The 10 stages of strategy planning
THE ACADEMY OF BUSINESS STRATEGY
MARKETING COMMUNICATIONS BLOG
The 10 stages of strategy planning
AUTHOR
Matthew Francis (CBS) MBA LLB MCIPR
Introduction
Getting the right messages across to the right publics is fundamental to business success. In order to do this, it is necessary to put in place a clear and comprehensive planning strategy that will bring about the desired result. For this reason, Cutlip, S.M, Center, A.H and Broom, G.N (2002) stated in their book Effective Public Relations that planning is a 4 stage process. The process involves 1. Defining the Public Relations Problem, 2. Planning and Programming, 3. Taking Action and Communicating and 4. Evaluating the Programme. In reality, planning a Communications Campaign is a lot more detailed than this. This article will look at the 10 stages of planning, which if followed, will maximise your campaign’s chances of success.
The 10 Stages of Planning
Set Objectives. The first thing to do is sit down and agree what the objectives of the campaign are. These might be Macro, such as ‘We want to introduce a new product into the market-place’ or Micro, ‘Our latest product, the Platco Widget, needs to be marketed to the 14-19 year old market in the Manchester area.’ Irrespective of the extent of detail entered into, the objectives need to be set. At the beginning of the day, it is important to know, or at least have some idea, where you are going.
Perform Analysis: There is no point in launching a campaign to a market that you have not even researched. After-all, selling the latest singing, dancing touch-screen phone might seem like a good idea. It might not be however, after you release it and discover that Apple has the iPhone that not only sings and jumps but it dances as well!
Determine Who You Public Are. Well, this one speaks for itself really. Make sure you know in your mind who your customer is. Mercedes for instance would not launch a campaign aimed at everyone from 18-75. The Telly Tubbies would not have attracted such a large audience if aimed at middle-aged bankers, well probably not anyway!
Get The Messages Right. Decide what the message or messages are that are you want to communicate and make sure that different communications are not in conflict. A Social Media Campaign using Twitter is no use if it is saying something completely different to the message going out in you Direct Marketing campaign.
Adopt a Strategy. The implementation of the campaign needs to follow a predetermined strategy. This is not to say that new ideas cannot be tried out from time to time and certainly the strategy needs to be able to accommodate these. However, looking at the overall campaign from above, there needs to be some kind of predetermined approach that lays out when and how things will be done.
Determine the Tactics. Once an overall strategy has been determined, it is important to then look at how exactly this is going to be carried out. What different forms of public relations are appropriate and who should they be directed towards? The main idea should be to contact members of the public and then convince them through the power of communications messages. The ability to be able to achieve this will obviously determine the success of the campaign.
Set the Timescale. Some campaigns might involve a ‘Short, sharp shock,’ in that the whole purpose is to get the message across quickly and effectively. This is very much the case with a Crisis Management situation. However, others will involve building a relationship with the public over a longer period of time. For this reason it is important to determine the timescale of the campaign or the individual parts of it.
Resources. The three cost considerations when running a campaign are Human Resources, Operating Costs and Equipment. Without going into too much detail here, it is essential that the campaign is effectively managed and for this, a good PR professional will not be cheap. Obviously there are specialist areas of PR such as government lobbying or such like, that will command a premium price. There should also be an awareness of ongoing operating costs of the project and what equipment is needed in order to communicate the message of the campaign.
Perform an Evaluation. Once the campaign has been carried out, it is essential that a thorough evaluation of the project takes place. This will enable you to determine whether it has actually met the aims and objectives set before it started. It is always important to look at any problems that arose during the project and how these were dealt with.
Review the project. Based on the evaluation, a review of the project can take place. This enables you to determine whether it has been a success. Based on the review and the evaluation, future projects can then be planned.
