home depot internal communication plan

Suryabala Shenbagamurthy

Professor Robert D Rozman

Building Publics: Employee & Other Constituencies

Oct 18th, 2014

Home Depot

Internal Communication Program

TABLE OF CONTENTS

COMPANY OVERVIEW ................................................................................................... 2

RESEARCH ..................................................................................................................... 2

ORGANIZATIONAL GOALS ............................................................................................ 5

SEGMENT AUDIENCES ................................................................................................. 5

OBJECTIVES ................................................................................................................... 7

TACTICS .......................................................................................................................... 8

EMPLOYEE ENGAGEMENT SURVEY ................................................................................... 8

HOME.NETWORK PROGRAM .......................................................................................... 13

DID YOU KNOW? POSTERS ............................................................................................. 13

ONLINE TRAINING COURSE ............................................................................................ 13

EXECUTIVE MEMO ......................................................................................................... 14

ENTERPRISE MEETING ................................................................................................... 15

TOWN HALL MEETINGS .................................................................................................. 16

WEBCAST ..................................................................................................................... 17

MEASUREMENT ........................................................................................................... 18

TIMELINE ....................................................................................................................... 21

CONCLUSION ............................................................................................................... 22

APPENDICES ................................................................................................................ 23

BIBLIOGRAPHY ............................................................................................................ 27

Suryabala Shenbagamurthy 2

Company Overview

The Home Depot is a giant American retailer of home improvement and

construction products and services. It was in corporated in 1978, and since then, it has

expanded to 2,264 retail stores over five major countries: Canada, Mexico, China,

South America, and United Kingdom. It is a public incorporation that yields over $10

billion per year. Its headquarters is in Atlanta, GA, and its major competitors are Target

and Walmart.

There are more than 5000 employees in Home Depot. Most of who are part-time

based. Home Depot is one of the very few companies today that provides part-time

employees with health benefits. Part-time employees with good performance reviews

get a reasonable 7% bonus.

Research

The company has a huge media history over the past few years, most of which

impact the employees (see table 1). The Sr. Director of Talent Management at Home

Depot, made a strong statement about employee engagement in a recent conference.

Dr. Gracia, Joe. "Employee Engagement Conference." Human Capital Institute. Seattle.

25 July 2014. “If we take care of our associates, and if [they] take care of our

customers, everything else will take care of itself.” However, sources indicate otherwise.

Apart from the long list of public relations crisis, in Glassdoor job and career website,

the Home Depot has a number of negative reviews from the current and previous

employees.


Table1

The Home Depot media history over the past few years

Month/Year Crisis

2008 - 2010 The company, in order to survive the housing bust, had to lay off

nearly 11,000 employees.

2010 - 2014 Due to the evolving trend of e-commerce, the company has been

repurchasing its share, increasing its value.

Oct 2013 A store worker who was with Home Depot for 25 years filed a

lawsuit against the company.

Nov 2013 A racial tweet “Which drummer is not like the other?” with a picture

of two African-American men flanking a man wearing a gorilla mask

was posted in the retail outlet’s official twitter account.

Feb 2014 Three Home Depot human resources employees were arrested

after accessing employees’ confidential information and opening

fraudulent credit cards.

Sep 2014 Unknown data breach impacting roughly 56 million customers’ credit

card information.

Nov 2014

The current Home Depot US retail president Craig Menear will be

announced as the new CEO.

Source: Various online news articles

Most of the Glassdoor reviews on Home Depot are:

• The company’s work culture does not encourage personal and professional

growth

• The Home Depot Employees are not treated fairly and are degraded

• Employee promotion is based on influence and not competency

• The Home Depot front-line managers are disengaged with the primary

employees


• The company receives employee feedbacks periodically but does not execute an

action plan to address employees’ concerns

• Employees’ accomplishments are not recognized nor rewarded

From research, it is evident that employees are dissatisfied with the Home Depot

management.

