The Functions of Corporate Communications Corporate Communications and Strategic Management

1. The Functions of Corporate CommunicationsCorporate Communications and Strategic Management Professor Leif Åberg University of Helsinki, Department of Communication second session, Amsterdam, April 1999

2. The Dualistic Nature of Organizational Communications • a function, under a communications manager • also inherent in all management

3. The Purpose: • to present a model that integrates these two aspects • with special attention to linking organizational communications with strategic management.

4. Part One: Integration Within theCommunication Function

5. The Four Functions of Organizational Communications 1 supporting core operations 2 profiling 3 informing 4 socializing

6. 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

7. 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’

8. 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

9. Dimensions of the Functional Model 1. content:task, product, services 2. direction:external internal entire organization

10. Total communi- cations

11. Totalcommuni-cations externalmarketinginterorgani-zationaloperativecomm:s internalmarket-ing operative work instruct- ions

12. product or service profiling andimage surveys Totalcommuni-cations corporate or manager profiling and image surveys

13. Totalcommuni-cations external PRenvironmental scanning internalPRinternalscanning

14. induction to work training, tutoring Totalcommuni-cations induction to organization training, hand- books

15. inter- nal mar- ket- ing external market- ing work instruct-ions product/ sercivesprofile & surveys induction to work Totalcommuni-cations coprporate/ manager profile & surveys induction to organization external PR & scanning internalPR &scanning External social networks Internalgrapevine

16. Coordinates Consults Co-ordinates Controlsdirectly Responsibilities of the Communications Manager inter- nal mar- ket- ing external market- ing work instruct-ions product/ sercivesprofile & surveys induction to work Totalcommuni-cations coprporate/ manager profile & surveys induction to organization external PR & scanning internalPR &scanning

17. Basic forms of communicating within the organization: before Face-to-face Written Electronic

18. Basic forms of communicating within the organization: now Face-to-face Written Electronic

19. End of Part One:Integration Within theCommunication Function

20. Part Two: A Strategic Management Perspective

21. 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

22. Visions • to build a solid vision, the organizations must combine managerial processes and processes that emerge from human activities • metaphor: a kite!

23. 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

24. Once the kite is up, it is vital to maintain an active balance between managerial processes and processes related to human behavior

25. This active balancing is achieved through communication

26. VISION Åberg’s Kite LEGITI- MACY BUSINESS IDEA, MISSION CORPORATE CULTURE STRATEGY GROUP AND TEAM GOALS GROUP DYNAMICS INDIVIDUAL DYNAMICS TASKS

27. VISION Åberg’s Kite LEGITI- MACY BUSINESS IDEA, MISSION COMMUNICATION CORPORATE CULTURE STRATEGY GROUP AND TEAM GOALS GROUP DYNAMICS INDIVIDUAL DYNAMICS TASKS

28. MANI-FESTAT-ION OFVISION COM-MUNI-CAT-INGCHAN-GE SCAN-NING VISION Åberg’s Kite LEGITI- MACY BUSINESS IDEA, MISSION COMMUNICATION CORPORATE CULTURE STRATEGY GROUP AND TEAM GOALS GROUP DYNAMICS INDIVIDUAL DYNAMICS TASKS

29. 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

30. MISSION Core Story VISION EXTERNAL LEGITIMACY INTERNAL LEGITIMACY GOOD HERITAGE

31. MISSION this is opened using a 3x3x3- diagram The S-group continues to develop the cooperative form of enterprise best suited to the needs of the people in order to produce a more humane direction in the development of the free-market economy Core Story: S-Group VISION Today, through customer- ownership, chain operations and efficient structures, the S-Group uses its influence to make living in Finland less expensive and richer in quality The S-Group has alwaysplayed an important rolein the social and economic development of Finland. It has been innovative and responsive to the challenges of the time GOOD HERITAGE

32. A 3 x 3 (x 3) Diagram You receive benefits You can influence You’re working for good cause Customer-ownership ”Your benefits in Finland” Unique structure Efficiency Personnel Regional Chains National Networks Logistics

33. 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.

34. 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

35. Trends Randomfluctuation Environ-mentalresponsesto ouractions ?

36. 1 Recognition of possible sourcesof essentialweak signals 6 Control of consequences Scanning 5 Taking action 2 External andinternalmonitoring 4 Recommendations for actions 3 Interpretation

37. 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

38. Summary: a Truly Integrative Model

39. 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

40. 2 Integrates PR with Strategic Management, focusing on • making the vision known • communicating change • strategic scanning

41. Thank youfor your attention! Leif Åberg