The Importance of Developing Internal Communication Strategy

Abstract

This study examines the importance of developing internal communication strategy. It shows that internal communication should be treated as the 'first frontier' in the battle for the customer: when it is founded on strong corporate values, internal communication can help transform key employees into employees that add value to the institution, and fulfilling the institution promise. The institutions who focus on improving employee engagement are, for sure, increasingly benefiting from a workforce who are committed to the institution culture and prepared to go beyond and above the basic requirements of their role. Employee engagement increases collaboration and can have a positive effect on organisational productivity and, subsequently drive greater profitability. It is more important than ever to realise the full potential of internal communication; to define strategic goals, to formulate key messages and to identify the best channels to convey them.

Headnote

Abstract

In the past years most studies on companies and/or institutions have focused on the influence of external communication such as advertising and public relations. Less attention has been paid to the strategic role that internal communication and even training can play.

This study examines the importance of developing internal communication strategy. It shows that internal communication should be treated as the 'first frontier' in the battle for the customer: when it is founded on strong corporate values, internal communication can help transform key employees into employees that add value to the institution, and fulfilling the institution promise.

The institutions who focus on improving employee engagement are, for sure, increasingly benefiting from a workforce who are committed to the institution culture and prepared to go beyond and above the basic requirements of their role. Employee engagement increases collaboration and can have a positive effect on organisational productivity and, subsequently drive greater profitability. According to Towers Watson, effective communication and financial performance are strongly related: companies that are highly effective at communication are 1.7 times as likely to outperform their peers.

Without integreting internal communication strategy into the global strategy of the institution, there is a great 'risk losing talent to competitors that attract new staff through aggressive marketing of their employee value propositions. They also risk having misinformed employees making errors of judgement; ambiguity breeding opportunity for conflict; and dissatisfaction among employees contributing to a toxic and failing corporate culture.

It is more important than ever to realise the full potential of internal communication; to define strategic goals, to formulate key messages and to identify the best channels to convey them. Internal communication also allows organisations to listen: the possibilities which arise through online communication allow for a broad dialogue, which can be at times difficult to control but is also more genuine and potentially productive than ever before.

Keywords: communication, personal barriers, organisation, message

JEL Classification: C61

1. Internal communication roles

Comparing the last 20 years we can say that in recent years the practice of internal communication has professionalised.

In past years there has been considerable focus on how external communication - advertising, public relations, etc - helps corporations build a corporate image to differentiate themselves from competitors in an increasingly crowded marketplace. This corporate image is important as it is a basis on which stakeholders choose to establish contact or business transactions with the organization and whether or not to attach good or ill will towards it.(...)

As far as we know companies that attach higher importance to internal communication (such as setting up a separate internal communication department) are known to have higher levels of employee engagement and better reputations.

There are a number of reasons why organisations should be concerned with internal communication.

Importantly, there is commonly a legal requirement for organizations to communicate with their workers. In Europe, for example, the EU has made very specific provision about workers' rights to be informed and consulted. (...)

Internal communication may be delivered via a 'business partnering' relationship, acting as adviser to a given function or unit on internal communication issues relevant to the delivery of their strategic plans and projects. As a representative of the audiences with a stake in the developments under discussion, this can be both an awkward and a privileged position to occupy, requiring skills of diplomacy and objectivity.

2. Message distribution

As we all know 'different people communicate in different ways and have a preference for using different communication channels. With the mix of four generations represented in the workplace, organisations need to communicate through multiple channels to connect with everyone. The research shows that face-to-face is the most preferred medium because it improves the chances of communication being understood as it was meant. But it's getting harder to deliver face-to-face messages in organisations with an expanding global footprint. Technology can help.

Internal communications in a company need to be based on certain policies, which need to be clear to the team in order to result in the achieved goals. The language should to be simple in order to ensure that the team can grasp the message. Especially the leader or line manager of a company has the responsibility to communicate what the team is expected to do and how they are supposed to do it. The leader's obligation to the team involves the internal communications strategy and plan. The result should be everyone's awareness of what needs to be done, since according to James Farrant, it is a two-way encounter. Therefore, every leader needs to know that an overall internal communication strategy is essential and that it has an impact on the success of a project.

2.1 Selecting channels

An important component of the communication process is the selection of an appropriate communication channel. It is the means by which messages are transmitted. There are two types of channels: verbal and nonverbal.

2.1.1. Verbal Communication

Verbal communication relies on spoken or written words to share information with others. Dialogue is a form of verbal communication. It is a discussion or conversation between people. It is a process in which participants are exposed to new information. The process involves a series of meetings of organizational members that represent different views on issues of mutual interest. According to Edgley and Robinson, in order for dialogue to be successful, there are several fundamental principles: engage motivated people; use a facilitator and recorder to manage the process; have the group develop procedures and live by them; ensure confidentiality; let the process move at its own pace - don't try to rush it; focus on understanding the issue and not on developing an end product; and allow time to get to know each other - have dinner before, during, or after a meeting.

Successful dialogue between group members in an organization enhances communication. There are different forms of verbal communication, which should be used for different situations. Face-to-face meetings are information-rich, since they allow for emotions to be transmitted and immediate feedback to take place.

