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I recently had the opportunity to address a group of leaders from a leading IT services provider. Here are thoughts shared with them on recession proofing communication during a downturn and the role of leaders.During a recession, organizations make knee jerk reactions based on how they see the markets panning out which can be detrimental to employee morale and customer engagement. Organizations go after support functions and resize and reduce budgets, freeze benefits, curtail training and avoid engaging with employees. Very often, in their quest to get ‘leaner’ and ‘sharper’, organizations lose the ‘human’ touch’. Employees have good memories and these actions are always held against the business. I am aware of organizations cutting down on something as basic as toilet paper but allowing off sites at external venues to continue. Not surprisingly, trust is eroding for senior leadership (according to Edelman’s Trust Barometer) and organizational communication tools. To summarize, the global downturn has posed numerous challenges for organizations and employees alike. That said, downturns may not last, but organizations that communicate effectively will. It is important to focus on the positives, craft consistent messages, reinforce often, communicate directly and focus on the positives while involving employees. Last but not least, it is vital for organizations to revisit the core of their existence and the core values that will sustain them in the long run.
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Recession Proof Corporate
Communication
Staying ahead of the downturn
Aniisu K Verghese
April 21, 2009
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Disclaimer
Due care has been taken while preparing this presentation but the author cannot be held responsible for any misuse or misrepresentation of information. The views expressed in this presentation are those of the author. Data for this presentation has been drawn from various sources and is gratefully acknowledged.
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Introduction Currently work as India Internal Communication Lead
at a global services firm Worked with Accenture, i-flex, Leo Burnett Write for management publications Interests – workshops, founded road safety NGO –
Friends For Life, graphology, tennis, meditation, traveling
Blog: www.intraskope.wordpress.com Road Safety:
http://civic.websitewelcome.com/~fflonlin/anishhome.htm
Blog: www.roadsense.wordpress.com
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Agenda
Recession and ‘Recession Proofing’ - what it means to leadership and organizations
Trends Mistake organizations make Ideas to be ‘Recession Proof’ Summary Q&A
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"IN GOOD TIMES, EMPLOYEE ENGAGEMENT IS THE DIFFERENCE BETWEEN BEING GOOD AND BEING GREAT. IN BAD TIMES, IT'S THE DIFFERENCE BETWEEN SURVIVING AND NOT. IN GOOD TIMES AND BAD, LOW ENGAGEMENT REDUCES PERFORMANCE AND PROFIT AND UNDER THE CURRENT CIRCUMSTANCES, MANY COMPANIES CAN'T AFFORD TO LET THOSE DROP”
- JAMES K. HARTER, PH.D., GALLUP'S CHIEF SCIENTIST OF WORKPLACE MANAGEMENT AND WELL-BEING AND COAUTHOR OF 12: THE ELEMENTS OF GREAT MANAGING.
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Recession means…revisiting Maslow’s Hierarchy
“The economic crisis gives organizations an opportunity to examine every aspect of their business model and lay the foundation for sustainable growth and improved competitive advantage.” - Timothy P. Flynn, Chairman, KPMG International.
“More than 93 percent of employees are ready to hear the truth about the future of their company, pay, benefits and job.”
(Study by Towers Perrin)
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Recession Proofing means….
‘Recession proofing’ involves reducing uncertainty, improving confidence and focusing on outcomes.
It also means supporting the organization stay on course to be successful.
It is in about reinforcing the mission and values even more.
Involving and keeping the employee at the forefront of all your communication
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All is not lost…
Nano: 300,000 customers visited showrooms in the first ten days since the small car was launched.
Did you know that General Motors' sales in China continue to grow?
That India is contributing $11 billion to the International Monetary Fund?
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What’s on their minds?
