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A few months ago a good friend and industry peer asked me if I had any employee engagement plans. I had to think a minute, but as it turns out in over 25 years in the communication business I’ve maybe worked on one or two plans that could be considered comprehensive engagement programs – either for my own own company or a client. How is this possible? Isn’t engagement a virtual obsession among corporate executives and a mantra for internal communication pros?

I concluded this void – at least in my own experience – reflects a lack of understanding and commitment among many organizations that claim to seek sustained engagement. Though engagement is the holy grail of internal communications (and related fields like HR) most companies – though well-intentioned and determined to drive engagement – seem to take a piece-meal approach that only addresses one or two aspects of an employee’s workplace experience.

But the reality is it takes a holistic, sustained and integrated approach to ensure employees are informed, motivated (even passionate), productive and loyal. Many factors should be considered and working in strategic alignment to encourage engagement. But in today’s matrix, decentralized organizations the teams responsible for these functions rarely collaborate on that level, and in some cases their siloed activities may even be sending mixed messages to employees. I’ve seen this particular formula several times: spend energy and resources to ensure employees know exactly what they have to do and why they should do it, but don’t engage other functions (like HR) to ensure these same employees are actually trained, supported, recognized or rewarded for said work. Too many companies seem to think an annual survey (to measure engagement) and a few high-profile fixes (to address prominent issues) is the necessary exilir for employee engagement, but that’s only a start.

One approach I’ve used that seems to drive relevance and alignment in engagement activities is to use the employee’s perspective; what are the employee questions and needs that need to be addressed – and answered cogently and consistently – to shape a positive, productive workplace experience? Take a look at the attached presentation for additional details.

Whatever the strategy for engagement, the lesson is that there are no shortcuts. But without concerted action companies risk not only stagnant productivity and attrition of talent, but also lose the opportunity to mobilize their employees as advocates. Given the increasing profile of social media platforms in recent years, what employees say – good or bad – about your organization can have a huge impact on reputation and even sales.

For more information check out this presentation.

 

Over the past year, I’ve witnessed and engaged in several discussions – both online and in person – that explored the mandate and modus operandi of the employee communications function. Though the topics vary, a recurring thread – or really more of a question – relates to who “owns” content developed for an employee audience.

In one online polemic, for example, a participant suggested that a key role of internal communication (IC) practitioners was not only to create most of the content for employees, but also to control, or filter, all content reaching staff to ensure they were not overwhelmed or confused by irrelevant information. Many other discussions seemed to support this position – which suggests a traditional role where the development and delivery of content is directed, if not rigidly controlled, by the IC team.

Though I agree that in many organizations there is far too much frivolous or irrelevant content dumped on employees, I am struck that this “we know what’s best” attitude is badly out of sync with the prevailing ethos of social media, where the power of creating and vetting content and determining editorial agendas has shifted to the “crowd” – or individuals.

Looking from another angle, however, it’s clear that the answer isn’t a free-for-all where individuals and functions are able to generate and share content as they see fit. Employees in most companies often complain of being overwhelmed by the volume of emails and other content – most of which has little relevance to their job or interests. Even accessing simple social platforms (such as Yammer or Chatter) seems to be a stretch for busy employees. So more is not better.

It’s true that some content or communication tools created organically can be useful and get traction; I can think of several examples where social tools or even more traditional e-newsletters created by teams or offices are successful (in terms of reach, ratings and impact.) The problem with a largely decentralized, informal approach is that in aggregate the communication can lack quality, focus, structure and purpose. It can also be very difficult in these noisy, informal environments to find the most urgent or important content; even critical leadership announcements can get lost in the mix.

In this context, I suggest the answer lies in a balanced approach where the communication team becomes a content curator – or a light-handed editorial manager. In essence, ownership of content is shared. The IC team should still play a robust editorial role – creating critical corporate content, counseling functions and teams to encourage value and quality over volume, and limiting what gets broadcast through main corporate tools and channels – but also foster and amplify content generated by employees and internal experts. Whether content is valuable and relevant should be determined jointly by all parties – with the ultimate measure being whether users access, use and share the information. This curator model also allows for rich peer-to-peer communication through social platforms and collaboration tools.

