transformative change

“Are We There Yet?” — Change, Communications, and Culture

If there’s anything that’s more difficult than transformative change, it’s communicating about transformative change. And let’s face it, the past two years have been defined by change.

As leaders of organizations living through a profound period of global change, we’ve learned some powerful lessons:

  • The future will not be more stable or more certain.
  • Black swans feel much different when we live through them (sometimes multiple times), than when we read about them in economics textbooks.
  • Disruption or large scale change cannot be contained to one aspect of life.

In short, societal shifts spill over into personal and business life, business upheaval impacts personal and societal security, and uncertainty about personal health throws a wrench into every aspect of life. No matter how hard we try to avoid it, transformative change comes for all of us.

With the hindsight of the last few years, now is the time to review our approach to change and ask ourselves how we can better prepare for and communicate about the next wave of transformative change. Let’s take a closer look at the core aspects of strong communication here.

The Pulse of the Organization

Exhausted organizations do not handle change, let alone transformation, well. Think about how well you operate after a series of all-nighters. Even the thought of having to eat — to survive! — feels like a monumental task. Similarly, exhausted organizations can barely perform key functions, which doesn’t bode well for facing changes with grace.

When leaders continually keep their fingers on the pulse of their organizations, however, they are less likely to lead exhausted organizations and much better positioned to handle transformation. Keeping your finger on the pulse means recognizing when your people are being pushed to their breaking point and making the necessary adjustments needed.

How do you take the pulse of your organization?

  • Get to know your employees and customers: Use pulse surveys (Voice of the Employee (VoE), Voice of the Customer (VoC) surveys), “ask me anything” sessions (AMAs), virtual and IRL coffee chats, town halls, skip level meetings, “walking the halls” (for those back in the office).
  • Get to know your leaders: Keep tabs on your people leaders and customer leaders too. Managers can often be the linchpins of culture and influencers of others.
  • Ban the “just deal with it” mentality: Of course, decisions need to be made and transformative change must go on, but if your strategy is to tell your people to “just deal with it,” then you have a failed strategy on your hands. Instead, build a plan with the tools, support, resources, and aircover they need…and be ready to adjust. 

Transformative Change and Culture

Taking the pulse of your organization is only the beginning of figuring out how to communicate about transformative change. To really pull this off, you also need to consider the culture on a deeper level.

Having a change playbook is important, to a point (and lord knows you can find a consultant who will sell you one), but remember that a guide is just that — a guide. There may be times when what your team really needs is for you to set that playbook on fire (maybe even literally).

Here are some areas to consider when it comes to culture: 

  • Consider what is authentic to your organization. What is the general tone of communication? And if there was ever a time to be more transparent, more honest, more plain spoken…transformative change is that time.
  • Consider who is trusted in your organization. Perhaps the Board of Directors is more trusted than management (I’ve worked there). Or perhaps long-tenured middle management is trusted more than the new or newer executives? Understanding these relationships and building that into your strategy is crucial.
  • Consider why you’re doing what you’re doing and have a good answer. Just because “all the other $1B organizations” use top-down communications for layoffs, doesn’t mean that you have to. Keep in mind, “because I said so” is not a successful strategy for successful change.
  • Consider what you are asking of your team and customers. Transformative change, or any change (hello, Atomic Habits), requires commitment. It’s about the larger purpose and that’s generally an emotional ask. You are asking your team and your customers not just to help you make a business change, but to take a journey with you toward achieving your organizational purpose — which will solve more customer problems, make the world a better place, make the organization a better place to work, or any combination thereof.

A Few More Do’s and Don’ts

Once you have thought through the lay of the land and have the big picture in front of you, here are a few more do’s and don’ts to keep in mind.

1. Don’t sand down the edges on the executive team. 

Whether it’s a layoff, a major acquisition, or an IPO, your people are your biggest asset — yes, even in the metaverse. And employees, customers, and the media are all looking for leaders to lead and exhibit humanity.

In a recent interview, Brian Chesky, the CEO of AirBnB, said it well, 

“I think CEOs and leaders are more human than they come across. I mean most of these people are real people. They do have feelings. I think the problem with corporations is the lawyers and the HR people and the others, ‘sand the edges’ off the person in an effort to protect the person. And, that is a major disservice because they just reduce them to something that’s not even a human being anymore, they’re just this very cold person.” 

