The Functions of Corporate Communications Corporate Communications and Strategic Management Professor Leif Åberg University of Helsinki, Department of Communication second session, Amsterdam, April 1999 The Dualistic Nature of Organizational Communications a function, under a communications manager also inherent in all management The Purpose: to present a model that integrates these two aspects with special attention to linking organizational communications with strategic management. Part One: Integration Within the Communication Function The Four Functions of Organizational Communications 1 supporting core operations 2 profiling 3 informing 4 socializing 1 supporting core operations communication is necessary for production of commodities - products and services - and for their distribution to customers 2 profiling communication is necessary when a long term corporate, product, or manager profile is being created and disseminated 3 informing communication is necessary for purposes of informing internal and external audiences about the developments within the organization 4 socialization communication is necessary for the socialization of individuals into good ’organization citizens’ The Fifth Function, not under the Organization’s Direct Control 5 need for informal social interaction social interaction is inherent in the human nature grapevine and informal social networks Dimensions of the Functional Model 1. content: task, product, services 2. direction: external internal entire organization Total communications external internal marketing market- operative interorgani- ing work zational instructions operative comm:s Total communications product or service profiling and image surveys Total communicorporate or cations manager profiling and image surveys Total communications external PR environmental scanning internal PR internal scanning induction to work training, tutoring Total communi- induction to cations organization training, handbooks interexternal nal market- mar- work ing ket- instructions ing product/ sercives induction profile & to work Total surveys coprporate/ communi- induction to manager cations organization profile & surveys external internal PR & PR & scanning scanning External social networks Internal grapevine Responsibilities of the Communications Manager interexternal nal work marketmarCoordinates ing ket- instructions ing product/ sercives induction profile & to work Total surveys Cocoprporate/ communi- induction to ordinates manager cations organization profile & surveys Controls external internal directlyPR & PR & scanning scanning Basic forms of communicating within the organization: before Face-to-face Written Electronic Basic forms of communicating within the organization: now Face-to-face Written Electronic End of Part One: Integration Within the Communication Function Part Two: A Strategic Management Perspective What is Strategic Management? It is about directing the resources to direct, there has to be a direction resource= a potential that can be used can be used, but is not necessarily used effectively a direction, where to? To the future! But future is in the mind of the beholder key concept: visioning, and sharing a common vision Visions to build a solid vision, the organizations must combine managerial processes and processes that emerge from human activities metaphor: a kite! The art of flying a kite: the kite will fly, if it is windy, and if one, running against the wind, manages to bring about the essential initial driving force Once the kite is up, it is vital to maintain an active balance between managerial processes and processes related to human behavior This active balancing is achieved through communication Åberg’s Kite Åberg’s Kite C O M M U N I C A T I O N Åberg’s Kite C O MANIM FESTATM ION OF U VISION N ICOMC MUNIA TCATSCAN-IING NINGOCHANNGE A) Tools for Revealing the Vision core story links the past with the future and defines the current position strategic keywords: using, e.g., a 3x3x3-diagram strategic core messages: elaboration of the strategic keywords slogan: one core message, used for identification of the company emblem: e.g., logo+name, or an auditive emblem Core Story VISION EXTERNAL LEGITIMACY INTERNAL LEGITIMACY GOOD HERITAGE The S-group continues to develop the cooperative form of enterprise best suited to the needs of the people VISION in order to produce a more humane direction in the development of the Today, through customerfree-market economy ownership, chain operations and efficient structures, the S-Group uses its influence make living in Finland The S-Group hastoalways less expensive and played an important role in quality in the social andricher economic this is opened development of Finland. using a 3x3x3It hasGOOD been innovative and diagram responsive to the challenges HERITAGE of the time Core Story: S-Group A 3 x 3 (x 3) Diagram You receive benefits You’re working for good cause You can influence Customer-ownership ”Your benefits in Finland” Unique structure Regional Networks Efficiency Personnel Chains National Logistics Example of a Good Slogan ”Ahlstrom Pumps : The Heart of Your Processes” This slogan reflects all three of our basic core competences Heart … because it is our superior products that keep the life flowing through our customer’s manufacturing processes Your … because our customers are our primary focus Process … because that is where we have the knowledge and experience to far exceed our competition. B) Scanning the recognition of the first weak signals of essential external and internal changes as early as possible, in order to make corrective action possible environmental and internal scanning Trends Random fluctuation Environmental responses to our actions ? 1 Recognition of possible sources of essential weak signals 6 Control of consequences Scanning 5 Taking action 4 Recommendations for actions 2 External and internal monitoring 3 Interpretation C) Communication of Change the core story affects the perceptions of the legitimacy of own actions, and brings about positive expectations about the future communication of change must be taken seriously: it is an ongoing process, calls for extensive and sophisticated communications efforts, and is a joint process by managers and communications professionals Summary: a Truly Integrative Model 1 Integrates within the Communications Function areas of direct responsibility of the PR Manager: internal and external PR activities, profiling and branding communications activities that must be coordinated: PR, profiling and branding with external and internal marketing consultation with managers concerning operational communications issues 2 Integrates PR with Strategic Management, focusing on making the vision known communicating change strategic scanning Thank you for your attention! Leif Åberg