In reality, internal communication has always been a balancing act between communicating what the company wants and covering what the employees want to know and talk about (usually more personal and local issues and “what’s in it for me” questions.) Positioning the IC team as a curator – rather than a self-appointed editorial gatekeeper – builds on that tradition and provides leeway to take advantage of user-generated content, organic storytelling and social or collaboration platforms. It also reinforces the reality that employees – like external consumers – have ideas, interests and information that bear as much consideration as those of senior executives. This new construct may not please traditional CEOs or communicators who favor a top-down approach, but it’s a better recipe for success in this evolving environment.

I haven’t really talked about the evolving nature of content – with the growing emphasis on storytelling and trans-media digital content – but that’s a story for another day.

During SXSW a few weeks ago I had the good fortune of meeting a number of my former colleagues from Dell, where I worked from 2002 to 2006. During my stint there I had the incredible good fortune of working on the team that would design, develop and manage Dell’s then new – and since much lauded – social media program.

But our conversation didn’t dwell so much on the good old days as the realization that years later many companies are still hesitant to embrace, or even explore, the full potential of social media technology. This despite the dramatic increase in cheap, user-friendly technology to support everything from targeting to analytics to collaboration. In fact, outside of some perennial leaders – many of them in the technology industry – many organizations are still grappling with the same questions and fears we saw almost ten years ago. And this is particularly true of companies exploring a social strategy inside the enterprise. (As just one example of this slow going, the folks at Prescient Digital estimate that only 4% of companies have a truly social intranet system.) After comparing notes about our respective clients and consulting gigs, we concluded many of the original arguments, tools and basic social media models we developed in those early days were still relevant, and very much in demand.

So why the uneven, reluctant adoption of new approaches and technology?  While many have focused on potential fixes for PR teams and their clients (check out this excellent blog post by my former Dell colleague Richard Binhammer) I am more curious – and perplexed – about the barriers to progress in PR. Why is a business filled with smart , accomplished consultants so slow to adapt? Based on my perspective the past few years, I offer a few suggestions:

  • Bunker Mentality – There’s no way to escape the dramatic tectonic shifts in new technology and the related impact on entire industries, including news media, advertising, retail, music, and not least communications and PR. The dizzying pace of new products and functionality makes it even harder to keep up with change. While some organizations seem invigorated by these shifts and flood of new opportunities, many have reacted with grudging, superficial tactics without changing their strategy or business model. In many ways, they are still in denial.
  • Inertia – The sad reality in any corporate setting (indeed, perhaps even in human nature itself) is that there is very strong momentum for doing things the way they’ve always been done, particularly in times where staffs are lean and driven by short-term objectives. And despite all the hype around innovation and risk, very few organizations have cultures that encourage, or even allow activity outside the norm. Often, companies need a major event like a new strategy or leader to encourage a shift in direction. Without that, it’s difficult to change old habits.
  • Functional Insularity – Functional departments that would typically help spark and support innovation and change – or at least be the sources of new ideas and information – are often the most insular, reactive ones of the bunch. HR and IT, for example, are in many cases reluctant bystanders to progress and sometimes surprisingly uninformed about new technology or trends. (In some of my social media projects, in-house IT departments are either reluctant partners or standing on the sideline.) The one department that seems to have embraced change, albeit sometimes reluctantly, is marketing. PR is often caught in the middle of this dynamic and too often unwilling or unable to drive its own momentum.
  • Boomers Dominate Leadership – Though statistics suggest boomers are among the fastest growing users of social media platforms like Twitter and Facebook, many older workers are less familiar and comfortable with new technology, social or otherwise. This helps explain anachronisms like the CEO who refuses to use email or others who shun any type of digital discourse. The grizzled leadership in many PR companies has the same generational anxiety about trying new tools and approaches. This trend should change as younger, much more tech-savvy workers gain leadership roles.
  • Tyranny of Today – Many communication professionals operate at a hyper pace and in a routine that leaves little room for introspection or learning. In that context, it’s easy to simply continue focusing on immediate projects and put off professional development – both formal and otherwise. Add to this the reality that many clients and peers are also focusing on their daily priorities, and paying little attention to broader issues outside their immediate tasks. Perhaps the most common refrain I’ve heard from peers struggling to understand and incorporate new technology is “I just don’t have time.”
  • Knowledge Gap – Save perhaps for a few precocious millenials, very few of us in the PR industry start with a deep base of knowledge in social media or related technology. What we know is what we’ve learned in the past decade or so as social media has become more prevalent in our lives. So it takes effort and commitment to remain in learning mode and stay current on major trends and new platforms. Unfortunately, it seems too many PR pros are counting on a few resident tech nerds or outside experts rather than upgrading their own knowledge base.

