional staffers and their ill-advised Twitter chatter this morning. There are countless other blunders that have generated heated coverage – ranging from political scandals (hello Tony Weiner) to marketing snafus. All this noise usually creates two concerns, or conclusions, with many of my clients:

• Social media is very risky for organizations…probably too risky
• It’s very difficult to regulate and monitor social media interaction

As I’ve written before in this blog over the years, I think the fears of social media are overblown and misdirected. Yes, social media platforms like Twitter and Facebook allow content and commentary to spread globally quickly – whether it’s positive or critical. But a cursory review of the most celebrated social media snafus (including the one referenced above) reveals that in most cases the controversy could easily have been avoided with basic common sense: Don’t lie. Don’t use inappropriate language or content. Be nice. Play fair. I would argue these are the same guidelines employees would use with any other workplace forum or channel (including company email.) In fact, I am often amazed at how ridiculous and ill-advised these controversial posts are…causing me to ask rhetorically what were they thinking?

The issue of monitoring and managing social media outreach is also surrounded by misconceptions. Companies can use a wide range of user-friendly tools to monitor the Web and track posts, triage comments or questions and identify emerging trends. With regard to organization, many of recognized social media leaders use a small, dedicated team and simple planning process to direct their social media efforts. In other words, this doesn’t have to be that overly costly or complicated. The barriers to entry for social media are very low for individual and institutional users alike.

Rather than blaming social media channels – which are inherently neutral and provide incredible platforms for robust, real-time conversation with millions of users – company leaders should spend more time selecting and training their staff, and determining the strategic purpose of their social media activities (even if they are mostly passive and reactive.) These steps don’t have to be onerous. Many of the most successful companies actively using social media – notably Dell, IBM, Best Buy and Starbucks – have clear and simple policies and objectives. And determining if and how you want to get involved can (and should) be shaped by due diligence and strategic planning.

The fact that some have made mistakes using social media platforms is an indictment of the culprits, not the technology.

Brands Expanding Presence in Social Media

Universal McCann’s latest “Wave” global report - which they claim is the longest running and largest study dedicated to social media – provides an essential statistical benchmark on the evolution of social media. The key findings this year are no surprise: the survey of thousands of global internet users confirms that social media remains an explosive, dynamic phenomenon that is changing how we interact, think, feel and behave. This particular study focuses on how brands are engaging with consumers in social media.

The big takeaway from this study is that data suggests there is huge demand for a more social, interactive relationship with brands online. Almost half of active internet users – who collectively visit social networks 1.5 billion times every day – are joining brand communities. This is occurring despite a steady decline of users visiting “official” company websites and the prominence of peer-to-peer brand recommendations. In short, consumers increasingly want to engage with brands in social media, but on the right terms. The key, according to the report authors, is to identify the kind of relationship users want with brands, and to create corresponding social media programs. Put another way, companies must understand the needs and motivations of consumers as a critical first step in their social media planning. The catch is that these needs differ widely by country, topic (or category) and audience – so brands should seek granular information on their target consumers to detail their habits and preferences. This approach means selecting the platform or network comes last, not first. And that doesn’t mean returning to the hard sell, which still remains anathema to many internet consumers.

Here are other highlights of the survey:

• Social networks have become more embedded in our everyday lives as the range of online activities and frequency of usage continues to increase;
• Social media use varies widely depending on geography and user demographics;
• Users have a wide range of motives for accessing web platforms, and select different platforms for different purposes. (Again these motives vary widely by geography.)
• Though penetration among 16-24 year olds remains highest, the 25-34 age bracket has seen the biggest jump in usage (from 52% to 70% in 3 years);
• Social networks have become the main forum for social interaction, even bypassing face-to-face contact;
• Content sharing continues to be popular, though it’s now occurring on a wider range of platforms;
• Personal blogs and forums are losing some traction, but are also becoming more specialized and targeted. Micro-blogging, on the other hand, has quickly grown into a mass market activity;
• There’s been a significant shift to accessing social media through mobile devices and applications;
• On the brand front, primary reasons for joining brand communities (usually on social networks) include learning about the brand/product, getting advance news on products, and gaining access to free content.

