Communicating Change - Getting it Right on the Inside Review of article entitled: "Internal communication during change management" 10th April 2002 Originally published in: Corporate Communications: An International Journal, Vol 7 No 1, 2002. Authors: Philip J. Kitchen, of the School of Management and Economics, Queen's University, Belfast and Finbarr Daly of Loughry College - The Food Centre, Cookstown, Co. Tyrone, Northern Ireland. Earlier this year, Andersen faced the challenge of informing each of their employees of its potentially devastating situation in the wake of the Enron debacle. To their credit, Andersen directors did so effectively and personally through simultaneous video link. But what importance do you place on internal communications? Do you have a strategy for communicating change? Imagine this. You are implementing a change management program. Aware of the fact that almost half of such initiatives are destined for failure you do everything you can to become that other 50%. You know that communication is a key factor in ensuring success so you make sure that all your customers are informed on a continuous basis. You produce regular, informative press releases and take the time to write to clients with additional information. Yet your initiative fails. The change you desire never becomes fully effective and the expected rise in productivity does not materialize. Why not? Surely you have fulfilled your obligations with regards to communications. Or have you? Communicating from the inside out There is one aspect that you have overlooked. And it is be no means a small or insignificant oversight. What about your employees? What internal communications systems were in place? It is all very well keeping the markets and your customers informed but how can you expect your own staff to promote this message of they do not fully understand it? As the 21st century becomes preoccupied by the concept of change, the role of internal communication is gradually making an impact on organizations. Knowledge Management has become a corporate buzzword and "keeping employees in the know" is key to organizational survival, let alone growth. Peter Drucker even goes so far as to declare that "the knowledge worker is the single greatest asset" to an organization. Companies no longer see internal information as a need-to-know entity. The more your employees know about your organization, the more they can align themselves with the values and culture. They are also in the position to share knowledge with their peers and to promote a positive, well-informed image to any external agents. This has all been augmented by recent events, notably the Enron debacle, as investors, analysts and employees are calling for more organizational transparency than ever. Why the change in change? As for coping with change, it has always been an accepted part of corporate strategy, but there has been an increase in recent decades in the issues that will impact upon organizational performance such as: globalisation "glocalisation" deregulation privatisation mergers and acquisitions movement of labour towards less expensive economic locations advances in technology empowering of consumers changes in demand patterns It is widely accepted that change can be continuous or discontinuous. Because continuous change is gradual, you have more time to predict and plan, but the very nature of radical change requires a greater innovative responsiveness. The challenge for today's organization is not so much to plan for change, but to learn to live with it, anticipate it, and where possible - capitalize on it. Communication - the internal challenge During times of change, uncertainty is rife and fear of the unknown a common factor. Employees do not always understand why this change is occurring and tend to be wary of moving away from the old. This is where internal communication can prove invaluable. However, resolving to communicate your intentions effectively to employees is one thing, achieving it is another. Change is not just about how people act but how they think, and you will never be successful if actions are not the result of instilled belief in the new system / culture / product. And creating such belief and understanding is fraught with many obstacles. Before even considering the specifics of internal transmissions, there are other concerns. There is no point assembling an impressive communication system when there are fundamentals within your organizational make-up that will render any strategy useless. The following must be eradicated to ensure initial organizational health: decreasing productivity; increasing absenteeism; barriers to open communication; all decision making is at the top of the managerial pyramid; lack of employee commitment to the organization; low levels of motivation and morale; the reputation of the organization is ignored by employees; existence of unethical behaviour; lack of goal setting; lack of mentoring; lack of development and training programs; lack of trust among employees. Once this has been achieved, you must identify what employees: 1. Must know - Key job-specific information 2. Should know - Essential but desirable organizational information, e.g. changes in senior management. 3. Could know - Relatively unimportant or office gossip. The power of informal structures Bear in mind that today's flatter organizational structures and more casual employees means that identifying who belongs and who does not is increasingly difficult. In addition, organizations have both formal and informal communication structures. It would be unwise to ignore the power of the "grape vine". Instead, you should try and harness this channel. There will always be informal avenues of dissemination, but by recognizing these outlets, you will minimize the risk of inaccurate information passing through the business. Similarly, there are pitfalls such as one-sided (usually downward) communications, suppression of information, mistakes being communicated, and intentional distortion. These must all be considered when formulating your structure. But despite the system you adopt, there is no excuse for transmitting baffling or convoluted information. Careful thought must go into what you are saying as well as how you say it. Have you thought of everything an employee may want to know? Will give the opportunity for questions to be posed? Are you being entirely honest and open? Understanding is key If employees understand the reason for the change, why the organization is committed to this change and what part they will play in ensuring success, they are more likely to support the initiative. It stands to reason that employees aren't going to support something just because somebody tells them that they should. Key concerns when communicating internally Communications must come from the top - visible senior management commitment is a must if you want communications to carry the necessary authority. Devise a communications system - take into account formal and informal channels and try to incorporate the "grape vines" of your organization into the overall structure. Your system should be clear, concise and speedy in dissemination. Don't give the gossips time to distort information. Monitor and evaluate your system - continuous improvement is essential. Be open and honest at all times - in times of crisis or extreme change, do not try to smooth things over with half truths and false reassurances. Be honest. The chances are, employees will find out the truth (secrets never stay under wraps for long in the corporate world) and you stand not only to lose face, but also the trust of all involved. Combine written and face-to-face communications - this mix provides the best results and demonstrates your commitment to employee awareness. Be relevant - do not confuse employees with unnecessary facts and figures. Think what you would want to know if you were in their position, and if you're still unsure then ask - communication is a two-way process! Internal communication should not be an afterthought or come second to external information. It plays an intrinsic part in establishing an effective organizational culture. Recently the corporate emphasis has been towards Customer Relationship Management, and whilst this is still critical to organizational success, we must recognize the emergence of another critical concept: Employee Relationship Management. After all, an organization is nothing more than a group of employees. And it is what they do that makes a company successful.