Taken together, these factors help explain the myopic outlook and slow adoption of social media in PR. And I’ve experienced every one of these barriers, so I have some understanding for the challenges in our business. But they shouldn’t be an excuse for inaction. I don’t want to be having this same discussion in 5 years.

A few weeks ago I spent time with an old friend who worked in a company that by all appearances was a dynamic, successful industry leader: steady profits, stable leadership, healthy prospects, and a supportive board of directors. But if you asked my friend, or likely many of his colleagues, the description of working at this company would be much less positive. In fact, many of them hate going to work, and they spoke of a palpable malaise inside the company. The reason: a detached CEO who is largely dismissive of communication and culture.

This anecdote brought to mind the old medieval adage that as the king goes, so goes the country.  It’s pretty well accepted as a truism that CEO’s have a direct and enormous influence on their companies, of course. They direct and deploy workers in an organization much like a general in battle. But the twist in this story suggests that their impact goes beyond the most obvious elements (and requirements) of corporate success – such as organization, logistics, strategy and financial performance. A company (and leader) doing all the basic things right – at least according to the MBA playbook – can still be horrible workplace, with disenchanted and disengaged employees.

According to my friend, the CEO at his company has a blind spot when it comes to communicating with employees – grudgingly allowing only perfunctory, formal outreach and avoiding genuine, personal interaction as much as possible. Probing employees for ideas and opinions is limited to a typical annual “culture survey”, which apparently drives little discussion, response or change. Needless to say, convincing this CEO of potential investment or innovation in communication is a losing game.

The CEO also apparently sees little value in fostering a positive, distinctive workplace culture. Sure, the typical HR activities are in place – ostensibly to motivate and reward workers – but there is no leadership interest in truly exploring and improving worker morale and satisfaction. And the corporate identity is muted and generic, with little to inspire pride or discretionary effort. In other words, employees should do their jobs and be happy they have one. Since this company is located in a relatively small job market – with limited options for senior executives – there’s no immediate risk of an attrition of top talent. And with the company regularly hitting its numbers, the CEO sees no reason to change anything.

This anecdote raises some interesting questions for communication and HR professionals. Does it really matter if employees are happy at work? Is it important for a company to have a distinctive, engaging culture? Is the recruitment and retention of talent really an issue in smaller, stagnant job markets? And what is the ultimate metric for leadership and corporate success?

I propose the answers to these questions all revolve around the central issue of the core purpose of the company. Some would say that making money for shareholders and paying employees for good work is the baseline. I would argue that that viewpoint is shortsighted, and certainly not optimal for talented employees seeking a fulfilling career and perhaps even a higher purpose. In other words, employees don’t just need to know (and believe) what the company does, but what it stands for and what it hopes to achieve beyond driving profits. Without that deeper affinity and sense of purpose, most workers will remain steady (if unspectacular) performers and jump ship at the earliest chance.

This article by the folks at Hay Group argues that the next frontier for HR is harnessing “big data” to drive engagement with employees and improve talent management – the holy grail of many HR teams. The author suggests there is a stark contrast between the massive explosion of data and real-time analytics in fields like marketing and retail with the halting, uneven progress in HR. For many HR teams, the promise of big data is still more potential than reality – notably in the area of talent development and succession planning.

This assessment is in line with what I’ve seen over years of working closely with HR teams in a wide range of organizations. Despite the emergence of powerful tools and technology – and access to related data on employees and their performance – too many HR departments are still struggling with rudimentary challenges like creating clean, dynamic staff directories and are barely scratching the surface of data collection and analysis. Though in theory HR departments know a great deal about their employees, I haven’t seen (or heard of) many teams that are consistently collecting and analyzing data and using their insights to direct their policies and programs. (To be fair, the one area that seems to be evolving for the better is online performance management. ) In fact, it’s not rare for me to encounter HR teams still using written records or forms for many of their HR transactions – which obviously limits their ability to quickly collect, update and review the information.

