This document discusses the development of corporate communication strategy. It begins by defining key concepts like strategy, corporate vision/mission, values, and culture. It explains that corporate communication strategy should reflect and support corporate strategy. The internal environment including organizational profile, leadership, and policies must be understood. The external environment including remote factors like social, economic, political, and technological change as well as the industry and operating environments must also be considered. Developing an effective corporate communication strategy involves analyzing these internal and external environments to identify strategic issues and priorities for communication plans and programs.
This PowerPoint helps students to consider the concept of infinity.
2000 B Steyn G Puth Corporate Communication Strategy (Chapter 3)
1. THE STRATEGIC
MANAGEMENT
OF CORPORATE
COMMUNICATION
CHAPTER
3
51
Learning Outcomes
After studying this chapter, you should be able to:
t define the concept environment, and to present various viewpoints
on what constitutes the organisation’s environment.
t examine the concept of boundary spanning by comparing boundary-
spanning roles.
t explain the concept corporate communication strategy (as a functional
strategy).
t differentiate between:
t corporate communication strategy and communication policy
t vision and mission
t values, philosophy and culture.
t a communication programme and a communication campaign
t a public relations campaign and an public information campaign.
t explain the process in developing a corporate communication strategy.
t discuss the considerations for developing a corporate communication
policy.
t explain how communication plans contribute to solving key strategic
issues.
3.1 Introduction
As seen in the second chapter, functional strategy involves what should be done
in each of the key functional areasof the organisation, given the relative emphasis
placed on and the resources allocated to each function.
Few corporate communication practitioners seem to understand the meaning of
strategy, although it is a familiar concept to those acquainted with management
theory. The key problem seemsto lie in the application of strategy to the corporate
2. Part 2: Strategic Management of Corporate Communication: The Foundation
52
communication function, i.e. what strategy means in a communication context.
Tibble1
notes that
‘Strategy and the communication world, and particularly the PRpart of that
world, just do not seem to go together. It iscertainly unusual to come across
amemorable, cogent, sustained, and effectivecommunicationsstrategy. Not
a brand strategy. Not a marketing strategy. Not an advertising strategy – a
communication strategy.’
3.1.1 The meaning of strategy
The word strategy is often (mis)used by corporate communication practitioners
to describe something ‘important’ (as in strategic messages, strategic direction)
or to describe ‘activities’ (as in communication strategy).
An effective strategy should provide the following:2
n leadership of thought and activity processes for all communication pro-
grammes
n the context, and a guiding principle, for all communication activities
n the link between the ‘why’ and the ‘how’; the logic that binds objectives and
tactics together.
3.1.2 Strategy is the outcome of a thinking
process
It can therefore be said that, asin the strategic management process, the corporate
communication management team needsto formulateacorporatecommunication
strategy by meansof a strategic thinking process. They need to take the whole pic-
ture into account and think through the qualitative aspectsof the organisation and
the environment it faces before starting the communication planning process.
The communication strategy establishes a framework or profile against which on-
going corporate communication decisionsare tested. It reviewsand questionsthe
direction taken by thecorporatecommunication function. It producesaprofilethat
can be used to identify the right problemsto solve and to prioritise areasor issues
for which communication plans or programmes are to be developed.3
3.1.3 Strategy provides a framework for
planning
The corporate communication strategy is the framework for the strategic com-
munication plan and the operational communication plans or programmes. It
attemptsto determinewhat thecorporatecommunication function should bedoing
3. Chapter 3: The strategic management of corporate communication
53
(communicating) in support of the enterprise and corporate strategies. The strategic
and operational communication planning helpsto choose how it should be commu-
nicated. Communication plansaredeveloped under theleadership and supervision of
the corporate communication manager, but implemented by technicians.
FIGURE 3.1: Corporate communication strategy comes before the communication plan
3.1.4 Corporate communication strategy
should reflect corporate strategy
The corporate communication strategy should essentially reflect or mirror the
enterprise/corporate strategy. Strategy formulation and strategic planning in the
organisation are therefore a prerequisite for developing a sound corporate com-
munication strategy, becauseit providesfocusand direction to thecommunication
and createssynergy between the enterprise or corporate strategiesand the corpo-
rate communication strategy. In supporting the enterprise and corporate strategy,
EXTERNAL ENVIRONMENT
Enterprise/corporate/
business strategies
Identify key strategic issues
Prioritise is-
sues
INTERNAL ENVIRONMENT
Strategic
communication plan
Media
plan
Action plans
Employee
comm plan
Investor
plan
Action plans Action plans Action plans
W
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u
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A
n
a
l
y
s
i
s
Policies
Internal
issues
Identify implica-
tions of issues on
the stakeholders
CORPORATE
COMMUNICATION
STRATEGY
Specific communication plans/campaigns/programmes
Crisis
comm plan
4. Part 2: Strategic Management of Corporate Communication: The Foundation
54
the corporate communication function becomes relevant to the organisation and
responsive to its needs, thereby contributing to organisational effectiveness.
3.2 The corporate environment in
strategy development
Thecorporatecommunication manager isresponsiblefor developing thecorporate
communication policy and strategy. However, this cannot be done before being
thoroughly familiar with the organisation’s internal environment (e.g. the profile,
vision, values, philosophy, mission, corporate culture and corporate policies); as
well as the external environment (stakeholders and other external influences e.g.
political, economic, social, technological, ecological and judicial factorswhich have
an impact on the organisation).
3.2.1 Internal environment
Corporate profile
It isessential that the corporate communication manager isknowledgeable about
theorganisation’sfinancial status; itsreputation in thefield; itsproductsor services;
and itsoverall competitiveenvironment. Knowledgeabout themarketing, legal and
other functions is also important in order to co-ordinate their efforts with those
of the corporate communication function. Regular contact with key management
personnel and the review of documentssuch as the annual and quarterly reports,
can provide some of this information.
