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Refreshing the role of
internal communications:
A critical business response to
our quickly changing times




Francesca Brosan, Chairman,
Omobono Limited.
February 2010




OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK
T +44 (0)1223 307000 | F +44 (0)1223 365167
info@omobono.co.uk | www.omobono.co.uk
Times have changed. Internal communications
are critical to the way in which companies need
to respond.

Internal communications has        The recession has put the           This promotion-centric view of
a vital role to play in driving    marketing community in a            marketing and internal
the value of business              difficult place. With increasing    communications is the one that
relationships.                     pressures on budgets, and from      is challenged in the research
                                   boards demanding proof of ROI,      recently undertaken by The
                                   marketers have found                Judge Business School, of
                                   themselves having to answer         Cambridge University, on behalf
                                   the question, „what does a          of Omobono, the digital B2B
                                   marketer do without any             communications agency.
                                   budget?‟
                                                                       Omobono‟s belief, that it is
                                   Internal communicators face the     relationships that drive business
                                   same predicament. Like many         and that the ultimate role of
                                   marketing disciplines, internal     marketing is to drive those
                                   communications budgets are          relationships, was examined
                                   pulled when times get tough and     against both academic theory
                                   departmental staff follow shortly   and business practice. What
                                   afterwards.                         emerged supported Omobono‟s
                                                                       belief in the need and benefits of
                                                                       looking at an organisation‟s
                                                                       relationships holistically in order
                                                                       to increase their value. This
                                                                       view, coined Enterprise
                                                                       Relationship Management
                                                                       (ERM) by Omobono, had some
                                                                       major implications for the role of
                                                                       the internal communicator.




OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK
T +44 (0)1223 307000 | F +44 (0)1223 365167
info@omobono.co.uk | www.omobono.co.uk
ERM research puts internal         Omobono has been working              This disconnect means that as a
communications centre              with corporate clients since its      result, and far too often, internal

stage                              inception in 2001 to increase         communications as a function
                                   internal engagement with              sits low down in the food chain,
                                   corporate objectives and              struggling to make senior
                                   believes it is a key contributor to   management aware of its critical
                                   business success.                     contribution.

                                   As Harvard Business Review            The Judge Business School
                                   put it:                               research, which looked at ERM
                                                                         across three sectors (service,
                                    ‘“It is a truth of business that
                                                                         public sector and
                                   if employees do not care
                                                                         manufacturing), found a need
                                   about their company, they will
                                                                         for far more importance to be
                                   in the end contribute to its
                                                                         placed on the internal
                                   demise.” 1
                                                                         communications function.
                                   But increasingly this represents
                                   a backward looking view of the
                                   role of internal communications -
                                   one in which the function is
                                   there simply to communicate
                                   whatever it is that the
                                   organization has already
                                   decided to do. Effectively,
                                   internal communications teams
                                   are involved in conveying the
                                   message, but not in developing
                                   the strategy behind it.




OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK
T +44 (0)1223 307000 | F +44 (0)1223 365167
info@omobono.co.uk | www.omobono.co.uk
Relationships matter in            The research, conducted with          However, the critical
business                           senior marketers within a dozen       relationships are not just those
                                   world class companies,                between an organization and its
                                   confirmed that relationships are      customers, but between the
                                   central to the success of             organization and its workforce,
                                   business. As Hakansson &              its suppliers and a wider
                                   Ford expressed it in 2002:            stakeholder group. (see Fig 1)


                                   “The overall performance of a         Whilst success depends on how
                                   company will depend on how            good the relationship is, this is in
                                   well they are able to manage          turn influenced by how well it is
                                                                2
                                   their own relationships.” .           managed by the organization.
                                                                         As Professor Evert Gummesson
                                                                         of Stockholm Business School
                                                                         and father of relationship
                                                                         marketing puts it, “The quality
                                                                         and nature of the relationship
                                                                         depends on the quality of the
                                                                         interaction process.”3
                 Fig. 1




