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How much value does Internal Communications add to the bottom line?

Permalink 11/02/08 - 10:03:49 pm
posted by micheline Email
446 words, 170 views   English (UK)
Categories: Internal Communications Blog

Because it is a ‘soft skill’ the value that Internal Communications adds is difficult to measure in financial/profit and loss terms. You can’t say at the end of each quarter ‘here is the amount of profit attributed to Internal Communications’ – or can you? More intelligent business leaders are beginning to see a wider variety of influences that can impact on the bottom line.

It doesn’t take a genius to recognise that business is run by people – without people there would be no business. Small and large businesses rely on their people to make the venture successful. In a small business everyone pretty well knows what is going on and events and changes are discussed regularly. It is up to the business leader to enthuse and engage everyone and this is what makes each member of the team more productive.

In a large business, or one where people are scattered across number of different sites, the need for communication is greater. Just as in the small business, the CEO/leader of a large business needs to enthuse and engage. This not so easily done with a large or dispersed workforce and this is where Internal Communications comes in. They must interpret the words, vision, message of the leader and enthuse and engage the people within the company to feel and act in a positive and energised way to achieve the business goals – it must matter to them. Good Internal Communications can make this happen.

Where there is no communication throughout a company many people feel cut off and unimportant, they don’t understand where the business is going, and worse, they don’t care. They become lethargic, content to pick up a salary and while the days and months away focusing on holidays and weekends. The more ambitious will become restless and start looking for a greater challenge.

On the positive side, with good communications everyone knows what is expected of them, what the business is trying to do and what’s in it for them. There is a greater understanding of the big picture and because they are constantly informed on progress and changes and they feel part of it. Internal Communications allows a business to tap into the very valuable knowledge and ideas of those on the ground who see the problems and frequently come up with ideas to solve them. This can save a business a lot of time and money in consultancy fees.

Here at Alexander Hughes we have a deep understanding of the Internal Communications sector - if you're looking to recruit Internal Communications talent, or are looking for your next move, please contact me (m.walsh@alexanderhughes.com) today.


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Comments, Trackbacks, Pingbacks:

Comment from: Philip Karhu [Visitor] Email
You’re so right! Like too many other ‘soft skills’ Internal Communication is so undervalued. A business professor once told me that there are only two types of functional roles in business: the ones that make money and the ones that save money. It’s a very bottom line oriented perspective that can easily miss out the synergy initiated by those who contribute to the life and spirit of the organisation. Before it was ever recognised as a role these ‘soft skills’ were often practised by a few key individuals who breathed meaning into their workplace enthusing and engaging their colleagues.

I know of companies that were never the same after a key person left. Quite often that person was an unofficial internal communications expert, with a way with words and a willingness to listen (funny how we’re often taught how to speak but not necessarily how to listen).

Businesses are run by people and the relationships between people internally and externally determine the flow of a business. If it’s important to communicate truth, vision and integrity externally isn’t it equally or even more important to foster those same principles internally?

I’ve been reading Abraham Maslow recently (Maslow On Management… written nearly 50 years ago and only back in print in 1998) and in a chapter titled Enlightened Economics and Management he lists 36 assumptions that underlie Enlightened Management Policy. Here’s a few of my favourites…

Assume that everyone is to be informed as completely as possible of as many facts and truths as possible; i.e., everything relevant to the situation.

Assume that everyone can enjoy good teamwork, friendship, good group spirit…

Assume good will among all the members of the organisation rather than rivalry or jealousy.

Assume everyone prefers to be a prime mover rather than a passive helper, a tool, a cork tossed about on the waves.

Assume preference for being a whole person and not a part, not a thing or an implement, or tool, or “hand”.

All human beings prefer meaningful work to meaningless work.

I grew up bilingual in Japan but I am not Japanese. This has often put me in an odd outsider role. I also regularly found work as an interpreter which heightened my sensitivity to the meaning behind words and actions. After earning a management degree I have spent the past 20 years working in Japanese companies across a range of industries. Whatever you may have read about Japanese management techniques I can tell you that at the root of any successful Japanese company lies one key ingredient: communication. (And there are just as many examples of failed Japanese companies whose failure can be traced back to a lack of internal and/or external communication) My own successes have often been due to listening to both my customers and my colleagues and getting both groups to buy into the same vision

I recently left my role as a TV producer to work for a UK high street retailer who aspired to emulate the legendary customer service example of Nordstroms. I read everything I could about Nordstroms and got very excited about the vision. Unfortunately the reality was a far greater gap than I alone could bridge within the limitations of my particular role. Now they could truly benefit from an Internal Communications role. How can you get your customer to believe your commitment to customer service if you can’t first win over the hearts and minds of the staff that are serving those customers?

So I’m off experimenting with a totally different industry again looking for someplace with the vision for enlightened management. Perhaps if my University had offered Internal Communications as a course.

This is making me feel so Jerry Maguire…


PermalinkPermalink 19/02/08 @ 23:51
Comment from: micheline [Member] Email · http://www.ahselection.com
If your University had offered an Internal Communications Course, Philip it is unlikely it would have changed things much. There are differing opinions on the value of formal Internal Communications training.

From my own experience of interviewing and placing Internal Communications people at all levels, I find that hands-on experience is the most important. Formal training can help develop and refine but without the basic experience it is not enough. The best Internal Communications people have certain recognisable qualities. Amongst these are well-honed writing skills, the ability to listen and absorb information, persuasiveness, and the ability to empathise with others and stand in their shoes and, above all a genuine interest in people and what makes them tick.

Given these qualities and some hands-on experience, a course like the one offered at Kingston can help move a career forward rapidly. For those who are stuck and need redirection and upskilling, the Black Belt courses run by Liam Fitzpatrick and Sue Dewhurst come highly recommended by many.

Micheline Walsh, Consultant, Alexander Hughes Selection
PermalinkPermalink 20/03/08 @ 21:11

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