This question, “Why don’t they get the strategy?” drives straight to the heart of what internal branding and change communications is all about.
As a senior executive, what would you do? What would you do if you discovered that different business units of your company were essentially working against each other to support their own business and political agendas, rather than the objectives of the entire company? Or, what would you do if you had just found out that, after spending five years in IT planning, deploying 65 full time staff and exceeding $55 million on an ERP implementation, that you were only achieving 40% utilization across your enterprise? Scenarios like these are real and are happening every day, and CEOs and their boards continue, sadly, to ignore and tolerate them.
These matters are urgent and important. But management doesn’t know what to do about them, or how to deal with them. So, all too often, they do nothing.
Why am I drawing your attention to this? I was recently talking to the CEO of a major Fortune 100 company about change management and the importance of communicating with his employees. I was pointing out how companies, who embrace change effectively, making wise use of internal branding and team alignment, perform better, grow faster, and produce higher revenue. His answer has been haunting me ever since. “What you’re selling me on is soft stuff”, he said. “I need to make tangible investments that have a direct impact on results. If I can’t touch it, feel it or talk to it, it doesn’t seem like an imperative investment.”
I tried my hardest to explain, “Most companies who fail,” I said, “do so because they can’t execute. Employees receive mixed messages. They don’t really recognize the consequences of doing things in new ways and changing old behavior. Your employees are tangible assets – in fact they are your greatest assets.”
It didn’t matter. I failed to convince him that effective change management is urgent and critical in today’s business world. CEO’s confide to their direct subordinates, “Why don’t they get the strategy? I’ve only told them about it a thousand times”. But what these CEOs fail to appreciate is that hearing something and really understanding it are quite different animals. Employees need to understand an idea deeply for it to become relevant and important enough to change their behavior. If they don’t get it change will not occur.
This question, “Why don’t they get the strategy?” drives straight to the heart of what internal branding and change communications is all about.
I have a passion for helping companies become high performance businesses. High performance comes from aligning your people, your process and your resources with your company’s strategic vision and its mission. In other words, if you have the right people in the right jobs, working with efficient and effective processes that are repeatable, trainable and coachable, your company can indeed attain a higher level of performance, as measured in throughput, productivity and revenue growth.
Technology enhances process improvement, speed, communications and productivity, ultimately saving money and improving productivity. But CEO’s and boards often make one huge mistake, believing that people management issues will take care of themselves naturally. After all, employees are hired to do the job they are instructed to do. Right? Absolutely not!
High performance actually comes as a direct result of people doing their jobs in the ways they feel are most effective. Success has always been about people, and about their will to set their own priorities – not about technology, policy or strategic initiatives. The job may be reducing internal slippage at Best Buy, or recognizing the importance of keeping prices low and margins high at Wal-Mart or understanding the importance of co-marketing to serve Campbell’s Soup’s retail clients better. But it all comes down to people understanding what is expected of them, being motivated and inspired by that knowledge, and signing on to change their behavior to support the company’s goals.
Metrics & measurements show clearly that this is so…. Here are a few factual illustrations of the value and necessity of investing in the soft stuff.
- Last year Pitney Bowes launched a major external branding effort. They were redefining the scope of their business from a mail meter firm to “Engineering the Flow of Communication”. In addition to an outstanding advertising campaign, they sought to educate each and every employee as to what “Engineering the Flow of Communications” would mean to the company’s bottom line and business success. Results show that the internal brand immersion program was a big success. Where only 29% of Pitney Bowes employees had understood the brand, soon over 70% said they did (40% among customer facing employees). Among the sales force, the understanding rose from initially 11%, to a whopping 65% who claimed to use the new brand to open doors with C-suite customers rather than as was usual in the past, going through the mailroom.
- With Sam Walton as a mentor, Wal-Mart learned early that it was critical to enroll employees to care about the customers. From its research, Wal-Mart found that if it took the time to educate employees about how the company worked, and to communicate basic instructions to them about how to perform their jobs, the company would not have to nag them constantly. Eventually, they would figure out what to do on their own, and customer-caring behavior would become the operational standard across the company. This would save billions of dollars worth of time and energy. The results are obvious – Wal-Mart has become the largest retailer in the world, with gross revenues and profits higher than many countries’ GNP.
- After HP acquired Compaq the company sought to create a unified brand that embodied the cultures, employees and products/services of the two companies. Their efforts culminated in the launch of a new marketing campaign and tag line: “Invent”. They added additional attributes (such as brand equity, employee commitment and understanding to the traditionally non-financial, creative elements of the brand (such as corporate reputation, brand perceptions, customer experience and messaging). HP created a brand model that would compute and correlate their contribution to growth and shareholder value. By pushing the right buttons and doing these analytics, HP was able to compute how internal & external brand attributes contribute to performance and shareholder value. Wow – powerful stuff!
Your people and their customer facing experiences and behavior are indeed assets. As with all your assets, you must manage them so they become drivers of employee commitment and customer satisfaction. These in turn ultimately drive shareholder value. It’s time to start managing the “soft stuff” as if it were a financial asset-because it is. The result of doing so will contribute to above average share growth in strong markets and protect you against market downturns. It will build the kind of employee commitment that helps to justify premium price protection and customer loyalty.
So–is this soft stuff when all is said and done? Clearly, NO. But a lot more education will have to happen before CEOs understand its impact, and before they can stop wondering why their people just don’t get it.
