The Functions of Corporate Communications

Corporate Communications and Strategic Management

Professor Leif ÅbergUniversity of Helsinki,

Department of Communicationsecond 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 operations2 profiling3 informing4 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

entire organization

internal2. direction:external

Total communi-

cations

Totalcommuni-

cations

externalmarketing

interorgani-zational

operativecomm:s

internalmarket-ing

operative work instruct- ions

Totalcommuni-

cations

product or service profiling andimage surveys

corporate or manager profiling and image surveys

Totalcommuni-

cations

external PR

environmentalscanning

internalPRinternalscanning

Totalcommuni-

cations

induction to worktraining, tutoring

induction to organization training, hand- books

Totalcommuni-

cations

externalmarket-

ing

inter-nalmar-ket-ing

work instruct-ions

inductionto work

induction toorganization

internalPR &scanning

externalPR &

scanning

product/ sercivesprofile & surveys

coprporate/ manager profile & surveys

Externalsocial

networks

Internalgrapevine

externalmarket-

ing

inter-nalmar-ket-ing

work instruct-ions

inductionto work

induction toorganization

internalPR &scanning

externalPR &

scanning

product/ sercivesprofile & surveys

coprporate/ manager profile & surveys

Responsibilities of the Communications Manager

Coordinates

Co-ordinates

Cons

ults

Controlsdirectly

Totalcommuni-

cations

Basic forms of communicating within the organization: before

Face-to-face

Written Electronic

Face-to-face

Written Electronic

Basic forms of communicating within the organization: now

End of Part One:Integration Within the

Communication Function

Part Two: A Strategic Management

Perspective

What is Strategic Management?

It is about directing the resourcesto direct, there has to be a directionresource= a potential that can be usedcan be used, but is not necessarily used

effectivelya direction, where to? To the future!But future is in the mind of the beholderkey 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

VISIONLEGITI-

MACY

CORPORATE

CULTUREGROUP DYNAM

ICS

INDIVIDUAL DYNAMICS

B

USINESS

IDEA, M

ISSIO

N

STRATEGY

GROUP AND

TEAM G

OALS

TASKS

Åberg’s Kite

LEGITI-

MACY

CORPORATE

CULTUREGROUP DYNAM

ICS

INDIVIDUAL DYNAMICS

B

USINESS

IDEA, M

ISSIO

N

STRATEGY

GROUP AND

TEAM G

OALS

TASKS

COMMUNICATION

Åberg’s Kite

VISION

LEGITI-

MACY

CORPORATE

CULTUREGROUP DYNAM

ICS

INDIVIDUAL DYNAMICS

B

USINESS

IDEA, M

ISSIO

N

STRATEGY

GROUP AND

TEAM G

OALS

TASKS

COMMUNICATION

Åberg’s Kite

MANI-MANI-FESTAT-FESTAT-ION OFION OFVISIONVISION

SCAN-SCAN-NINGNING

COM-COM-MUNI-MUNI-CAT-CAT-INGINGCHAN-CHAN-GEGE

VISION

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

VISION

MISSION

GOOD HERITAGE

INTERNAL LEGITIMACY

EXTERNAL LEGITIMACY

Core Story

VISION

MISSION

GOOD HERITAGE

Core Story:

S-Group

The S-Group has alwaysplayed an important rolein the social and economic development of Finland.It has been innovative and responsive to the challengesof the time

The S-Group has alwaysplayed an important rolein the social and economic development of Finland.It has been innovative and responsive to the challengesof the time

Today, through customer-ownership, chain operationsand efficient structures, theS-Group uses its influenceto make living in Finland less expensive and richer in quality

Today, through customer-ownership, chain operationsand efficient structures, theS-Group uses its influenceto make living in Finland less expensive and richer in quality

The S-group continues to develop the cooperative form of enterprise best suited to theneeds of the peoplein order to produce a morehumane direction in the development of the free-market economy

The S-group continues to develop the cooperative form of enterprise best suited to theneeds of the peoplein order to produce a morehumane direction in the development of the free-market economy

this is openedusing a 3x3x3-

diagram

”Your benefits in Finland”

Customer-ownership

Unique structure Efficiency

You can influenceYou receive benefits

You’re workingfor good cause

Logistics

Chains

Personnel

Regional NationalNetworks

A 3 x 3 (x 3) Diagram

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

Randomfluctuation

Environ-mental

responsesto ouractions

?

Scanning

1 Recognitionof possible sources

of essentialweak signals

2 External andinternal

monitoring

3 Interpretation4 Recommendations

for actions

5 Taking action

6 Control ofconsequences

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 knowncommunicating changestrategic scanning

Thank youfor your attention!

Leif Åberg