Conclusion
Any communications project needs to be effectively planned. This planning will then enable the implementation to be conducted under the guidance of a framework. Whereas during the course of the project, there may be changes that need to be made to elements of the strategy, it is important to have this plan in place so that the delivery team and your stakeholders are clear as to where the project is headed. This way, not only is the message being communicated to the target audience, but you are well aware of where the project is headed.
ABOUT THE AUTHOR
Matthew Francis (CBS) MBA LLB MCIPR is an approved Certified Business Specialist (CBS) with the Academy of Business Strategy and his specialist subject is marketing communications. He has achieved an MBA from Cass Business School, an LPC from Exeter University and an LLB from London University. He has also achieved a MCIPR from the Chartered Institute of Public Relations. He initially qualified as a Lawyer before being employed as a Management and Operations Consultant for a variety of different companies and has experience within the oil and gas, telecommunications, consulting and financial service industries. A selection of his clients or employers have included Areva Mining, Credit-Suisse, Mars, Ernst and Young and RJ Reynolds. He has geographical working experience in Russia, Kazakhstan, The Ukraine and The US and he speaks English, Russian and French. His service skills incorporate international public relations management, marketing communications, project management and business process transformation.
To contact Matthew Francis, please contact the Academy of Business Strategy by forwarding an email, or alternatively visit Matthew’s CBS Blog.
Keeping it legal
THE ACADEMY OF BUSINESS STRATEGY
MARKETING COMMUNICATIONS BLOG
Keeping it legal
AUTHOR
Matthew Francis (CBS) MBA LLB MCIPR
Introduction
Adopting an effective Communications Strategy is not necessarily at the top of the To-Do List of most professional services firms. One of the reasons for this is the perception that to take this route will cost a fortune. It is true that sometimes this is the case. For example, attracting the latest celebrity or sports personality of the moment will cost a company a fortune. Take Accenture for instance, paying millions of dollars in order to have Tiger Woods as ‘the face’ of their organisation. This worked perfectly well until his squeaky clean image became tarnished, costing them even more in order to break the relationship and disassociate themselves from him.
Paying millions is all well and good if you can afford it. But what about professional services firms who don’t have a huge marketing and promotional budget to play with? Do they just concede defeat to the big boys and concentrate solely on delivering their services to local businesses, relying simply on word of mouth recommendations? Well they can, and to be honest most of them do. But it doesn’t have to be that way.
This article looks at how a law-firm in Northamptonshire, Temple & Co has broken with tradition and is doing things a bit differently. Not only are they positioning themselves as Business Facilitators and Advisors, as opposed to simple legal problem solvers but they are being creative in the way their marketing communications is being presented. Their effective marketing communications is also not costing them a fortune, meaning that even their accountant is happy. Finally, the icing on the cake is that Euan Temple, their Managing Partner, is not being kept awake at night wondering what adverse media attentions his celebrity sponsor is going to attract in the morning papers!
Accuracy Does Not Mean Sacrificing Creativity
Let’s face it, marketing materials produced by professional services can be pretty bland and at time, mind-numbingly boring. Let’s face it, they all provide the same services really. For example, their clients conduct their business, they need a contract written, they go to their lawyer, the contract is written. Then they continue with their business until they need help again. You get the picture. Same-Old, Same-Old! Now don’t get me wrong, I am the first to admit that the work of lawyers and accountants need to be accurate. Nobody wants their professional advisor to be the epidermisation of creativity at the expense of accuracy. Saying that however, there is a lot of room for creativity in the way that professional services firms get the message across to their prospective and current customers.
Temple & Co were in an interesting position. They had built up a reputation for offering a top drawer legal service to clients and this reputation was one they were rightly proud of. Euan Temple saw however that if Temple & Co were to approach the area of marketing communications in a different way, they could expand their client base considerably. The point was that the right message needed to be communicated. This message was not that Temple & Co were a good law-firm that could deal reactively with client issues, although this was of course one of the things they could do. The real message however, was that Temple & Co were proactive lawyers that worked collaboratively with their clients, helping them build their business. They were more along the lines of ‘Hand in Hand’ advisors as opposed to simply problem solvers.
