Managing the Reputation of Communication in Global Corporations and Business Communication Programs Christine Uber Grosse Thunderbird, The Garvin School of International Management Glendale, AZ Summer Address: Christine Uber Grosse 283 Mountain View Rd. Tinmouth, VT 05773 Mobile: 602-684-6497 Academic Year Address: 5220 E. Cortez St. Scottsdale, AZ 85254 Mobile: 602-684-6497 Date Sent: June 4, 2005 1 Abstract This research investigates perceptions of reputation, trust, respect and autonomy of communication departments within international organizations and universities. The study focuses on attitudes toward communication within global businesses with offices in Phoenix, Arizona and business communication programs in the U.S. and Canada. It compares reputation management practices among communication professionals in international business and academia. In the process, the research also looks at how communication officers and business communication faculty evaluate the reputation of communication in global corporations and academic institutions. The findings will provide insight into ways to better manage the reputation of communication in both communities. The objectives of the study included: 1) understand how communication is perceived at corporations and universities; 2) gauge the status of communication through the reporting system; 3) learn how communication adds value to the organization; 4) discover how business and academia evaluate the effectiveness of the communication unit; and 5) find ways to communicate its impact to the internal and external communities. 2 Introduction This paper investigates how communications professionals in business and academia manage the reputation of communication in their organizations. Clearly they come from two different worlds. The first group consists of communications professionals in companies who work in communications, marketing, public relations or related fields, while the second group is comprised of academics who teach business communication at universities. Both worlds have something meaningful to teach. How business people manage the reputation of communication in their organizations informs their colleagues who teach business communication at universities, and vice versa. This study gives some insight into best practices in reputation management for communication in global corporations and MBA programs. Purpose of the study For decades one of the most pressing questions in the communication field was how to raise awareness of the value of communications work. In other words, how could the communication community make others in their organization appreciate what they did? How could they add value, measure their contribution, justify their worth, and improve their reputation in the organization and the business world? It was a topic of great debate at professional conferences such as the International Association of Business Communicators (IABC). When it came time to make cuts in companies, frequently the communications office came under the budgetary ax. 3 In the other world of academia, business communication faculty in MBA programs often discussed at professional meetings such as the Association of Business Communication their lower status, pay, lack of recognition, and low awareness of what they contributed to MBA programs or the university. Reputation management has long been an issue of importance to that constituency as well. The purpose of this study was to look at how the two groups dealt with reputation management in order to gain ideas from each about strategies to tackle the problem. Ultimately, the information might help communications professionals to better manage their reputation at companies and business schools. Reputation Management According to Bennett and Kottasz (2000), corporate reputation theory had its origins in the 1950’s when the concept of corporate image emerged. In the 1970’s and 1980’s, it evolved to focus more on corporate identity. A decade later, the theory developed into its modern form with the increased interest in brand management and corporate reputation. Argenti (1997) attributes the growth of interest in reputation management partially to the success in crisis management. Bennett and Rentschler (2003) define reputation as “a concept related to image, but one that refers to value judgments among the public about an organization’s qualities, formed over a long period, regarding its consistency, trustworthiness and reliability.” A company’s image can affect its credibility and 4 effectiveness in reaching key internal and external audiences such as clients, employees, and the media. According to Jacobs (1999), “career success may depend as much on how others perceive you as on your abilities.” Internal factors that affect a company’s reputation include its ability to communicate, transparency, human values, treatment of employees, ability to innovate, CEO’s reputation, adaptability to change, and handling of social and environmental issues. Among the external forces that impact corporate reputation are customers, print and broadcast media, financial analysts, shareholders, industry analysts, regulators and government (Lines, 2003). Marken (2002) defined reputation as assets that included “quality of products and services, ability to innovate, value as long-term investment, financial stability, ability to attract, develop, retain talent; use of corporate assets, and quality of management.” Marken (2004) believed that reputation was built and managed on small daily actions. He explained, “ a reputation is built with each phone call, each email, each release, each decision and each action.” Genasi (2001) also warned against seeing reputation management as anything but day-to-day business and insisted that “quality of communication