21st Century Communication Trends

Gone are those days when people used to wait for the postman to deliver letters from our nearest and dearest one. Now we just do is dial up the number and call. What could be simpler than that? If we do not feel generous then just write an email or IM. That’s the generic picture of 21st century communication trends. The magic touch of technology is everywhere.

21st century communication trends can also be seen in workplaces. The various Trends of the 21st Century that the organizations today follow are discussed below

Globalization

The world has become a global economy where national borders do not mean borders for business relationships. This has led to increased sales for corporations since they are not only serving their home country market anymore. But not only have the sales become global. Today, corporations are operating globally. Production is located in the most cost attractive country, companies have offices all around the world, and the labor market is nearly completely global. These trends result from reduced cost and improved quality of transportation and communication, the search for unsaturated markets, and the exploitation of regional cost and expertise differences. Modern communication technologies also play an important role in the globalization trend. The Internet provides the opportunity to easily communicate across country borders and thus operate successfully in other countries. Furthermore, there is an equalization in the tastes and preferences of customers in different countries, which makes it easier for companies to sell standardized products worldwide.

Diversity

As a result from globalization the diversity in organizations and in the business world in general has increased. The workforce of a company is getting more heterogeneous sexually, racially, culturally, and individually. Though, this is a desired development, organizations also face challenges through this increased diversity. It can be both a source of innovation and a source of conflict and communication problems. Organizations need to deal with different styles of interaction, dress, presentation, and physical appearance. This results from a change in the demographics of the countries and the globalization of the labor market.

Flexibility

The way organizations manage business has changed in the last decades. Organizational systems, processes, and employees can respond differently to different challenges. There is less formalization and employees are more free to develop own approaches to situations. Thus, employees within organizations have greater autonomy and flexibility nowadays. This flexibility is especially important because of differentiated customer needs. Furthermore, the increasing diversity mentioned in the last paragraph is also a source of the need to design the workplace in a flexible way. Employees from different countries and cultures have different ways of thinking and different ideas on how to approach a problem. Also, the increased pace of change in technology and markets makes a standardization of processes and approaches nearly impossible. Organizations must stay flexible in order to survive in a rapidly changing business environment.

Flat

Organizations have become more flat in the recent decades. This means fewer levels of middle management and a broader span of control. The decrease of middle and lower level managers also means higher empowerment of lower level employees. Responsibilities are more distributed equally across the levels of hierarchy. Thus, employees have to deal with higher responsibilities in the organization without necessarily higher payment. The higher empowerment of employees results from the increased speed decisions need to be made in today’s business world. Furthermore, advanced communication technologies mean less need of middle managers as intermediaries. Finally, the trend of globalization discussed earlier increased the competition and makes cost cuts necessary.

Networking

We are living in a networked world. Organizations communicate across unit and firm boundaries and ignore the chain of command. Many companies are organizing themselves in cross-unit teams, exploiting the strengths of different units working together. Furthermore, opportunities arose in the areas of outsourcing, off-shoring, and the resulting downsizing. This new trends help organizations to decrease their costs. Organizations also recognized the need to work closely with each other and create strategic alliances. Those alliances give the organizations involved more power in the market arena. This also includes forms of cooperation like Just-in-Time (JIT) inventories, Vendor Managed Inventories (VMI), and others. Furthermore, companies have to deal with customization. Even the world’s tastes and preferences are becoming equal; organizations still have to consider differences in countries. Furthermore, there is an increasing trend towards mass-customized products (e.g. Dell). Organizations also need to take advantage of decentralization in order to response to different needs in different countries.

Examples

McDonald’s had to adjust its product line when it entered the Indian market. India, with its one billion plus habitants being an attractive market for McDonald’s had a totally different culture than western markets. The cow is a holy animal in India. Therefore, McDonald’s had to change its meat to chicken in order to be successful in India.

Nike faced the negative side of globalization some years ago. It was strongly criticized in the public for being involved in child labor in Asian countries and paying starvation wages. Thus, Nike had to manage this crisis and change its activities in those countries.

Personal Experience:

First time I got the punch of 21st century tends was when I learnt that the Sony play-station that I have at home is actually manufactured in Japan. That was around 7 years ago. I was amazed at the fact that the game that was manufactured miles and miles far away is right now at my house. When I asked my mom how exactly this happened, she explained to me the trend of globalization. Now when I come across this concept, I tend to remember those words of my mom.