Something Different
In order to get the message across that he intended, Euan Temple took on the services of Marketing Communications specialists, Fusion-PRo. Fusion-PRo appointed a dedicated PR professional who had also trained as a Lawyer to head up their project. Over the course of 2 weeks, this professional advisor worked directly with Temple & Co, identifying their specific skills and experience as lawyers but also how they worked collaboratively with clients in building and developing their business. This hands on approach and direct interest in the well-being and development of their clients needed to be a key factor, running through their marketing communications.
After the 2 week period, having gathered all the information needed, Fusion-PRo created a ne set of communications materials for Temple & Co, using colour, creative explanations of how they can help develop their clients and including a Call To Action, vitally important to any business looking to attract new clients. The results have been considerable already. Temple & Co is enjoying a surge of interest from larger organisations, who see that they can get the service they need. This service is one that sees them working alongside legal advisors who actually understand their business and are focused not only on solving problems, but adding value to the organisation.
ABOUT THE AUTHOR
Matthew Francis (CBS) MBA LLB MCIPR is an approved Certified Business Specialist (CBS) with the Academy of Business Strategy and his specialist subject is marketing communications. He has achieved an MBA from Cass Business School, an LPC from Exeter University and an LLB from London University. He has also achieved a MCIPR from the Chartered Institute of Public Relations. He initially qualified as a Lawyer before being employed as a Management and Operations Consultant for a variety of different companies and has experience within the oil and gas, telecommunications, consulting and financial service industries. A selection of his clients or employers have included Areva Mining, Credit-Suisse, Mars, Ernst and Young and RJ Reynolds. He has geographical working experience in Russia, Kazakhstan, The Ukraine and The US and he speaks English, Russian and French. His service skills incorporate international public relations management, marketing communications, project management and business process transformation.
To contact Matthew Francis, please contact the Academy of Business Strategy by forwarding an email, or alternatively visit Matthew’s CBS Blog.
Cross-dressing for success
THE ACADEMY OF BUSINESS STRATEGY
MARKETING COMMUNICATIONS BLOG
Cross-dressing for success
AUTHOR
Matthew Francis (CBS) MBA LLB MCIPR
Introduction
There is a lot of work that needs to go into launching a new product for your business. Whether it be one that complements others that you already produce or it is something that might seem completely diverse, there is a lot of work to be done. The most important is to get the message out to your external stakeholders that your new product is arriving. Contrary to popular belief however, this does not have to be a budget breaking exercise.
This article will look at a range of ways that you can let the world know about your new product or line, weeks or months before it even arrives. This will mean that by the time it does, it really does ‘hit the ground running’ and your profits will be sky high. So, what is the secret to all of this? Absolutely nothing! I will outline here, 5 key ways that you can make sure that the often stressful period running up to a new product release is as smooth as possible, at a price that your chief accountant will be smiling at too! Throughout the article I will be referring to some of the world’s most successful companies who have themselves leveraged some of these techniques.
An Essential Strategy For Success
Strategy 1: Communicate The Benefits
This does not mean stating all the product or service features. Oh no! The impression should not be given that this is just another way for you to get your customers to part with more money. But they will, if you can communicate how the new product or service can ADD VALUE to their life. Consumers are not actually influenced solely by price, so don’t be afraid of keeping the sales price high. This is proved by the number of BMW cars that are on the road. However, the message that you will be driving ‘The Ultimate Driving Machine’ is the real value that the customer will get. So be creative. Communicate your product’s value.
Strategy 2: Adopt a Multi-Communications Policy.