has to be supported by quality of action.” In other words, reputation cannot be spun. Since the 1990’s research has shown how reputation can be a strategic resource for a company that can affect its financial performance (Deephouse, 2002). The importance of reputation is also highlighted by the results of a survey conducted in 2000 by the Association of Insurance and Risk Managers of 250 5 leading companies in the United Kingdom. The participants identified damage to reputation as the biggest risk to their business (Smith, 2003). Methodology To learn how each group managed their reputation, I conducted e-mail surveys of business communication faculty and communication professionals in companies. First, I selected target groups in business and academia to survey, and then developed a questionnaire to administer via e-mail. The corporate participants in the survey came from the Thunderbird Corporate Communication Council (TCCC), an advisory board to the business communication program. The 21 members came from global companies with offices in the Phoenix, AZ area. The group worked in large, medium-sized and small companies such as Brodeur International, Cox Communications, Honeywell, Intel, Petsmart, Phelps Dodge, and USAA. The university participants were drawn from the ranks of the Managerial Communication Association. They worked in business schools and MBA programs at Arizona State University, Florida Atlantic University, New York University, Thunderbird, University of North Carolina at Chapel Hill, University of Southern California, University of Washington, Western Ontario University, and Wharton. The survey itself consisted of five questions, designed to elicit information related to the five objectives of the survey. These were: To understand perceptions of communication within the organization To gauge the reality of communication’s reputation 6 To learn how to add value to the organization To discover evaluation techniques to measure value added To find ways to communicate it The survey instrument was developed with the help of Susan Coffroth, director of communications and marketing at Thunderbird, The Garvin School of International Management and past president of the International Association of Business Communicators (IABC) Phoenix chapter. The survey was first sent by e-mail to the twenty members of the Thunderbird Corporate Communication Council, and later to twenty business communication faculty from MBA programs around the U.S. and Canada. The Thunderbird Corporate Communication Council (TCCC) consisted of communications officers and business owners from the Phoenix area. TCCC members advised the Thunderbird business communication and modern language faculty and shared their expertise at biannual meetings held at Thunderbird. Several served as guest speakers in the business communications classes. Eight corporate communications professionals and eleven business communication faculty responded to the survey. Respondents came from the following organizations: Brodeur Worldwide, City of Glendale, Honeywell, The KurCarr Group, Petsmart, Phelps Dodge Corporation, Topete/Stonefield, and USAA Phoenix Operations. The business communication faculty who responded to the survey worked in MBA programs across the U.S. and in Canada. Most faculty were members of the Management Communication Association. They came from the following 7 institutions: Arizona State University, Florida Atlantic University, New York University, Thunderbird, The Garvin School of International Management, Tulane University, University of North Carolina at Chapel Hill, University of Pennsylvania-Wharton School, University of Southern California, University of Washington, and the University of Western Ontario. The survey instrument appears in Appendix A. The survey was first developed for the corporate side. When the eight responses were received, the results were compiled anonymously and sent to the respondents for review. Preliminary results of the survey were presented at the MCA meeting in spring 2004 in New Orleans. After that, a parallel questionnaire was prepared for the academic group. Nine people responded. Again the results were compiled and sent out to participants for their information and review. Subsequently, survey results were presented at the ABC Conference in Cambridge, MA in fall, 2004. Research Questions The five research questions for each survey are shown below. The first in each group appeared in the business survey, while the second went in the academic questionnaire. 1) Perception How are communication and marketing professionals perceived in your company by your clients? How are business writing/communication professors perceived at your university? What reputation do they have? 2) Reality 8 Whom does marketing & communication report to in your organization? To whom do you report at your university 3) Value Added How does your department add value to the company? If you own your own business, how does your company add value to the client? How does the business writing/ communication program add value to the university and students? 4) Evaluation How do you measure the value of your communication/marketing efforts? How do you measure the value of your teaching to your students and university? 