Reference:

http://webuser.bus.umich.edu/organizations/smo/protected/resources/2002/globalization.pdf

http://unpan1.un.org/intradoc/groups/public/documents/un/unpan000715.pdf

Corporate communication, 4th edition, Paul A. Argenti, The Tuck School of Business, Dartmouth College.

Corporate Communication Relevance

What is Corporate Communication?

Communication is fundamentally about interaction — it is only in a very secondary sense about information, persuasion or presentation. In general communication just means “say", "talk" or "tell"'. This myth of communication has now, paradoxically, become a burden for the communications director to carry. It has created expectations of corporate communications that often can't be met, and can be difficult to manage. The organization's equity is not in its investment in communication collateral but in the 'social capital' built up through its interactions with its audiences. Communication is talk. The communications director is responsible for trying to open up a conversation with some groups on some topics, and to try to steer this conversation so that those groups might come away feeling more positively about the organization.

The skill of corporate communications is, therefore, skill in conducting conversations — in opening up areas of interest, and in steering the discussion away from issues that might be damaging. It's not about crafting Teflon coated messages — which, in any case, tend to turn their listeners off.

Why is communication important?

Some people may doubt the relevance of ‘Corporate Communication’ function in an organization. Apparently they might think that all a corporation has to do is communicate efficiently with the employees. So they think that HR function is sufficient for all its communication need. But as we have seen that the business environment has changed dramatically since last couple of decades. Communication function is no longer confined within the organization. Now companies need to address various constituents in order earn their trust and build image and reputation. If Coca-Cola did not have proper Corporate Communication function then it would have cost more for the company during the pesticide controversy in India in 2003.

Organizations must communicate to survive. Continuous, day-to-day interactions with stakeholders are as essential to the functioning of an organization as breathing is to a human being. Indeed, one might say that if the finance function is one of the essential, life-sustaining corporate systems, communication is the other. The two are as interdependent, and as inseparable, as the lungs and the heart. But still a common question is to be noticed that is like appointing a CFO for a company, why a communications directors were not more frequently appointed to the boards of companies.

In the coming decades the corporate communications will be facing more challenges, we can’t just underestimate it. as we are entering a new era where access to information has never been easier, and less controllable. Audiences are more sophisticated at deconstructing – and debunking messages than ever before.

The main key for successful communication will be to successful communication will be to re-connect with its bases in fundamental human activities. By understanding what it is that really makes a message interesting, relevant and credible.

Example

Despite the fact that Coca-Cola was legally constrained to focus on an internal audience, its experience in this crucial area can be instructive. Rarely ever is crisis communication aimed even partially-- at an internal audience, and so even expert practitioners often overlook this decisive factor. Holtz (2002) says bluntly, “You won’t find many public relations professionals who agree with me that your employees are your most important public relations audience” (p. 269). This oversight is unfortunate because, as Fombrun (1996) contends, employee image is one of the four pillars of corporate reputation, which in turn drives almost everything from share price to executive recruiting. Therefore, any activity aimed at rebuilding a tarnished internal corporate image should rate as a first priority, and that apparently is the level of importance that Coca-Cola has attached to communicating its diversity efforts to all employees—however belatedly this campaign was undertaken.

Reference

http://www.masternewmedia.org/corporate-marketing/corporate-marketing-communications/Cluetrain-online-corporate-communications-as-marketplace-meeting-ground-Tombolini-20070418.htm

http://www.expresscomputeronline.com/20050207/technologylife01.shtml

http://en.wikipedia.org/wiki/Corporate_identity

Corporate communication, 4th edition, Paul A. Argenti, The Tuck School of Business, Dartmouth College

Communication Technologies

Information technology is changing continuously and there by affecting the way we communicate. Communication technologies have undergone a revolutionary transformation since past 100 years. All thanks to the science and technology. Now we do not need to wait for weeks to deliver a simple message to the other part of the world. We do not need messenger boys. Massive invisible network of communication technologies help us to reach anyone to any place in any time.