                                                                      Source: Morgan, R.M. and Hunt, D.H. (1994)4

OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK
T +44 (0)1223 307000 | F +44 (0)1223 365167
info@omobono.co.uk | www.omobono.co.uk
Managing relationships             As the research also confirmed,     And if success in the future
relies on the ability to use       success depends on the              relies on marketing being not

everyone as part time              interaction being an ongoing        just a job for the marketing
                                   process right across the            department, then
marketers
                                   company, not the province of        communications is not the only
                                   one particular department such      thing internal
                                   as marketing or sales. This is      communicators should be doing.
                                   an approach also propounded
                                   by Gummesson, who goes on
                                                                       Service is what‟s driving the
                                   to break down the contributors
                                                                       economy
                                   to the interaction into „FTMs‟
                                   (full time marketers) and „PTMs‟    Another key insight revealed by
                                   (part time marketers).              the JBS/Omobono research
                                                                       project was the impact of the
                                   Looking at success through the      shift towards a service economy
                                   lens of Enterprise Relationship     on every business sector,
                                   Management it is clear that         demanding a new set of
                                   internal communicators have a       behaviours and a new marketing
                                   significant contribution to make,   approach. Businesses, then, are
                                   working with senior                 not pushing a product but co-
                                   management to ensure that           creating value by sharing
                                   these „PTMs‟ are aligned behind     knowledge, service systems and
                                   organizational goals.               networks across their
                                                                       relationships. (Fig. 2)


     Fig. 2




                                                                                   Source: Godson, M (2009)5




OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK
T +44 (0)1223 307000 | F +44 (0)1223 365167
info@omobono.co.uk | www.omobono.co.uk
The need to share                  Whilst each of the sectors             This presents the internal
knowledge across the               surveyed by Omobono had                communications function with an

organization is common to          specific issues they needed to         opportunity to set up structures
                                   address in terms of how their          which enable knowledge
all sectors.
                                   relationship focus would need to       sharing, becoming the deliverers
                                   change in response to this             of corporate strategy, not simply
                                   market shift, the need to share        the people that tell employees
                                   knowledge across the                   about it. (Fig. 3)
                                   organisation was common to all.
                                   In fact, this sharing is critical in
                                                                          Public Sector
                                   order to deliver an improved
                                   experience to customers, staff
                                                                          Not-for-profit organisations
                                   and other key strategic
                                                                          meanwhile typically have a
                                   partners,.
                                                                          functional structure where each
                                                                          department specialises in
 Fig. 3
                                                                          providing a particular service to
                                                                          customers. The key problem
                                                                          with this structure is that
                                                   Source: Omobono 2009   different departments hardly

                                   Service                                interact with each other.
                                                                          Customers on the other hand,
                                   For service organisations,             want a one-stop shop from
                                   knowledge is the fundamental           which they can receive all the
                                   source of competitive advantage        services they need. This is
                                   so the ability to share                driving public sector
                                   information across the                 organisations to reorganize,
                                   organisation is paramount.             aligning to deliver to customer
                                                                          needs, rather than according to
                                   But knowledge is not simply            government funding or legacy
                                   about knowing something. It is         structures.
                                   also having the application skills
                                   to put action into practice.




OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK
T +44 (0)1223 307000 | F +44 (0)1223 365167
info@omobono.co.uk | www.omobono.co.uk
Fig. 4




                                                      Source: Omobono 2009



  This new partnership working is     Manufacturing
                                                                             This is a sea of change for many
  not something public sector
                                                                             in the sector as it relies heavily
  organisations are well versed in,   In the manufacturing sector
                                                                             on the company‟s ability to
  and again the opportunity is for    goods have become
                                                                             share. Internal communicators
  internal communicators to take      commoditised, leaving
                                                                             will be needed not simply to tell
  the lead in putting structures in   manufacturers constantly in
                                                                             employees what‟s going on but
  place to share knowledge and        search of new value
                                                                             to instil new ways of working,
  processes across the                propositions in a highly
                                                                             interacting and behaving.
  organisation. (Fig. 4)              competitive global market.
                                                                             (Fig. 5)
                                      Service propositions in which
                                      partnerships are formed with
                                      suppliers and end customers
                                      are taking over from simply
                                      transforming materials. In order
                                      to do this they need to a work
                                      not only with internal
                                      departments, but with external
                                      partners, as well as to funnel
                                      knowledge back into the
                                      organization in order to be able
                                      to deliver the service again for
                                      the customer.
                                                                                                     Fig. 5