Here are a few examples where big data – used to its full potential – could dramatically improve engagement and results beyond talent management:

  • Virtually all leading organizations conduct some sort of engagement or culture survey. Many of these surveys, however, remain superficial (often formulaic) annual surveys more useful for benchmarking than driving real change – including responsive program and policy adjustments – across the organization. Often these surveys are outsourced and the information is reviewed once to develop the final report, and never seen or used again. With all the enterprise social media platforms and real-time analytic tools available, would it not make sense to implement a more sustained, detailed and actionable research program with employees? At minimum, companies should track the content of internal conversations (on the intranet, blogs or other discussion platforms) with the same level of sophistication and follow-up as they do with external platforms. Listening should not be a one-time annual event, but a full-time contact sport.
  • Though some companies have mastered the art of knowledge management and make it easy for their teams to identify and contact peers for collaboration, others still struggle with relatively simple profile information that would allow employees across all levels to search for peers with specific skills, expertise or experience. Having this data readily available would also help leaders develop ad-hoc project teams and make informed staff assignments.
  • While consumers are repeatedly probed for their opinions and preferences on topics like communication and marketing, employees are not consistently asked about company communications. Though some companies conduct robust, actionable internal audits designed to assess the effectiveness of their communication efforts, many rely on piece-meal efforts that are often event-driven, sporadic and informal (qualitative.) Others don’t take full advantage of the built-in tracking devices on their intranets or corporate email tools, which can provide a rolling update on key metrics like traffic, page views and comments. This is a relatively easy fix that can help to make corporate communications much more relevant, resonant and impactful.
  • Though it’s not employee data per se, harnessing the ideas and collective wisdom of an internal audience can be a major driver of innovation and engagement. Companies like Dell and RBC use an internal crowd-sourcing platform to solicit and rank employee ideas on a range of topics, and incorporate the best suggestions in their operations and planning. Several vendors provide user-friendly platforms that do most of the work behind the scenes and allow users to focus on the ideas and the outcomes.

Much like IT’s reluctant acceptance of social media and new technology, I fear HR’s slow adoption of data collection and analytics will decrease its relevance and credibility in the coming years. The result will be the exact opposite of what the HR teams seek; prospective employees raised on social media, ubiquitous communication and all-digital content are unlikely to be impressed if the very team responsible for managing talent and fostering a dynamic culture is so clearly out of sync with social and technology trends.

One of the ongoing challenges of my consulting work the past few years has been to convince clients to engage their employees in their external social media efforts. The argument for doing this is very solid – see this excellent post by Dion Hinchliffe of Dachis Group on the benefits and requirements of using employee advocates through social media. Perhaps the best argument for activating employees is that they are highly trusted by consumers and customers alike. So why is this not happening more often?

In my experience there are several answers to this question. For one thing, many organizations are still reluctant to engage in any social media activity – external or within the enterprise – so it’s understandable that their employee outreach strategy would also be nascent. Others are extremely concerned about rogue employees who can compromise the reputation of the company in one tweet or YouTube video, and can bring up several recent examples to support their position. A surprising number of companies (from my experience) prefer to wait and see, despite the fact they know their employees are already active on social media platforms (such as unofficial company Facebook pages) without the benefit of clear direction, guidelines or training. Companies react differently to these unsanctioned sites and posts – some prefer to turn a blind eye, while others try to quell the comments through punishment and/or additional training. I’ve also seem the other extreme, where cherry-picked employee advocates stray too much into cheerleading (think obnoxious, repetitive Twitter hype) and lose the authenticity and credibility their role demands.

But perhaps the biggest reason – and unspoken truth – is that some company environments are poisoned by distrust, disillusionment and woeful lack of engagement. If many of your employees are unhappy and discouraged, does it make sense to give them full license to represent the company with consumers and customers? Of course, the answer is no. Or at least, not all in one shot. These companies need to fix their workplace culture and foster engagement and collaboration within their walls before they think about activating their staff on social media platforms. (In fact, disgruntled employees can damage a company’s reputation through their actions and comments whether or not they are using social media.) But that’s not an excuse for complete inaction. A social media strategy can allow for a smaller team of ambassadors at the outset, who are selected for specific roles and expertise, provided ample direction and support and highly trained. Real-time monitoring is also critical, not only to assess impact with consumers but also to identify potential issues and ensure ambassadors don’t operate outside the guidelines.

Ultimately, companies need to realize their employees represent them – whether formally or otherwise – and will often be active on social media platforms with or without formal guidance or consent. The best approach is developing a realistic plan to ensure employees are informed, directed, trained and supported to represent the company in a positive light. Using a proactive strategy will allow companies to deploy their best marketing and PR asset – their team members.