What seemed to science fiction a decade ago is now reality. Cellular phone, internet, intranet, wireless networking, VOIP, video conference etc is now a reality. With the help of these technologies we can communicate with anyone any time within a fraction of a second. We thought telephone is all we need for instant communication. But humans cannot be satisfied. We wanted to see each other while we are communicating. Therefore video conference came into place to satisfy our need. To put life into video conferencing, companies are coming up with new technologies such as Tele-Conferencing which helps to achieve eye-to-eye contact with all participants.

Telephone

Besides face-to-face interaction and letters maybe the most classic form of communication. Most of the time it is one to one directed communication and is conducted through a landline. The advantage of telephone technology lies in its long history. Everyone knows how to use it and feels comfortable using it. Disadvantages are the high costs (for foreign calls for example) and the hardware which need to be installed.

Cell Phones and PDA/Smart-phone

In a world which has become mobile and on the run business would be impossible without the use of mobile phones. Managers need to make strategic decisions while on the road; and the global world has increased the need for mobile communication. Personal Digital Assistants (PDA) and Smart-phones have further developed the mobility of cell phones. With included e-mail client and web browser, managers can also send and receive e-mails while on the road.

E-Mail

Electronic Mail (E-Mail) has become the primary form of communication in the world. It substituted the classic letter communication in many areas. The advantage of E-Mail is that the message is received immediately by the recipient. Furthermore, costs are saved for postage. A disadvantage of E-Mail is the abuse of the technology. So called Spam e-mails send unwanted advertisement to users. Microsoft founder Bill Gates, for example, receives literally 5 million spam mails per day.

Video Conferencing

In a global world companies have recognized the need for cross-national communication. However, with the continuous increase in gas prices it becomes more and more impossible for managers to arrange face-to-face meetings in other countries. Therefore, video conferencing has become a common tool to conduct cross national communication. The high bandwidths available nowadays benefit this trend. Furthermore, videoconferencing has developed in such a way that it almost feels like persons involved in the conference are really in the room.

Corporate Intranet

More and more companies make use of a corporate Intranet. Like the Internet it is a collection of web pages of different topics but only accessible to employees of the company. Employees can look up important information, documents, or communicate with co-workers by using the corporate Intranet. Intranets are mostly used as a knowledge management system. Documents and results from previous projects/processes are uploaded on the Intranet and can be accessed by other employees. Furthermore, the Intranet contains general news about the company.

Blogs

Blogs (or web logs) are a form of diary on the Internet or a corporate Intranet. Many executives use blogs in order to provide information about the development of a corporation or strategic decisions. Blogs are a good way to keep employees and other constituencies informed about what is happening in the company. Furthermore, it allows interactions through the comment function of blogs.

Wikipedia

Wikipedia are a type of collaboration platforms. They allow users to easily change content on the platform. The maybe most known Wikipedia is the Internet encyclopedia Wikipedia on the Internet. Users can create pages about certain topics and easily change entries of other users. The advantage of Wikipedia is that everybody is empowered and can create or change content. The disadvantage is that control is lost in some way, since everyone has equal rights.

Teleconferencing

Teleconferencing permits participants to meet in a virtual conference room, and communicate as if they were sitting right next to each other. Until the mid 90s, the hardware costs made teleconferencing exceedingly expensive for most businesses, and individuals, nevertheless this situation is changing rapidly. Most experts believe that teleconferencing will be one of the fastest growing segments of the computer industry.

In its basic form, teleconferencing uses communication means that range from simple telephone lines to sophisticated satellite links. The only requirement is that the conditions be interactive, allowing participants at each location the opportunity to actively participate in the meeting. As equipment and high-bandwidth cabling become more commonplace, it's possible that sophisticated, multimedia teleconferences can be held from your own computer or even in a mobile setting. Recent developments include improved equipment, more transmission options, the introduction of digital devices, and the integration of teleconferencing technologies with the desktop through personal computers. Additionally, there is a trend toward using teleconferencing for more international applications. As more international services have become available, this segment has seen significant growth for teleconferencing.

These communication technologies help companies to achieve high degree of success in communication. One of the important uses of various communication technologies within companies is to build efficient internal communication system. One of successful use of these technologies is IBM’s intranet – w3.