5) Communication How do you convey the importance of your work to your associates and clients? How do you convey the importance of teaching business communication to your colleagues and students? Results Perception How are communication and marketing professionals perceived in your company by your clients? How are business writing/communication professors perceived at your university? What reputation do they have? The responses from the corporate side varied greatly and showed the wide range of perceptions of communication within an organization. Generally speaking, respondents acknowledged the belief that during hard times, marketing and communications often faced the budget ax. Many also believed that the President or Chief Executive Officer’s attitude toward communications generally 9 set the tone for the company. However, individual attitudes could vary. Within a company, some people might be very receptive of communications professionals and their work. Others think that the communications people are not needed, and that their work adds no real value. Still others within an organization think that they have the skills themselves, and that they can do the work of the communications people. Perceptions also depended on the type of organization. At a progressive, high tech organization communication would typically be held in high regard and receive executive level attention. In contrast, old school companies tended to view communications professionals as glorified administrative assistants or low level marketing support. Others replied that communications was perceived as necessary within the company, even though people did not always fully understand its role or how it could provide value. Communications was usually seen as helping to avoid negatives and keeping audiences from being dissatisfied with the company. However, it was not usually seen as helping the company to seek positive positioning and greater visibility. In academia, the same broad range of perceptions existed. Most reported the perceptions to be mixed. For example, one explained, “the perception varies widely. Some professors view us as nothing more than a remedial service function. They think we should drill students on grammar. Others fully understand, appreciate and support our role. They understand the role of communication as the means through which knowledge is transmitted and 10 influence is exerted. They appreciate that clear, concise strategically structured written documents achieve a business objective.” Several commented that their reputation depended largely on the quality of the teaching and the faculty themselves. They reported that damage had been done to the reputation of communication from poor quality instructors. One explained, “Our department is struggling to overcome a poor reputation caused by some adjunct faculty members who were not well-received. Our team of four clinical professors (full-time but not tenure track) is solid and we are generally well-regarded by our peers and students. But there is a great deal of variance among our adjunct staff.” This sentiment was reflected in the comments of another professor, “Our reputation is only as good as our teaching. In the past, the area group had a rather mixed reputation. We had two good teachers -- and always two that never worked out. [Teachers A and B] had very successful careers with good compensation and good reputations. The other two positions turned over every two or three years.” Others commented that communications faculty were valued as respected members of the business school. One reported, “I'm talking from the business school perspective, not from the Department of Communication Studies. We are valued as full members of the b-school faculty. Our reputation is excellent and is based on our teaching successes in the undergraduate, MBA, eMBA, wMBA, and executive education.” Another wrote, “most faculty recognize we provide an important service to students.” 11 At the other end of the spectrum, some colleagues reported that their function was viewed as just remedial. They said that other faculty had little or no opinion of their work. One said, “I don't know that on the university level anyone really knows we exist, but at the B school the perceptions vary. I think in general we aren't considered real faculty—we are clinicals at best, some staff instructors, and most adjuncts. Some professors value our skills more than others.” Furthermore, they felt that they were at the bottom of the faculty totem pole with the lowest salaries. One faculty member reported, “Within our business school, the business communication lecturers (there are no tenure track positions in that field) are at the very bottom of the faculty totem pole. We make the lowest salaries, and have little influence on policy. I'm really not sure of our reputation in the rest of the university; frankly, I'm guessing we're so low profile no one outside the business school really is aware of our existence.” They had little influence on policy. Business communication faculty who were part of a much larger English department felt that they were perceived as being on a lower level and secondary to other professors. In their opinion, they were viewed as “just writing teachers,” rather than real faculty. They were needed but not highly valued by their institutions. One faculty member wrote, “I don’t think we are on the radar screen.” For some the perception is mixed. One wrote “Reputations with our quantitative colleagues vary, some seek opportunities to link courses and others having little or no opinion of our work.” Another said, “I don’t think that we are very highly respected. We are second-class citizens. We get paid well so I can’t 12 complain there. The administration uses us when it’s convenient, like for accreditation. Otherwise I don’t think they think much about us period.” Still another faculty member observed, “at the university level, I don't think we are on the radar screen. However, I think we have a pretty good reputation within the business school. Although, we are not given the status and respect (or pay) of tenure-track faculty, I think most faculty recognize that we provide an important service to the students.” Reality Whom does marketing & communication report to in your organization? To whom do you report at your