Furthermore, the location of the organisation, whether it is based in a single city
or has multiple branches, the delivery system for the products or services, major
suppliers, and the identity and demographics of customers are all necessary as-
pects in understanding the organisation. Other background information needed
isa good working knowledge of the organisation’sstaff component: itstotal work
force, both management and non-management. Special attention should be given
to key management people. For instance, how top management view the corpo-
rate communication function and its contribution to organisational effectiveness
is most important.4
The corporate communication manager should understand the formal structure
of the organisation and how the functionsare related to one another. An informal
power structure may be an even more important indication of how decisions are
made. Effective communication isoften the key to the effective functioning of the
organisational structure.5
However, the starting point for developing a corporate communication strategy
should always be the vision, mission, and culture of the organisation.
5. Chapter 3: The strategic management of corporate communication
55
‘To be strategic, public relations should pass one basic test: At a minimum,
everything done must be aligned with the corporate vision or mission …and
must substantially contributeto achieving theorganisation’sgoalsand objec-
tives. Ideally, public relations should be part of the team helping to create
the corporate mission and set the objectives.’6
Vision
A vision represents a realistic, credible, and attractive future state of affairs: a
condition that, in some important way, isbetter than the one that existsnow. The
vision indicateswhere the organisation isgoing and what it wantsto achieve. The
organisation’s goals and objectives are derived from the vision. Once a vision is
achieved, a new vision is developed.
A vision is the ‘big organisational picture’ and must be lived every day by each
individual organisational member. It communicates that which makes the organi-
sation special and which sets it apart from the competition.
Mission
An organisation’smission isitspurpose: the definition of itsrole in society and in the
economy. The mission flowsfrom the valuesof stakeholders, the people and groups
with an interest in the organisation, including the public and the government.7
Themission isan explanation of an organisation’sidentity and ambition: thepurpose
for its existence, a roof under which organisational members gather. In a concise
way it captures the essence of the organisation, describes the nature and scope of
the work performed and communicatesthe business. The mission usually remains
unchanged as a statement of the organisation’s common and timeless cause.
While the vision is predominantly associated with goals, the mission is associated
with a way of behaving. A sense of mission is an emotional and deeply personal
feeling. The individual with a sense of mission hasan emotional attachment to the
organisation, what it stands for and what it is trying to achieve.
Corporate values
Corporate valuesare setsof real beliefsthat determine standardsof practice (team-
work, customer service, respect for theindividual, etc.). Thecommitment and energy
of the organisation’s members are fuelled by the values that drive the organisa-
tion.
When an organisation’s values are defined in the mission statement it helps or-
ganisational members to face issues squarely and to make policy decisions. These
values serve as a code of ethics for operating the business and as criteria against
which members can test future decisions, ensuring that there are no significant
differences between internal and external messages.
6. Part 2: Strategic Management of Corporate Communication: The Foundation
56
Corporate philosophy
The organisation’s philosophy is an orientation that lies behind the mission state-
ment. According to the American Heritage dictionary, philosophy is a system of
motivating concepts and principles, a viewpoint. Corporate philosophies are de-
rived from corporate values. They are guiding principles that drive organisational
behaviour: employeeinvolvement, empowerment, customer service, quality control,
continuous change and improvement, community involvement, etc.
Corporate culture
Strategic literature generally defines corporate culture as ‘the way we do things
around here’8
, or as ‘a set of shared values conveyed by symbolic means such as
stories, myths, legends and anecdotes.’9
An example of corporate culture would be ‘the customer is always right’.
The valuesthat make up corporate culture are seldom written down. They are basic
assumptions made by employees about what is acceptable and what is not. Cul-
ture has a powerful influence on employees that, although not explicit, becomes
ingrained in their beliefs.
An organisation’sculture issimilar to an individual’spersonality. It isan intangible
themethat providesmeaning, direction, and thebasisfor action. In much thesame
way aspersonality influencesthe behaviour of the individual, the shared assump-
tions (beliefs and values) among an organisation’s members influence opinions
and actions within the organisation.
Corporate policy
Most organisations develop a series of policies as an expression of their strategies
and plans. Policiesare guiding principlesfor behaviour that furnish an underlying
and continuing basisfor specificactions.10
They definephilosophy, providedirection
and establish guidelines. Policies should allow some alternatives for a particular
situation. They should not be too detailed and rigid, since that would limit the
flexibility of an organisation.
Organisational policies constitute a practical set of principles for conducting
business, in contrast to the longer scope of the philosophy, mission, goals and
objectives continuum.11
Policies may be formalised statements, or exist as conven-
tional understandings.
Policiesarestanding plansthat providemanagerswith general guidelinesfor making
decisions. Their main purpose is to ensure consistency among the organisation’s
managersand so to avoid having to make the same decision over and over again.
These broad guidelines for decision making permit management to delegate au-
thority and provide the parameters within which planning is carried out.
7. Chapter 3: The strategic management of corporate communication
57
The South African National Defence Force might have an affirmative action policy
in taking in new recruits; or a university a policy of keeping their student num-
bers representative of the population. An investment firm might have a policy of
investing 40% of their clients’ money abroad in uncertain economic times.
Policies differ from procedures and rules:
n Procedures are specific series of tasks to be followed in performing work or ac-
complishing an activity, e.g. how a budget isto be completed, when it isto be
submitted and how it will be reviewed. Proceduresare therefore detailed steps
to carry out policies.
n Rules are specific requirements that often relate to employee conduct, e.g. ‘no
smoking in office building’. Rulesare the most specific and detailed, and devia-
tions are not allowed.
3.2.2 The external environment
In the previouschapter it waspointed out that in formulating strategy, the organi-
sation monitorsitsenvironment, incorporatestheeffectsof environmental changes
into corporate decision making, and formulatesnew strategies.12
The environment,
perhaps more than any other factor, affects organisational strategy, structure,
internal processes, and managerial decision making. When organisations make
decisions, they do so based on a set of shared perceptionsof the organisation and
its environment.
The environment can be defined13
as ‘the sum total of all conditions and forces
that affect the strategic optionsof the organisation and define itscompetitive situ-
ation, but that are typically beyond its ability to control.’ These include not only
shareholders, but other stakeholders affected by an organisation’s actions, such
as customers, suppliers, the government, unions, competitors, local communities
and the general public. It also includes economic and cultural conditions, as well
as social change, political priorities and technological developments.