Earlier this year Forrester came out with another study commenting on the trend towards increased mobility of technology, and the important implications for marketers. (Here’s another good summary on enterprise mobility trends.) In fact, mobile access to digital information and tools is becoming almost ubiquitous in some developed countries.  As Forrester notes in the report: With more than 1 billion smartphones in consumers’ pockets at the beginning of 2013, mobile is driving a second Internet revolution that’s even more profound than the first one. Mobile creates new value for consumers and businesses, alters cost structures, and disrupts ecosystems. That’s why marketers must move away from tactical mobile efforts to more transformative mobile marketing strategies in 2013.

This disruptive technology is changing how consumers conduct a wide range of activities and use an expanding array of applications and tools – from accessing their email, to banking to downloading an e-book or watching a movie. And the trend is still evolving in both scope and amplitude; in fact, the very definition of mobility is changing. It’s not enough to just address the use of smartphones, or even the booming use of tablets. The recent emphasis is towards “wearable” devices (like Google Glasses) cars and TVs that extend the mobile experience.

Is this mobility trend another example of how internal communications, and employee engagement efforts, lag marketing trends  or externally focused practices? There are huge potential benefits to a robust, relevant internal mobile strategy for organizations. In a mobile environment, the traditional hurdle of access to information and communication sources – which for many workers remains elusive – becomes irrelevant. Furthermore, communication teams can personalize content based on device, role, context (time, knowledge, location) and even personal preference. Mobility provides unique convenience and immediacy – potentially giving employees the ability to do “anything, anywhere and anytime.” It can also provide workers with access to real-time data, a critical benefit in many occupations.

Yet, my personal experience suggests many companies have rudimentary or nascent mobile strategies to reach employees; many appear to still be struggling simply to make their intranet or other digital sources available to their workers. Few are adequately addressing the booming use of smart phones – still debating BYOD issues and/or not distributing smart tools broadly across their workforce. Even fewer organizations outside technology circles are focused on tablets, which are the biggest growth area. Even those considering how to share content across mobile devices do little to help employees create or share content, or collaborate using these same mobile tools. I recognize companies have to address the security, support and cost issues associated with a shift to mobile, but those excuses are wearing thin after several years of discussion.

Some observers are more optimistic about enterprise adoption – check out this article – arguing that the gap between personal use of mobility and work use will continue to narrow. This blog post suggests the expanded use of personal devices in the workplaces (extending to non-executive staff) will continue to drive adoption of mobile applications inside the enterprise. What both of these articles make clear is that even companies reluctant to jump on the mobility bandwagon need to evolve their reliance on their internal “network” (typically secure corporate email, LAN network and intranet) or they risk seeing those corporate channels becoming irrelevant.

I’ll be watching with interest to see if and how companies move towards this mobility trend to improve their workplace communications.

Like many of my peers, I look forward to Mary Meeker’s annual report on internet and technology trends. Though I always tell clients they need to focus on their own situation and custom solutions, it’s also true that a PR program devoid of context and detached from prevailing technology trends is likely to fail. With that caveat, here’s my take on the highlights of Meeker’s report:

  • Internet becoming ubiquitous: Internet growth around the world continues, with 2.4 billion people now online, and there’s plenty of room for that to continue with huge untapped populations in developing countries. For example, internet reach is only at 42% in China and 45% in Brazil.
  • Digital content booming: The growth of digital information that is created and shared – including documents, pictures, video, music and tweets – has multiplied 9 times in the last five years. And this content is increasingly findable due to being tagged and searchable through numerous platforms. Incidentally, emerging platforms like Vine or Snap are two examples of new options for creating and sharing content.
  • Social Media popularity growing: The use of social media platforms continues to increase. Though Facebook still dominates the global scene, it saw a slight decrease in percentage of users. Newer platforms like Instagram and Tumblr experienced the biggest growth, while YouTube is now firmly established as the second most popular platform (by percentage.)
  • Mobility becoming more common: About 15% of internet traffic is now mobile (up from less than 1% in 2009), and growth of at least 1.5 X per year is likely to continue, if not accelerate.
  • Emergence of “always-onglobal citizens: The result of growing mobility options, digital content and transparency is giving rise to more people who are essentially always connected to the internet – no matter where they are or what they are doing.
  • New devices fueling boom: Though smartphones continue to grow in popularity, other devices like tablets (growing 3 times faster than phones) and so-called wearables (e.g. sensor-enabled Google glasses) and drivables (connected cars) are likely to turbo-charge the mobility trend, expand functionality and make everywhere computing the norm.