university? To measure the reality of communication’s stature within an organization, business people look at who they report to. The corporate report varied by the size of the organization in this survey. These figures may not reflect wider practice. In a large corporation, typically the communications unit reports to the senior communication director, the Vice President of sales and marketing, or the Senior Vice President of Human Resources. In smaller companies or nonprofits, the communications professionals report to the President or senior officer. One respondent from a large corporation commented, “although not unheard of, it’s very rare that the communication function reports directly to the president or CEO.” To improve reputation, Jacobs (1999) quotes Socrates: “the way to gain a good reputation is to endeavor to be what you desire to appear.” She also recommends that people take the initiative, network outside the immediate area, 13 create opportunities, find a mentor, become more visible in the organization, and volunteer to help in high-profile projects. Academics reported to the Senior Associate Dean for Academic Affairs at the business school, the Associate Dean of Graduate Studies, Writing Program Director in the English Department, Graduate Division Vice Dean, or Faculty Director of the MBA program. Value Added How does your department add value to the company? If you own your own business, how does your company add value to the client? How does the business writing/ communication program add value to the university and students? The communications professionals at companies had a lot to say about how they added value to the company. Clearly this is something that they must deal with daily, while the academics typically do not have to justify their existence on such a regular basis. The company respondents replied that they met the communications needs of the firm in the following ways: public relations, investor relations, public affairs and issues management, strategic marketing, competitive assessment, reputation management, media relations. In addition, respondents mentioned that they informed customers about programs, services and activities of the company. They communicated with employees and key external audiences. The corporate respondents articulated the voice of the brand and developed key messaging for the company. One respondent summarized the value added by reiterating that the communications people “support the business and communicate business goals, 14 objectives and values to various audiences, employees, media, investors, customers and the community.” The academics found that they added value to their university largely through their teaching and the development of communication skills in their students. They added value to the institution in the following ways. The communication skills they taught helped students to get better jobs, made them better leaders, helped students become better strategic thinkers and achieve academic, personal and job objectives. The communications courses also helped the university win accreditation. One faculty member responded that the business communication program gave students the “skills they need to be competitive such as organization, clarity, critical thinking, conflict and crisis management and cross-cultural communication.” Evaluation How do you measure the value of your communication/marketing efforts? How do you measure the value of your teaching to your students and university? This is perhaps the most difficult question related to communications and reputation management. One respondent acknowledged that the IABC and other communications organizations had struggled with this issue for years, but no one had found a “silver bullet”. She said, “This is what makes our work so difficult and why when dollars get tight many organizations start cutting the communication and marketing budgets. This is extremely shortsighted and I know several organizations that have learned this the hard way.”At the 2004 ABC 15 Conference, Paul Argenti, professor of business communication at Dartmouth College, referred to this issue as the “holy grail” of communications professionals, that is finding a way to measure the results of your work and showing how it adds value to the organization. A wide variety of measures are used to measure reputation. Some use actions to do so. Others measure reputation by gauging the “increased probability of future revenue/profitability streams or consumer experience” or “the influence of reputation on share values in the aftermath of a crisis” (Sarbutts, 2003). More widely known evaluation systems include the “Most Admired Companies” lists and rankings of large companies by Fortune magazine and the Financial Times. Another familiar example of a reputation management system can be found on eBay.com. Keser (2003) describes how eBay Inc. uses the Feedback Forum as a system to measure the trustworthiness of participants in its transactions. Buyers and sellers rate each other by sending in a comment and a rating. The Feedback system counts the number of positive and negative ratings, and makes the comments available in a user’s Feedback Profile. Through this system, the users can develop and manage their reputation. One of the respondents explained that the measurement depends on “work specifics and target audiences, as well as the event, product or service. We might look at ticket sales of an event, hits on a Web site, are sales up for a new development.” The measurement depends on what the overall goals are. 16 Various evaluation methods were mentioned such as focus groups, telephone interviews, coverage in print and electronic media, pulse surveys, employee satisfaction surveys, attendance at meetings and events, and online