Of course, you need to work with your executives to communicate in a way that complies with the law and represents the organization appropriately, but this is very different from turning them into robots who are afraid to show any glimmer of vulnerability.

2. Do acknowledge the suckiness, if it sucks.

You may be surprised at how much resistance to transformative change can be relieved with a simple acknowledgment of how difficult it is. When it feels like you’re the only one feeling the pain, change can be a really lonely place. Often your people just need you to see them doing their best through an objectively sucky situation. And if it sucks for you too, talk about it.

3. Do acknowledge the excitement of the future, as appropriate.

As hard as it can be, change also usually comes with a lot of excitement. Don’t be afraid to embrace the excitement and display appreciation for the teams that will make the change happen.

4. Don’t promise a return to the status quo.

Never offer to “stop the change.” It may be tempting to try to relieve the pain of transformative change by promising a return to the status quo on a particular date, for example. This falls into the category of promises you can’t keep, though. Sure, there may be a light at the end of the tunnel, a product launch, a closing date on the merger, but even those flashpoint events aren’t likely to spell the end of change. 

We’re all changing, all the time. Our environment is changing, the market is changing, society is changing. All we can do is remain in a ready stance — flexible, fluid, optimistic, and ready to roll with the next pivot or “tweak.”

Finally, I want to leave you with some more words of wisdom from Brian Chesky because these two sentences are really all you need to know when it comes to communicating about transformative change: “Just do whatever you think is the right thing at that moment. Take care of people and then they’ll root for you.”

And you know Audacia Strategies is here for you. We’re ready to help you better prepare for and communicate about the next wave of transformative change. Let’s talk!

Photo credit: Businessman Applauding With His Colleagues During A Presentation by Flamingo Images from NounProject.com

c-suite change

C-suite Change Can Be Energizing or Panic-Inducing. The Choice is Yours

Does this sound familiar? Your organization is one of the bright, rising stars in your industry. It has taken years of hard work, but you’ve finally reached a point where you have strong leadership across the board, a steady vision for the future, and everyone from the executive team down to the employees on the frontlines are working together like a well-oiled machine.

And then…the CEO turns in their resignation letter. Does the prospect of C-suite change send a shock wave of panic through the company? Or are you ready to guide everyone through a smooth transition?

If your initial response is panic, that’s okay. This is the perfect time (i.e., before this scenario becomes your reality) to come up with a plan. Let’s look at how you can reframe c-suite change as an opportunity rather than a potentially destabilizing event.

Revisit Company Culture for Successful C-Suite Change

First, recognize that C-suite change is a natural part of company evolution. The person you had steering the ship during the start-up phase may not be the best person to lead you through the next stage and beyond. Thinking about how far you’ve come and how your culture has evolved will help you choose the right CEO for this next phase.

Also, if you’re moving from a founder as CEO to a new corporate executive, you’ll want to consider how much of the company culture is tied up with the founder’s personality and whether that makes sense going forward.

For example, suppose your Founder and CEO is a literal rockstar. He plays the guitar and performs regularly with his semi-famous band. He has even been interviewed by Rolling Stone. It’s an interesting draw and has given the marketing team lots of fun campaign ideas. But is this crucial to the DNA of the organization? In other words, is it critical that the new CEO also play the guitar?

Maybe. Maybe not. The point is that you need to figure out what is part of the DNA of your organization and look for a new CEO that shares the same values — someone for whom your culture is authentic to who they are as a leader.

Why is culture so important when considering C-suite change? Well, it’s likely that culture is one big reason that scaling and reaching the point where everyone is working together like a well-oiled machine has happened. So as you consider the selection and managing of the C-suite change for customers, investors, and employees, keeping the culture consistent should be your first priority. 

How to Keep Company Culture Consistent:

Once you begin to see your CEO’s resignation as part of the evolution of the organization, you can turn your attention to deciding, likely with the help of your board, what is crucial to the company’s DNA. Take your time here because decisions about how to separate the former CEO from the company culture will determine whether stakeholders perceive the C-suite change as energizing or destabilizing.

