Fundamentals of Organizational Communication Strategic Organizational Communication: Professional Applications of Organizational Communication Chapter 10 Describing Strategic Organizational Communication • “strategic organizational communication involves the ability to analyze a situation, select appropriate communication strategies, and enact those strategies effectively” (Conrad, 1994) Describing Strategic Organizational Communication • Strategic communication is in fact a twoway, transactional process. Information is received by management from organizational members and the external environment, and in turn messages are sent by management to involved parties. It is a dynamic interaction. Describing Strategic Organizational Communication • Strategic organizational communication is regarded as transactional processes in which organizational messages are deliberately generated; are based on environmental data, analysis, and strategy selection; and are guided by organizational objectives. Perspectives on Strategic Organizational Communication • Research has indicated it is more effective to view strategic communications from an outside-in perspective. This orientation recognizes the importance of an organization’s environment and the need for organizations to be aware of changing environmental conditions. Perspectives on Strategic Organizational Communication • Outside-in planning begins with an analysis of the organizational environment. – Stakeholders – individuals or groups who have an interest in the organization and are able to influence the organization’s ability to meet its goals – Outside-in planning lays the foundation for ongoing communication between an organization and its stakeholders. Perspectives on Strategic Organizational Communication • A strategic communication goal may be to foster better interdepartmental and vendor communication. • Numerous tactics such as job rotations, regular meetings, or teleconferencing may be used in support of the goal. • Strategy involves anticipating the reactions of others. Strategy becomes the basis for action. • Communication tactics are the actions that determine whether or not the strategic objective is realized. The Organization and Its Environment • Multiple Publics – A public is “a group of individuals tied together by some common bond of interest and sharing a sense of commonness.” • “Dinosaur” organizations – Lack of contact with the customer and environment – Unwillingness to adapt to changing environments • Organizations need to match their paradigms and planning systems to their environments. The Organization and Its Environment • Environmental Scanning – “the acquisition and use of information about events and trends in an organization’s external environment, the knowledge of which would assist management in planning the organization’s future course of action.” (Auster and Choo, 1994) – Experts agree that to be effective, some structure must be established to facilitate the process. The Organization and Its Environment • Environmental Scanning – Boundary spanners serve at least three main functions: • They can access the opinions of people outside of the organization and use that information to guide organizational decision making • Their awareness of subtle trends in the environment can serve as a warning to the system for environmental jolts • They serve as important representatives of the organization to its environment. The Organization and Its Environment • Environmental Scanning – One difficult aspect of environmental scanning is the process of distributing the information to appropriate organizational members. – The interpretation of information also present challenges. – Members who have responsibility for external scanning often scan internally, as well. End of 10a Strategic Management • Strategic management is the process of formulating and implementing an organizational plan of action that sets direction and guides the organization among alternative courses. • The purpose of strategic planning is to strengthen the organization’s competitive position. Strategic Management • Strategic management seeks to create competitive advantage by using the organization’s unique qualifications to pursue opportunities existing in the environment. (Kenneth Andrews) Strategic Management • S.W.O.T. Analysis –Strengths –Weaknesses –Opportunities –Threats Internal Internal External External Strategic Management • Competitive strategy is often described as the unique quality or competence an organization has to offer, the one that will create competitive advantage. • Common Competitive Approaches – – – – – – Low cost leader Differentiation strategies Technical support Custom-order Customer Service Parts availability Strategic Management Models have Common Phases 1. Scanning and interpreting the internal and external environments 2. Formulating a mission or vision for the future and transforming it into specific objectives 3. Developing strategy and implementing supporting programs 4. Monitoring, reviewing and revising the plan and its implementation Strategic Management • Although all organizational activities are involved in supporting strategy, two functions carry a major responsibility for strategy communication and implementation: – Public Relations – Marketing Strategic Organizational Communication • Effective Communication Strategy: – Linking to organizational goals – Legitimizing certain issues and delegitimizing others – Shaping organizational memory – Making sense of the confusing and ambiguous – Providing a proper point of identity – Continuously evolving Strategic Organizational Communication • Public Relations – Little