Challenges for Corporate Communications in the Digital Age

CHALLENGES FOR CORPORATE COMMUNICATIONS IN THE DIGTAL AGE

PROF. DR. ANSGAR ZERFASS CONTENT STRATEGY FORUM CONFERENCE 2014

What I would like to share with you today. A simple question. Some empirical insights. The big picture. Inspirations for thoughts and discussions.

A simple question.

1

Why should a corporation

invest into communication

and content?

Why should a corporation invest into communication and content?

Strategic communication

“… the purposeful use of communication by an organization to fulfill its mission” (Hallahan et al., 2007)

However:

§ Communicate with whom? How? How much? §  To which specific end? § Who shall take care, with which responsibilities? § Why produce content, if you are specialized in other goods?

Communication spendings reduce cash flow and revenues. But most results are long-term and immaterial; they do not enter the balance sheet and cannot be depreciated.

Today‘s challenges for corporations

Business environment §  Declining trust in corporations and top management §  Rising demand for transparency §  Unsettledness of employees caused by permanent change §  Pressure on existing business models §  Stronger regulation and influence by authorities

Communication environment

§  Trends towards

speed, online, videos, emotions, stories,

personalization §  Rise of participative

patterns („social“ communication)

§  Fragmentation of public spheres §  New content

formats and modes of production

"""

Stakeholders demand

communication

""""

Corporations seek advantages

through communication

Maintaining interpretive dominance

Initiating understanding and acceptance

Regaining trust and reputation

The wrong answer.

2

Trying to learn mainly from the media

Empirical insights.

3

Largest study series of corp comm trends worldwide. 16,500 respondents from more than 40 countries. 55,000 reports printed and downloaded since 2007.

Study on the CEO’s view on corp comm. 602 CEOs and executive board members. Interdisciplinary research collaboration.

Current status of strategic communication

87% of communication professionals report a rising importance of communication for organisational success within the last 12 months

62% confirm that the influence and status of the communication function has increased

But only 15% say that communication budgets have been increased above the average of other functions

European Communication Monitor 2013

Barriers affecting professionalisation of communication

84% lack of understanding of communication within top management

75% difficulties of communication professionals to prove the impact of communication on organisational goals

46% - 33% missing management and business competencies by communication professionals


CEOs value their own communication performance higher than professional activities

66% "

say that professional corporate communications managed by communication departments and agencies is (very) important for success

88% "

think that the personal communication performance of top managers is (very) important for corporate success

Zerfass & Sherzada 2014

Reasons why.

4

Digital gatekeepers are very relevant, but not for for every corporation

New and relevant gatekeepers for organisations:

58.1% Employees who are very active on the social web

53.2% Consumers who raise their voice on the social web

51.4% Bloggers and online community managers


… nevertheless they are seldom addressed

37.7% of organisations have developed adequate strategies and instruments to communicate with those new gatekeepers


Key expectations of top executives are not geared towards external communication

Relevance Performance

Discipline % M % M Δ M

Internal communication (with employees, managers)

95.7 4.54 58.8 3.60 0.94

Marketing communication (with customers, resellers, suppliers, etc.)

90.4 4.35 68.1 3.72 0.63

Financial communication (with investors, banks, owners)

60.6 3.63 64.8 3.64 -0.01

Political communication (with the government, authorities, parties)

34.2 3.02 31.9 2.94 0.08

Communication with society (NGOs, critics, local communities, universities, associations, etc.)

27.7 2.89 25.7 2.90 -0.01

"

Zerfass & Sherzada 2014. Means: scale 1-5.

0%

10%

20%

30%

40%

50%

60%

2008 2009 2010 2011 2012 2013 2014

Linking business strategy and communication Building and maintaining trust Coping with the digital evolution and the social web Dealing with sustainable development and social responsibility

Top issues for strategic communication in Europe 2007-2014


The big picture.

5

Build immaterial assets §  Brands §  Reputation §  Organisational culture Facilitate business processes §  Influencing customer preferences §  Generating public attention §  Motivating employees

Adjust organisational strategies §  Identifying opportunities §  Integrating public concerns Secure rooms for manoeuvre §  Managing relationships §  Managing crises

Corporate communication

Corporate value and legitimization

„inbound“

„outbound“

How corporate communication creates and secures corporate value

Zerfaß 2014

§  Every employee who communicates with relevant stakeholders might contribute to corporate communications, not only the communication function

§  Outbound communication needs to be consistent and aligned to corporate goals, but also flexible regarding specific situations and publics (polyphony)

§  Inbound communication needs a holistic perspective and interpretive competencies (architectures of listening)

“To be able to meet this challenge requires that professional communicators move their … focus from leading communication processes to developing the organisation’s communication skills on all levels” (Hamrefors)

Zerfass & Franke 2013

Specific challenges within nowadays‘ „communicative organisations“


But it is still a long way to go!

37.0%

29,0%

14,7%

19,3%

Managing communication activities and co-workers (planning, organising, leading staff, budgeting, evaluating processes and strategies, justifying communication spending, preparing for crises)

Operational communication (talking to colleagues and journalists, writing press releases and print/online texts, producing communication media, monitoring results of our activities, organising events etc.)

Coaching, training and educating members of the organisation or clients (on the vision, mission and other communication related issues as well as upgrading their communicative competence, preparing them for communicating with the media, stakeholders etc.)

Aligning communication, the organisation / client and its stakeholders (studying business and social research reports, identifying organisational goals, monitoring public issues and stakeholder expectations, debating visions and business strategies with top management and other departments, developing scenarios, building legitimacy)

European communication professionals spend their productive time at work for …

Questions.

Comments.

Ideas.

© July 2014 Prof. Dr. Ansgar Zerfaß Professor of Communication Management University of Leipzig, Germany Professor in Communication and Leadership BI Norwegian Business School, Oslo, Norway [email protected] www.communicationmanagement.de