Keep the following tips in mind:

1. Have a good sense of the culture as seen through the eyes of employees. 

Find a way to take the pulse of your employees. One good approach is to use an external team to conduct Voice of the Employee interviews. You may be surprised that what you think of as crucial to the culture of your firm is really hidden from your employees and vice versa. So this kind of research is hugely beneficial for smooth executive transitions.

It’s also important to announce the transition itself to employees at the same time as you announce the C-suite change publicly. If you announce internally and externally at different times, rumors will fly and rumors are a huge source of instability during big transitions.

We recommend having a specific employee communication plan to address key cultural issues and how the C-suite change will affect the organization from a macro perspective. Also, as soon as possible, set up a town hall meeting where employees can be formally introduced to the new CEO and have their questions and concerns addressed.

2. Ground everyone back into the company strategy.

While the CEO may be changing, the company strategy is staying the same, especially if we’re sticking with the scenario where everything is going well and the CEO needs to move on. This means it’s a good opportunity to go back to basics. 

Let your mission, vision, and values drive you forward. Get everyone to recommit to company fundamentals and talk openly about what is changing and what will be staying the same.

3. Be as honest and transparent as possible.

This third recommendation is a big one, so strap in. As soon as your executive gives you notice that they’re even thinking about moving on, you want to have a strategy in place. This will allow you to be as honest and transparent as possible. This goes for all of your key leadership, not just your CEO.

Perhaps you will want to call a board meeting to open discussions about all of the topics above. Perhaps you’ll want to make an announcement (internally and externally) early and reassure everyone that the transition period will last several months. Whatever your first move, having a Standard Operating Procedure (SOP) around C-suite change is a smart idea.

In a previous blog article, we talked about the elements that plan should include whether your C-suite change is expected or unexpected.

4. Know your game clock.

Timing is also important here. The more you can be in control of the timeline, the greater your ability to control the message of the transition. Unexpected changes can raise questions about the stability of an organization. One way to ease these concerns is to share (at a high level)  your succession planning process with key stakeholders so that they understand the corporate calculus behind the leadership selection. 

For public companies: if you have a planned transition with a good amount of lead time, it’s good to make this announcement as part of your quarterly reporting cadence. If the transition is unexpected, public companies will likely have to disclose the leadership change via an 8-K within four business days, but make sure to consult with legal counsel to determine your specific disclosure requirements.

5. Teamwork makes the dream work.

If possible, make time in your transition strategy to allow the outgoing and incoming CEOs to work together. If appropriate, having a “pass the torch moment” can be a critical element to  transferring credibility and trust from the outgoing CEO to the incoming CEO. Part of this strategy should include coordinating their narrative. As an example, the outgoing CEO may talk about why they built the company and why the new CEO is the right person to carry the mantle forward. This gives the new CEO the opportunity to share their own vision about the future of the company.

Finally, make sure your new executive is prepared to take over. Is the new executive on the same page when it comes to the company culture? Have you defined your key messages? Have you acknowledged that C-suite change requires an acclimation period that can take at least 30 days? Have you organized listening sessions and key meetings with stakeholders? Do you have a comprehensive introduction strategy?

For our private equity-backed companies: if your CEO has experience with public company boards and they will be transitioning to working with your private equity board, do they understand what that entails? This is a helpful resource to share from McKinsey

C-suite change can be a powerful signal of an organization’s evolution. If you’re ready to move into the next phase of your company’s metamorphosis, our team can help make the transition energizing instead of panic-inducing. Let’s talk about your next business transformation!

Photo credit: Jacob Lund Photography from NounProject.com

rebuilding corporate trust

Rebuilding Corporate Trust: 4 Ways Business Leaders Can Bring About Real Change

As we slowly leave the pandemic behind and enter the rebuilding period, let’s not forget our responsibility for rebuilding trust in public institutions. With all the highfalutin talk about rebuilding society and cultural norms coming out of the pandemic, it’s tempting to point the finger at the government, NGO’s, and the media.

But we are at a unique crossroads where business leaders are positioned to bring about real change both inside and outside of their organizations. Want evidence? Look no further than corporate reactions to measures tightening voting accessibility. Just over a week ago, hundreds of companies and executives signed on to a new statement opposing “any discriminatory legislation” that would make it harder for people to vote. 

This type of overtly public engagement has become increasingly common over the past few years as corporate executives step into the trust gap vacated by government organizations. 

