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Every year Mary Meeker from Kleiner Perkins shares her comprehensive report on internet trends. The report not only provides a great snapshot of technology trends and developments, but also a useful backdrop to compare how the communication profession is tracking on these changes. In this post I’ve selected a few highlights from the report that have particular (or potential) relevance to communicators, with a focus on internal communications. I’ve included questions (in italics) that should provide fodder for discussion among communication professionals.

  • The internet has become increasingly mobile. Devices have made access possible from anywhere anytime, and content has shifted from text to photos to video. Will PR and internal communications follow this trend of rapid evolution to multi-media mobile outreach? (Many companies are still trying to adopt responsive design.) Can “buy buttons” be replaced with other relevant alternatives?
  • Meeker presents a great example of innovative IC – an employee manual from Guidespark that is entirely digital and accessible via mobile. How many companies are still using paper-based files or outdated CMS programs?
  • Consumers can choose from a plethora of messaging apps to communicate with peers and companies; Meeker lists the top ten globally. What is the status, and future, of messaging apps in most corporations? Can employees get 24/7 mobile access to peers without a firewall.
  • Meeker uses one excellent slide depicting the wide-ranging benefits of mobile messaging (e.g. casual yet fast, real-time yet replayable, instant yet secure.) How many of these messaging benefits are available inside corporate firewalls?
  • There is strong evidence in the report that what workers (in this case millenials) want/expect from an employer goes well beyond pay and benefits. For example, millenials expect flexibility at work, as well as a tech-savvy environment that features social capabilities (ideally BYOD) they are used to. They also value training and development and flexible work more than other common workplace perks and benefits. How many companies are focusing their efforts on their training and development programs, flexible hours and other millennial priorities?
  • Consumer expectations for accessing information have changed dramatically in the digital age: consumers want to be able to get what they want when they want it. In other words, the consumer is in the driver seat. How many companies are actively trying to deliver on this mantra with their employees?
  • User-generated content is powerful and prominent in the digital age. As Meeker puts it, content is increasing user-generated, curated and surprising. Are companies encouraging and curating the content and stories generated by their employees? Are employers leveraging their employee stories through advocacy programs?
  • The modern workplace has evolved in several important ways: jobs have changed, technology has changed, worker expectations are shifting with each generation, and the business context has changed, among others. How many of these trends are really being considered and addressed by employers and communicators?
  • Consumers are using social platforms like Snapshat and Periscope to create and share video stories – many in real-time. Are employers providing the tools to allow employees to generate and curate similar video stories – both inside and outside the firewall?
  • The report features strong evidence employers are not in sync with the priorities of millennial workers. It’s about meaning and opportunity for younger employees, not money. How many companies are still basing their “employee value proposition” on outdated, incorrect assumptions?

How many of these trends are top of mind for you and your company?

Over the past few years, I’ve often questioned why so many communication professionals – both in-house and in PR agencies – were slow and hesitant to adapt to the dramatic industry changes sparked by social technology. There are many logical explanations for this lag: caution about legal issues, concern about a public misstep, fears about rogue employees, a distaste for real (and potentially negative) interaction with consumers…the list goes on. But based on recent research I’ve seen the explanation may be more basic: most PR professionals simply don’t have the social media skills and expertise to be effective (or confident) advocates for change.

This excellent post by friend and former colleague Richard Binhammer provides a good summary of the skills gap in marketing and across the general US employee population. Indeed, the problem is not limited to communication professionals. However, this is where the problem is most acute and noteworthy, since our jobs dictate that we provide cogent, informed counsel and support on digital engagement with both external and internal audiences. By some estimates in these studies, only about 10 percent of workers truly understand digital technology well enough to incorporate that knowledge into their work and planning. For more background on the PR skill gap see this article and this study.

Even millennials, who tend to be much more tech-savvy than older workers and use most major social platforms every day, have their blind spots. Though younger workers have grown up with the mobile Internet and have likely posted most of their lives online, they lack the strategic savvy and broader perspective required to use their knowledge in a business context. Put another way, they understand the technology, but not the PR business. This article in Fortune provides a good snapshot of the millennial strengths and weaknesses.