Conceptualisation of the environment
The external environment consists of four categories:14
n The remote environment (also called the macro or societal environment) refers
to sectors that affect organisations indirectly by influencing its long-term deci-
sions. It originatesbeyond, and usually irrespective of, any single organisation’s
operating situation. Organisationsarepresented with opportunities, threatsand
constraints, but rarely doesa single organisation exert any meaningful recipro-
cal influence in the macro environment.
The remote environment consists of several factors:
o Social factors involve the beliefs, values, attitudes, opinions and lifestyles
of persons, as developed from cultural, ecological, demographic, religious,
8. Part 2: Strategic Management of Corporate Communication: The Foundation
58
educational, and ethnic conditioning. Social forcesare dynamic and subject
to constant change.
o Economic factors, both at national and international level, are, for instance,
the general availability of credit, the level of disposable income, and the
propensity of people to spend. Also important are prime interest rates, infla-
tion rates, and trends in the growth of the gross national product.
o Political factors define the legal and regulatory parameters within which
organisations must operate.
o Technological factorsinvolverapid changeor sudden breakthroughs. Aware-
ness of these factors is important in order to avoid obsolescence and to
promote innovation.
o Ecological factorsrefer to therelationshipsbetween human beingsand other
living things, and the air, soil and water that support them.
n The industry environment explains the five forces that shape competition in
an industry: threat of new entrants, the bargaining power of customers, the
bargaining power of suppliers, the threat of substitute productsor services, and
the jockeying amongst current contestants. The industry environment (global
and domestic) is a collection of organisations that offer ‘similar’ products or
services, i.e. that customers perceive to be substitutable for one another.
n The operating environment (also known as the task environment) includes
sectors that have direct transactions with the organisation and influences day-
to-day operations and goal attainment. It is typically far more subject to an
organisation’s influence or control than the remote environment. An organisa-
tion can bemuch moreproactivein dealing with it. Theoperating environment,
consisting of groups such as customers, suppliers, competitors and creditors,
is usually easier to scan, the timing is more easily understood, and the impact
is more predictable. Scanning is also done more often. It comprises factors
in the competitive situation that affect an organisation’s success in acquiring
needed resourcesor in marketing itsgoodsand servicesprofitably. Among the
most important of these factorsare the organisation’scompetitive position, the
composition of itscustomers, itsreputation among suppliersand creditors, and
its ability to attract capable employees.
In accomplishing its mission, an organisation works in its task environment.
However, societal issues such as consumerism, governmental regulations, en-
vironmental pollution, energy costsor availability, inflation-fed wage demands
and heavy foreign competition may place immediate pressure on the task en-
vironment.
n The functional or internal environment,15
refersto areasof specialisation within
the organisation such asfinance, human resources, operations, administration,
marketing, corporate communication, and research and development. (This
‘inside-out’ approach takes a narrow view of the external environment as its
focusisinternal). Most authorsdo not mention the internal environment when
9. Chapter 3: The strategic management of corporate communication
59
discussing environmental scanning, possibly because information derived from
within haslimited strategic value in analysing the task or remote environments.
However, the internal environment isimportant in detecting internal issuesand
also in tapping employees’ knowledge about issues in the external environ-
ment.
There islack of a definite interpretation of the term environment: there seemsto be
no consensuson itsexact nature in academic literature. Some authorsconsider the
macro-, task and micro-environment asforming the decision-making environment
of the organisation. Othersadd another component, the stakeholder environment.
The latter represents an acceptance that the legitimate right of the organisation’s
stakeholdersmust be recognised. All of the stakeholder groupsmust be identified
and their relative rights and ability to affect success be weighed.16
The environment can also be seen as the source of information flowing into the
organisation. The organisational environment is not the physical surroundings
(buildings, offices, equipment, people) that an organisation’smembersencounter,
but the information to which they react. Thus, the focusof the organisational envi-
ronment is to be found in the messages that an organisation’s members perceive
and the meanings that they create in response to these messages.
Organisationscreatetheir own environmentsby paying attention to someinforma-
tion from out therewhileignoring other information. An organisation’senvironment
is an arbitrary invention of the organisation itself. The process of the organisation
constructing an environment is often largely unreflective, disorderly, incremental,
and strongly influenced by social norms and customs.
A different view of the organisation’s internal and external environment is that it
can be represented asa patterning of strategic issues.17
Thisdiffersfrom the depic-
tion above of the environment as a set of general components (e.g. the technical,
economic or social component), or as a set of cognitive maps, or as a collection
of stakeholders.
Thecomponentsof themacro, industry, taskand internal environmentsarenot easily
identified, nor are they alwaysmutually exclusive. The impact of one element can-
not be wholly disassociated from the impact of other elements. However, assessing
thepotential impact of changesin theexternal environment offersareal advantage
and enables decision-makers to narrow the range of available options.
Boundary spanning
Boundary spanning is an important concept in the context of understanding the
organisation’sexternal environment. Organisationsmust acquiretimely information
from a number of external areas to be able to make strategic decisions. Boundary
spanners (people within the organisation who interact with the organisation’s
external environment) frequently provide such information.18
Boundary spanning isdefined19
as‘the set of activitiesinvolved with organisation-
environment interaction’. Boundary-spanning units or persons are important in
strategic decision making because of their ability to recognise and deal with trends
10. Part 2: Strategic Management of Corporate Communication: The Foundation
60
or changes in the external environment: an important characteristic of complex
organisations that wish to survive. Organisations have to develop strategies to
align their resources and competencies with their environment.
Boundary-spanning roles entail either inputs to the organisation or outputs from
theorganisation. Thiscorrespondswith theboundary-spanning rolesof acquisition
and disposal.20
There are two primary classes of boundary-spanning functions:21
information processing (often called the mirror function) and external representa-
tion (also called the window function). The following activitiesare associated with
the above roles:22
n information acquisition and control: information is acquired from external
sources and decisions are taken as to whom, when and what portions of the
information should be given to others.
n information isprovided to othersto create a favourable image of the organisation.