Technology is changing rapidly so is communication technologies. It is just a matter of time when new technology comes and replace existing one. In fact scientists are now working on to communicate with extraterrestrial intelligence (CETI). So it’s just a matter of time when we will find ourselves chatting, or video conferencing or even calling our friends in other planets!

Examples

Almost every executive employee at the Internet company Google Inc. has his own blog. In this way, not only co-workers, but also the public is informed about new things happening at the company.

Computer and electronics manufacturer Apple Inc. wants to change the way businesses are conducting mobile business. With the release of the new 3G iPhone Apple reacted to criticism, the iPhone would not be suited as a mobile communication device for businesses due to no broadband functionality. However, Apple has taken a lot of market share from market leader Research in Motion (RIM) and its Blackberry devices

References:

http://www.wcc.nrcs.usda.gov/publications/Briefing-Book/bb25.html

http://theteleconference-service.com

Corporate communication, 4th edition, Paul A. Argenti, The Tuck School of Business, Dartmouth College.

Internal communication

Today’s workplace is different from what it was decades ago. Tighter security, longer hours, greater workload, and more emphasis on performance are the characteristics of workplace. Employees are increasingly demanding participation in the conversation that are driving organizational change. This participation is vital to keeping employees at all levels of the organization regardless of job role or responsibility, tapped in, fostering a more genuine sense of community in companies large or small. Employees are smarter than senior managers think they are, they have short attention span and long memories and are desperate for direction.

Organizing the Internal Communication Effort

The first thing that any organization must do is to conduct a communication audit in order to assess the effectiveness of a company’s internal communication. Communication Audit is a process of determining what the employees’ attitude is, towards the company. Based on the results of this audit, the communication professionals can assess the effectiveness of the communication program prevailing in the organization and also to design the right program for the same.

Companies can also hire outside consultants to conduct the internal communication audit to if the internal professional are not as effective as they should be, or to identify the strengths and weaknesses prevailing in the company. They can also use in-person interviews, video conferencing facilities etc to make the program more effective.

The internal communication in the organization, through employees’ prospective, can be made effective in the following ways:

Ø Open and honest exchange of information
Ø Clear, easy to understand materials
Ø Timely distribution
Ø Trusted sources
Ø Two way feedback system
Ø Clear demonstration of senior leadership’s interest in employees
Ø Continual improvements in communication
Ø Consistent messaging across sources


Goals for effective internal communications

Ø To explore how companies can organize the function so that it supports the overall mission of the firm
Ø To reinforce employees’ beliefs that they are important assets to the firm

Where should the Internal Communication Report?

Earlier, the Internal Communication was reported to the Human Resource department, but now, the same is being reported to the corporate communication department. Often, both the areas have some involvement with internal communication. In some cases, the companies look outside their own organization for help with the internal communication. It must also work closely with the external communicators to integrate the messages disseminated to both internal and external audience.

Implementing an effective communication program

After the goals of the internal communication are established, they should be implemented effectively. In this section, we will explore the steps in implementation:

· Communicating up and down

The best approach to communicate with employees is through discussions between employees and supervisors. Employees need to feel secure enough in their positions to ask questions and offer advice without fear of reprisals from top management.

· Make time for face to face meetings

Another step to implement an effective communication program is to hold regular, in-person meetings with fairly large group of employees. This ensures that the employees have access to senior management and the management has an opportunity to share with the employees, the company results and progress on key issues and to demonstrate responsiveness to prior employee feedback.

· Communicate Online

Though meeting face-to-face is important, this cannot be done for every small issue. During such occasions, the management can use other modes of communication like using internet, intranet, blogs, social networking sites, etc so that the companies can reach its employees quickly and broadly with important news on events and key initiatives.

· Create Employee-Oriented Publications

In addition to face to face meeting and online communication, the companies should also think of other ways to make the internal communication effective. They can also create employee oriented publications to prevent employees without email access from being marginalized.

· Other steps

The other steps that can be taken include communicating visually, through televisions and computers as opposed to newspapers. They should focus on internal branding which is important to build morale and create a workplace where employees are engaged with their jobs. Last but not the least; they should not neglect the importance of their informal counterparts. Grapevine is an informal communications network including everything from private conversations between two employees to the latest anecdotes shared in the cafeteria.

