Branding effectively

Many companies focus on marketing themselves externally but forget that internal communication can be just as — if not more — important.

“Marketing begins from the inside out, which means that branding starts with your employees,” says Cindy Shanley, vice president of communications and public relations at BrandExtract. “If employees do not reflect your brand, it could undercut your efforts to grow the company.”

Establishing an internal communications program can boost the effectiveness of your employees and also create a better external image of your company and increase shareholder returns.

Smart Business spoke with Shanley about why it’s critical to have a strong internal communications program and how to effectively set one up for maximum results.

Why is it important to establish an internal communications program?

Every employee who has contact with customers, even indirectly, gives meaning to your brand promise. Yet many of them don’t know what the brand promise is. Employees can’t live the brand if they don’t know what it stands for, or what it requires of them.

The objective of internal communication should be for employees to embrace and own your company brand, because when employees are brand champions, they create differentiation for customers.

In today’s competitive business environment, it is crucial that the entire company be brand-focused. When a company has an effective internal communications plan, employees can relate better with the brand, with customers and with each other. Employees who believe in the brand work harder and better, are more loyal and stay with the company longer. Engaged, productive employees are also well informed and feel that what they do makes a difference.

How can you convince your executive team of the need for an internal communications program?

Give your management team facts that show internal communication improves the bottom line. According to Harris International and Watson Wyatt, only 37 percent of employees have a clear understanding of what their organization is trying to do and why. In addition, companies that communicate effectively have a 19 percent higher market premium than companies that do not. And finally, shareholder returns for organizations with the most effective communication were more than 57 percent higher over a five-year period than firms with less effective communication.

Information on employee productivity, retention and recruitment can also convince your team to move forward.

How do you begin establishing an internal communications program?

Have clearly defined, realistic, measurable goals. Identify your internal audiences and consider how each one relates to strategy or brand initiative. Determine how to best communicate with them: Is the message most effectively delivered through print, face-to-face exchanges, group gatherings or electronic media?

Don’t just shovel information out. Your communications should be written and delivered in such a way as to convey passion and meaning while being relevant, interesting and believable. Employees should know the corporate facts of life, both good and bad. Companies can no longer afford to say, ‘Our employees are our most important resource,’ and then allow them to learn about a layoff, merger, management change or new product line in the news. It can be a public relations nightmare.

Be visible and, as much as possible, honest and open. Don’t make promises you may not be able to keep.

When talking to employees, it is important to focus on the company’s mission, vision, goals and values; brand promise and aspirations; brand features and points of differentiation; customer feedback; performance and results.

How do you best communicate these things?

Internal communication is not a one-size-fits-all endeavor. Select your communications vehicle based on the purpose. The most effective programs use tactics that promote two-way dialogue, including town-hall meetings, instant messaging and text messaging, podcasts, blogs and face-to-face meetings.

How do you measure whether your internal communications program is working?

On the quantitative side, simple surveys in the form of quick-completion forms, 360-degree surveys, and written or electronic questionnaires can measure strengths and weaknesses by area, monitor trends and provide a benchmark against other companies.

Qualitative tools, such as individual in-depth interviews, focus groups and quick polling, can gauge overall work force concerns, explore complex issues in depth and obtain details of reasons for problems. They can also discuss exact ways to improve performance and assess culture, climate and values in use.

What are the dangers of not implementing an internal communications system?

A good internal communications program can help identify and eliminate the root cause of breakdowns. There is a proven link between employee satisfaction and customer satisfaction. Effective employee communication can help you retain your best employees, protect your company culture and maintain the strength of your brand.

CINDY SHANLEY is vice president of communications and public relations at BrandExtract. Visit www.brandextract.com or reach her at (713) 942-7959 or (214) 770-7378.