So, you have decided the value or values that your new product adds to the life of your customers. Now let’s tell them about it! It’s not enough just to display it on your corporate website. The consumer needs to be immersed in the value added that they will get if they purchase the new product. The way to ensure of this is to use a multiple channel approach to your marketing communications. Try out different ideas. Each week, try out 2 different marketing ideas. See which ones work best and then drop the ones that don’t. Try some direct email marketing, make phone calls and talk to some of your current customer base, even think of entering a joint venture with another company that can enhance your product.
Strategy 3: eMarketing – Don’t Be Afraid To Inform!
Obviously you don’t want to be bombarding your valued customer base with email after email. However, a structured approach to eMarketing can prove to be hugely successful if done the right way. The key here is the let your customers know about your next product subtly. Keeping in touch by email is a key way to do this. Just make sure that in each email you send, you are not trying to sell them something. Again, your target may be to make money and make money alone, but the most successful entrepreneurs have been those that truly want to make a difference to the lives of their consumers. Adding Value to your customers lives is the key here. So don’t be afraid to send emails, perhaps twice a month, giving something back to them in the form of information or something fun for them to read. If you do this, by the time you actually send them the email letting them know about your new product, they will already be on your side. Nokia for example have already convinced the consumer that they are ‘Connecting People’ before they even release their next product to the market.
Strategy 4: Public Relations. The Free Jewel In The Crown
Don’t underestimate the power of Public Relations. This is an area of business marketing communications that is often overlooked by even large organisations. The point is, if you can create a story, then there will be journalists who will grab hold and run with it. The key here is originality. Think of ways that attention could be drawn to your new product or service, even without you having to parade it in front of your potential consumers. A great success story in this area is Sir Richard Branson, head of the global Virgin Empire. When Virgin launched their wedding stores, Virgin Bride, Sir Richard stunned the world by appearing in front of the cameras dressed as a bride himself! Some thought it a bit silly, but that’s it! Silly attracts journalists because it’s different. Different gets stories. Stories get publicity. And publicity, well that gets customers!
Strategy 5: Bringing It All Together
There are many other ways that messages can be communicated to the market and some of them are even more innovative and crazy than a man dressing as a bride. The most important thing with any communications strategy is to ensure that it is all brought together into a coherent Plan of Action. As a leading expert in the area of public relations states:
‘Companies don’t need to spend millions getting their new products to the market. Just get a plan together and then strategically inform their potential consumers that they can add value to their lives. The rest will fall into place.’ (Robert Grant of Fusion-PRo)
Conclusion
The point is, when you are thinking of launching a new product or service, don’t be afraid to do things differently. Adopt a innovative and creative approach to your marketing communications and most of all, lose your inhibitions and do something a bit silly!
ABOUT THE AUTHOR
Matthew Francis (CBS) MBA LLB MCIPR is an approved Certified Business Specialist (CBS) with the Academy of Business Strategy and his specialist subject is marketing communications. He has achieved an MBA from Cass Business School, an LPC from Exeter University and an LLB from London University. He has also achieved a MCIPR from the Chartered Institute of Public Relations. He initially qualified as a Lawyer before being employed as a Management and Operations Consultant for a variety of different companies and has experience within the oil and gas, telecommunications, consulting and financial service industries. A selection of his clients or employers have included Areva Mining, Credit-Suisse, Mars, Ernst and Young and RJ Reynolds. He has geographical working experience in Russia, Kazakhstan, The Ukraine and The US and he speaks English, Russian and French. His service skills incorporate international public relations management, marketing communications, project management and business process transformation. To contact Matthew Francis, please contact the Academy of Business Strategy by forwarding an email.
Can you get the message?
THE ACADEMY OF BUSINESS STRATEGY
MARKETING COMMUNICATIONS BLOG
Can you get the message?
AUTHOR
Matthew Francis (CBS) MBA LLB MCIPR
Introduction
It might seem obvious but the most important requirement for a good marketing communications plan, is that all communications made are integrated and not in contradiction. This case study will illustrate the dangers of failing to ensure that all communications are aligned. It will conclude by suggesting the messages that should have been communicated by the company in this case-study and how other companies could benefit from taking this approach.