Conclusion

With all the sophisticated technology available to communicate with employees, the most important factor in internal communication begins with the manager who has a basic responsibility to his or her employees. Understanding this fact is the cornerstone of an effective internal communications program.

Personal experience

In addition to the regular meetings, IBM in India, conducts meeting once in 6 months outside the firm like in a picnic spot, resort or any other exciting places. This is also one of the greatest ways of getting close to employees, to listen to them and also to maintain good relations with the employees. It also increases the informal communication among employees as well as between the senior management and the employees.

Reference

http://www.managementhelp.org/mrktng/org_cmm.htm#anchor467829

http://www.expresscomputeronline.com/20050207/technologylife01.shtml

Media Relations

Relationship with the media is one of the most critical communication functions. Media includes television, radio, newspapers, journals, internet etc. The role of media in a corporate communication system has been gaining importance over the years. The organizations use this media to convey their messages to investors, suppliers, retailers and consumers who develop images of a company through such messages. Media are both a constituency and a conduit. Almost every company today has media relationship department to maintain good relations with them.

The News Media

The advent of television in the early 1950’s and the tremendous growth of the internet in the recent years has led to the shift of the importance from the print media to the news media. News media has more impact on the constituency than any other form of media. It is rather difficult to determine whether the media generated heightened interest in the business or was simply responding to changes in public attitudes. But today, many old business professionals are reluctant to accept that the time has changed resist the importance of communicating through the media and would rather maintain little or no relationship with them. This kind of attitude is increasingly risky as the companies are subject to some level of scrutiny from the public and the media.

The Growth of Business Coverage in the Media

Earlier, the business news was relegated to only last few pages of the newspaper or a journal and it included no coverage in the national and local news channels. As the importance of the media in the businesses increased, the business news started gaining importance and recognition. People now, were more interested in business news and information. Newspapers like New York Times, Wall Street journal dedicated one whole section of the newspaper to the business news. Today, there are many magazines and web sites purely dedicated to the businesses, that it is nearly impossible for us to find a topic that is not completely covered.

Building better relations with the media

Earlier, the Public Relations experts relied on the system of communication where the company sent out a press release to a mass audience and hoped that someone would pick it up and write about it. Now, this system does not work. Today, the reporters tend to receive massive quantities of such releases, mails, emails and voice mails which tend to get ignored by the reporters. Therefore, building better relations with the media and to identify those reporters who would write about your company would save the time as well as money.

Another problem faced by the companies is that the measure of success in the media relations in the business is the amount of “ink” or coverage that a company gets. But, in reality, how valuable is the coverage is more important.

Conducting Research for Targeting Media

The senior managers should first set objectives they have for a certain story. This might by to create awareness about the company or to discuss the changes in the company’s global strategy. They should conduct research to find out which reporters will most likely cover the story and who will be likely writing a ‘balanced story’ about the company and its strategic moves.

Responding to Media Calls

The companies can strengthen their relationship with the media by handling their request for queries and information in the right way. It is wise to respond to such requests carefully and in a timely manner and in the way that will reflect the best on the company. The call should come into a central office that deals with all requests for information from the media. The person who takes the call should find out what angle the reporter is taking on the story and should try to get as much information as possible while being careful not to give in return any information which is not already public knowledge. The conversation should end with the media relations professional agreeing to get back to the reporter within the allotted time.

Preparing for the media interview

The executive who will be interviewed needs to be prepared for the actual meeting with the reporter. The beginning of the interview should be positive and the person who’s going to be interview should keep in mind, the objectives and the message to be conveyed through the interview. Using statistics and anecdotes can help bring ideas alive in an interview.


Building a successful media relations program is very important and in the process, the following things should be kept in mind:
Involve Media relations personnel in strategy
Develop in-house capabilities
Use outside counsel sparingly
Extend the media relations strategy to the blogosphere (internet blogs)
Handle negative news effectively

Example:

The most famous and extensively used example for the media relations is the Adolph Coors Company case. The company got into a crisis, a conflict between the company and the organized labor because of which, the fifth largest brewery started declining. The sales figures came down and there was a 10-years long boycott organized by AFL-CIO. To overcome this hurdle, the company’s owners-Coors Brothers decided to open up to the media and agreed to give an interview with Mike Wallace. Brothers prepared extensively for the interview and during the interview session, the brothers proved that they were not wrong and that they were not racists. The session was enormously successful.