Earlier this year, global communications firm, Edelman, released its 2021 Trust Barometer and the results are revealing, especially when it comes to rebuilding public trust:

  • Business has a 61% trust level globally (that’s higher than any other institution)
  • 86% of respondents believe that CEO’s must lead on societal issues
  • 68% say CEO’s should step in when governments fail

We can point the finger at others, or we can embrace this as an opportunity to reshape relationships and build new communication paths providing benefits that will long outlive the current moment. Edelman’s Trust Barometer makes it clear which choice your customers and employees want you to make. So let’s look at the why and how of rebuilding trust.

Rebuilding Corporate Trust in Response to the Epidemic of Misinformation

How did we get here? If you were an alien landing on Earth today, you might expect to find people turning to governments and other long-standing institutions for guidance as we restart the global economy. However, the way governments handled the global health crisis has not engendered confidence in people.

Time Magazine nicknames the findings of the Edelman report the “Epidemic of Misinformation.” In the first half of 2020, public trust of governments did rise. Early on, both U.S. and Chinese citizens deemed the government to be the most fit institution to handle the COVID-19 pandemic. However, by May 2020, China and the U.S. saw significant drops in trust by 18 and 23 points respectively.

To explain these sharp decreases, Richard Edelman points to China’s use of censorship and U.S. officials’ touting of “miraculous cures” that were discredited while simultaneously diminishing the efficacy of mask wearing and social distancing in favor of reopening businesses. Edelman’s recommendation: it’s time to declare information bankruptcy

As trust in governments has diminished, trust in businesses has only grown stronger. Given that trust is the glue that holds society together, especially during trying times, leaders must take the initiative to rebuild corporate trust.

How Our Clients are Rebuilding Corporate Trust

Even before the pandemic, many CEO’s appeared to be heeding this call and stepping into their roles as “America’s new politicians.” In 2019, 181 of the nation’s top CEO’s agreed that “driving shareholder value is no longer their sole business objective.” This is a significant break with the past profit-above-all-else mentality.

And this shift, spearheaded by Business Roundtable Chairman and JPMorgan Chase CEO Jamie Dimon, reflects growing pressure from employees, social media, and customers to do more than increase stock prices. The pandemic and recent political events have only accelerated this shift.

At Audacia Strategies, we’re fortunate to have a front row seat to see this change in action with our clients. Here’s how our clients are stepping up to rebuild corporate trust one organization at a time:

1. Looking deep into the “soul” of the organization

Our clients are looking deep into the “souls” of their organizations to tap into their purpose. They’re asking: Why do we exist beyond profits? And what value do we add?

They’re also recognizing that often rebuilding corporate trust requires reaching out to customers and employees to ask for help. They’re initiating Voice of the Customer and Voice of the Employee studies to really take the pulse of their key stakeholders.

In many cases, though, rebuilding trust is perpetually aspirational. This applies not only to startups, but also to long-tenured companies. As the world changes, how we leave an impact can and must evolve too.

2. Knowing credibility matters

Employers are recognizing this moment for the opportunity to be a credible voice and to provide clear, unambiguous information for employees to follow — whether it relates to corporate strategy, benefits changes, or societal changes.

When organizations look at employees as humans, as opposed to money-making machines, they see beyond increasing productivity, profitability, and financial performance. They see how having empathy for what their employees have experienced in the past 12 months can open doors for the organization.

In the current climate, employees are exhausted from having to parse through health messages online, in their inboxes, on television, and in the media. Misinformation and disinformation have created a void leaving many without an orientation point from which to believe anything at all. Operating in such a gray area is exhausting and demoralizing.

Companies focused on rebuilding trust recognize the chance to fill this void for their employees (and customers) and gain credibility as a result.

3. Believing consistency is king

The quickest way to blow your credibility when it comes to communications is to broadcast inconsistent and sporadic messages. The old 7×7 rule is still a good starting point — but it doesn’t go nearly far enough. 