Theseboundary-spanning rolescan becarried out by morethan oneorganisational
function and are not synonymous with a particular position in the hierarchy. De-
partmentsor divisionsthat engage in boundary-spanning roleswill gain influence
over strategic decisions to the extent that the boundary role is related to a critical
contingency in that organisation.
Communication across boundaries is difficult and prone to bias and distortion.
Boundaries can be spanned effectively only by individuals with the ability to
translate across communication boundaries and who are aware of contextual
information on both sides. Since informational boundary spanning is a two-part
process, it will only be accomplished by individuals who obtain information from
the environment and disseminate it internally. These individuals must obviously
be well linked internally and externally.
Salespeople and buyers, for instance, are active in the external environment but
there is no evidence that they are responsible for disseminating information inside
the organisation. Their sensitivity to exceptions, opportunities, or new ideas from
outside the organisation is reduced because they are trained and rewarded for a
specific role. Even if they did acquire an important new idea, the organisational
constraints on the successful transfer of this information are substantial.
This is an example of so-called representational boundary-spanning roles that
usually do not mediate critical resourcesfor the organisation and are not power-
ful roles.23
Most corporate communication technicians would also fall within this
category.
Information acquired via formal information media, e.g. MISreports, isinherently
dated, and formal information systems have only limited encoding capabilities.
Widespread direct communication across organisational boundaries is costly,
inefficient, and prone to bias.24
Informal social mechanisms, such as boundary
spanning, are an effective medium for acquiring and interpreting timely, current,
and soft information.25
Information must be translated so that it is of relevance to
11. Chapter 3: The strategic management of corporate communication
61
the organisation and organised in a manner that fitsthe decision-making structure
and process. Ignoring seemingly irrelevant information from the environment can
have disastrous consequences for an organisation.
Some decisionsrequire constructing new meaningsabout the organisation in rela-
tion to its environment and typically involve actions to change existing meanings.
Convincing top management that a usually passive stakeholder group has turned
into an active public or that top management should communicate more openly
to their employees about a pending merger, would represent examples of the
corporate communication manager constructing new meanings or changing
existing meanings amongst senior managers.
Boundary spannershave an important role to play in thisregard and are uniquely
equipped to structure new meanings regarding both the organisation and its
environment.26
Regarding high-level, strategic decisions, boundary-spanning personnel can play
their most important role by acting as consultants who advise on methods of
problem representation. Asenvironmental scannersthey makeimportant decisions
when they decide which information to present to decision makers and which to
withhold. Many decision makers will give importance only to information that
affects their area of specialisation.
Boundary spanning isoneof themost important mechanismsby which information
is imported into organisations. The special characteristics of boundary spanners
allow decision makersto maximise their information acquisition at a relatively low
cost in termsof time, energy, and effort. However, boundary-spanning individuals
areoften denied greater influencebecausetheir loyalty issuspect asaconsequence
of relatively frequent contact with outsiders. Boundary spanners are often seen to
violate the (psychological) demarcation between organisation and environment,
and are viewed as identifying with external rather than internal interests.27
It seems that messengers are still blamed (although not killed) for unwelcome
messages, regardless of their value to the decision-making process.
Conclusion
The term ‘environment’ permeates the literature on strategic management. How-
ever, in discussing theenvironment, authorsseldom describe how theorganisation
should diagnose the environment or who in the organisation should observe the
environment. Whereas only a few writers in the field have recognised the role of
the corporate communication function in helping the organisation to identify the
most important components of the environment, very few scholars in strategic
management have mentioned it.
12. Part 2: Strategic Management of Corporate Communication: The Foundation
62
‘Corporate communication can fill the environmental void in theories of strategic
management by diagnosing the environment and by making the overall organisa-
tion aware of stakeholders, publics, and issues as they evolve. Similarly, theories of
strategic management will fill the void in public relations theory of how corporate
communication can contribute to making organisations more effective.’28
An analysis of the external environment can best be achieved by means of a re-
search technique called environmental scanning or environmental monitoring.
The primary purpose of environmental monitoring isto provide an understanding
of the constituents of the macro or societal environment. The main concerns are
long-term trends and the identification of implications for the industry and the
organisation itself.
The forces and trends in the macro environment represent the most difficulty for
scannerswhen they try to identify threatsand opportunities. Forcesand trendsare
the most abstract and the timing of their development ismost difficult to estimate.
Scanning of the macro environment is an ‘outside-in’ approach, which adopts a
broad view of the environment. More attention will be paid to environmental
scanning in a later chapter.
For the purpose of the strategic management of corporate communication, the
authors of this book define the environment as ‘a collection of stakeholders and
a patterning of strategic issues’.
3.3 Model for developing a corporate
communication strategy
3.3.1 Steps in the process
Although the concept of strategy is well known in management literature, as well
as in practice, the concept of corporate communication strategy has received
little attention. The few publications dedicated to the topic deal mainly with
communication campaigns and plans as illustrated by the many planning mod-
els, operational plans and checklists that are frequently seen in communication
textbooks and articles.
On the following page, steps that can be followed in the process of developing a
corporate communication strategy are provided. Readers are advised to refer to
the case study on ‘Business Against Crime’ at the end of Chapter 4 for a detailed
example of the corporate communication strategy formulation process.
13. Chapter 3: The strategic management of corporate communication
63
Source: Own research
FIGURE 3.2: Model for developing corporate communication strategy
Each step in the model will now be discussed individually, asa further refinement
and explication of the corporate communication strategy formulation process.