                                                                                                Source: Omobono 2009




  OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK
  T +44 (0)1223 307000 | F +44 (0)1223 365167
  info@omobono.co.uk | www.omobono.co.uk
In conclusion                      Relationships are central to
                                   business success and are driven
                                   by the quality of the interaction
                                   right across the company.
                                   Critical to this, is ability to
                                   successfully share knowledge
                                   and build relationships across
                                   the organisation, connecting
                                   marketing with sales, key
                                   account teams or HR, and
                                   aligning everyone behind service
                                   delivery to customers.


                                   Viewed in the context of how
                                   important enterprise
                                   relationships are for the future
                                   success of businesses and
                                   public sector organisations in
                                   the service world, internal
                                   communicators are critical;
                                   moving out of the space in
                                   which they only think about the
                                   techniques of communication to
                                   one where they directly
                                   contribute to what needs to be
                                   done.



                                                                       1.   Harvard Business Review January 2002
                                                                       2.   Hakansson, H. and Ford, D. (2002)“How
                                                                            should companies interact in business
                                                                            networks?” Journal of Business Research,
                                                                            55(2), 133
                                                                       3.   Gummesson, E. (2008) Total Relationship
                                                                            Marketing, Elsevier Ltd Oxford
                                                                       4.   Morgan, R.M. and Hunt, D.H. (1994) “The
                                                                            Commitment-Trust Theory of Relationship
                                                                            Marketing”, Journal of Marketing, Vol.58
                                                                            (July 1994), 20-38.
                                                                       5.   Godson, M (2009) Relationship Marketing,
                                                                            Oxford University Press



OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK
T +44 (0)1223 307000 | F +44 (0)1223 365167
info@omobono.co.uk | www.omobono.co.uk
Relationships drive
your business.


We drive your relationships.




ERM® helps world class
organisations drive
value from their business
relationships by examining the
ways they interact with their
customers, partners and staff; and
how that is measured to help
achieve organisational goals,
deliver to customers and create
mutual value. We look largely at the
contribution online technologies can
play, and how companies can
maximise value from the
infrastructure put in place over the
past 5 – 10 years. By exploring                                       Francesca Brosan is Chairman
alternative approaches to improving                                   and Founder of Omobono Limited,
B2B marketing effectiveness, ERM                                      the digital communications services
enables us to think about marketing                                   company. A former Board Director
differently, to put it back to its                                    of WCRS, her career has spanned
original place; where marketing has                                   consumer advertising, PR, live
a meaning and purpose beyond                                          events and digital. She now
communication and becomes a                                           focuses on B2B strategy for the
business essential, not a business                                    agency’s corporate and public
expense.                                                              sector clients. Francesca is the
                                                                      author of 3 IPA Advertising
                                                                      Effectiveness Awards and is a
                                                                      regular speaker and contributor
This whitepaper was previously                                        to marketing forums.
featured on the Melcrum
Publishing website.                                                   uk.linkedin.com/in/francescabrosan
http://www.internalcommshub.com/open/cha
nge/casestudies/brosan.shtml




OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK
T +44 (0)1223 307000 | F +44 (0)1223 365167
info@omobono.co.uk | www.omobono.co.uk

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Refreshing the Role of Internal Communications: A critical business response to our quickly changing