Euro Catastrophe
Eurostar has not had a good start to 2010. First of all there was a crises after one of their trains crashed. Following this there was the volcanic ash catastrophe. This effectively gave them an opportunity on a plate to use PR to turn the tables back in their favour. After all, how a company deals with a crises is often a great way to help the public forget what happened in the first place.
So, as volcanic ash had effectively brought all aircraft entering or leaving the UK to a standstill, the Eurostar CEO, Guillaume Pepy made a statement:
‘We will be introducing 80,000 extra tickets (from Paris to London) at the price of £89.’
Great move! Or at least it would have been. Unfortunately however, on the same day, in response to claims from passengers that they were being charged £229 for the same trip, the company issues another statement:
‘As so many tickets are booked in advance, when disaster strikes, high volume drives the prices up for the remaining few.’
Trying their best to explain the apparent contradiction in these statements, Eurostar then made another. Instead of clarification however, this message simply claimed there had been confusion and the 80,000 cut price tickets include 50,000 that had already been allocated the previous two days and that now the prices had risen back to £229.
There was confusion alright! Confusion as to what message was actually being communicated. Hw could the public be clear about what was happening, when the messages themselves were not in agreement?
How Should a Good Marketing Communications Plan Work?
Eurostar are not however an isolated example of a company that has failed to appreciate that;
‘There is need of a consistent corporate message and tone that appropriately reflects the organization in the way that the organization wishes it to be reflected’ (Oliver, 2001)
The point is that a good Communications Plan should enable a company to handle both situations in an effective manner. In both cases, the plan should ensure that, i. customers have an understanding of the situation, ii. That it was being handled in a manner that meets-or-exceeds industry standards and customer expectations and this news is communicated to customers and iii. In the communications, reasons are given for customers to return in the future rather than use a competitor.
The statement made by the CEO was a good way to initially deal with the 2nd crises. Had it then been effectively reinforced by further PR, then there would have been no confusion. The effect would have actually been incredibly favorable on the Eurostar brand.
An example of this was when the Twin Towers were attacked. Almost immediately, JP Morgan, who were in the adjacent tower, set up a call centre to handle calls from distraught and confused members of the public. In addition to this, the help desk gave trauma advice and guidance to those directly affected by the tragedy. The effect of this was that JPM had made the effort to go over and above what was expected of them, at a time when the whole nation was shocked and outraged that such an incident could have happened. The point here is that this action, taken by JPM, was remembered because at a time when everyone needed to pull together, they responded in such a way that would be remembered. Yes, the cost of laying on the call centre was substantial, but nothing compared to the amount of respect and admiration the company received from its customers as a result. Also, the extensive publicity that was generated off the back of the action taken, far overshadowed the cost involved.
Conclusion
There are times when a crises will hit a company or the locality in which it operates. There is of course an option as to whether the company takes any action at all, but it may well give rise to an opportunity for great publicity surrounding the way they deal with the situation. If dealt with effectively, supported by an effective communication plan for keeping the world informed about what it is doing, then the effect can be impressive to say the least. If however, the messages being conveyed are confused, or worse conflicting, then the opportunity has been lost and severe damage to the company’s reputation can result.
In the words of an industry professional, Robert Grant of Fusion Pro:
‘The answer, is to have an effective and predetermined crises management system in place, supported by effective communications that will let the public know what is going on and how the company is working to find a solution.’
This effectively sums up what needs to be in place so that when a company is communicating messages in a crises situation, uniformity is achieved and their customers know exactly what is going on.