3.3.2 Analyse the internal environment
ANALYSE THE INTERNAL ENVIRONMENT
Corporate Profile/Vision/Mission/Corporate Culture/
Values/Policies/Enterprise/Corporate Strategies
To make communication relevant in the organisation’s strategy formulation proc-
ess, the corporate communication manager should be intimately familiar with the
ANALYSE THE INTERNAL ENVIRONMENT
IDENTIFY STRATEGIC STAKEHOLDERS AND PUBLICS
IN THE INTERNAL AND EXTERNAL ENVIRONMENT
IDENTIFY AND DESCRIBE KEY STRATEGIC ISSUES IN
THE INTERNAL AND EXTERNAL ENVIRONMENT
(differentiate between types of strategic issues)
IDENTIFY THE IMPLICATIONS OF EACH STRATEGIC ISSUE
(for each of the strategic stakeholders)
DECIDE ON THE CORPORATE COMMUNICATION STRATEGY
(what must be communicated to solve the
problem/capitalise on the opportunity)
SET COMMUNICATION GOALS
(based on the corporate communication strategy)
DEVELOP COMMUNICATION POLICY
(who is allowed to communicate what to whom)
DRAFT TO TOP MANAGEMENT
CONDUCT AN OVERALL CORPORATE COMMUNICATION MEDIA ANALYSIS
(which kinds of media best suit the organisation)
DEVELOP A STRATEGIC COMMUNICATION PLAN
Communication programmes, campaigns or plans
14. Part 2: Strategic Management of Corporate Communication: The Foundation
64
organisation’sinternal environment beforedeveloping thecorporatecommunication
strategy. Detail on analysing the internal environment has been provided earlier
in this chapter.
3.3.3 Identify strategic stakeholders and
publics
IDENTIFY STRATEGIC STAKEHOLDERS AND PUBLICS
IN THE EXTERNAL AND INTERNAL ENVIRONMENT
Draw up Stakeholder Map (organisational linkages, public relations audit*)
Identify organisational consequences on Stakeholders or Publics (social audit*)
Identify Stakeholder Perceptions, Attitudes or Concerns (public relations audit*)
Identify Stakeholder familiarity with organisation (corporate image studies*)
Identify Key Stakeholder Issues (both organisational and communication)
* Lerbinger’s classification of the kinds of corporate communication research
Thekey component that thecommunication function should beanchored around is
theorganisation’sstakeholders. Theorganisation’senvironment isahighly complex
system, consisting of different groupings of stakeholders. Each stakeholder group
has its own set of values, needs, desires, wants, goals and objectives, which may
be and often are significantly different from those of the organisation.29
Theoverall strategic management of organisationsisinseparablefrom thestrategic
management of relationships.30
The management of relationships is the function
of the corporate communication department. Before these relationships can be
managed, however, the different stakeholders of the organisation must be identi-
fied. Research providesa way for top management to become attuned to strategic
stakeholders: it can beconsidered theother part of two-way communication. Focus
groupsand surveysare asmuch channelsof communication asare newsreleases,
press conferences, and internal publications. However, to practise this the com-
munication professional needs expertise regarding strategic research.
What is a stakeholder?
People are stakeholders when they are affected by decisions of an organisation or
if their decisions affect the organisation. Many stakeholders, such as employees
or residents of a community, are passive. Stakeholders who are or become more
aware and active can be described as publics.31
An important step in developing the corporate communication strategy isto make
a list of the people who are linked to the organisation. Such a stakeholder map32
usually containsgroupssuch asowners, consumer advocates, customers, competi-
tors, the media, employees, special interest groups, environmentalists, suppliers,
governments, and local community residents.
15. Chapter 3: The strategic management of corporate communication
65
An organisation has a relationship with stakeholders when the behaviour of the
organisation or of astakeholder hasconsequenceson theother. Formativeresearch
should be done to scan the environment for identifying these consequences.
Ongoing communication helps to build stable, long-term relationships with
stakeholders.
What is a strategic stakeholder?
Strategic stakeholders33
are those that are ‘critical, crucial, essential, important, or
vital for an organisation in the accomplishment of its mission’. Communication
programmesshould only be planned with the most important: the most strategic
stakeholders. Communication at thestakeholder stage, beforeconflict hasoccurred,
is important because it helps to develop the stable, long-term relationships that
an organisation needs to build support.
One method for the identification of key stakeholders is to analyse strategic link-
ages that are critical for an organisation to survive. The following linkages can be
identified:34
n Enabling linkages are with groups that provide authority to the organisation
and control its resources (e.g. government regulators, stockholders, the board
of directors or donors).
n Functional linkagesare with groupsthat provide inputsto the organisation (e.g.
employees and unions) and use their outputs (e.g. consumers and graduates).
n Normativelinkagesarewith professional or industry associations. Theselinkages
provide connections to similar organisations that can assist in solving shared
problems.
n Diffused linkagesare connectionsto groupingsof individualswho are not part
of any organisation. Minority relations, community relations, media relations
and environmental relations are organisational attempts to manage linkages
with diffused groupings.
Organisations must manage enabling and functional linkages because they all
create consequencesfor the organisation: organisationscannot pursue their goals
without these stakeholders. When organisations create consequences for others,
they must managediffuselinkages. When diffusestakeholdersorganise, they create
consequences for the organisation. The more turbulent an organisation’s environ-
ment, the more linkages the organisation must manage with its environment and
the more rapidly those linkages change.35
These linkages should form the basis for the corporate communication function’s
communication programmes.
For example, diffuse linkages such as environmental pressure groups would be
very important for a chemical company and probably justify an environmental
relations programme.
16. Part 2: Strategic Management of Corporate Communication: The Foundation
66
Source: Adapted from Grunig & Hunt36
FIGURE 3.3: An organisation’s strategic linkages
The link between stakeholders and corporate
communication strategy
Managing communication with stakeholders as if they were discrete and uncon-
nected groups of people does not add value to the organisation. What is needed
is a more integrated approach, supported by well thought-through strategies,
systems and behaviours, that enables organisations to prioritise between stake-
holder needs, to align strategies and activities directed at stakeholders, and to
build bridges between them.37
Themost important waythat communication practitionerscan do thisisthrough build-
ing and maintaining excellent relationships with strategic stakeholders. If what the
stakeholder wantsdoesnot match theneedsof theorganisation, thelong-term viability
Stockholders
The board of directors
National, provincial and
local government
Community leaders
Employees
Unions
Suppliers
Consumers
Industrial purchasers
Users of services
Employers of graduates
Environmentalists
Community residents
Students
Voters
Minorities
Women
Media
Other publics
Trade associations
Political groups
Professional associations
Organisation
Enabling
linkages
Normative
linkages
Diffused
linkages
Functional
linkages
Output
Input
17. Chapter 3: The strategic management of corporate communication
67
of the organisation may be at stake. Positive matching of the needsand objectivesof
stakeholdersand the organisation isrequired for a lasting good relationship.