For our clients, we encourage a message architecture that ties every communication back to the organization’s purpose and vision

Overcommunication is key… but not via an avalanche of emails. Instead, use multiple channels and — most important — use live events whether structured town halls, small group roundtables, regularly scheduled staff meetings, or just chatting before the next Zoom call. All of these are opportunities to reinforce a consistent message. And that leads me to…

4. Proving trust is not a one-way street

Employees must also have a voice and provide feedback in real time.  And although annual engagement surveys can help, these shouldn’t be the only means of listening. Some ideas:

  • Hold open Q&A sessions
  • Use your internal communication tools like Yammer, Slack, or Google Hangouts to solicit and facilitate feedback
  • Share pulse surveys
  • Voice of the Employee (VOE) research 
  • Have an open inbox/phone line/door for receiving and sharing feedback

When your employees feel heard, they trust that you’ll share with them what’s working and what’s not in a constructive way. They trust that you’ll share the questions and suggestions you receive. And they will trust you to create a roadmap forward and share your progress regularly. 

Rebuilding corporate trust is hard work. It’s sticky. It can be emotional and truthfully, it can be exhausting for the leader who often says, “but I’ve said this in the last 5 meetings — let’s move on.” Remember, though, consistency is credibility and credibility is trust. 

As leaders, we don’t have the luxury of passing the buck here. Rebuilding public trust starts with us. If you’re ready to boldly step into this new era of radical transparency and corporate trust, your partners at Audacia are here for you. Contact us to discover how we can work together. 

Photo credit: Group of happy people working together in an office by Flamingo Images from Noun Project

change fatigue

Change Fatigue in 2020: How to Reframe Change and Cut Through the Noise

When we look back on the wreckage that is 2020, one thing will stand out: the rapid and constant change. For months now, we’ve endured business and organizational change like we’ve never seen. All this while managing through the anxiety of perpetual Zoom meetings, online / hybrid / in-person school, job insecurity, family health concerns, a shaky economy, tectonic cultural and societal shifts…plus, a pretty brutal presidential election. Change fatigue is real!

Everyone has a lot on their plates. Everyone is tired. And the best most of us can do is keep our heads above water every day. But of course, none of this means life and business stops.

As a leader of an organization—which also needs change to reset and keep the doors open—what can you do to help you and your organization thrive through this climate of change fatigue? 

Let’s look at what’s really going on here and five practical steps you can take.

Acknowledging that Change is a Constant

Before we get to the practical steps, we need to do some reframing. Prior to this year, many organizations enjoyed an unprecedented level of stability. Sure, they dealt with leadership changes, they went through reorganizations, they shifted strategies from time to time. But relative to now, markets were barreling ahead full speed and the future seemed relatively predictable.

All that has changed. At Audacia Strategies, our team is currently working with clients going through: major leadership transitions, reorganizations, and strategy shifts—all at the same time! 

And for many of our clients, this has been an ongoing cycle:

  • One client has had five senior leadership transitions in as many years.
  • Another client has gone through multiple rounds of layoffs as they integrate a series of acquisitions.

So how do organizations experiencing this cycle of change deal with change fatigue? 

First, they realize change happens. It sounds simple, but it’s more than a cookie-cutter message made for Instagram, “Enjoy the journey!,” “Embrace change!”

What I mean is organizations that successfully deal with a lot of change realize decisions beget decisions. Organizations can’t stand still, in the same way that we as individuals can’t stand still. We’re all evolving all the time. It’s just that right now, the evolution feels more urgent.

Instead of bracing for the bump, skilled leaders accept that rough waters are coming and engage their entire organizations. 

Recognizing that change is a constant won’t necessarily make it any easier. After all, the results of the 2020 election played out basically the way we all thought they would (give or take some percentage points) and that didn’t make the week of waiting for the numbers to come in any easier. 

Still, we can’t wrap our minds around the practical steps we can take without first acknowledging the things we cannot control. So what do we do?

1. Treat everyone like adults.

Once we accept how much change fatigue is affecting all of our lives, it’s time to trust that good people will find their way through. Show your employees that you trust them by treating them like the adults they are.

Give them the information they need to 

  • (a) make decisions 
  • (b) take care of their teams and take care of their families 
  • (c) make the information simple, straightforward, easy to use, and easy to access. 

Then give them space to work within certain boundaries. 

This sounds easier than it is. When we talk about acknowledging the things we can control, managing your team might be the first thing that comes to mind. But if you try to micromanage everyone right now, you’ll quickly end up with a lot of burned out folks.

