Some comments on the importance of Internal Communications during turbulent transformation processes
By Egbert Deekeling
Companies and communications departments have rarely before been confronted with challenges on the current scale. Fundamentally realigning proven, successful business models with climate neutrality and sustainability is the greatest challenge of the century. At the same time, the Russian war of aggression and China’s increasingly aggressive, isolationist foreign policy are shattering the foundations of globalisation. As well as growth, strengthening resilience is becoming one of the key goals for corporations – regardless of whether the company’s focus is reconfiguring supply and value chains or battling against the climate crisis, or fighting inflation and recession. Even the digital transformation, the most important megatrend of the past decade, pales in contrast. Moreover, the next wave of digitalisation will also force companies to come up with new answers, particularly with regard to AI, robotics and cyber security.
This is accompanied by an enormous pressure to act – to an extent that has never been seen before. For all their tactics of “playing it by ear”, companies must fundamentally redetermine their strategies and plan for the long term. In fact, ten-year periods are increasingly becoming the standard timeframe for strategy implementation. At the same time, transformation processes are proving to be highly complex. Managing conflicting goals, particularly the balance between investment and innovation on one hand and restructuring and cost efficiency on the other, is becoming more and more crucial for the success of corporate strategies and transformations.
Simultaneously, companies are becoming even more intensely occupied with the continuous reinvention of their identity and culture. The war for talents has catapulted employer branding from the status of “nice to have” to a strategic issue of utmost priority which has become critical to success. With changing lifestyles and work cultures, and the shifting expectations of the younger generation associated with these changes, as well as the widespread proliferation of remote work as a result of the Covid pandemic, there is a growing need for new forms of cooperation and leadership. Employee bonding has become a hard business goal that holds the key to competitiveness.
This is an impressive catalogue of widely varying challenges, which also affect the role and importance of Internal Communications in the company. Against the background of these new, highly complex requirements for strategy alignment and transformation design, executive managers have raised their expectations with regard to the skills, influence and creative power of internal communications specialists. CEOs, COOs, executives und management boards need the prudent advice and execution potential of a well-organised Internal Communications department that not only acts on an equal footing with them, but is also perceived this way.
Newsroom and channel management: state of the art, yet inadequate
In these times, when confronted with the increasing demands of a dynamic, complex media landscape, global corporations and companies have themselves evolved into journalistic players. Global reputation management has become a necessary, integral part of risk management. The newsroom model and journalistic practice determine the organisation of corporate communications and the understanding of its entire role. Here, the guiding principle is that external communications equals internal communications. The key credentials of external and internal communications include digital content and channel management, as well as storytelling.
As a result, it is easy to underestimate the impact of Internal Communications when dealing with major transformation challenges. The principle of “external equals internal” has its necessity and it justifies those journalistic activities with a focus on reporting news. However, this principle proves inadequate when it comes to shaping the transformation. This is because it distinctly neglects the exact tasks and skills that are needed for effective communication of changes.
In the 2000s, this was not the case. Globalisation, stakeholder value orientation and the first wave of digitalisation were at the top of the change management agenda in every company. Until this time, internal communications roughly meant the staff newsletter. Faced with the new challenges of change management, communications departments developed a sophisticated approach to leadership communications and employee mobilisation. At the same time, they initiated new formats and comprehensive skillsets. From this point on, the range of communications tools expanded to include events, campaigns, leadership dialogues and workshops. This allowed communications teams to play a significant role in strategy alignment and shaping transformation. By fostering understanding and acceptance, communications teams came to be in high demand as a pioneer of change, even ranking among the “inner circle” of transformation management.
The situation is strikingly different today. As previously discussed, the practice of internal communications is once again characterised by an extremely journalistic understanding of itself. Change management and leadership empowerment are typically tasks that are left to HR. However, the decisive factors for shaping the transformation have been lost in this distribution of tasks, namely strategy alignment and creation of content related to transformation based on dialogue. Although HR has the methodological tools for this, it usually lacks the content strategy for getting the message through. There is a fatal gap here.
Viewed from this perspective, the current self-conception of Internal Communications, despite all its modernity, appears to be one of self-restraint almost to the point of taking a step backwards. Therefore, the burning question for Internal Communications is, whether to establish itself as a niche in the light of the turbulent circumstances, or to fill the gap? The opportunities are there.
Back to the drawing board – an advanced setup for transformation tasks
To design the considerable transformation tasks, Internal Communications must expand its understanding of its own role and setup, beyond its tasks as a content and channel provider. There are four decisive factors here.
1. Interpretative sovereignty through sounding
For powerful, effective internal communications, the first step must be to gain a thorough understanding of the level of awareness within the company. In particular, this means knowing the extent to which the strategy has resonated, whether the organisation identifies with the transformation tasks and the associated perception of leadership. This insight grants Internal Communications departments a level of understanding that empowers them to advise the management. Therefore, the results of careful sounding establish the necessary foundation for determining the strategic approach, contents and communications measures. For this purpose, qualitative methods, such as explorative individual interviews, must take precedence. In contrast to HR surveys, which are mostly highly aggregated, these methods provide authentic voices from people in the company involved in day-to-day management and business.
2. Lead in executive communications
The alignment of executive management is a prerequisite for the acceptance, understanding and steadfastness of the transformation. This depends on engagement, which Internal Communications must cultivate. As the “guardian” of strategic content and the transformation narrative, the communications team needs authority in the appropriate formats to ensure articulacy and consistent messaging across all management levels. The team must be responsible for creating all content for communications within the framework of management and executive communications. Moreover, the creation of appropriate formats and documents cannot and must not be left solely to Group Development, the Executive Board or HR. The latter may be responsible for leadership development – but not for leadership communications. Therefore, Internal Communications must include the following responsibilities and expertise: synchronisation of the message settings in top management, preparation of presentations for the management board and supervisory board, creation of presentations and speeches for executive meetings and events, planning of content for events, and development of communications kits for executives.
3. Control through campaigns
One of the defining characteristics of communications is thinking in terms of campaigns. In turbulent times, this becomes essential for success. The longer-term, more complex strategy and transformation processes in particular urgently need to be set out in terms of phases and combined with the appropriate content planning and agenda setting. The orchestration of measures and content should draw on the contributions of other areas and work streams, without interfering with their institutional authority. Internal Communications thus takes responsibility for campaign management; it secures the necessary authority for managing the campaign, as well as the means for close networking with other management functions. However, news flow management is only one aspect of the campaign, which must also include dialogue and instruction formats, events and mobilisation initiatives, cascading processes and bottom-up processes.
4. Creative ownership by means of organisational anchoring
The organisation of the communications team should also reflect the extended setup of Internal Communications and its increased importance. Newsroom, sounding, executive communications, campaigns – this is the quartet that must define team agendas and task profiles. This facilitates the necessary plan of action for establishing and developing the appropriate resources, as well as allocating budgets. At the same time, there is a highly symbolic effect associated with this setup. By setting the agenda, Internal Communications signals its ownership of the creative function – not only in relation to the management, but also in interaction with other cross-functional teams.
In turbulent times of transformation, the wide-ranging creative power of Internal Communications is needed across the board. A journalistic understanding of communications roles based on newsroom practice is indispensable here. However, focussing on this function alone limits many opportunities for communications to make an impact, precisely when this is needed most in order for the corporate transformation to succeed.
The article was published in German in the magazine "kommunikationsmanager" in March 2023.