Written communication is more appropriate for describing details, especially of a technical nature as in the example of monitoring a patient's complex medical condition. Although traditional written communication had been considered slow, now with the development of electronic mail and computer-aided communication, written communication through these channels has dramatically improved efficiency.

2.1.2. Nonverbal Communication

Nonverbal communication is sharing information without using words to encode messages. There are four basic forms of nonverbal communication: proxemics, kinesics, facial and eye behavior, and paralanguage.

Proxemics is the study of an individual's perception and use of space. Territorial space and seating arrangement are two examples.

For instance, to encourage cooperation, co-workers working together on a quality control report should sit next to each other. To facilitate communication, a manager should seat a subordinate at a 90 degree angle in order to discuss resolving staff complaints.

Kinesics refers to body language, which is used to convey meanings and messages. Pacing or drumming fingers are signs of nervousness. Wringing of the hands and rubbing temples signal stress.

Facial and eye behavior is another example of nonverbal communication. For example, when a healthcare manager interviews a candidate for a position as a clinical care coordinator, the manager attaches meanings to frowns and eye contact. Avoiding eye contact tends to close communication. However, cultural and individual differences influence appropriate eye contact. Moderate direct eye contact communicates openness, while too much direct eye contact can be intimidating.

Paralanguage consists of voice quality, volume, speech rate, and pitch. Rapid and loud speech may be taken as signs of anger or nervousness. The communication process is impeded by negative nonverbal cues. For example, arriving late for an interview with the vice president of finance, talking very fast, avoiding eye contact, getting very close during a conversation or in a seating arrangement for a committee meeting serve as negative factors in the communication process.

To determine the most appropriate channel of communication for sending messages, one needs to identify whether verbal or nonverbal communication should be used. At the same time, ideal channels of communications can be selected through an examination of the information richness and symbolic meaning of messages.

One of the key challenges any internal communicator will face is how to select the right channels - and the right mix of channels - for both the audience and the message.

2.2 Channel development and administration

The communication process can be influenced by different factors. According to Longest, Rakich and Darr (2000), some of these factors are environmental and personal barriers. (...)

Nevertheless, Guo and Sanchez also state that barriers can be overcome by conscious efforts to devote time and attention to communication.

To overcome the problem of misconception it is therefore necessary to find suitable channels of communication. Communication channels can be divided into verbal and nonverbal ones.

The best solution for the implementation of an internal communications strategy is the introduction of the previously mentioned communications channels. They give internal communication the accurate environment to flourish and transport information within the team accordingly.

The most common form of an internal communication channel is face-to-face communication. This form of communication is not only the most appreciated one, but also the most effective one. It promises a two-way communication with the possibility for an immediate response on both sides.

James Farrant also describes that if this two-way communication is not given, it cannot be called face-to-face communication. Unfortunately, new technology such as e-mails, make it easy to believe that this kind of communication channel becomes irrelevant, since it is time consuming.

Nevertheless, people will also engage to setting up face-to-face meetings, since this is how people establish and cherish their (business) relationships.(...)

It is crucial that several communication channels are used in order to influence the flow of communication within a company.

Nevertheless, James Farrant reminds that it is crucial to keep in mind that the content within the different communication channels is kept simple and understandable throughout the different departments that need to know about it. Without properly working communication channels and accurate usage, internal communications cannot work accordingly.

3. Barriers to communication

Several forms of barriers can impede the communication process. Longest, Rakich, and Darr (2000) classify these barriers into two categories: environmental and personal.

Environmental barriers are characteristic of the organization and its environmental setting. Personal barriers arise from the nature of individuals and their interaction with others.

Both barriers can block, filter, or distort the message as it is encoded and sent, as well as when it is decoded and received.

3.1. Environmental Barriers

Examples of environmental barriers include competition for attention and time between senders and receivers. Multiple and simultaneous demands cause messages to be incorrectly decoded. The receiver hears the message, but does not understand it.

Due to inadequate attention paid to the message, the receiver is not really 'listening'. Listening is a process that integrates physical, emotional, and intellectual inputs into the quest for meaning and understanding.

Listening is effective only when the receiver understands the sender's messages as intended. Thus, without engaging in active listening, the receiver fails to comprehend the message.

Time is another barrier. Lack of time prevents the sender from carefully thinking through and thoroughly structuring the message accordingly, and limits the receiver's ability to decipher the message and determine its meaning.

Other environmental barriers include the organization's managerial philosophy, multiple levels of hierarchy, and power or status relationships between senders and receivers. Managerial philosophy can promote or inhibit effective communication. (...)

Communication between people who use different terminology can be unproductive simply because people attach different meanings to the same words. Thus, misunderstanding can occur due to unfamiliar terminology.

3.2. Personal Barriers

Personal barriers arise due to an individual's frame of reference or beliefs and values. They are based on one's socioeconomic background and prior experiences and shape how messages are encoded and decoded. One may also consciously or unconsciously engage in selective perception or be influenced by fear or jealously.