Current Issues

Considering the broad range of crisis faced by the company over the years, the

following communications plan is tailored to address the below recent issues,

i. Data Breach

Media sources say that Home Depot’s data breach was a five-month-long

planned cyber attack. Although it wasn’t as significant as Target data breach, the

incident had a ripple effect on the company sales. Also, five former employees

commented on the Home Depot’s vulnerability over security, technology upgrades, and

employee turnover rate.

"We were having a hard enough time finding security holes," one former Home

Depot security engineer told Huffington Post. "Then half the people in our department

left and our workload doubles. It makes it even harder to catch stuff."

The staff turnover had been going for years. In fall 2011, Home Depot’s overall

security team had about 60 employees with a variety of responsibilities. But soon, about

30 of those workers left in a period of three months.


ii. Change in Leadership

Frank Blake was appointed as the CEO of Home Depot in 2007. Prior to the

appointment, he served as vice chairman of the board of directors and executive vice

president of the Company. He is with the company since 2002, and 83% of employees

approve Frank Blake as the CEO of the company (Glassdoor 2014).

Recently, Blake announced that he would give up the CEO role as of Nov. 1, giving

way to current U.S. retail president Craig Menear. With 34 years of experience in retail,

Menear is a perfectly capable executive. However, after such a successful time with

Blake, Menear is pressured to satisfy the high expectations of Home Depot’s

stakeholders.

Organizational Goals

The organization’s strategic plan must accomplish the following goals:

• Build a strong employee management with new leadership and new work culture

• Establish the retail outlet’s reputation by gaining employee and customers’ trust

• Increase in data security and sales, retaining and building loyal customers

Segment Audiences

The communications plan is drafted to influence the following audiences who are

categorized based on the their role in the organization, functions, privileges, and

responsibilities.

i. C- suite management


C-level or C-suite describes the high-ranking executive titles like Chief Executive

Officer (CEO), Chief Financial Officer (CFO), Chief Compliance Officer (CCO), and

Chief Marketing Officer (CMO) in Home Depot. Officers who hold C-level positions are

typically considered the most powerful and influential members of an organization and

they have relatively high salaries. Apart from functional and technical know-how, C-level

executives demonstrate leadership skills, business expertise, and team-building

abilities.

ii. Managers from each business area

A business manager drives the work of other employees in order to run a major

business efficiently and make a large profit. He or she has working knowledge of the

following areas, and may be a specialist in one or more: sales, marketing, public

relations, operations analysis, data processing, production, finance, personnel, logistics,

and purchasing.

iii. Tech support employees

Employees who are specialized with computer technology fall under the tech support

employees’ category. Their expertise is computer programming and data security.

iv. Part-time employees

Part-time employees are hired under a specific contract unlike full-time employees.

They are provided with hourly wages. Majority of Home Depot’s employee body

constitutes part-time employees. Hence, the company provides the part-time employees

with reasonable insurance and health benefits along with incentives.


v. Other employees

Other employees include primary customer facing employees, women employees,

and LGBT community employees.

Objectives The communications plan will accomplish the following objectives through the

respective stated strategy and tactics:

Objective 1: Improve employee engagement by 25% by the end of the fiscal year 2014

– 2015

Strategy 1:

Ø Qualitative and quantitative research on employee engagement

Ø Effective organizational assessment

Ø Collecting actionable feedback from employees

Tactic 1: Employee engagement survey, “Home.Network” program –

Focus groups, online forum, social events.

Objective 2: Increase awareness on data security by 20% and steps to mitigate risks

by 1Q15

Strategy 2:

Ø Constant communication of information through various channels

Ø Educate employees on organization’s technical support and importance of

data security

Tactic 2: “Did you know?” Posters, online training course

Objective 3: Introduce the new leadership and adapt to a new work culture in 4Q14 and

1Q15


Strategy 3:

Ø Deliver messages on the business drivers and the business mission

Ø Face-to-face communication on the leadership change and its implications

Ø Continuous status updates on the implementation of the change

Tactic 3: Executive memo, enterprise meeting, town hall meetings,

webcast

Tactics Objective 1: Improve employee engagement by 25% by the end of the fiscal year 2014

– 2015

Employee Engagement Survey Frequency – Once in six months

Based on the Gallup four major dimensions to evaluate employee satisfaction

and engagement: Basic needs, management support, teamwork and growth, a survey

questionnaire (see appendix A) comprising of 15 questions will be sent to the

employees through Home Depot intranet. The employee engagement survey will be

conducted once in six. Employees must complete the survey on a scale from strongly

agree to strongly disagree to determine their participation in the company’s

management decision (see figure 1).

