The Functions of Corporate Communications Corporate Communications and Strategic Management Professor Leif Åberg University of Helsinki, Department of Communication second session, Amsterdam, April 1999

The Dualistic Nature of Organizational Communications za function, under a communications manager zalso inherent in all management

The Purpose: zto present a model that integrates these two aspects zwith special attention to linking organizational communications with strategic management.

Part One: Integration Within the Communication Function

The Four Functions of Organizational Communications 1supporting core operations 2profiling 3informing 4socializing

1supporting core operations ycommunication is necessary for production of commodities - products and services - and for their distribution to customers 2profiling ycommunication is necessary when a long term corporate, product, or manager profile is being created and disseminated

3informing ycommunication is necessary for purposes of informing internal and external audiences about the developments within the organization 4socialization ycommunication is necessary for the socialization of individuals into good ’organization citizens’

The Fifth Function, not under the Organization’s Direct Control 5need for informal social interaction ysocial interaction is inherent in the human nature ygrapevine and informal social networks

Dimensions of the Functional Model 1. content: task, product, services entire organization internal 2. direction: external

Total communi- cations

Total communi- cations external marketing interorgani- zational operative comm:s internal market- ing operative work instruct- ions

Total communi- cations product or service profiling and image surveys corporate or manager profiling and image surveys

Total communi- cations external PR environmental scanning internal PR internal scanning

Total communi- cations induction to work training, tutoring induction to organization training, hand- books

Total communi- cations external market- ing inter- nal mar- ket- ing work instruct- ions induction to work induction to organization internal PR & scanning external PR & scanning product/ sercives profile & surveys coprporate/ manager profile & surveys External social networks Internal grapevine

external market- ing inter- nal mar- ket- ing work instruct- ions induction to work induction to organization internal PR & scanning external PR & scanning product/ sercives profile & surveys coprporate/ manager profile & surveys Responsibilities of the Communications Manager Coordinates Co- ordinates Consults Controls directly Total communi- cations

Basic forms of communicating within the organization: before Face-to-face WrittenElectronic

Face-to-face WrittenElectronic 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? zIt is about directing the resources zto direct, there has to be a direction zresource= a potential that can be used zcan be used, but is not necessarily used effectively za direction, where to? To the future! zBut future is in the mind of the beholder zkey concept: visioning, and sharing a common vision

Visions zto build a solid vision, the organizations must combine managerial processes and processes that emerge from human activities zmetaphor: a kite!

The art of flying a kite: the kite will fly, zif it is windy, and zif 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

VISION LEGITI- MACY CORPORATE CULTURE GROUP DYNAMICS INDIVIDUAL DYNAMICS BUSINESS IDEA, MISSION STRATEGY GROUP AND TEAM GOALS TASKS Åberg’s Kite

LEGITI- MACY CORPORATE CULTURE GROUP DYNAMICS INDIVIDUAL DYNAMICS BUSINESS IDEA, MISSION STRATEGY GROUP AND TEAM GOALS TASKS COMMUNICATIONCOMMUNICATION Åberg’s Kite VISION

LEGITI- MACY CORPORATE CULTURE GROUP DYNAMICS INDIVIDUAL DYNAMICS BUSINESS IDEA, MISSION STRATEGY GROUP AND TEAM GOALS TASKS COMMUNICATIONCOMMUNICATION Åberg’s Kite MANI- FESTAT- ION OF VISION SCAN- NING COM- MUNI- CAT- ING CHAN- GE VISION

A) Tools for Revealing the Vision zcore story links the past with the future and defines the current position zstrategic keywords: using, e.g., a 3x3x3-diagram zstrategic core messages: elaboration of the strategic keywords zslogan: one core message, used for identification of the company zemblem: 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 always played an important role in the social and economic development of Finland. It has been innovative and responsive to the challenges of the time The S-Group has always played an important role in the social and economic development of Finland. It has been innovative and responsive to the challenges of the time Today, through customer- ownership, chain operations and efficient structures, the S-Group uses its influence to make living in Finland less expensive and richer in quality Today, through customer- ownership, chain operations and efficient structures, the S-Group uses its influence to make living in Finland less expensive and richer in quality The S-group continues to develop the cooperative form of enterprise best suited to the needs of the people in order to produce a more humane direction in the development of the free-market economy The S-group continues to develop the cooperative form of enterprise best suited to the needs of the people in order to produce a more humane direction in the development of the free-market economy this is opened using a 3x3x3- diagram

”Your benefits in Finland” Customer-ownership Unique structureEfficiency You can influence You receive benefits You’re working for good cause Logistics Chains Personnel Regional National Networks A 3 x 3 (x 3) Diagram

Example of a Good Slogan z”Ahlstrom Pumps : The Heart of Your Processes” This slogan reflects all three of our basic core competences zHeart … because it is our superior products that keep the life flowing through our customer’s manufacturing processes zYour … because our customers are our primary focus zProcess … because that is where we have the knowledge and experience to far exceed our competition.

B) Scanning zthe recognition of the first weak signals of essential external and internal changes as early as possible, in order to make corrective action possible zenvironmental and internal scanning

Trends Random fluctuation Environ- mental responses to our actions ?

Scanning 1 Recognition of possible sources of essential weak signals 2 External and internal monitoring 3 Interpretation 4 Recommendations for actions 5 Taking action 6 Control of consequences

C) Communication of Change zthe core story affects the perceptions of the legitimacy of own actions, and brings about positive expectations about the future zcommunication 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 zareas of direct responsibility of the PR Manager: internal and external PR activities, profiling and branding zcommunications activities that must be coordinated: PR, profiling and branding with external and internal marketing zconsultation with managers concerning operational communications issues

2 Integrates PR with Strategic Management, focusing on zmaking the vision known zcommunicating change zstrategic scanning

Thank you for your attention! Leif Åberg