For example, some cultures believe in 'don't speak unless spoken to' or 'never question elders. These inhibit communication. Others accept all communication at face value without filtering out erroneous information.

Still others provide self-promotion information, intentionally transmitting and distorting messages for personal gain. Unless one has had the same experiences as others, it is difficult to completely understand their message.

In addition to frame of reference, one's beliefs, values, and prejudices also can alter and block messages. (...)

Two additional personal barriers are status quo and evaluating the sender to determine whether one should retain or filter out messages. (...)

A final personal barrier is lack of empathy, in other words, insensitivity to the emotional states of senders and receivers.

4. Case study

4.1. European's initiatives in internal communication strategy

The European Union 'continues to transform and reform itself to make the most of the opportunities of and respond to the challenges in areas such as globalisation, energy efficiency and independence, mobility, competitiveness, migration, security and climate change. Today's Union is larger, more diverse and deals with increasingly complex issues where the EU value added is significant but not easy to communicate.

The Commission has made communication one of its strategic objectives, recognising it fully as a policy in its own right and also has decided to proceed in two phases: first, to adopt an internal Action plan and secondly, to draw up a White Paper. 'The main objective of this action plan is to ensure more effective communication about Europe supported within the Commission by a modern and more professional approach across all departments. (...) By working and planning together, the various Commission departments will improve the communication and image of this institution and of the European Union as a whole. The Action Plan and its implementation will be regularly reviewed.

Communication is more than information: it establishes a relationship and initiates a dialogue with European citizens, it listens carefully and it connects to people. It is not a neutral exercise devoid of value, it is an essential part of the political process.

Thus, the new approach of the Commission it was covered by the three strategic principles underpin the launching of the action plan to earn people's interest and trust: listening, communicating and connecting with citizens by 'going local'.

4.2. Arab countries' initiatives in internal communication strategy

'There are many internal communication differences between high and low-context cultures. High-context cultures (found in the Middle East, Africa, and South America) are more relational, intuitive, and contemplative. Low-context cultures that exist in North America and Western Europe are logical, individualistic, and action-oriented. (...) With high-context cultures, the message is implicit, with valuable meaning not only in the words but also in the gestures, the relationship between people, and the status of those involved.

'The Familial culture is widespread in Southern Europe, South America, and much of the Indian subcontinent and the Far East. Here, the corporate culture takes its cues from the family, with its complex interweaving of influence and patronage. Managers will make decisions in these cultures with reference not just to their line boss but also to the person who has sponsored their career or for whom they have worked in another part of the organization. The culture relies heavily on mutual dependencies and trust. (...)

Internal communication in such cultures can become anodyne and self-serving. Few managers are openly criticized, and information can degrade into mere propaganda. So, rather than coming out with blunt and unwelcome messages, communicators should turn to stories that illustrate the message they want to get across without having to state the bald facts.

Although there is not an internal communication strategy in the Arab countries, strategy that aplies unitary to the region, 'things are moving fast.(...) For example, in 2008, evidence was presented that many organisations had little or no internal communication in place. Since then practice has evolved considerably. For example, Dr Hamad Al Hamdi, Director of Executive Council Affairs at the Council of Dubai, has been working on a communication development programme that was recently highlighted in a government excellence plan for 2015. Involving employees forms a key strand of the plan.

Conclusions

In the simplest terms, we can say that internal communication is communication within an organization, both 'official' communication and unofficial communication.

That means that internal communication is a lot more than people talking to one another. It's the life blood of any organization, the way in which everyone gets the information that needs.

In many ways, internal communication is the glue that holds an organization together. Without it, we're just a collection of disconnected individuals each working individually at her own job. With it, we're a unit with power far beyond the sum of your parts.

In general, communication is the process of transmitting information, emotions, ideas, thoughts, etc. between and among people.

Many institutions and companies are focused on specific issues, on improving situations and having a real impact in addressing the many challenges facing the world. Often, the focus is so exclusively on what is going on 'out there' that very little attention is given to what is going on within the organisation. Communicating and sharing information with colleagues is overlooked as everyone concentrates on getting work done and achieving the organisation's objectives.

Internal communication merits close attention as employees may be the most important audience for a company's organizational communication and corporate branding efforts. Indeed, employees are considered one of the most trusted information sources about an organization.

This is so because they embody the corporate brand and interactions between them and external stakeholders communicate the brand's values as much as (if not more than) traditional marketing communications.

The aim of internal communication strategy is to help institutions to improve their efficiency and effectiveness through the creation of internal communication processes that create a cohesive organisational culture.

Within communication strategies, internal communication is often overlooked, yet it is vitally important. It is the communication that relates directly to the foundation of the institution: the people - staff, management and volunteers - that give to the institution its ability to function.

So, strategic internal communication, as part of a strategic plan, is simply a step towards helping the institution achieve its aims more effectively.

A good team should evaluate the outcomes of the internal communication strategy and ensure that continuous improvements are being made.

To paraphrase the late great Bill Shankly, 'Some people believe internal communication is a matter of life and death, I am very disappointed with that attitude. I can assure you it is much, much more important than that.

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