The information collected through the survey will be analyzed to develop

programs to improve employee engagement and determine the level of employee job

satisfaction. Employees are the pillars of a company, “because every employee,

through his or her actions, either makes the culture stronger or weakens it” (Fleming 4).


The Gallup study, covering 17 million workers, found that there are three key

types of employees who are identified through the Home Depot Employee Engagement

Survey.

Figure 1

Evaluating the employees’ response

1. Actively engaged employees: Employees who “Strongly agree” or” Agree” to

75% of the questions in the survey are actively engaged employees. They drive

innovation, teamwork, and move the business forward.

2. Not-engaged employees: Employees who “Neither agree nor disagree” or

“Disagree” to 75% of the questions in the survey are not-engaged employees.

They do their day-to-day work, and they do not work with passion towards the

vision and mission of the company. The not-engaged employees can be

engaged by constant communication and addressing their concerns.

Strongly Agree

Agree

Neither Agree Nor Disagree

Disagree

Strongly Disagree

Employee Engagement Survey

Actively Engaged Employees

Not-‐engaged Employees

Actively Disengaged Employees


3. Actively disengaged employees: Employees who “Strongly Disagree” to 75%

of the questions in the survey are actively disengaged employees. They are not

satisfied with their work and influence other employees’ performance. Actively

disengaged employees may affect the overall performance of the company.

“Home.Network” program

“Home.Network” program is a structured program, and consists of three major

divisions: focus groups, online forums, and social events. A team of five employees is

dedicated to ensure the smooth and successful functioning of this program.

C-suite executives support the program and actively participate in the focus

groups to address employees’ concerns. Employees are encouraged to voice their

opinions and help the management to build a supportive work culture.

1. “Home.Network” Focus Groups:

Frequency – Twice a month

We will invite employees to indulge in an engaging face-to-face session with the front-

line managers or the c-suite executives to talk about the positives and negatives of the

management. Through the Home.Network focus groups, the management can get

information on,

• How groups of employees think or feel

• Why certain opinions are held

• Planning and designing of new programs

• Developing strategies for outreach

• Innovative ideas and feedback


Guidelines for Home.Network focus group:

i. Employees are invited personally through emails and text messages to

participate in focus groups.

ii. Each focus group must consist of an equal proportion of managers, part-time

employees, and full time employees.

iii. C-suite executives are encouraged to participate in the focus groups at least

once a month.

iv. Each focus group consists of 12-15 employees.

v. Employees are requested to fill a feedback form by the end of each focus group

for evaluation.

vi. The focus groups are conducted in a comfortable spacious meeting room.

vii. Employees concerns and ideas are recorded to execute an action plan.

Effective progresses of the focus groups will result in behavioral changes in the

employees.

2. “Home.Network” Online Forum

Frequency – Daily

An exclusive division in the Home Depot Intranet is provided for the “Home.Network”

program, where news feeds on focus groups, actions taken by the management, and

the upcoming social events are posted. Parts of the Home.Depot online forum will be

published in the Home Depot corporate website.

Also, a dedicated forum is established where employees can update information on

events and seek assistance on topics relevant to work. Designated employees will

monitor “Home.Network” online forum to avoid spam and inappropriate posts.


The management can review the posted content to understand the thought flow of

the employees and influence their behavior by executing programs related to the most

talked about topics.

3. “Home.Network” Social Events

Frequency – Once a week

The management, once a week, organizes social event like game nights, movie

nights, and fun day-out. Managers lead the social events, and it’s voluntary for the team

members. It is sponsored by the organization, and planned and executed by the

employees. Pictures and information on the events are posted in the “Home.Network”

corporate website and the online forum.