All of this evidence reflects what I’ve seen over the past 10 or so years as both a communication executive and consultant. We are falling behind in a digital world. Badly. Events like SXSW, the tip of the spear in digital innovation, suggest that everybody is fully immersed in digital media and driving cutting-edge social media strategies in marketing, advertising and communications. But I don’t think the folks at SXSW reflect the average PR professional, or company – particularly outside the tech havens of Silicon Valley, Portland and similar global outposts.

Leaders who are socially savvy and proactive are extremely rare, the proverbial unicorn. A surprising number of communication teams seem to rely on one or two in-house digital gurus – typically social media managers, digital designers or marketing experts – who are often over-taxed and overwhelmed. Lacking adequate depth and breadth of critical social skills, many communication teams rely on a range of outside experts ranging across digital disciplines to cobble together programs: web design, platform vendor/technology, visual/video content, editorial content, social community management, research and analytics, and so forth. I’ve rarely seen all this requisite expertise housed within a PR agency or team, much less inside the same organization. Though the outsourced virtual “best team” approach may be effective in the short-term, it doesn’t support the efficient, dedicated work required to plan and execute a robust digital strategy.

There is urgent need to address this social skill gap; the credibility, relevance and effectiveness of the communication/PR business are at stake. The solutions are obvious, if not easy or inexpensive: training in social media history and skills; built-in time to participate in relevant seminars and meetings; progressive BYOD and social media policies; reverse mentorship programs; recruitment of tech-savvy professionals; mandatory boot-camps on digital metrics; and, alignment with related disciplines (i.e. digital design, intranet technology, social analytics, CRM.) Smart communication leaders will take steps to ensure they – and their teams – become the social media experts their clients expect and need to be successful in the digital age. Without making progress in the social skill gap, I fear PR may simply be pushed out by smart marketing or technology firms (and teams) who pull together the requisite social capabilities.

Every year I watch with interest as new technology trends and tools are introduced and discussed. Beyond the impressive innovation and creativity – and yes, the occasional false start and tendency towards hype – my favored activity is digging into the expected and potential applications for marketing and communication disciplines.

The recent CES conference provides plenty of fodder for discussion. The coverage I’ve read and seen focuses on a number of exciting trends:

  • The Internet of everything – There is a marked trend towards having access to the internet from anywhere, anytime to do whatever we want. We can buy a product using only our iPhone, access the Web in our cars through voice commands, change the temperature of our home remotely, access (or record/save/share) content from a range of mobile devices…you get the drift. It’s all about connectivity across all platforms, allowing us to perform a huge number of activities that require, or are helped by, access to the internet.
  • Technology gets personal – With the boom in wearables, including sophisticated smart watches, you can now connect with your doctor remotely (with real-time sharing of your vital signs) and track every second of your life. Of course, this also allows you to share or use that data with a wide range of appliances and applications.
  • It’s still about content (and data) – This year’s CES had the usual improvements in dazzling ways to share digital content, ranging from virtual reality to curved ultra-high-definition TVs. On the data side, many of these applications require or encourage increased use of data – notably personal data from wearables. The trick is how to collect, organize, analyze and use all the information across all the potential access points.

You can read a few of the reviews of CES (featuring proposed headlines for the top news or trends) here, here and here.

So what does all this mean for communication professionals – if anything?

My first reaction is: with all this focus on internet everywhere connectivity, why do so many workplaces still have limited social and mobile capability? I see plenty of room for improvement for many organizations (except perhaps the usual suspects in the tech world) to deploy and mobilize a mobile strategy to inform, engage and support their employees. Forget high-def digital screens; many are still working to allow use of BYOD smartphones and tablets among their staff, while others are struggling to  ensure their intranets have responsive design for mobile users. One example of potential innovation is using smart cars for employees who spend most/all of their time on the road.

I also see a gap – or to be more positive, a major opportunity – around the trend of personalization, notably personalizing content and communication outreach inside organizations. This need not involve wearables like smart watches – which for many companies are likely years away – but can start with more agile, smarter segmentation of outreach and increased use of personalization on existing platforms like intranets or email networks. Most intranet platforms allow for considerable customization to allow users to focus on feeds and content that is most relevant to them. Communicators can also easily increase the ability for employees to opt into content, of feeds, that are most interesting to them rather than pushing mass distribution. Another simple improvement is making full use of so-called rich profile tools (like My Site) that allow employees to partially shape their own employee profile information.