  • 1. Refreshing the role of internal communications: A critical business response to our quickly changing times Francesca Brosan, Chairman, Omobono Limited. February 2010 OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 info@omobono.co.uk | www.omobono.co.uk
  • 2. Times have changed. Internal communications are critical to the way in which companies need to respond. Internal communications has The recession has put the This promotion-centric view of a vital role to play in driving marketing community in a marketing and internal the value of business difficult place. With increasing communications is the one that relationships. pressures on budgets, and from is challenged in the research boards demanding proof of ROI, recently undertaken by The marketers have found Judge Business School, of themselves having to answer Cambridge University, on behalf the question, „what does a of Omobono, the digital B2B marketer do without any communications agency. budget?‟ Omobono‟s belief, that it is Internal communicators face the relationships that drive business same predicament. Like many and that the ultimate role of marketing disciplines, internal marketing is to drive those communications budgets are relationships, was examined pulled when times get tough and against both academic theory departmental staff follow shortly and business practice. What afterwards. emerged supported Omobono‟s belief in the need and benefits of looking at an organisation‟s relationships holistically in order to increase their value. This view, coined Enterprise Relationship Management (ERM) by Omobono, had some major implications for the role of the internal communicator. OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 info@omobono.co.uk | www.omobono.co.uk
  • 3. ERM research puts internal Omobono has been working This disconnect means that as a communications centre with corporate clients since its result, and far too often, internal stage inception in 2001 to increase communications as a function internal engagement with sits low down in the food chain, corporate objectives and struggling to make senior believes it is a key contributor to management aware of its critical business success. contribution. As Harvard Business Review The Judge Business School put it: research, which looked at ERM across three sectors (service, ‘“It is a truth of business that public sector and if employees do not care manufacturing), found a need about their company, they will for far more importance to be in the end contribute to its placed on the internal demise.” 1 communications function. But increasingly this represents a backward looking view of the role of internal communications - one in which the function is there simply to communicate whatever it is that the organization has already decided to do. Effectively, internal communications teams are involved in conveying the message, but not in developing the strategy behind it. OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 info@omobono.co.uk | www.omobono.co.uk
  • 4. Relationships matter in The research, conducted with However, the critical business senior marketers within a dozen relationships are not just those world class companies, between an organization and its confirmed that relationships are customers, but between the central to the success of organization and its workforce, business. As Hakansson & its suppliers and a wider Ford expressed it in 2002: stakeholder group. (see Fig 1) “The overall performance of a Whilst success depends on how company will depend on how good the relationship is, this is in well they are able to manage turn influenced by how well it is 2 their own relationships.” . managed by the organization. As Professor Evert Gummesson of Stockholm Business School and father of relationship marketing puts it, “The quality and nature of the relationship depends on the quality of the interaction process.”3 Fig. 1 Source: Morgan, R.M. and Hunt, D.H. (1994)4 OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 info@omobono.co.uk | www.omobono.co.uk
  • 5. Managing relationships As the research also confirmed, And if success in the future relies on the ability to use success depends on the relies on marketing being not everyone as part time interaction being an ongoing just a job for the marketing process right across the department, then marketers company, not the province of communications is not the only one particular department such thing internal as marketing or sales. This is communicators should be doing. an approach also propounded by Gummesson, who goes on Service is what‟s driving the to break down the contributors economy to the interaction into „FTMs‟ (full time marketers) and „PTMs‟ Another key insight revealed by (part time marketers). the JBS/Omobono research project was the impact of the Looking at success through the shift towards a service economy lens of Enterprise Relationship on every business sector, Management it is clear that demanding a new set of internal communicators have a behaviours and a new marketing significant contribution to make, approach. Businesses, then, are working with senior not pushing a product but co- management to ensure that creating value by sharing these „PTMs‟ are aligned behind knowledge, service systems and organizational goals. networks across their relationships. (Fig. 2) Fig. 2 Source: Godson, M (2009)5 OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 info@omobono.co.uk | www.omobono.co.uk