agreement as to scope or purpose – Contemporary definitions have emerged promoting a mutually beneficial, two-way interaction between an organization and its publics. – Excellent programs are based on symmetrical, or two-way communication presuppositions. Strategic Organizational Communication • Managing an Organization’s Image or Reputation – – – Negative connotation of manipulation It is important to recognize that not only do multiple factors play a role in forming reputations, but that organizations have multiple, and sometimes conflicting, reputations. Organizations are challenged to ensure that public relations not only make people think well of organizations, but that they think well because the reputations are deserved. Strategic Organizational Communication • Internal Communications – Sometimes referred to as employee communications, are often managed by public relations departments. – In most organizations, employees are considered an important public. – The function of internal communications is planned and formalized communication prepared and disseminated by communication professionals to and for internal organizational members. Strategic Organizational Communication • Public Affairs and Issues Management – – – Involves the shaping of public opinion regarding social and political issues important to an organization Issues management, a proactive function of public affairs, involves foreseeing emerging public policy issues and responding with strategies to resolve issues of importance to the organization. The purpose of issues management is to help organizations anticipate social, economic, and political issues. Strategic Organizational Communication • Media Relations – Specialists who are often the gatekeepers between their organizations and the media – Publicity has the impact of a respected third-party endorsement. – Media relations heightens the impact of other communications efforts. – Five f’s: fast, factual, frank, fair, and friendly Strategic Organizational Communication • Crisis Management – The use of public relations to minimize harm to the organization in emergency situations that could cause irreparable damage. – A crisis is a situation of major importance and visibility that presents elevated risk for the organization. – A common mistake made during crises is an overall lack of action or communication. Strategic Organizational Communication • Crisis Management – Crisis Management Plan • • • • • • • • • A statement of principles A comprehensive list of kinds of crises Formation of a crisis team Establishment of a crisis center A list of key audiences An analysis of resources for the crisis plan A statement of media guidelines Advance preparation of materials Establishment of a “network alert system” Strategic Organizational Communication • Crisis Communication Strategic Organizational Communication • Marketing – Management process that bears major responsibility for communicating and implementing strategy – Marketing is usually directed at bringing about an exchange between an organization and a customer Strategic Organizational Communication • Traditional Marketing Approaches – During the 1950s and 1960s organizations tended to be product-oriented rather than customer-oriented. – From this situation, a dominant marketing orientation emerged. Many companies operated from a top-down, inside-out perspective. The emphasis was on producing and selling goods, with little attention given to customer needs or satisfaction. Strategic Organizational Communication • Marketing Today: The Customer Is Central – Most organizations have realized that to survive, delivering value and satisfaction to their customers is key. – “It costs five times as much to attract a new customer as it does to keep a current customer satisfied.” Strategic Organizational Communication • The Marketing Mix – – – – • Product Pricing Place Promotion A.I.D.A. – Attention – Interest – Desire – Action Strategic Organizational Communication • The Emergence of Integrated Marketing Communications – “The process of managing all sources of information about a product which behaviorally moves a customer toward a sale and maintains customer loyalty.” – In a world where we are constantly bombarded by information, it becomes necessary for marketers to do all they can to ensure that their messages are processed by consumers. Strategic Organizational Communication • Relationship Marketing and the Use of Marketing Databases – The practice of using transactional communication to build long-term relationships with customers is known as relationship marketing. – The proliferation of database marketing is accompanied by a growing concern about invasion of privacy. Ethical Issues in Strategic Organizational Communication The Management of Development and Change • • Organizational development: educational strategies intended to change the beliefs, attitudes, values, and structure of organizations. Human resource development: sets of activities that prepare employees to perform their current jobs more effectively; to assume different positions in the organization; or to move into jobs, positions, and careers that are not yet defined. The Management of Development and Change • The Purchase Model • The Doctor-Patient Model • The Process Model The Management of Development and Change • Planned Development and Change The Management of Development and Change • Data Collection (Communication Audit) – Data Evaluation – Planning and Implementing Solutions – Evaluating Results Fundamentals of Organizational Communication Strategic Organizational Communication: Professional Applications of Organizational Communication Chapter 10