2. Gather the leadership team together often.

It’s always important to have leadership on the same page and it’s especially critical during times of change and organizing your gorgeous chaos. So, step up the number of conversations with your leadership team.

Get everyone together to identity key pain points for each big change coming down the pike. For example, if you need to furlough employees, you’ll want everyone’s input to figure out the best way to handle issues like:

  • fear of job loss in the remaining employees 
  • concern for the future without departing employees 
  • concern for the wellbeing of departing employees 
  • increased workload 
  • gaps in customer coverage 
  • lost customer and internal relationships

3. Address challenges head on.

Also, remind leadership and lead by example when it comes to addressing challenges. Change fatigue is difficult enough without challenges being swept under the rug. Instead, face them head on and be as transparent as possible.

Address the challenges by developing plans that are flexible and take alternative solutions into account. Remember, though, that not all challenges have solutions.While you can’t make an employee feel better when their colleague is laid off, you can acknowledge the challenge and the emotions. 

Your employees may not like the decision, but they will respect it if you give honest answers about why the organization is changing and show them that your organization is treating departing employees with respect and humanity. If that’s not the case now, it’s up to you to advocate for more humanity in your organization. 

4. Provide resources to help.

Be open to finding resources to help everyone at your organization deal with big changes and change fatigue. These resources could include:

  • Executive and life coaching
  • Relaxation and stress reduction training
  • Flexible time off and personal time policies

Make these easily accessible for all, including those working from home, at a client site, interacting closely with customers, etc. 

5. Over communicate.

I’ve put this one last because it’s a big one. In my podcast interview with Mike Regina, we discussed how we’re all being bombarded by messages daily and we’re all distracted by #2020life. It feels like we need to live seven times, seven ways. 

To cut through the noise, your messaging needs to be on point. So carefully review all leadership messages for tone, ownership, and future vision.

  • Focus on messages of those closest to employees (e.g., middle management and line managers)
  • Engage employees early in the process. 
  • Give employees opportunities to ask questions (e.g., comment box, anonymous email, town halls, AMA chats, drop in Q&As, pulse surveys, voice of the employee surveys)
  • Prepare leaders for hard questions and hard conversations. 
  • Give leadership resources to help answer questions. 
  • Give leaders space and outlets to share what they’re hearing, their experiences.

Encouraging managers share their experiences of change (through change stories) with employees humanizes the experience. These stories are your best tonic for dealing with change fatigue.

Change in 2020 is not really different from other moments of change. What’s different is the context in which the change is happening. Because of change fatigue, the messaging around change needs to be stripped down to its essentials: no flowery language, fewer Venn diagrams. Get to the point. Make the case for change. Speak simply and directly. Be respectful. Be human. Be kind. 

If your organization is struggling with ongoing change during this time of uncertainty, our team is here to help. Contact us to schedule a consultation and let’s figure out how to move forward together.

Photo credit: Jacob Lund from Noun Project

building business relationships

4 Powerful Tactics for Building Business Relationships with Real ROI

There are lots of useful articles out there about building external relationships in business. There’s this one about building strong customer relationships by being authentic. And this one about how you’ve got to give to get. And this one reminding us that mutual trust is key to building business relationships.  

This is all to the good. Cultivating strong relationships outside of your organization is certainly part of a solid communications strategy. And don’t get me wrong—I love talking strategy over a cup of coffee with experienced professionals!

But with all of this focus on building business relationships outside of your organization, the importance of building strong internal relationships gets lost. So let’s talk about how building business relationships within your company can have real ROI and tactics for building these relationships across your organization.

Why Tactics for Building Internal Business Relationships?

At first glance, it might not be immediately obvious how building business relationships within your organization can contribute to developing messaging aimed at customers, investors, and other stakeholders. Isn’t communications the marketing department’s territory? But if we continue to think about external communications as belonging exclusively to marketing or PR departments, we miss out on a lot.

On a practical level, all employees are an important piece of your PR strategy. Strong, transparent internal communications tends to produce happier employees who are more likely to paint their employers in a positive light when talking to those outside of your organization.

powerful tacticsHow many times have you listened to a friend complain about not feeling heard at work? Or a family member express frustration about a supervisor not taking the time to ask for his team’s perspective on a project? How does it make you feel about the company he or she works for?