ABOUT THE AUTHOR
Matthew Francis (CBS) MBA LLB MCIPR is an approved Certified Business Specialist (CBS) with the Academy of Business Strategy and his specialist subject is marketing communications. He has achieved an MBA from Cass Business School, an LPC from Exeter University and an LLB from London University. He has also achieved a MCIPR from the Chartered Institute of Public Relations. He initially qualified as a Lawyer before being employed as a Management and Operations Consultant for a variety of different companies and has experience within the oil and gas, telecommunications, consulting and financial service industries. A selection of his clients or employers have included Areva Mining, Credit-Suisse, Mars, Ernst and Young and RJ Reynolds. He has geographical working experience in Russia, Kazakhstan, The Ukraine and The US and he speaks English, Russian and French. His service skills incorporate international public relations management, marketing communications, project management and business process transformation. To contact Matthew Francis, please contact the Academy of Business Strategy by forwarding an email.
Think globally, act locally
THE ACADEMY OF BUSINESS STRATEGY
MARKETING COMMUNICATIONS BLOG
Think globally, act locally
AUTHOR
Matthew Francis (CBS) MBA LLB MCIPR
Introduction
Failure to think locally is something that Toyota had to learn the hard way. When they notably launched the MR2 car on a global scale without first finding out what the translation meant in French of MR2. This had catastrophic consequences as name really did mean something rather nasty!
When a company is looking to get their message across to consumers, many of them proudly proclaim ‘We think Globally but act Locally’. On the face of it, this Top Down approach (Global first, Local second) seems like a good idea. However, from a communications perspective, it can be quite dangerous as Toyota found out. In this article I will identify just how costly a failure to have regard primarily to the local environment can be. Examples of my own experience of the mistakes that can be made will be analysed, before I identify a preferred integrated communications approach in the form of a Corporate Identity Plan.
Think Globally, Act Locally.
The phrase ‘Think Globally, Act Locally’ does initially give one a rather warm sensation I must admit. The perception I have is that the company cares about the world and I assume is putting something back into society. Based on this assumption I feel rather good as I buy their products or send them a donation. After all, I am putting something back into society too. However, whereas I’m no expert on the world of tree hugging virtue, when I looked into this in more detail all was not quite as it may seem.
What Think Globally actually means is that on their wind farm powered estates, a centralised PR function of Tree Huggers R Us meet. It is here, completely detached from the perils of the real world including their customer base, that they devise and implement a global communications strategy, the aim of which is simple. To get members of the public to pay them as much money as possible based on the assumption that they are helping to save the world. Actually saving the world is a secondary aim though. The primary focus is on making sure that the detached world in which they personally operate is looked after. I mean, it would be inconceivable to think they could devise a global communications strategy without being surrounded by the luxuries that they are used to wouldn’t it?
Once the initial global strategy has been devised, the centralised PR function is then able to send detailed regulations to regional Managers, giving them instructions on what message should be communicated on a local level. There you have it. The company is Thinking Globally and Acting Locally.
The problem however, is that the message being sent out locally has not been customised at all on a local level. No modification has been made to the message by those who actually understand what succeeds and fails in the local market. The only involvement is the Manager who in effect is acting as a ‘postman’, delivering the centralised PR messages. Messages that are completely ineffective, the preparation of which is just a waste of money.
The Real World
Ok, let’s move away from the assumed Utopia that is Not for Profit Organisations and into the real commercial world where companies actually do want to listen to and understand the needs of their most important stakeholders, their customers. When formulating a communications strategy, it is essential to break down what is required for each and every market in which the company operates.
As van Riel illustrates;
‘It is not always desirable nor practical to stimulate “uniformity” in overall communications policy.’ (Corporate Identity, 1997)
Another illustration was an Italian consulting firm I advised, who thought they had such a wonderful reputation that entering new markets without customising their business model would be easy. Unfortunately, whereas paying money to government official worked perfectly well in Milan, in London it was not surprisingly ineffective.
The Answer: A Corporate Identity Plan
The starting point when drafting a marketing communications strategy is to Identify the Target Audience. As Philip Kotler illustrates (Marketing Management, 1994);
‘The target audience is a critical influence on the communicator’s decisions on what to say, how to say it, when to say it, where to say it, and to whom to say it.’