The corporate communication strategy entails inter alia:
n identifying and defining strategic stakeholders groupings
n identifying key strategic issues around which publics may (have) emerge(d)
n determining whether the publics are in the latent, aware or active stages, and
which publics have already turned activist.
Only when the organisation isaware of key strategic issues, can decisionsbe taken
asto what should becommunicated to stakeholdersto solveproblemsor capitalise
on opportunities.
Stakeholder groups can be assessed in terms of the following:38
t To what extent will an intended organisational strategy affect each group,
either positively or negatively?
t How far does the strategy align with their existing beliefs about the organi-
sation’s values and purpose?
t How far do they share the values and purpose?
t What potential do they have to influence the organisation directly or indirectly
(via other stakeholders), positively or negatively?
t How robust is the organisation’s existing reputation with them?
t How likely is it that the effects of the intended strategy in regard to this group
will act as a prompt for action by other groups?
t What are the consequences if they do?
Stakeholders will be described in more detail in Chapter 7.
3.3.4 Identify and prioritise key strategic
issues
IDENTIFY AND DESCRIBE KEY STRATEGIC ISSUES
IN THE MACRO, TASK OR INTERNAL ENVIRONMENT
(environmental scanning or issues tracking)*
Identify Publics or Activists that emerge around issues (issues tracking)*
Identify consequences for organisation (e.g. SWOT analysis)
Prioritise key strategic issues
Differentiate between types of strategic issues:
Organisational issues Type 1:
Communication is not the cause of the problem, but can provide a solution
(e.g. organisational change such as transformation or mergers).
18. Part 2: Strategic Management of Corporate Communication: The Foundation
68
Organisational issues Type 2:
Communication is not the cause of the problem, cannot provide a solution
but can explain the issue (e.g. budget cuts or the Employment Equity
legislation).
Corporate communication issues:
Where too little or no communication with external stakeholders is the
problem (e.g. with the media in the case of negative publicity; or with
investors in the case of low share price).
Management communication issues:
Where too little or no (internal) communication between managers and
employees is the cause of the problem: not telling employees what they
want to hear (e.g. about the organisation’s vision, or staff reductions).
(Tactical) communication issues:
Where messages are sent, but are not reaching the target groups (e.g.
because of inappropriate communication channels such as television to
reach a rural population; or email to reach factory workers; or difficult or
technical language used to reach people who are communicating in their
third or fourth language).
(communication audits e.g. readership surveys, content analysis and
readability of messages)*
*Lerbinger’s classification of the kinds of corporate communication research
Strategic issues are developments, events and trends that are considered conse-
quential by an organisation’smanagement because of the potential to impact the
organisation’s strategy. Not all issues are therefore strategic.
Internal strategic issues can alter the organisation’s performance if left unnoticed
or unattended (e.g. productivity), while external strategic issues emanate from
sources outside the organisation’s boundaries (e.g. environmental protection
legislation that will have a disastrous impact on certain manufacturers because
their products do not comply).
In chapter 2, strategy was said to be determined by first identifying key strategic
(major) issues that are of critical importance for achieving the corporate vision
and mission (such asemployees, management, the product, stakeholdersand the
budget) and that can be turned into a source of intelligence for top management.
These issuescould be anything from a new competitive strategy necessitating fun-
damental changes in attitudes and behaviour; to restructuring, downsizing, cost
improvement, the acquisition of new businesses or a shift in the environment.
Key strategic issues are identified by conducting environmental analysis and is-
sues tracking, incorporating the effects of environmental changes into corporate
decision making, and formulating new strategies (i.e. what to do). To be really
effective in the identification of problems and issues around which publics will
form, strategy formulation should be performed in the organisation’smacro-, task,
19. Chapter 3: The strategic management of corporate communication
69
and micro-environment. Part of the strategic role of the corporate communication
manager is being a member of the team that identifies the key strategic issues
facing the organisation.39
Senior communication practitioners should be expert in using communication to
help remove barriers to success. Rather than trying to push communication fur-
ther up top management’s agenda, they should try to link communication with
what is already at the top of that agenda:40
the key strategic issues faced by the
organisation.
Top management are interested in their business problems (key issues), not in
communication problems. They may not readily see the connection between
communication and their problems, especially when they are measured not on
the levels of their communication, but on attaining key organisational goals. It is
the role of senior communication practitionersto identify these key strategic issues
and demonstrate (by meansof the corporate communication strategy) how com-
munication can provide solutions to key organisational problems.
The corporate communication function is often blamed by other managers for
failing to reach communication goals when other factors should be blamed. Even
moreproblematicisseeking information or communication solutionswhen they are
not adequate. It is therefore imperative that senior practitioners take the initiative
to identify whether a problem can be solved by communication efforts alone, by
communication in conjunction with other measures or by other measures only.41
They should then assert their views in order that other managers stop defining a
problem as being communication when, in reality, it is not. However, many prac-
titionersmay take the easy way out by regarding compliance as the best solution.
In thiscase, the communication function will get blamed for failure when so-called
‘communication goals’ are not reached (although they should not have been set
in the first place).
Further information on the identification and management of issues is supplied
in Chapter 8.
3.3.5 Identify implications of strategic issues
for stakeholders
IDENTIFY THE IMPLICATIONS OF EACH STRATEGIC ISSUE
For each (strategic) stakeholder
An important step in developing thecorporatecommunication strategy isto identify
the implications that key strategic issues will have (or already have) for strategic
stakeholders. In order to do this, practitionersneed to identify and understand the
business or strategic issues that the organisation faces, and then determine what
their implications for strategic stakeholders might be (i.e. how the stakeholders
are feeling about the issue or its consequences for them).
