Crisis Communication

Crisis is a unavoidable situation than one can face.The death of a close friend or family member,theft of your expensive car or failure to pass an exam can all account to personal crisis.

Crisis occurs in every organization so an organization needs to be well prepared to counter a crisis situation whenever it occurs.
Crisis can basically take two forms like natural disasters and human induced crisis,which can be further classified into human error,negligence,or even malicious intent.In the last decade or so all most all the crisis the corporate world has seen is human induced.When talking about human induced crisis, the best example which springs to mind is the Enron fiasco.The Enron fiasco also sank its auditor Arthur Andersen into bankruptcy.The reference given below gives a summary of the whole issue and the verdicts which were passed by the lawmakers.
www.cnn.com/money/2006/05/25/news/newsmakers/enron_verdict/index.htm

How does one prepare for a crisis?I guess thats a million dollar question but any way these are few steps which can be followed

1. Asses the Risk for your organization

2. Plan for Crises

3. Determine Effect on Constituencies

4. Set Communication Objectives for Potential Crises

5. Analyze Channel of Choice for Communication

6. Assign a Different Team to Each Crisis

7. Plan for Centralization

8. What to Include in a Formal Plan·

a. A list of whom to notify in am Emergency·

b. An approach to Media Relations·

c. A strategy for Notifying Employees·

d. A location to Serve as Crises Headquarters

9. A Description of the plan.

These companies need to do when there are in middle of crisis are:

• Get the facts right, gather the information and get the situation under control before things go out of control and the company starts loosing its reputation in front of its customers and potential customers.
• Communicate quickly with the media.Try not to say" No comments"
• Understand the media's angle for the story, is it to support the organization or to add misery to the situation.
• Try to have a direct communication channel to address the people who are directly effected by the crisis.
• Continue to focus on the primary business while handling the crisis side by side.

Personal Experience :

The best example that i can think of in the Indian context is the Coke India bounced back from a difficult situation ,where it was accused of having pesticides in its beverages in 2003.Coke India handle this issue well by giving a press conference along with Pepsi about the falsehoods involved in these allegations.Then Coke India opened up its doors to the media and the general public to visit its bottling factories, to have look at the strict quality measures that they were following.Later on Coke India launched a advertisement campaign where the CEO was shown having Coke himself to say that it was perfectly safe to drink one.

Communication Technologies

Communication allows people to exchange thoughts by one of several methods.There basically various ways to communicate like speaking, using non-verbals means such as body language, eye contact and so on.

Communication technologies are something an organization needs to properly handle so there is no loss of data and information between the upper level and the lower levels of management.

Different communication technologies are available in the market which helps an organization to channel information effectively.The most ones are discussed below:

Internet:It has facilitated the fastest way of information transfer by using e-mails, every employee that is on the network gets the notifications and alerts about the all happening within organization.

Blogs are the latest fad where positive and negative impressions can be circulated to a worldwide audience .One of the best blogs circulating on the web is http://www.iphoneblog.com where people discuss about their experience with the new mouth watering Apple iphone.

Print publications:This is also a generally used method as it helps company's to publish there monthly details such as stock, share value and information about the company's holdings.

Cellular phones:Cell phones have been around from the 90's and it is still one of the best ways of communicating one to one.In the every changing technology world cellphones like Blackberry and other windows enabled phone,do a lot more than just talking,it has email capability as well.So i personally feel modern cell phones are a handy tool as far corporate communication is concerned.

Personal Experience:

As far as personal experience is concerned with modern communication technology i am used to using VOIP(Voice over internet protocol) as i was working as a outsourced employee to Earthlink (American ISP) and was providing technical support to American customers.On a personal note i am accustomed of using the free VOIP services provided by Google and yahoo,which makes it so convenient for me to communicate with friends and family who stay all across the globe.
Reference:http://www.volptech-usa.com/catalog/specials.php

Investor Relations

Investor relations is a set of activities performed by a company to communicate its financial position to its stakeholders.Therefore investor relations professionals need to link communication to company's strategy and vision as frequently as possible.So Investor relations plays a key role in increasing shareholder value and even reputation.
The core objectives of investor relations are:

Explain the company's vision, strategy and potential to the investors this is essential because one the constituents have a clear understanding of what a company intends to do is when they start building their relationship with the company.