sources. Surveys, one person pointed out, can be expensive, but the can measure changes in perceptions, attitudes or awareness of an issue, product or service. Another respondent commented that “we measure more than just column inches, broadcast time or number of mentions as we did in the past. Now we also look at story placement, were the quotes accurate, were we well positioned in the media.” A communications company representative said her company “attends industry or competitive events in person or online, and taps into existing relationships with media and industry analysts to gather more insight and test competitive positioning.” Academic evaluation methods depend heavily on student evaluations. But other techniques were mentioned such as salary and status, alumni surveys, corporate surveys, exit interviews with students, and unsolicited feedback from students and professors. Communication How do you convey the importance of your work to your associates and clients? How do you convey the importance of teaching business communication to your colleagues and students? Corporate communication professionals employ several strategies to get across the value of what they add to the organization. One replied, “we share the results of our measurements to show them how well we are helping the business 17 to achieve its objectives.” A number of respondents expressed the desire to have “a seat at the table.” In other words, they want to be a part of the management team that develops corporate strategy, and not just provide tactical support. One replied that communications professionals don’t want to be limited to implementation alone and told “go support what senior management has decided to do. We must be an important driver in meeting the strategic directions and goals of the company.” Several see their role in communications as vital to the success of the company. As a result, they want to participate in leadership discussions, and ultimately “have a seat at the table.” Thus, they seek to link communication to the business goals. Another part of their communication strategy is to pulse the company and its external audiences. In order to improve quality, they try to make continuous process improvements. Finally, they communicate the results of what they do to their internal and external audiences. One respondent complained that the company sees “our value when they have a problem with public or the media.” Another explained, “we are dependent upon public trust and consent to be able to do our work. If trust is betrayed, we’ll experience delays in project approval, more confrontation with regulatory authorities, less than maximum success in attracting and retaining top-quality employees.” For the academic communicators, it’s not so easy. Traditionally in academe, you are not supposed to “blow your own horn.” Yet undeniably, communication is vital to building reputation at a university. It involves letting 18 internal and external audiences know who you are, what you do, how you and the communication program add value to students, faculty, the organization and community at large. Communication faculty can also show how they and their program are linked to the university’s goals. Yet the reality is quite different. Most respondents lamented “we don’t do enough of this.” Another said, “I don’t spend the time I should trying to convey the importance of business communication to faculty—a situation I plan to work on.” Yet another said, “we don’t actively try to convey this to our colleagues.” The majority said communication about them or their program was done informally or indirectly. This is fairly typical in the academic culture which neither encourages “self promotion” and nor requires the same level of accountability or measures of value added as the business world. Several respondents gave examples of the indirect and informal ways of communication. One colleague said communication about her program was done indirectly through the Dean, Associate Deans, recruiters and respected publications such as the Wall Street Journal. Others let others know what they were doing through informal talks or speaking at departmental meetings when invited by their chairs or deans. One faculty member explained, “I’ve tried to get to know individual line faculty in my department (Marketing and International Business) and informally let them know what I do. Last year for the first time my department chair had me speak at a department-wide meeting about the teaching model I’ve created to work with our executive MBA’s. As a preface to that I explained what our field is all about.” 19 Several respondents commented on their efforts to raise awareness within the business school, community and business communication profession. One explained, “I focus a great deal on the importance of establishing credibility within the workplace in order to be successful.” This suggestion applies well to building reputation within the business school and external community. Robyn Walker, University of Southern California, developed an annual communication plan for the Center for Management Communication. The plan aimed to raise awareness of the center through several initiatives: 1) support publishing of faculty in magazines and academic journals; 2) connect with alumni through a speaker service; 3) host conferences; 4) host speakers series on business communication. This was the only example of an actual written communication plan among the respondents, but it could be considered a best practice for academics. Conclusions The survey of reputation management in two different worlds found that communication professionals in education and business have much in common. Both feel a keen need to improve the perception of the value of their work at their organizations. Corporate communicators worry about being cut when the company faces difficult financial times. Business communication faculty are also concerned about being undervalued at their schools. To enhance reputation, Lines (2003) recommends a proactive approach. She believes that “because corporate reputation affects business results, it deserves to be proactively managed in the same way as any other business activity.” 