20. Part 2: Strategic Management of Corporate Communication: The Foundation
70
In its communication with strategic stakeholders, the organisation has to address
theimplicationsof theseissuesfor thestakeholders.42
Practitionersshould also con-
sider the effects that corporate strategies (or the behaviour of top management)
might have on the stakeholders.
3.3.6 Decide on the corporate communication
strategy
DECIDE ON THE CORPORATE COMMUNICATION STRATEGY
What must be communicated to each stakeholder to solve the problem
or capitalise on the opportunity presented by the strategic issue
A corporate communication strategy is not the same as a communication plan.
Rather, it indicates the direction that an organisation needs to take with regard
to its communication with stakeholders. It can therefore be called a grand or
long-term strategy, determining in broad terms what needs to be done to create
a competitive position with regard to stakeholders that is compatible with overall
enterprise or corporate strategy.
Communication is the means to an end, namely to assist top management to
improve business processes and the performance of the people involved in those
processes. By only talking in termsof communication processeswithout identifying
the underlying business problem, practitioners risk imposing inappropriate solu-
tions. A corporate communication strategy should support the business strategy,
and should help an organisation to compete more effectively by identifying what
should be communicated to stakeholders to firstly solve problems (e.g. improve
productivity); or secondly, to capitalise on opportunities that are presented.43
An
examplewould bewhen an organisation hasalready complied with new legislation
about a product. Communicating this information to strategic stakeholders such
as the government or investors would capitalise on an opportunity.
3.3.7 Set communication goals
SET COMMUNICATION GOALS
(around which communication plans are developed)
Derived from the corporate communication strategy
A goal can be said to be a mini-vision, i.e. the destination an organisation wants
to reach. It is neither specific nor measurable (which are rather the attributes of
objectives). A communication goal is therefore the destination to be reached by
means of the organisation’s communication.
Based on the corporate communication strategy (which identifies what should
be communicated about), communication goals are developed to indicate what
21. Chapter 3: The strategic management of corporate communication
71
the organisation wantsto achieve with itscommunication regarding the situation
described (referring to the strategic issuesand their implicationsfor the stakehold-
ers). Does the organisation want to give information regarding the issue to its
stakeholders, or doesit want to change attitudesof specific stakeholdersregarding
the issue, or to change their behaviour because of an issue, etc. In many cases, if
behaviour of stakeholdersneedsto be changed, it isnecessary to provide informa-
tion regarding the issue to them first, and then to change their attitudes.
In the process of developing a corporate communication strategy, the step of
goal setting is the link between the corporate communication strategy and the
communication plan.44
Communication plans should be developed based on the communication goals
developed during the corporate communication strategy phase. This means that
for each communication goal set during thestrategy phase, two or moreobjectives
should be developed in the planning phase of the communication plan.
Furthermore, setting communication goals aligns the corporate communication
function with the corporate mission. If done according to the strategy model, the
communication goals are derived from the organisation’s key strategic issues, its
implicationson thestakeholdersand thecorporatecommunication strategy. In such
a case, the communication goals reflect the corporate goals and thus contribute
towards the achievement of the corporate mission.
3.3.8 Develop a communication policy
DEVELOP COMMUNICATION POLICY
(who is allowed to communicate what to whom)
Organisational guidelines for communication
Agood corporatecommunication strategy should includeaclear policy statement.
Since the communication policy isinfluenced by the corporate culture, valuesand
norms, it may differ widely from organisation to organisation.
In general terms corporate communication policy could deal with:45
n functional communication areas (internal or external communication) and
specified communication programmes e.g. lobbying or media liaison
n functional relationships between corporate communication and other depart-
ments e.g. marketing or research or human resources
n the structure of the corporate communication department, hierarchical orienta-
tion and lines of command
n corporate communication goals and objectives
22. Part 2: Strategic Management of Corporate Communication: The Foundation
72
n corporate ‘do’s and don’ts’ e.g.
o only the chief executive deals with politically related issues
o only the chief executive deals with foreign stakeholders
o only the corporate communication manager may be quoted by the media
o product advertising is the exclusive domain of the marketing department
o corporate advertising is the exclusive domain of the corporate communica-
tion department
n the use of confidential information.
A way of developing corporate communication policy is to make a list of:
t what must be communicated to stakeholders
t what should be communicated
t what the organisation is prepared to communicate
t what the organisation is not prepared to communicate
t what is to be communicated in special situations such as emergencies or crises.
An example of communication policy might be a commitment to honesty and
openness, transparency, accessto top management, credibility, compassion, trust,
integrity and sensitivity for the diverse nature of stakeholders and publics. The
communication policy must be enforceable, precise and clear. Messages must be
consistent and all departments or divisions must use the same standards when
communicating internally or externally.
3.3.9 Submit a draft of the corporate
communication strategy to top
management
DRAFT TO TOP MANAGEMENT
Obtain management support and
buy-in for each step
Top management should bekept up to dateon thedifferent stepsduring thedevel-
opment of the corporate communication strategy. They should be informed of the
logicthat guided theformulation of thestrategy, and in which way communication
will provideasolution to critical organisational problems. Research resultson which
the strategy is based (even if it is informal research), should be stated.
23. Chapter 3: The strategic management of corporate communication
73
It isimportant to remember that top management approve budgetsfor the corpo-
ratecommunication strategy. Themorethey understand theimportant contribution
that the corporate communication function is making towards the achievement
of organisational goals, the easier it will be to obtain funds for implementing the
strategy. It will also assist in changing the negative perceptions that many top
managers have of the corporate communication function’s contribution to the
‘bottom line’.
3.3.10 Conduct a media analysis
CONDUCT AN OVERALL CORPORATE COMMUNICATION MEDIA ANALYSIS
Interpersonal, group, organisational, public and mass media
Thepurposeof theoverall mediaanalysisisto investigatethedifferent communica-
tion media that might be suitable for the specific organisation and itsstakeholders.