The point is that whereas a company needs be transmitting a uniform global message to the outside world, it is essential to first of all have regard to localised considerations. As is always the case with PR and communication strategies, putting a plan in place is the starting point. This Corporate Identity Plan should address the elements identified by Kotler above but also have regard to i. The overall Corporate Strategy, ii. Individual Brand Strategies, iii. Economic and political information on a global scale and iv. The identity of the Industry in which the company operates.
Once all these areas have been considered, it is then and only then possible to sit down and write the material that is to be sent out. This needs to be customised for each market in which the company operates.
Conclusion
When a company is looking to formulate a centralised global communications strategy, the important first step to take is to make sure they don’t drop themselves in the MR2 on a local level.
Through adopting a Corporate Identity Plan, companies really can think Locally but Act Globally, thus avoiding bad publicity that will adversely affect the reputation of their global brand. I have indicated in this article how first of all, companies need to gathered information on a local scale and then use this information to produce a unified communications strategy. This approach will be far more successful than the alternative, Think Globally and Act Locally strategy which is quite often just a way for a centralised PR function to dictate what all parts of the business should be doing in different parts of the world. Some of these parts, the centralised PR personnel have never even visited.
ABOUT THE AUTHOR
Matthew Francis (CBS) MBA LLB MCIPR is an approved Certified Business Specialist (CBS) with the Academy of Business Strategy and his specialist subject is marketing communications. He has achieved an MBA from Cass Business School, an LPC from Exeter University and an LLB from London University. He has also achieved a MCIPR from the Chartered Institute of Public Relations. He initially qualified as a Lawyer before being employed as a Management and Operations Consultant for a variety of different companies and has experience within the oil and gas, telecommunications, consulting and financial service industries. A selection of his clients or employers have included Areva Mining, Credit-Suisse, Mars, Ernst and Young and RJ Reynolds. He has geographical working experience in Russia, Kazakhstan, The Ukraine and The US and he speaks English, Russian and French. His service skills incorporate international public relations management, marketing communications, project management and business process transformation. To contact Matthew Francis, please contact the Academy of Business Strategy by forwarding an email.
Communication: The key to any relationship
THE ACADEMY OF BUSINESS STRATEGY
MARKETING COMMUNICATIONS BLOG
Communication: The key to any relationship
AUTHOR
Matthew Francis (CBS) MBA LLB MCIPR
Introduction
Many relationships through history have fallen apart because of a lack of communication between the parties. Whether it’s a relationship between marital partners or one on a far larger scale between nations, failure to communicate effectively can lead to disaster. The same can be said of relationships between organisations, especially when they hail from different shores.
In this article, I will look at why the issue of internal communication is fundamental to the success of any corporate joint venture. In order to illustrate the potential effects of a communication breakdown , I will draw on my own experienced gained while advising TNK-BP in Russia. My focus will be to outline how potential communication issues can be pre-empted and resolved even before the joint venture is signed, by adopting a Communications Contract which everyone in both organisations buys into. Once the message is clear within the companies involved, it is then and only then that communication of the message to the external market can take place.
Failure To Communicate
There are not many people who have experienced the effects of a breakdown in communication quite like Robert Dudley. Dudley, the former CEO of TNK-BP was eventually forced out of both the company and Russia itself, after being on the receiving end of a plethora of unacceptable conduct on the part of the Russian side of the venture. Before his departure, on the receiving end of personal threats, Dudley even found himself having to run the organisation from a secret location, as he feared for his own safety.
The relationship had clearly fallen apart, yet it had started so well. Initially, back in the ‘courting period’ of the summer of 2003, everything was hunky-dory. Everything seemed to be smooth sailing. The high profile venture was publicly endorsed outside No 10 Downing Street by none other than Vladimir Putin and Tony Blair themselves. A 50/50 joint venture had been signed, fusing the know-how of BP with the extensive resources possessed by TNK. Add to that the full support of both governments and all systems were GO. What could possibly go wrong?
