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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 How many companies are still using paper-based files or outdated CMS programs?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?
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.