20 Finally, university faculty could benefit from applying some of the diverse ways that their colleagues in business use to communicate their value to their institutions. Communications professionals in companies see their role in communications as vital to the success of the company. This positive, confident self image could help position business communication faculty as well. Also, corporate communicators seek to participate in leadership discussions, set the strategy rather than merely implement it. They want “a seat at the table.” University faculty could follow their business colleagues’ lead by becoming more active in business school administration by developing closer ties with business colleagues, administrators, and working on committees or in the faculty Senate. Business communication faculty could work to link their classes and programs more directly to the business school’s goals. Like their business colleagues, business communication faculty could pulse the students, alumni, employers, and other business school faculty about their communication needs. In order to improve quality, faculty could try to make continuous process improvements. Finally, faculty could develop strategies or formal communication plans to help them communicate the results of what they do to their internal and external audiences. Faculty can try to raise awareness of what they do and the value added to audiences within the business school, community and business communication profession. Business communication faculty can link their goals more closely to the university’s, become more involved in making strategy decisions, and develop an annual communication plan. They can actively work on reputation management 21 through open discussion of this important topic. Then they can directly and formally address the perception, reality, value added, and evaluation processes necessary to building a positive reputation within the academic and external communities. Acknowledgements The author gratefully acknowledges the financial support of John Mathis, Director of Faculty for conference travel to present preliminary results of this study at the MCA Conference in May 2004 and final results at the ABC Conference in October 2004. She thanks Susan Coffroth, former director of communications and marketing at Thunderbird, The Garvin School of International Management, for her invaluable assistance with the survey design. The author appreciates the kind assistance of the survey participants who shared their knowledge with colleagues. She also appreciates the insightful comments made by Paul Argenti and Gail Fann Thomas about the presentation at the 2004 ABC conference. Business participants included Thunderbird Corporate Communication Council members: Linda Capcara, Brodeur Worldwide; Diana Whittle, City of Glendale; Cathy Gedvilas, Honeywell; Sally Kur, The KurCarr Group; Paul Barton, Petsmart; Peter Faur, Phelps Dodge Corporation; Liz Topete-Stonefield, Topete/Stonefield; and Tara Martin, USAA Phoenix Operations. Academic participants consisted of: Lynette Austin and Judy Grace, Arizona State University; Marcy Krugel, Florida Atlantic University; John-David 22 Schramm, Stern School of Business, New York University; William E. King, Thunderbird, The Garvin School of International Management; Lesley Baker, Tulane University, Heidi Schulz, Kenan-Flagler Business School, University of North Carolina at Chapel Hill; Carl Maugeri, University of Pennsylvania-Wharton School; Robyn Walker, University of Southern California; Judith Kalitzky, University of Washington; and Michael Sider, University of Western Ontario. REFERENCES Argenti, P. (1997). 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(2002). One-minute corporate reputation management. Public Relations Quarterly, 47 (4), 21-23. Marken, G.A. (2004). Reputation management starts at home…One day at a time. Public Relations Quarterly, 49 (2), 35-36. 23 Sarbutts, N. (2003). Can SMEs 'do' CSR? A practitioner's view of the ways small-and medium-sized enterprises are able to manage reputation through corporate social responsibility. Journal of Communication Management, 7 (4), 340-347. Smith, W. (2003). Give yourself a good name. Director, 57 (5), 28. Appendix A Respondents replied to an e-mail survey. They were assured that their responses would be confidential. The questionnaires for the corporate (C ) and academic (A) participants in the survey consisted of the following questions: 1(C).How are communication and marketing professionals perceived in your company by your clients? 1(A).How are business writing/communication professors perceived at your university? What reputation do they have? 2 (C ) Whom does marketing and communication report to in your organization? 2 (A) To whom do you report at your university? 3 (C) How does your department add value to the company? If you own your own business, how does your company add value to the client? 3 (A) How does the business writing/communication program add value to the university and students? 4 (C ) How do you measure the value of your communication/marketing efforts? 4 (A) How do you measure the value of your teaching to your students and university? 24 5 (C ) How do you convey the importance of your work to your associates and clients? 5 (A) How do you convey the importance of teaching business communication to your colleagues and students? 25