To organize a social event, a team of employees should submit a proposal to the

supervisor. The supervisor reviews the proposal, including the budget, and approves,

which is then sent to the designated c-suite executive for final approval. Once approved,

the manager coordinates with the team to successfully conduct the event. Each team

can submit only one proposal a month. Thus giving opportunities for other teams.

This tactic will improve the managerial skills of the employees and support their

ideas. It will improve the relationship between the front-line managers and the primary

customer facing employees. Furthermore, it gives an opportunity for the managers and

the employees to network outside work.

Objective 2: Increase awareness on data security by 20% and steps to mitigate risks

by 1Q15


“Did you know?” Posters

Frequency – Twice a week

Materials such as fact sheets, information on steps to mitigate data breach, and

importance of data security are posted on the bulletin boards and cafeteria, which are

easily accessible to the employees (see appendix B).

Creating a poster is a creative process that involves clear display of information,

capturing graphic design, and a large number of displays. It involves low cost. Studies

show that people who are viewing posters are already actively engaging in their

surroundings.

Employees are the primary contact to the customers, and they must be well

informed on the crisis. It is essential to constantly communicate to the employees on the

steps taken by the organization to mitigate potential risks caused by the unexpected

data breach.

Online Training Course Frequency – Once in four months and mandatory for new hires

Employees must have a fair knowledge on the organization’s technical support

system. To familiarize them with the basics of the organization’s technology, it is

mandatory for the employees to take an online training course once in four months

through the intranet. Employees from various levels of management like the C-suite

executives, full-time employees, and part-time employees must take this course.


The Home Depot technical support team designs the course exclusively for the

Home Depot employees. The training course consists of basic questions on how to

navigate with the Home Depot intranet and important information on data security.

The Home Depot intranet pop-ups dialogue box by the end of April, August, and

December, reminding the employees to take up the training course. New hires must

take the online training course as a mandatory training procedure.

The course consists of 10 basic questions on the Home Depot’s technology

support. The training course can be taken several times but the employees must score

an 8 out of 10 to successfully complete the training.

The purpose of the online training course is to educate the employees on

technology and data security, and not test and evaluate their knowledge and expertise.

Objective 3: Introduce the new leadership and adapt to a new work culture in 4Q14 and

1Q15

Nobody likes change, and people find it hard to adapt to changes in the day-to-

day life. To prepare the employees for a change in the organization, it is important to

communicate the reason for the change, rationale situation, and the impacts of the

change. By structuring and delivering the key messages to the employees through

various means of communication, the organization could prevent increasing employee

turnover rate and sustain financial performance.

Executive Memo

Frequency – Once

On October 24th, an executive memo will be circulated to the employees through

intranet, emails, and online forums. The memo will provide information on the upcoming


enterprise meeting, change in leadership, and the company’s strategies towards

managing the change.

Executive memos are one of the professional ways to provide information to the

employees of a company. Employees, upon reading the executive memo, are aware of

the changes and prepare themselves to deal with the change. By announcing the new

leadership internally first, the management can analyze the response of the

stakeholders before making the big announcement to the public.

Enterprise Meeting Frequency – Once

On October 31st, Home Depot will organize a grand enterprise meeting at

Atlanta. Department managers, store managers, primary employees, and part-time

employees are invited to this grand enterprise meeting. Identified media journalists will

also be invited to recognize Frank Blake’s seven successful years as Home Depot’s

CEO and the new leadership of Craig Menear.

Home Depot employees are sent invitations through text messages, emails, and

online forums. The key messages of the enterprise meeting are:

• Frank Blake has successfully served as Home Depot’s Chairman and Chief

Executive Officer since January 2007.

• Effective from November 1, 2014, Craig Menear, the president of U.S. retail for

the Home Depot will take the position of Frank Blake as the CEO of the

company.

• Craig joined the Home Depot in 1997 and is the chairman of the Home Depot

Foundation’s board of directors.


• Under Craig’s leadership, the organization will focus on building a strong

management and providing the customers with best services in the retail

industry.