In the communication strategy phase, the aim is not to identify specific media for
specific communication plans, but rather to establish broad guidelines as to the
different kinds of media that might be considered. Communication media can
range from interpersonal media (face-to-face), to group or organisational media
(meetings), to public or mass media (radio or television).
More information on corporate communication media will be provided in the
next chapter.
3.3.11 Develop a strategic communication
plan
DEVELOP A STRATEGIC COMMUNICATION PLAN
(master plan for how to do it)
Communication Programmes (continuous communication with
strategic stakeholders)
Communication Campaigns (single or cyclic)
Communication Plans (implementation strategy and action plans)
This step is the beginning of the communication planning phase that will be
discussed in Chapter 4. It is mentioned here to place planning in context in the
strategy phase. The strategic communication plan is the framework within which
communication programmes (being continuous communication with strategic
stakeholders), communication campaigns (which can be single or cyclic) and
communication plans (developed to achieve specific communication goals) are
developed.
24. Part 2: Strategic Management of Corporate Communication: The Foundation
74
Communication programmes
The focus of strategic symmetrical communication programmes is on relationships,
acoming together of theorganisation and itsstrategic stakeholdersaround issuesof
mutual interest. Research should bedoneto scan theenvironment and to identify the
consequences of strategic issues on stakeholders in order to sensitise management
to changes and potential threats in the relationships with stakeholders.46
In a study sponsored by the IABC Research Foundation47
, researchers report that
corporatecommunication managerswho follow astrategicapproach conceptualise
and direct the most effective communication programmes. A strategic approach
is not historical: excellent communication programmes are not an evolution of
what has been done in the past, but should be aimed at stakeholders who are
identified as strategically important to the organisation. Excellent practices are
concerned with impact, not process: they aim to influence audience attitudes,
opinions, or behaviours rather than simply put processes in motion such as news
release production.
The corporate communication department should have continuous programmes
for stakeholders. This does not mean that the same activities are repeated year-
after-year, but rather that campaigns or activities are devised annually for the
organisation’s strategic stakeholders (as well as current publics). Ad hoc commu-
nication plans could be made during the year for new stakeholders or emerging
publics (previously unknown or non-existent). Should these publics persist in the
long term, they are to be incorporated in the ongoing programmes.
Examples of continuous programmes for strategic stakeholders are the following:
Continuous communication programmes
Issues management Employee relations
Change management Media relations
Government relations/lobbying Customer relations
Industrial relations Community relations
Social investment Sponsorships
International relations Corporate identity
Publications Corporate advertising
Crisis communication Communication training
It is important to note that there is a difference between communication pro-
grammes, as described above, and communication campaigns.
Communication campaigns
Generally, the term campaign48
meansa ‘connected seriesof operationsdesigned
to bring about a particular result’. Although the distinction between programmes
and campaigns may not be universally recognised, there are advantages in
25. Chapter 3: The strategic management of corporate communication
75
differentiating the continuous ‘programme’ from the time-limited ‘campaign’.
The campaign planned for a month, six months or a year is far more subject
to the measurement of its effect and tends to involve greater precision in plan-
ning and execution than a continuing programme that has no clear beginning
and end. Plansfor activitiesthat have no deadlinestend to get pushed back in the
scheduling of priorities.
Corporate communication campaigns
The above description of a campaign fitsthe corporate communication campaign
which isa concerted effort of an organisation to build socially responsible relation-
shipsby achieving research-based goalsthrough theapplication of communication
strategies and the measurement of outcomes.
The corporate communication campaign is an organised and integrated effort to
manage certain well-focused corporate communication activities, together with
their supporting communications, to achieve a more controlled result. Best results
are achieved when regular activities that form part of corporate communication
programmes such as announcing decisions to the press, publishing the employee
newsletter or responding to mediaenquiries, areco-ordinated with theconcentrated
effortsof the campaign. For example, when the campaign theme and activitiesare
incorporated in the newsletter, the bulletin board and other communication, the
additional notice will multiply the effect. Co-ordinating regular programmes and
campaign activitiesenablesthe corporate communication department to measure
the effectivenessof specific activitiesaswell astotal effect. The campaign will also
attract renewed interest in familiar programmes.
A campaign need not be a one-time effort. A cycle of campaigns, each building
on and profiting from previous ones, has much to recommend it over the inde-
terminate continuing programme. The basic elements that make up a corporate
communication campaign can simply be repeated with revisions, additions, and
different directions for a more effective long-range programme.
The cyclic continuing seriesof campaignshasthe advantage that the evaluation of
one campaign can be incorporated in the research phase of the next.49
Public communication (information) campaigns
The public communication or information campaign tends to focus on an imme-
diate objective, such as to stop smoking, control wildfires, or reduce crime, and
reliesprimarily on masscommunication. (Thecorporatecommunication campaign
described above also seeks such objectives but rather as a means of building
relationshipswith theorganisation’sstakeholders. Whileit may also usemasscom-
munication, it relies on the complete spectrum of communication media).50
3.4 Conclusion
From the model outlined in thischapter, a corporate communication strategy can
be developed for any type of organisation, large or small.
26. Part 2: Strategic Management of Corporate Communication: The Foundation
76
Asseen from thestepsin themodel, it isvery much athinking process. An extremely
important element of the process is the use of research to identify strategic issues
and stakeholders, as well as publics, that arise around issues. The aim is to gauge
their attitudes towards the organisation, and to identify the consequences of the
organisation’s policies on its relationship with these stakeholders.
Although thestepsin theprocessof developing acorporatecommunication strategy
wereindicated in alinear fashion in themodel (i.e. oneleading to thenext), it does
not necessarily always happen in this sequence in practice. It is the responsibility
of the practitioner to judge the situation and the specific circumstances of the
organisation, and to decide what is to be done at that specific point in time.
Furthermore, the development of corporate communication strategy takes place
continuously, and is not a once-a-year exercise. The steps in the model serve only
to make practitioners and students aware of some of the different aspects that
should be considered in such a process.
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