Ensure the expectations of the company's stock price are appropriate for its earnings prospects, the industry outlook and the economy because the company needs to understand investor concerns and expectations for their organizations and anticipate what the market anticipates from the company.

Reduce stock volatility because its important for the company to maintain a stable stock price and shareholder base. Companies with stable share prices enjoy a lower cost of capital and issue new equity more economically.

The different type of investor that IR target is as follows:

1. Institutional investors
2. Intermediaries
3. Individual investors
4. The media
5. Analysts
6. Rating Agencies

Many companies like IBM, Infosys and Wipro have specially dedicated section for investor relations.

Finally i would like to say that in the changing environment the relationship between the investors and the company does tend to change either due to fall in the stock value or due to reasons such as frauds or corporate scandals, so its vital for the company to maintain a good reputation with its investors and potential investors.
The greatest example of corporate scandals affecting share value is the case of Enron which was forced to bankruptcy after its involvement in a corporate fraud which was world famous.
reference: http://pd.cpim.org/2002/july07/07072002_enron_worldcom.htm

Media relations

One of the most critical areas within any corporate communication function is the media relations department.The growth of business coverage in today’s media has made it increasingly important for companies to have good relationships with the media.

Some of the strategies to have a good and a successful media relations are:

• Involving media relations personnel in the formulation of company vision and strategy.
• Develop in house corporate communication department

• Also make use of externally expertise as and when needed especially for audits.
  

Companies of late have included online forums for media relations , which certainly helps in extending a hand to the media to have a look at the company details ,one good example for this http://www.infosys.com where there is a dedicated section for the media to get intricate details about the way in which infosys operates.

As far personal experience is concerned I was impressed by the way in which Coke India responded to the allegations made by the Indian government and also state governments about the so called 'pesticide cocktail' which was present in its beverage products.Coke came out all guns blazing by proving to public and others about its strict quality measures that they follow in the production of their beverages.They also launched a Advertisement campaign by Aamir khan(Top Bollywood actor) to reinforce its strict quality measures.They also allowed the media and the general public to visits its bottling factories to have a look at the quality processes they were following.I feel this crisis situation was well handled by Coke India.

Corporate Adverstising

By Definition Corporate advertising is a paid use of the media that seeks to benefit the image of the corporation as a whole rather than its products or services . In brief it define corporate advertising as "A company tries really hard so that they can create an image in the minds of the consumers of the company and not pertaining to a particular product.


Here below is a classic example of a corporate advertisement where in Accenture is trying to strengthen its identity.Its constituency are anyone who wants to deal with consulting business.


Corporate advertising falls generally into three basic categories

• Image advertising.
• Financial advertising.
• Issue advocacy.

Image advertising is used by companies to strengthen their identities following a structural change.This kind of advertisement also helps in explaining a companies renewed vision and also strategy to constituents who may know them well in an earlier incarnation.

Financial advertising basically helps in stimulating interest in company's stock among potential investors.

Issue advertisements are meant to be used when the company has to respond to those groups who have challenged the company's status quo.

Corporate Advertisements are generally used to increase sales(may not be immediately),to create a stronger reputation and also to recruit and retain employees.

Internal communication

For having better atmosphere among the employees, the companies must start with better communication strategies to deal with its employees. Internal Communications is no more only about the memos, publications, and broadcast ,it is about building the a corporate culture and having potential to drive organizational change. It has got direct involvement of the key personnel of the companies with their employees.
Internal communications is the best way to assess the effectiveness of a company because here they can determine what is the employee's attitude towards the company.

Some of the methods a management can improve its internal communications are:

Communicate Up and Down

Many large companies are perceived as being faceless ,unfeeling organizations that is only reinforced when no upward communication exists from employees to management.Mass electronic communication can sometimes compound the "facelessness " of management.The best way to counter this problem is to encourage two way communications that will foster a sense of participation that can make even the largest companies feel smaller in the hearts and minds of employees.

Make time for face-to-face Meetings

One means of ensuring that employees have access to senior management is to hold regular, in person meetings with fairly large groups of employees,by conducting such meetings frequently it can be used as an opportunities for management to share company results and progress and to demonstrate responsiveness to prior employee feedback,these meetings also provide opportunity for employees to ask questions of management in an open forum.

Communicate Online

Internet technology ,while extremely powerful ,must be used thoughtfully if it is to enhance communication.Employees are bombarded with information through emails and voice mail,with advent of intranet it is a channel through which companies could reach their employees quickly and broadly on key events and management initiatives.Company intranet should be fast and
should be updated at real time.