What does this all mean for the PR/communication industry? It suggests that companies that are already lagging in their understanding and adoption of new technology – whether via social media platforms, mobile delivery or multi-media content – will risk irrelevance and even obsolescence if they don’t adapt quickly. And those that are still using traditional models of marketing, customer service or news management are clearly swimming against the current. New technology has changed how people access information, create content, make decisions, purchase products and even communicate with their peers. There is no longer a safe harbor for companies who believe they are outside the reach of these trends, since their employees, and customers, are increasingly immersed in the always-on environment described by Meeker and others.  Sitting on the sidelines is no longer an option.

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.

 

The recent decision by Marissa Mayer to abolish telecommuting at Yahoo has sparked a firestorm of criticism and debate in social media platforms and executive suites, and put a spotlight on the increasingly accepted practice of virtual work. You can review a good summary of the polemic here.  Certainly, at first glance the policy change seems to go against prevailing workplace trends and HR logic – where maximized work-life balance fosters more happy, productive employees. Telecommuting is a growing trend and seems a boon to both employees and companies alike (statistics I’ve seen suggest productivity increases with flexible work arrangements.)

This response – from none other than Richard Branson – is fairly typical of the strong negative reactions to the Yahoo move, which suggest the blunt directive is anachronistic and short-sighted. Some of the criticisms have even questioned Mayer’s feminist bona-fides – such as Maureen Dowd’s column suggesting Mayer’s gilded work arrangement may be clouding her understanding of the needs of other working women. It should be noted not all the comments were negative. Several like this one featured Yahoo insiders who praised the move, suggesting there were too many slackers taking advantage of the loose workplace rules. Other commentators argued that the company’s growth and survival trumps any workplace conveniences.

One of the realities that I found missing in some of the comments is that in all flexible workplaces – in particular those promoting working from home – there’s always been an implied, or formal contract, featuring one or all of the following requirements:

  • There’s no blanket policy – Each job/role should be evaluated if and how it lends itself to telecommuting, and in many cases senior leaders or group leaders understand their roles preclude being based off-site for extended periods of time.
  • Productivity trumps convenience – If a case can be made the efficiency and output of employees is suffering due to telecommuting, then the policy should be revisited.
  • It’s not all of nothing – Most people I’ve worked with over the years operated in a blended routine that includes both virtual work (from the home or other outposts) and occasional face-to-face interaction, such as quarterly meetings or special retreats.
  • Circumstances change…and so may your job – Employees must recognize that workplace policies are fluid and can (and must) change to ensure they remain viable and relevant in the context of the company’s evolving performance and objectives.  The fact that telecommuting is a policy now is not a guarantee or excuse for keeping it in perpetuity.

In defense of Yahoo’s blanket ban on working from home, many of the negative comments seem to conveniently ignore the company is on a steady downhill towards irrelevance and possible oblivion. Yahoo’s leaders made a strong case that business as usual wasn’t working and dramatic change was required not just to boost productivity, but also collaboration and innovation – both of which benefit greatly from sustained in-person interaction. Furthermore, company leaders are leaving the door open to further adjustments, saying this is the right solution for right now.

As I thought further about this issue, however, I looked at my own situation, where work with global partners via Skype or other interactive platforms is the norm, and productivity rarely seems compromised by the lack of face-to-face interaction. In fact, the inherent flexibility of a virtual team has often been a boon to our performance – with more than one Skype call featuring folks at the breakfast table or quietly baby-sitting their children. Is it helpful to have in-person meetings on occasion? Certainly. But does that prelude a balanced model where virtual work is allowed for more routine work and collaboration. It should not.

In the final analysis, I believe Mayer could have taken a more nuanced, incremental approach, starting with a more disciplined policy and closer monitoring to weed out the worst abusers, but she likely felt that lacked the urgency the dire situation required. Ultimately, I think her blunt approach will backfire – if she doesn’t retreat from the decision altogether. (They left the door open for future changes in the policy, so this is perhaps the most likely outcome.) The unintentional  message it sends to employees and prospects is that they can’t be trusted and don’t merit the same flexibility and options that are given to most other technology companies – particularly those based in Silicon Valley. After all, though productivity is certainly paramount it cannot be achieved without employee engagement and goodwill. Given this context, Mayer may win the immediate battle for innovation, but lose the longer war for talent.

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