• One of the organization’s priorities is employee welfare.

• The management will execute programs to support the employees and establish

Home Depot as one of the best home improvement and construction products

and services retailer in America and other countries.

Enterprise meeting is an ideal platform to communicate a series of messages to a

large audience. The organization builds pride and belongingness in the employees by

inviting them to the enterprise meeting, which could lead to a positive response towards

the new leadership.

Town Hall Meetings Frequency – Once a month

A town hall meeting is an informal employee meeting. Once a month, each Home

Depot store manager will organize a Town Hall Meeting to communicate with the

employees on the functions and changes implemented in the organization. Employees

are informed on the financial and business performance of the company. Major issues

and crisis related to the company will also be addressed in the meeting. Employees are

encouraged to ask questions in the 30 minutes Q & A sessions after the meeting. The

main purpose of the meeting is to inform the employees - who are one of the company

stakeholders - on the changes executed by the management for the welfare of the

organization and the employees. It also serves as a forum to collect valuable feedbacks

to communicate to the C- suite executives.


With technology advances such as email, instant messaging, and social media,

there comes a necessity for an effective face-to-face communication with the

employees. Town hall meetings help the management to understand reaction to the

presented information, develop workplace relationships and team cohesiveness,

provide information on organizational changes, prevent and resolve conflicts, reach

negotiable agreements, and make decisions based on complex information.

Webcast Frequency – Weekly

A webcast is a media presentation distributed over the Internet. Information on

the major changes in the organization will be presented in a video format with a

spokesperson through Home Depot intranet. Webcasts will be broadcasted once a

week. But in scenarios where the organization is in a major crisis, webcasts on the

specific issue will also be distributed for the employees’ information.

Webcast will be a two and half minute’s short video. It will be timely, relevant, and

informative. It is to keep the viewers informed using a visual presentation. Home Depot

webcasts will illustrate the changes in the management; procedure for a new

process/program; facts related to a major crisis; c-suite management addressing the

major departmental issues; and important company milestones.


Measurement Tactic Measurement Desired outcome

Survey

• Number of

participants

• Percentage of

employees “Strongly

Agree” vs.

percentage of

employees “Strongly

Disagree”

• Analyze employee attitude and

behavior

• Determine the causes of increasing

employee turnover rate

• Interpret the factors affecting the

work performance of the employees

• Estimate the level of employee job

satisfaction

“Home.Network”