  • 6. The need to share Whilst each of the sectors This presents the internal knowledge across the surveyed by Omobono had communications function with an organization is common to specific issues they needed to opportunity to set up structures address in terms of how their which enable knowledge all sectors. relationship focus would need to sharing, becoming the deliverers change in response to this of corporate strategy, not simply market shift, the need to share the people that tell employees knowledge across the about it. (Fig. 3) organisation was common to all. In fact, this sharing is critical in Public Sector order to deliver an improved experience to customers, staff Not-for-profit organisations and other key strategic meanwhile typically have a partners,. functional structure where each department specialises in Fig. 3 providing a particular service to customers. The key problem with this structure is that Source: Omobono 2009 different departments hardly Service interact with each other. Customers on the other hand, For service organisations, want a one-stop shop from knowledge is the fundamental which they can receive all the source of competitive advantage services they need. This is so the ability to share driving public sector information across the organisations to reorganize, organisation is paramount. aligning to deliver to customer needs, rather than according to But knowledge is not simply government funding or legacy about knowing something. It is structures. also having the application skills to put action into practice. OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 info@omobono.co.uk | www.omobono.co.uk
  • 7. Fig. 4 Source: Omobono 2009 This new partnership working is Manufacturing This is a sea of change for many not something public sector in the sector as it relies heavily organisations are well versed in, In the manufacturing sector on the company‟s ability to and again the opportunity is for goods have become share. Internal communicators internal communicators to take commoditised, leaving will be needed not simply to tell the lead in putting structures in manufacturers constantly in employees what‟s going on but place to share knowledge and search of new value to instil new ways of working, processes across the propositions in a highly interacting and behaving. organisation. (Fig. 4) competitive global market. (Fig. 5) Service propositions in which partnerships are formed with suppliers and end customers are taking over from simply transforming materials. In order to do this they need to a work not only with internal departments, but with external partners, as well as to funnel knowledge back into the organization in order to be able to deliver the service again for the customer. Fig. 5 Source: Omobono 2009 OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 info@omobono.co.uk | www.omobono.co.uk
  • 8. In conclusion Relationships are central to business success and are driven by the quality of the interaction right across the company. Critical to this, is ability to successfully share knowledge and build relationships across the organisation, connecting marketing with sales, key account teams or HR, and aligning everyone behind service delivery to customers. Viewed in the context of how important enterprise relationships are for the future success of businesses and public sector organisations in the service world, internal communicators are critical; moving out of the space in which they only think about the techniques of communication to one where they directly contribute to what needs to be done. 1. Harvard Business Review January 2002 2. Hakansson, H. and Ford, D. (2002)“How should companies interact in business networks?” Journal of Business Research, 55(2), 133 3. Gummesson, E. (2008) Total Relationship Marketing, Elsevier Ltd Oxford 4. Morgan, R.M. and Hunt, D.H. (1994) “The Commitment-Trust Theory of Relationship Marketing”, Journal of Marketing, Vol.58 (July 1994), 20-38. 5. Godson, M (2009) Relationship Marketing, Oxford University Press OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 info@omobono.co.uk | www.omobono.co.uk
  • 9. Relationships drive your business. We drive your relationships. ERM® helps world class organisations drive value from their business relationships by examining the ways they interact with their customers, partners and staff; and how that is measured to help achieve organisational goals, deliver to customers and create mutual value. We look largely at the contribution online technologies can play, and how companies can maximise value from the infrastructure put in place over the past 5 – 10 years. By exploring Francesca Brosan is Chairman alternative approaches to improving and Founder of Omobono Limited, B2B marketing effectiveness, ERM the digital communications services enables us to think about marketing company. A former Board Director differently, to put it back to its of WCRS, her career has spanned original place; where marketing has consumer advertising, PR, live a meaning and purpose beyond events and digital. She now communication and becomes a focuses on B2B strategy for the business essential, not a business agency’s corporate and public expense. sector clients. Francesca is the author of 3 IPA Advertising Effectiveness Awards and is a regular speaker and contributor This whitepaper was previously to marketing forums. featured on the Melcrum Publishing website. uk.linkedin.com/in/francescabrosan http://www.internalcommshub.com/open/cha nge/casestudies/brosan.shtml OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 info@omobono.co.uk | www.omobono.co.uk