I think the biggest contrast between the cutting-edge of CES and the average workplace is around data. Where one of the main topics at CES was around the push to collect, track and analyze all manner of data (like those smart watches) for many companies the very concept of data is nascent, limited mostly to cumbersome annual surveys, rudimentary tracking statistics and profile information. Some forward-thinking companies are showing progress in this area; for example, using real-time, regular online culture surveys, and using analysis to match employee engagement data with other metrics like customer satisfaction, engagement and productivity. Others, however, still struggle with old-school issues like updating staff directories (if they are even online) and integrating disparate, disconnected systems.

Ironically, all the hype and excitement from CES serves as a good reminder that it’s not all about technology. Though it’s become a well-worn truism, internal communications still has to include, if not feature, people in the communication mix – notably managers and leaders. But even here, the dazzling new technology offers fertile ground for innovation. Surely we can find better ways to inform and mobilize managers so they can in turn communicate with their teams more consistently and effectively. The real lesson for CES is that communication professionals should always be learning and listening; new ideas and improvements can come from anywhere.

Over the past few months I’ve attended (mostly virtually) a number of webinars and conferences focusing on social analytics and business intelligence. The latest was the Social Intelligence Summit put on by the W20 folks in London. (Here is a good blog post on the session.) I always come out of these sessions really impressed, even dazzled, by the advances in technology and intellectual leadership at the cutting edge of social business. The big lesson for me from these sessions is that the digital world is – with few exceptions – transparent, observable and measurable, and we’re coming up with increasingly smarter ways to find, package and use the digital data.

It’s difficult to pull highlights from the sheer volume of notable observations and insights, but here are a few I’ve noted:

  • There are now a wide range of sophisticated, user-friendly tools to help organizations monitor, aggregate, analyze and report activity on the Web – including multi-media discussions occurring on social platforms;
  • Analytics software can now provide complex, real-time data and insights that allow organizations to monitor and adapt their outreach 24/7;
  • Smart companies have gone well beyond listening and engagement and are now using the data to understand their audience (and how their brand is performing) and gain intelligence to drive their business;
  • Powerful analytics are being used well beyond the basic objectives of marketing – to drive brand or product awareness, consideration and hopefully purchase – and are now helping to guide activities as varied as health planning, product development and even predictive consumer research;
  • There seems to be a shift in what companies measure, with some focusing well beyond the usual reach/share of voice/tone to issues like identifying and mobilizing small groups of influential advocates, or determining highly customized and protean media channel strategies;
  • Some of the most interesting and advanced analytics work seeks to link social data and insights with specific business processes, transactions and outcomes – and using the insights to adapt and improve related business results.

My initial thought coming out of these events is euphoria (and humility) at the incredible innovation and intellectual sophistication in social media circles, and appreciation so much of this information and technology is readily available for all to use. But inevitably there is a thud when I return back to reality with my own observations, projects and clients. The reality is what I hear in these conferences and webinars still seems like rarified air in my consulting environment, with most clients or peers I see still grappling to understand and implement even the most rudimentary social platforms and strategy. If anything, I feel the gap between the analytics gurus and many of the corporate leaders (and communication pros) I work with is getting wider. In effect, I see a few pioneers with one foot in the future, but many others with one foot firmly placed in the past.

Perhaps the largest gap, and opportunity, is inside the organization. Most companies have at least some commitment to monitoring external social conversations and using the resulting data and insights to direct their social strategy, if not their broader business. But it’s much more infrequent to find companies that deploy social technology inside their enterprise and actually monitor, measure and analyze all the data generated by their employees. And leveraging Intranet traffic metrics or annual engagement surveys does not count as a real-time, robust analytics strategy.

Think of the potential outcomes if companies started to aggregate and interpret all the data on or from their workforce. Those kind of insights would not only help to track and drive engagement – the priority for many HR leaders and employee communication executives – but also provide valuable information to positively impact business outcomes such as productivity, retention, safety and even customer service. I’m personally hoping the analytics gap closes soon. Otherwise leaders and communication professionals are leaving a lot on the table.

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.

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 “alwaysonglobal 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.

 

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.

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