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Communications: The Critical Link to Successful Business Strategy

J.R. Hipple, CEO, Hipple&Co. Reputation Management

Strategic planning has never looked better. Rigid planning processes are being replaced by flexible, shorter term plans so companies can respond quickly to change. At the same time, critical thinking has become a part of the skill set of managers across organizations, and, wisely, no longer the sole domain of a select group of top executives.

While this sounds like a can't-miss combination of process, information and managerial skills, strategic plans still often fail to achieve their goals. Poor execution is the reason most cited by managers for those failures, and the root cause of many implementation problems is the absence of a communication plan as part of overall strategy. My experience suggests that less than 25% of strategic plans include communications and an equally small percentage involve professional communicators in the planning process.

A Perception Gap
While the opportunity for improvement seems simple and obvious to professional communicators (like me), managers generally perceive strategy in different ways. Trends in strategy have been around "competitive advantage" analysis (i.e. how to win at business) and a quantitative definition of the business model. It is an example of executives perceiving the world differently than communicators and not seeing communication as part of the strategic process.

According to renowned business strategist, educator and author Dr. Henry Mintzberg, however, leaders who focus exclusively on data-driven, high-level strategy are ineffective and irrelevant. In the Rise and Fall of Strategic Planning, Mintzbug says: "While hard data may inform the intellect, it is largely the soft data that generate wisdom. They may be difficult to 'analyze,' but they are indispensable for 'synthesis'-the key to strategy making."

A Study in Contrasts
During two recent consulting assignments, I witnessed a sharp contrast between the strategic planning and communications approaches of two Fortune 500 companies. Prior to my arrival, both companies had employed a global management consulting firm to conduct an organizational effectiveness assessment. In both instances, the data demonstrated that there were significant gaps between the company's stated strategy and employee perceptions of the strategy.

The CEO of the first company was particularly disturbed that all but his direct reports did not feel they had an adequate understanding of where the organization was headed. His response was to personally re-write the strategic mission and goals with the aid of his administrator, circulate it with his executive committee and then hand it to the head of communications for corporate wide dissemination. The efforts of this well-intended leader led to even greater confusion and doubt by employees.

In sharp contrast, after receiving his consultant's report, the CEO of company #2 set out to develop a clearer picture of the company's current situation and what needed to change to achieve its goals. Under the direction of a well regarded, people-focused vice president, the company combined the management consulting firm's findings with employee survey data and additional focused research with employee groups. As a result, the company created a leadership development strategy that included a training program and an internal communications plan. One of the principal purposes of this initiative was to align employee goals with corporate goals. This effort set in motion what the CEO describes as "cultural changes that are vital to the long term success of the corporation."

The Critical Link
Communications is one of the critical links between a written plan and successful implementation. A communications effort is invaluable to integrating select elements of a strategic plan throughout the organization. This creates understanding and accelerates support for all or parts of the plan-from corporate mission and goals to important activities. A genuine, open process of communicating strategic plans also is a way to build greater trust and confidence among employees for leadership.

Strategic decisions should consider not only what to do, but what to say and how to say it. There are significant opportunities from communications in each of the four universal strategic steps below, as defined by Michael Wilkinson, president and CEO of Leadership Strategies:

1. Current Situation: Where are you now? This assessment naturally uncovers problems and potential opportunities that will need to be addressed by managers when initiating a new strategy. Ideally, it should include a survey of current attitudes and opinions of key stakeholders to be affected by your strategy, beginning with employees. This information will help you identify what attitudes and behaviors need to be changed, and provide a foundation for communications planning.

2. Vision & Goals: Where do you want to be? Communications has a valuable role to play in defining how big the gap is between where you are now and where you want to be. People resist change and in most instances you need to sell the problem or the reason behind the need for change. You also want to be sure that everyone has a consistent understanding of where leadership wants the organization to go.

3. Strategies: What do you need to do to get there? Managers at many levels are making strategic decisions daily, and you need to hold them responsible for communicating with individuals, their teams and across teams effected by those decisions. This should include the basics of giving and receiving feedback to employees, and conducting regular team meetings. Corporate sponsored communications-a CEO blog, speeches by experts from the outside, a company newsletter-should be used to support and reinforce individual communications.

4. Evaluation: How do you monitor your progress? Managers need to be recognized for both operational successes and communications tied to strategic goals. Both individual development planning and performance management processes should include a communications component.

A Resource for Strategic Thinking
A common complaint of communications executives is that they are given few opportunities to make strategic contributions. This is often due to a belief by many executives that communicators have little to contribute to strategic decision making. Communications professionals are making strategic decisions daily, and their skills, training and aptitude can provide valuable insight for corporate plans.

Lessons need to be learned quickly by both groups. Executives need to better understand and tap into the intellectual and strategic resources of communications professionals, who will help them meet the increasingly complex communications responsibilities of leaders. Plus, communicators must find ways to better identify with the strategic needs of the people running the business. An important place for executives and communicators to start is when you are preparing your strategic plan.

To find out how Leadership Strategies can assist your organization with their strategic planning needs, call Leadership Strategies at 800-824-2850.

About the Author
J.R. Hipple is CEO, Hipple&Co. Reputation Management, a strategic communications & PR consulting firm. He is a frequent speaker on strategy and corporate reputation, and an adjunct professor of strategic planning in Virginia Commonwealth University's Executive Masters in PR Fast Track program.