Organizational Communications as a Strategic Resource Professor Leif Åberg University of Helsinki, Department of Communication Åberg’s Kite © Leif Åberg 1998

The Dualistic Nature of Organizational Communications v a function, under a communications manager v also inherent in all management © Leif Åberg 1998

The Purpose: v to present a model that integrates these two aspects v with special attention to linking organizational communications with strategic management. © Leif Åberg 1998

Part One: Integration Within the Communication Function © Leif Åberg 1998

The Four Functions of Organizational Communications 1supporting core operations 2profiling 3informing 4socializing © Leif Åberg 1998

1supporting core operations – communication is necessary for production of commodities - products and services - and for their distribution to customers 2profiling – communication is necessary when a long term corporate, product, or manager profile is being created and disseminated © Leif Åberg 1998

3informing – communication is necessary for purposes of informing internal and external audiences about the developments within the organization 4socialization – communication is necessary for the socialization of individuals into good ’organization citizens’ © Leif Åberg 1998

The Fifth Function, not under the Organization’s Direct Control 5need for informal social interaction – social interaction is inherent in the human nature – grapevine and informal social networks © Leif Åberg 1998

Dimensions of the Functional Model 1. content: task, product, services entire organization internal 2. direction: external © Leif Åberg 1998

Total communi- cations © Leif Åberg 1998

Total communi- cations external marketing interorgani- zational operative comm:s internal market- ing operative work instruct- ions © Leif Åberg 1998

Total communi- cations product or service profiling and image surveys corporate or manager profiling and image surveys © Leif Åberg 1998

Total communi- cations external PR environmental scanning internal PR internal scanning © Leif Åberg 1998

Total communi- cations induction to work training, tutoring induction to organization training, hand- books © Leif Åberg 1998

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 © Leif Åberg 1998

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 © Leif Åberg 1998

End of Part One: Integration Within the Communication Function © Leif Åberg 1998

Part Two: A Strategic Management Perspective © Leif Åberg 1998

What is Strategic Management? v It is about directing the resources v to direct, there has to be a direction v resource= a potential that can be used v can be used, but is not necessarily used effectively v a direction, where to? To the future! v But future is in the mind of the beholder v key concepts: visioning, and sharing a common vision © Leif Åberg 1998

Visions v to build a solid vision, the organizations must combine managerial processes and processes that emerge from human activities v metaphor: a kite! Åberg’s Kite © Leif Åberg 1998

The art of flying a kite: the kite will fly, v if it is windy, and v if one, running against the wind, manages to bring about the essential initial driving force Åberg’s Kite © Leif Åberg 1998

Once the kite is up, it is vital to maintain an active balance between managerial processes and processes related to human behavior Åberg’s Kite © Leif Åberg 1998

This active balancing is achieved through communication Åberg’s Kite © Leif Åberg 1998

VISION LEGITI- MACY CORPORATE CULTURE GROUP DYNAMICS INDIVIDUAL DYNAMICS BUSINESS IDEA, MISSION STRATEGY GROUP AND TEAM GOALS TASKS Åberg’s Kite © Leif Åberg 1998

LEGITI- MACY CORPORATE CULTURE GROUP DYNAMICS INDIVIDUAL DYNAMICS BUSINESS IDEA, MISSION STRATEGY GROUP AND TEAM GOALS TASKS COMMUNICATIONCOMMUNICATION Åberg’s Kite VISION © Leif Åberg 1998

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 © Leif Åberg 1998

A) Tools for Revealing the Vision v core story links the past with the future and defines the current position v strategic keywords: using, e.g., a 3x3x3-diagram v strategic core messages: elaboration of the strategic keywords v slogan: one core message, used for identification of the company v emblem: e.g., logo+name, or an auditive emblem © Leif Åberg 1998

VISION MISSION GOOD HERITAGE INTERNAL LEGITIMACY EXTERNAL LEGITIMACY Core Story © Leif Åberg 1998

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 © Leif Åberg 1998

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 © Leif Åberg 1998

Example of a Good Slogan v ”Ahlstrom Pumps : The Heart of Your Processes” This slogan reflects all three of our basic core competences v Heart … because it is our superior products that keep the life flowing through our customer’s manufacturing processes v Your … because our customers are our primary focus v Process … because that is where we have the knowledge and experience to far exceed our competition. © Leif Åberg 1998

B) Scanning v the recognition of the first weak signals of essential external and internal changes as early as possible, in order to make corrective action possible v environmental and internal scanning © Leif Åberg 1998

Trends Random fluctuation Environ- mental responses to our actions ? © Leif Åberg 1998

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 © Leif Åberg 1998

C) Communication of Change v the core story affects the perceptions of the legitimacy of own actions, and brings about positive expectations about the future v communication 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 © Leif Åberg 1998

Summary: a Truly Integrative Model © Leif Åberg 1998

1 Integrates within the Communications Function v areas of direct responsibility of the PR Manager: internal and external PR activities, profiling and branding v communications activities that must be coordinated: PR, profiling and branding with external and internal marketing v consultation with managers concerning operational communications issues © Leif Åberg 1998

2 Integrates PR with Strategic Management, Focusing on v making the vision known v communicating change v strategic scanning © Leif Åberg 1998