Not only can strong internal communication help keep employees satisfied and speaking positively about your brand, but it also supports short- and long-term crisis management. When you make a conscious effort to develop a culture of open communication, everyone, not just c-level executives, feel empowered and motivated to contribute to managing any crisis that could arise.

In addition, there is so much institutional knowledge within our own organizations that not promoting stronger internal relationships is like leaving money on the table. This really is one of the saddest aspects of the kind of siloing I see in many firms. The next time your department faces a seemingly intractable challenge, why not bring it up with others outside of your department. You might be surprised by the insights you gain from introducing a new perspective.

One word of caution though, if you pay lip service to the idea of building business relationships internally simply to make others “feel heard,” your employees will see right through to your true motives. Instead, you’ll want to develop an authentic internal communications strategy.

Here are 4 powerful tactics for authentically connecting across your organization:

1. Get out.

Get out of the office and get into the field. Yes, even if you are the VP of finance. Why? Building relationships across and down in the organization helps you better understand how your business works, key drivers, customer relationships, and competitive sensitivities from those who know it most closely.

Even if you feel that you have been doing well enough communicating with your immediate team and meeting benchmarks, there’s no substitute for getting your hands dirty. So plan to visit your main supplier and learn about their process. Sit in on a sales meeting. Schedule a tour of your top distribution facility and talk to the men and women who do the physical work to bring your product to market.

While you may be receiving feedback now from some of these individuals through other channels, how sure are you that the information isn’t distilled or even distorted by those serving as gatekeepers? Valuable information that can increase productivity and increase customer loyalty may be just a conversation away. So, get out into the field!

2. Bring gifts.

When you get out into the field, bring gifts. I’m not talking about corporate swag here. By gifts, I mean information and insight. Put yourself in the shoes of employees on the frontlines. Why should they care about what you do?

Remember that often those you need to connect with view the corporate office as the “ivory tower.” They see corporate as not being directly responsible for driving revenue and profit. Whether these perceptions are accurate or not, there is no doubt that the pressures they face are very different from the pressures you face. Showing sensitivity to these differences will be well received.

Here are some specific insights I’ve found useful:

  • If you’re publicly traded, give a presentation about how the market views your firm and how what they (the field team) do makes a difference to that perception. Tell them about how the corporate financials come together, why it’s important to have accurate financial planning, and how each business unit can play a role in the planning process.
  • If your firm is not publicly traded, bring competitive intelligence. Give a review of current corporate positioning and key market drivers. Often at the field level you have specialists and employees working shoulder to shoulder with the customer. They don’t see the forest. They are in the trees. So, bring the “forest” to them.

3. Tag Team/shadow.

In addition to sending executives out into the field, consider informally or formally bringing in others from across the organization to participate in traditional “corporate” activities. Pitch these as invitations to work on special projects and opportunities to learn a new side of the business.

For instance, either informally or formally, bring in someone different to shadow and participate in the development of your quarterly earnings process or the preparation for a large event. Ideally, they would be a part of the information gathering, materials development, executive prep, and final event (e.g., sitting in on an earnings call, traveling to an investor conference with you and your executive team, or attending the corporate event/trade show/etc.).

4. Widen the circle.

Develop relationships across the organization, for example, in other offices, sites, and functional areas. By the way, this tactic applies to all sizes of businesses in any industry. Open lines of internal communication by reaching out and offering to speak with their teams about your role or share what you see from the investor relations side.

To be a valued advisor in your role, no matter where you sit in the organization, it’s critical to understand how your organization works. This means having a sense for how the numbers come together; how services and products are delivered; how you, as an organization, engage with potential and current customers; how you manage the external view of the company, etc.

If you approach the above tactics with the goal of better understanding your organization and how the various moving parts come together to deliver high-quality results, you will come across as genuine. Your employees will respond to you in kind and your brand identity will come across as more cohesive.

At Audacia Strategies, we love the art and science of building business relationships. We know how to build a comprehensive communications strategy that combines external communications, such as grassroots social media efforts, with internal communications that lay the foundation for long lasting customer and employee loyalty. Our philosophy is that companies shouldn’t let any valuable resources go to waste.