Well, go wrong it did, and in an unprecedented manner. The parties did indeed fall out after the honeymoon period was over, arguing about what profits should be allocated whom. This question was almost impossible to resolve, as there was confusion as to who even controlled the operation at all. Both sides of the venture claimed it controlled operations and it was headed in a particular direction. The problem was, these directions were opposed to each other. Communication had broken down and the relationship was never to recover.
How Could This Have Been Prevented?
One communications expert puts things into context;
‘Treating people – not money, machines or minds – as the natural resources may be the key to it all . . . No organisational relationships are as important as those with employees at all levels.’ Cutlip et al. 1985:311,
The problem that TNK-BP had was the lack of clear lines of communication with employees. Employees at the foot of the organisations had no clue what was going on. The point was that nobody really had control. Well, it was a 50:50 venture.
The way to have avoided getting into this position in the first place was to have put in place a clear communications strategy that all employees have bought into. As Quirk states;
‘A business can only achieve its best when everyone’s energies are pointed in the same direction and are not at cross purposes.’ (1995: 71,75)
The only way to ensure a clear and coherent message is communicated to external stakeholders, is for the message to be understood by employees within the organisation. You may have heard the story about the cleaner at NASA when asked by The President of The United States what his job was, in the 1960’s replied;
‘To help put a man on the moon.’
This illustrates the point well. When all employees of a company buy into its mission statement, the effect is powerful.
TNK-BP was a highly profitable organisation, but suddenly, when it transpired it actually had an outstanding tax bill of over $300m owed to the Russian government, the balance sheets didn’t look so rosy. Add into the mix the fact that management on both sides of the venture simply refused to work together and were even sending out conflicting messages to employees, the tide had clearly turned.
The Solution
So, what could have been done differently? Had a communications policy been implemented before the joint venture was signed, ensuring everyone internally knew what messages were being sent out, then the message itself would have been clear. The following procedure cold have been adopted:
When the companies decided to form a Joint Venture, the opinions of employees should have been gathered. Employee opinions could even have been gathered by email.
Based on the information gathered and referring to the aims both leadership teams had for the development of the joint venture, a ‘Destination Contract’ should have been drawn up.
A Destination Contract needs to clearly state the aims and objectives of the joint venture as well as identifying initial Steps to Milestone. However, the contract should specify how changes to the contract can be made if the environment in which the venture operates changes.
Consistent communication then needs to take place with every employee of the joint venture, giving them information about progress and how aims and objectives are being achieved.
The key to success when a joint venture issues communications is to have a clear plan in place that lays out the direction it is heading. This enables the passengers on the corporate train, the employees, know exactly what is going on and why. As a result, the company is in a strong position to then communicate its message to external stakeholders, knowing full well that its message is clear and supported by their employees throughout the organisation.
ABOUT THE AUTHOR
Matthew Francis (CBS) MBA LLB MCIPR is an approved Certified Business Specialist (CBS) with the Academy of Business Strategy and his specialist subject is marketing communications. He has achieved an MBA from Cass Business School, an LPC from Exeter University and an LLB from London University. He has also achieved a MCIPR from the Chartered Institute of Public Relations. He initially qualified as a Lawyer before being employed as a Management and Operations Consultant for a variety of different companies and has experience within the oil and gas, telecommunications, consulting and financial service industries. A selection of his clients or employers have included Areva Mining, Credit-Suisse, Mars, Ernst and Young and RJ Reynolds. He has geographical working experience in Russia, Kazakhstan, The Ukraine and The US and he speaks English, Russian and French. His service skills incorporate international public relations management, marketing communications, project management and business process transformation. To contact Matthew Francis, please contact the Academy of Business Strategy by forwarding an email.