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“Only 43 percent of employees said their companies effectively managed business changes, and organizations that managed change poorly had a - 5 percent return on shareholder value over a three-year period”(Survey by Watson Wyatt)
“Companies with engaged employees grow earnings 2.6 times faster than those who don’t”(Source: Gallup Poll)
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Trends we see
Corporate communication/support function jobs cut Reduction in spend (communication, travel etc) Zero investment in training Engaging employees becoming secondary Trust eroding among organizational communication
channels
“people tend to trust their peers more than authority figures.”2006 Edelman Trust Barometer
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Mistakes organizations make “Cost cutting = reducing staff, removing benefits,
eliminating toilet paper!” “Downturn is a time for scrutiny and waste management” “Staff can always be re-hired” “Communicate less” “Don’t spend on engaging employees – they are
pampered” “Stop building your brand – now is the time to save
money” “Leadership offsites are fine” “Let us not share all information – we may be viewed as
weak”
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Best Practices 50 HP executives logon to blogs each day to join
conversations Ernst & Young recruits 3500 college grads using a Facebook
career group UAE ruler launches connection with people www.Uaepm.ae The Vatican is on YouTube! Accenture: peer review: Brand Hotline of collateral UBS: emergency 24 hour communication review, top 50
leaders meet one person each a day GE: Jeff Immelt addresses employees via interactive media Ford: Chief Blogger Scott Monty uses Twitter and other Web
2.0 tools to communicate Bank of America integrated external PR with news flash on
intranet so that employees to get to hear it first
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Tap the wisdom of your employees - Crowdsourcing
The value of social media is proportional to the rate of participation
www.threadless – sells t-shirts designed and voted by people
Others:InnoCentive – R&D for pharmaGalaxy Zoo – users classify million galaxiesEmporis – building data with usersRYZ – creates shoes using designs from users
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Connect with communities
New media technologies can build communities and increase discussion
Trends:
Niche Networks (dogster.com/
dopplr.com)
Customize your network (ning.com/onesite.com
Reputation ManagementWink.com/reputa.com
Aggregators
Ex.plode.us/profilefly.comSecond Life
www.secondlife.comCoca Cola and others are engaging Second Life residents
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The Power in Your Hands
New media technologies puts broadcasting in your hands
- Provide messages- Share videos for viral marketing
- Can your employee engagement video go on YouTube?
- Can you share your quarter leadership meet/hiring event photos?
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Enhance Collaboration
Can you collaborate effectively across teams
on the Web?
IBM created a wiki to help employees
develop their own blogging policyP&G
Goal for 2010: source 50% ofnew product & service ideas From outside the company
Has opened patents to the world
PBwiki.com
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Be Aware….
Of the Risks involved…..- Privacy- E-Crime- Exposing internal systems- Corporate espionage
When things go wrongBMW sacking session goes live on You Tubehttp://www.youtube.com/watch?v=1UwVRSGEI-w
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5 Ideas That You Can Use ‘More with Less’ Strategy
Zero based budgets
Measure all that you communicate/do
Involve your people
Focus on the positives
“Consistent communication key among best employers”Outlook Business – Hewitt Associates study - 2009
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Summary
Downturns may not last, but organizations that communicate effectively will.
Leverage simple ideas and Social Media tools to keep your communication recession proof
Craft consistent messages, reinforce often Communicate directly, all, first and fast Focus on the positives – involve employees to
achieve success together Values will sustain in the long run
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References http://gmj.gallup.com/content/115213/Building-Engage
ment-Economic-Crisis.aspx http://businesstoday.intoday.in/index.php?
option=com_content&task=view&id=10257 http://www.hewittassociates.com/Intl/AP/en-IN/
AboutHewitt/Newsroom/PressReleaseDetail.aspx?cid=6359
Wikipedia.org www.ragan.com www.melcrum.com http://gmj.gallup.com/content/27799/Investors-Take-Note-
Engagement-Boosts-Earnings.aspx
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Contact
Aniisu K. Verghese
Blog: www.intraskope.wordpress.com
E-mail: [email protected]
Linkedin: http://www.linkedin.com/in/aniisu