Communicate Visually

It is said “Actions speak louder than words” hence the companies should try to communicate to the employees visually also. This can be achieved by the constant use of multimedia presentations, video magazines, copies of DVD's to view at home. The managers should not account for expenditures on such communication as it is not wasteful but rather an investment in the firm.

Focus on Internal Branding

Internal Branding is critical when an organization is undergoing changes such as merger or a change in leadership,it is also important in building morale and creating a workplace where employees are engaged with their jobs.

Internal Branding campaigns also can be launched when results of internal audits reveal that employees are not connecting with company's vision.

Business Luncheon

Its been one year since we are being taking classes in PES college week in week out and by far the luncheon experience was the best.I must thank Dr Linda and Dr Wayne Moore for giving us a opportunity to experience a business like luncheon.

Cohort B went for luncheon on Friday of 27th June,one of the most memorable days in my life to say the least.It was organized on the 5th floor of Celestial heights or should i say the 6th level because the work up to there was like eternity,which i would say is the only thing i did not enjoy.

We were welcomed by a Mixed fruit drink and for starters we had "Malai Kebab" and " Veg Spring Rolls".We were talking to our friends like they were our business associates giving a very professional touch to this pleasant experience,though we guys were feeling a little uneasy but it was a good learning experience.




Dr Wayne and Dr Linda walked passed through the various crowds ensuring we were eating and importantly eating with business etiquette which was the objective of this exercise anyway.Later on we were sent into the main hall where the seating arrangements were made and few of them were accommodated outside with a bird's eye view of the PES campus and its neighborhood.

I sat with a couple of people who i was not friendly with until that day,it was a good experience for me as i tried and succeeded in conversing with them in numerous topics varying from sports to cinema.

I was enthralled in looking and observing the silverware which was neatly setup for the occasion. We started with the soups and it was followed by fish for the non vegetarians . For the main course we were served Chow mien and Fried rice which i started eating in hurry later realized that i had to adhere to business etiquette,so i paced my meal accordingly. We learned vital things such as not to place our elbows on the table and how to place the fork and spoons after we are done with the lunch.

For Deserts we were served a generous scoop of vanilla ice cream with fruit salad which i relished the most,i bet so did the rest of the class.

To sum it all up in a nutshell i would say it was a very useful and a learning experience which i will never forget in years to come. I am sure that all the table manners and etiquette i learned from this day i will apply it on a actual business luncheon whenever it comes by.I would personally like to thank Dr Linda and Dr Wayne Moore one more time for taking the trouble and arranging something like this for all of us.

Identity,Image and Reputation

Image
A company's image and identity might be the only difference that people can use to distinguish one company from another.

Identity is the visual interpretation of the company's reality such as a company's logo, motto products etc. Constituencies then form perceptions based on the messages that the company send in tangible form.
Image is a reflection of an organizations' identity, in short you can say an image is a perspective of the company when seen by the constituencies, which the organizations can get a better idea about their image by conducting research and surveys.

From the Starbucks logos that you can see hear different views can be gathered depending on different individuals, some could be positive and others could be negative. This is the image you have of the particular brand.

Shaping a company's identity entirely depends on a company, factors such as clear corporate vision, careful corporate branding and most importantly consistent self presentation helps in building a good identity.
Vision plays an important role because it determines a company's core values, philosophies, standards and goals.
http://www.scripps.ohiou.edu/wjmcr/vol04/4-1a-b.htm
Logos are another important component of corporate identity because it represents their visual name. The Lexus logo not only determines class but also represents quality and luxury.

Identity management
A company needs to look at several factors when dealing with their identity, they need to keep a watch as to how the constituents are able to identify with their company and make suitable changes as per the convenience of the consumers. One major factor for gauging identity is the value of the company. Do you stand for stability, like Prudential insurance? Innovation, like 3M? Educational curiosity, like the Discovery Channel? Social consciousness, like Ben & Jerry's Ice Cream? Child-friendliness, like McDonald's? Rugged individualism , like Marlboro cigarettes? Personal freedom, like Harley-Davidson motorcycles? http://www.epromos.com/educationCenter/qus13.jsp

A company needs to set clear goals to the identity process, senior management need to ensure that these goals are set and explain how each constituent’s should react to specific identity proposals. A company needs to constantly adapt itself to the needs of the consumers for the consumers needs keep changing with time and as switchers it takes the consumers no time to change their taste and move on to another brand.