Program

• Focus Groups

• Online Forum

• Social Events

• Employees’ active

participation

• Number of good

innovative ideas

suggested by the

employees

• Feedback forms

• Google Analytics

tracker

• Drive innovative ideas

• Increase employees interact with

senior level management

• Encourage employee to express

concerns

• Provide employees a platform to

interact and voice their opinion

• Build employee trust by implementing

the suggested good ideas

• Positive discussions on the employee

engagement programs and the

management


Posters

• Distribution list

• Number of bulletin

posters displayed

• Number of cafeteria

posts displayed

• Increase employee awareness and

interest on the technical support of

the organization

• Employees understand the

importance of data security

• Employees are informed on the steps

taken by the company to mitigate

future risks

• Employees are self-sufficient

• Improve technical skills of the

employees

• Employees are cautious about data

breach

Online Training

Course

• Number of

employees take up

the course

• Electronic

confirmation

• Number of attempts

to complete the

course

• Feedback forms

Executive Memo • Distribution list • Positive word of mouth on the

leadership change

Enterprise

Meeting

• Number of

employees attend the

enterprise meeting

• Sound bites about

the event in online

• At least 60% of the company

employees turn up for the event

• Build employee anticipation towards

a positive change


forums

Town Hall

Meetings

• Number of

employees attend the

town hall meetings

• Number of

employees

participate in the Q &

A sessions

• Feedback forms

• Active participation of employees in

the management’s decision

• Positive feedback on the new

implemented programs

• Positive approach towards the new

leadership

Webcast • Google Analytics

tracker

• 80% of the employees are informed

on the new policies, process, and the

issues

• Detailed visual presentation drives

positive word of mouth discussion on

the related topics

• Structures positive message is

received by at least 70% of the

employees


Timeline

Tactics 2014 2015

Oct Nov Dec Jan Feb Mar Apr May June July Aug

Improve employee engagement

Survey

Focus Groups

Online Forum

Social Events

Increase awareness on data security

Posters

Training Course

Introduce new leadership

Executive Memo

Enterprise Meeting

Town Hall Meeting

Webcast

1 Source: Communication planning template published by Heather Whaling

1 Director of Geben Communication, a PR agency firm in New York http://gebencommunication.com


Conclusion

The management’s efforts on building a successful external communication and

marketing plan will be ineffective if the internal constitutes – employees, managers – are

not aligned with the core message. Employees are the company’s brand ambassadors,

and it is important for the management to build a strong relationship between the

managers and the employees, and constantly keep them informed.

Harvard University researchers present a compelling theory that “employees’

behavior depends on their primary attitude towards the company.” With the proposed

internal communication tools, the employees will be encouraged to participate in the

organization’s functions, perform their jobs effectively, understand the complexity of the

work and provide them support, and help them maintain a shared vision and a sense of

ownership in the organization, which would eventually establish a positive employee

attitude towards the company.

In theory, employees’ behavior affects customers’ behavior that in turn relates to

the company’s profit (Heskett, James L., W. Earl. Sasser, and Leonard A. Schlesinger.

“The Service Profit Chain.” 1997). Hence, Home Depot must execute an effective 2two-

way symmetric internal communication program to establish employee satisfaction and

productivity, customer loyalty, leading to increase in profit.

2 Two-‐way communications to negotiate, resolve conflict, and promote mutual understanding and respect between the organization and its stakeholder(s).


Appendices

Appendix A: Employee Engagement Survey Questionnaire 1. I get excited about going to work.

o Strongly agree o Agree o Neutral/Neither agree nor disagrees o Disagree o Strong disagree

2. I’m completely involved in my work.


3. I adapt quickly to difficult situations.


4. I proactively identify future challenges and opportunities.


5. I take the initiative to help other employees when the need arises.


6. I’m willing to take new tasks as needed.

o Strongly agree


o Agree o Neutral/Neither agree nor disagrees o Disagree o Strong disagree

7. I’m determined to give my best effort at work every day. o Strongly agree o Agree o Neutral/Neither agree nor disagrees o Disagree o Strong disagree

8. My supervisor and I have a good working relationship.


9. The management recognizes my job performance.


10. I trust the senior management.


11. I have the opportunity to contribute to decisions that affects me.



12. I understand how my role contributes to achieving the business outcomes.


13. I’m satisfied that I have the opportunities to apply my talents and expertise.


14. I’m satisfied with the job-related training my organization offers.


15. I feel valued for the work I do.



Appendix B: Home Depot data breach Poster

Home Depot’s payment data systems were breached on Sep 8, 2014, which could

potentially impact customers who used a payment card at our U.S. and Canadian stores

in 2014, from April to September.

Steps taken to mitigate potential risks:

Ø The malware used in the recent breach has been eliminated from the company

U.S. and Canadian networks.

Ø Home Depot has completed a major payment security project that provides

enhanced encryption of payment card data at point of sale in U.S. stores, offering

significant new protection for customers.

Ø Canadian stores are enabled with EMV “Chip and PIN” technology.

Ø The rollout of enhanced encryption to Canadian stores will be completed by early

2015.

Ø Learn more about the identity protection services and how to sign up for them at

https://homedepot.allclearid.com/.

Ø Customers are not liable for any fraudulent charges to their accounts.

Ø Home Depot offers free identity protection services, including credit monitoring,

to any customer who has shopped at a Home Depot store in 2014, from April on.

It is important to closely monitor payment card accounts and report unusual activity to

the issuing bank. For more information on the data breach, please contact the

communications coordinator John Smith at [email protected].


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home depot internal communication plan

Documents

parttime employees

major countries

major competitors

network program

employee engagement

south america

construction products

good performance rev