Let our team help your organization with a strategy for building winning relationships that reward your time and effort. Schedule a mutually beneficial consultation today and let’s start building this relationship!

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corporate finance

6 Easy Ways to Empower Everyone on Your Team to Talk About Corporate Finance

We’ve discussed the issue of silo’d departments on the blog before. Most recently, we talked about tearing down the wall that divides sales and marketing. Another area where I see walls being built is around corporate finance. Smart executives know how important it is for all departments to stay on top of finances, but they often run up against resistance.

Frankly, that’s a shame. Effective financial communications are critical even when not speaking to shareholders or other investors. So, whether it’s because of a turf war, lack of discipline, or just plain uncertainty, it pays to remove these obstacles and make sure every key employee has a relative handle on corporate finance.

But “I Don’t Do Numbers”

I’ve heard a lot of otherwise talented marketers and corporate communicators say, “I’m a marketer/writer/communicator, I don’t do numbers.” This statement is frustrating to hear Every. Single. Time.

Here’s why:

1. Whether you work for a start-up, non-profit, government agency, or blue-chip titan of Wall Street, finances matter. If any part of your job involves convincing investors to risk their cold hard cash, you obviously better have those numbers on the tip of your tongue (or at least on the top of your mind).

But even beyond the typical financial stakeholders, media, employees, and customers all view companies through a financial lens. They are thinking: How stable are they? Are they hiring? Are they expanding their footprint in our area? Beyond our area? Understanding this perspective is crucial if you’re going to create a message that resonates with your audience.

2. If you can’t speak confidently about your organization’s business model, you’re missing an opportunity to add long-term value to your employer. Executives understand this point well. This is likely one big reason they have landed the positions they hold. And as a leader charged with mentoring others in the organization, you can’t stress this piece of corporate communications enough.

Organizations NEED communicators “at the table,” but if you can’t speak the language of business (finance) then you won’t be of value at that table. Regardless of what you take to be your primary role in the organization, if you want to rise in the ranks, you need to be on the lookout for places where you can “punch above your weight.” Being able to talk corporate finance is a huge advantage.

3. Financials are the proof points to your broader corporate message. In this context, financials can be revenue, market cap, overhead expenses, membership growth, etc. It is difficult to see how a marketer who doesn’t understand this point could truly understand marketing. Any marketing message that is divorced from a company’s finances risks falling flat, or worse, overpromising and under delivering can be a death knell for sales.

Empower Staff to Be Comfortable Communicating Financials

While it’s easy to say that every key employee should be able to speak about corporate finance, it’s a lot harder to make this goal a reality. How do you empower those within your organization to become comfortable with and effective at communicating financials?

1. If your company is publicly-traded, encourage your employees to read your 10-K, 10-Q, annual report, and proxy statements. You could also ask the finance director to do a short presentation or Q&A for all department heads.

2. Encourage leaders in marketing, sales, and other departments to take your IR lead out for coffee (bonus points if they do the same for your financial planning and analysis (FP&A) lead!). There’s no substitute for hearing about the state of an organization’s financials from the experts themselves. They can provide powerful insights and help in understanding the business model.

3. One great way to help get everyone up to speed is to read and talk about your industry publications (including the WSJ and FT if possible). It’s not important for everyone to read them cover to cover (or top to bottom online), but these articles will provide a general understanding of the impact of market movements on your industry. You could, for example, start a weekly meeting with a discussion of an important shift in the market and its impact on your business.

4. Actively follow your competitors and talk about what they’re doing well and where you have the upperhand. Encourage team members to listen to how peers speak about their business in the press, at events, in their writing, and in their financial filings.

5. Keep learning! This goes for everyone involved with your organization. There are some great FREE corporate finance courses out there (e.g., Finance for Non-Finance Professionals created by Rice University professors and offered through Coursera). Also, professional organizations (e.g., PRSA, IABC, NIRI) have opportunities to gain additional business savvy. Consider incentives for employees who put in the extra effort to gain skills in corporate finance.

6. Hire Audacia (joking… kinda). But seriously, sometimes bringing in communications professionals with an actual background in finance can make all the difference. Corporate finance is our world, let us introduce it to your team. Or, better yet, before you go through the trouble of trying absolutely everything, why not sit down for a consultation and let us steer you in the right direction?

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