According to my personal view reputation can make or break a company, once reputation is lost its hard to earn it back and get the consumers to trust the brand. Then the company has to invest a lot to re-create the brand image in the consumer's minds and gain back customer loyalty.

Communicating Strategically

Communicating Strategically

Communication strategically starts of with various theories of Communication.Communication theories can be traced back to ancient Greece where it was referred to as rhetoric.Aristotle defines composition of speech into three parts: the speaker ,the subject and the person whom its addressed to.Strategic communications are the life blood of any corporate today. We all have seen example of how companies redeem, maintain/sustain, build and advocate to its constituencies. It rests with the company's communications team or department to keep in mind its vision and mission whenever communication to any of its constituents. Lasswell, Shannon & Weaver, Schramm, Westley & MacLean and Kincaid are some of the authors of communication models. All these models have three elements in common, which are:

1. Source

2. Medium of transfer

3. Destination

Shannon & Weaver's model introduced the concept of noise, which can be either physical or mental. Schramm had three variants of his model and also described feedback in his third model.

Whether an organization is trying to augment its reputation through corporate advertising or to communicate effectively with employees , consistent communication strategy is critical. Based on Aristotle model is slightly modified to suit the corporate structure. The communication structure is as follows
1) The organization.
2) Constituency.
3) Messages.


Setting an effective Organization Strategy:
The three subsets of an organization strategy include:-
1) Determining the objectives
2) Deciding what resources are available for achieving those objectives
3) Diagnosing the organizations reputation.

Changing Environment for Business

Changing Environment for Business


The Changing Environment for Business is one of the widely discussed topics in international and domestic Business. This chapter starts off saying that Business had never had a positive image in the United States. Big Business powerhouses like the Carnegies, Mellons and Rockfellers were known as “robber barons” because they were perceived by the public as corrupt business men who looked at their own vested interest rather than the good of the general public.
The 1920’s were exemplified by a rising stock market which created a further divide between the rich and the middle-class which lead to unstable economic conditions and finally lead to the great depression in 1929 when the stock market collapsed .This was not a good time for business and American citizens as well. By the mid-1940’s however, business started rebuilding from the depression and this stage was called as the “golden age” when Kennedy was the president of the United States . Over the next 30 years the American citizens were pretty happy and satisfied as they believed that business’s maintained a balance between profits and public welfare. Towards the end of the war in Vietnam, a rise in radicalism in America ignited the beginning for a long deterioration of trust in institutions .Later towards the end of the 20th century the economical boom restored the American faith in Business against what it was in the 1960’s.By the turn of the 20th century there was a wide gap between the company executes and the frontline workers because of the large differences in the pay packages each of them received.
Corporate fraud was becoming a common story in newspapers and was a highlight of Television shows as the media was playing a crucial role in putting light into corporate fraud and scandals, not only the media even Hollywood added to their woe’s by making movies related to such scandals and fraud. One famous movie was Wall Street which depicted the great scandals which took place in the stock market.

Global Village

Coming to the concept of the concept of global village Canadian Philosopher Marshall McLuhan quoted " The creation of a world is so interwoven by shared knowledge that it became a "Global Village" . I agree with Marshall because now business is no longer limited to a particular nation; with the increase in globalization and the decrease in trade barriers between countries its essential for these global leader to communicate not only their ideas but strategies appropriately before any damage is done.


Dealing with Competition

Dealing and trying to compete in a changing environment is essential because if you do not compete you will not exist. Companies face attacks from several groups and issues may be so small but the impact it makes tends to create waves all over the world .Recognizing the changing environment is a key strength that a modern day managers need to posses in order to compete successfully.

Personal Experience:
One example that I can think of is McDonald’s as they quickly realized that buggers filled with Beef would never sell in India as it’s a predominantly a Hindu nation who believe that Cows are holy. So McDonald’s smartly revamped its American menu to suit the local needs of Indian customers by serving chicken and mutton filled burger’s along with a host of vegetarian dishes.

Corporate Communication connected to strategy.

After seeing various examples in this chapter its evident that corporate communication should be strongly linked to company’s overall vision and strategy. Of late its common for head of corporate communication to report directly to the CEO.I personally feel this is a good idea as there are fewer channels for communicating the company’s strategy and so avoids ambiguity.