The data in this study provides helpful context, and suggests there is great opportunity for brands to engage with consumers online. But the study also confirms the importance of doing your homework to understand the needs and habits of your target consumer, or audience. That’s not necessarily a new approach, but it appears to be more relevant than ever in the changing web environment.

Communicating – and Marketing – in a Digital World

Over the past few years I’ve had numerous discussions with clients and peers about the dramatic disruptions caused by new social media technology. In the early years, in particular, not everybody accepted the premise that these changes were in fact occurring, or driving fundamental shifts in how people gather and share information. Well here we are, several years into the so-called Web 2.0 revolution. If nothing else, what has become widely acknowledged – even among the most recalcitrant naysayers – is that we are truly living in a digital world.

Indeed, a recent article by McKinsey provides another layer of accumulating empirical evidence that global consumers are increasingly communicating and conducting business through digital devices. This study mirrors a recent report by Forrester (presented at SXSW 2011) that suggested employees – most of them wired, social networkers – were increasingly using their technology within the workplace, firewalls and rules be damned. [FYI: both these articles may have restricted access and require registration.]

Here are some highlights of the McKinsey study:

• Nearly 50 percent of US online consumers are now advanced users of smartphones, social networks, and other emerging tools—up from 32 percent in 2008;
• Social networks, particularly Facebook, are emerging as the dominant digital-communications channels. For people aged 34 and under, they already are the preferred channel (by minutes of use per day), displacing e-mail, texting, and phone calls. Social-network use, growing swiftly among all segments of our survey population, has doubled among those over 55;
• As the usage and processing power of smartphones increase in tandem with the rising speed of 3G and 4G data networks, mobile devices are invading the domains of single-purpose gear such as game consoles and portable media players, as well as PCs. Smartphones are also becoming the device of choice for e-mail, Web browsing, and product research;
• As digital platforms multiply, consumer video-viewing habits continue to change. Among our survey respondents, 69 percent now view videos on their PCs and 33 percent on their smartphones;
• Only 24% of respondents are considered “traditionalists”, or consumers who are less interested in internet browsing and social networking and are more likely to read print newspapers.

Given this data, there seems little doubt that discussions on communication or marketing strategy, and more specifically social media planning, can start from the premise that the majority of our audience are digital natives, or largely wired and fluent in social media. And that cuts across geography, job and income level – though there are still important variations based on these demographic variables. In a sense, the conversation should now shift from if to how or what we need to do differently.

Of course, this has important repercussions for communication professionals, whether the focus is PR or internal communications. At minimum, we need to plan based on this new reality, and ideally take advantage of the emerging opportunities to use fresh, original strategies. I like the approach proposed in another recent McKinsey article that argued that in this digital age we are all marketers. As the headline puts it: “engaging customers today requires commitment from an entire organization – and a redefined marketing organization.” Here’s an excerpt:

For the past decade, marketers have been adjusting to a new era of deep customer engagement. They’ve tacked on new functions, such as social-media management; altered processes to better integrate advertising campaigns online, on television, and in print; and added staff with Web expertise to manage the explosion of digital customer data. Yet in our experience, that’s not enough. To truly engage customers for whom “push” advertising is increasingly irrelevant, companies must do more outside the confines of the traditional marketing organization. At the end of the day, customers no longer separate marketing from the product—it is the product. They don’t separate marketing from their in-store or online experience—it is the experience. In the era of engagement, marketing is the company.

This bold, innovative approach is a useful model for communication professionals. We must avoid falling into old patterns and timid ideas and instead develop new programs that are resonant and relevant to this population of digital natives. In short, we need to change. And we need to help our clients change. With the overwhelming evidence of the increasing reach and impact of new technology on consumers (including our employees and peers), there’s really no excuse for inertia.