Personal Experience:

I was studying in tenth grade when I got an opportunity to exhibit my painting on a Television show. I was very glad as I finally succeeded to get such an opportunity as I had tried twice earlier for the same and could not get a chance. This time, I met one of my mom’s old friends who is the host of the show and because of her influence I got the opportunity. This is an example of how keeping good relations with the media personnel would help us. This is true in case of companies also.

Reference:

http://tenant.net/Organize/media.html
This link is very useful. It contains a conversation between a person called carol and her old friend who is a reporter who tells her about having a good relationship with the media.

http://www.aboutpublicrelations.net/ucgranat2a.htm - How to improve media relations? – Top ten tips by Peter Granat, Senior Vice President, MediaMap.

Corporate communication, 4th edition, Paul A. Argenti, The Tuck School of Business, Dartmouth College

Corporate Advertising

Corporate Advertising is a paid use of media used by the companies to communicate their messages to a wide audience quickly and effectively. Unlike Product Advertising, Corporate Advertising not intended to increase sales of a particular product, but it seeks to benefit the image and reputation of the corporation as a whole. It brands the company the way product advertising brands the products and services. While the product advertising relates to marketing aspects of the business, the corporate advertising falls within the corporate communication area.

Corporate Advertising falls into 3 broad categories:

1. Image Advertising:

This kind of advertising is done to reinforce Identity or enhance reputation. It strengthens the identity of the company, following any structural changes like mergers, acquisitions etc where the company needs to communicate its new mission, vision and strategy to various constituents. Effective image advertising also allows companies to differentiate themselves from rivals.

2. Financial Advertising:

A strong investor relations function is very important for any organization. Financial advertising is one of the tools that companies use to enhance their image in the financial community. It can also stimulate interest in a company’s stock among potential investors. Overall, a strong financially oriented corporate advertising can actually increase the stock prices of the company.

3. Issue Advocacy:

This kind of advertising is used by the companies to respond to external threats from government or special interest groups. It typically deals with controversial subjects and is a means through which a company responds to those who challenge the status quo of the company.

History of Corporate Advertising in America:

According to Expert Thomas Garbett, the earliest corporate ad, paid for by the AT&T had a headline, “Telephone service, a public trust”. By giving this advertisement, AT&T tried to defend its monopoly status and combat the assumption that it couldn’t possibly be acting in the public interest given the lack of competition. Almost a decade later, many more companies were running corporate advertisements. Today, it is highly visible and intensely scrutinized by constituencies, which reinforces the notion that corporate advertising should be aligned with company’s vision and consistent across advertising media like print, television, web etc.

Who uses Corporate Advertising and Why?

Almost all the big organizations today, use corporate advertising to enhance their image and reputation, because they tend to be more diversified and thus have a greater need to establish a coherent reputation out of a variety of activities. Controversial Industries like cigarette, oil, pharmaceuticals, food etc are more prone to having image problems to deal with. Due to this, they use corporate advertising extensively to develop a stronger reputation and deal with the problematic situations.

To enhance sales:

It is also used by the companies to eventually boost sales, create a stronger reputation and goodwill by letting constituents in on what the organization is all about, particularly if it does beneficial things that people might not be aware of.

TPO:

Small companies also try to enhance their image by using endorsements from a third party organization (TPO) who can provide ratings and rankings of these companies or its services.

To recruit and retain employees:

Corporate advertising can be helpful to employees by explaining in simple terms, what a large, complex organization is all about. It is an indirect way of building morale among employees. It also helps companies to attract the best talent at the entry level and also for the senior management level.

However, if all the above goals for corporate advertising are met, it will ultimately improve a company’s financial situation.

Example of a corporate advertisement

Personal experience:

When I read any financial newspaper, or watch a business news channel, I come across more corporate advertisements rather than product advertisements. May be this is because the people who occasionally read financial journals and newspapers or watch business news are those who either have stakes in any company or they are potential investors. They are also the people who are interested and are keen about knowing what is happening in the corporate world. And therefore, this is the best channel of media one can go for corporate advertising.

Reference:

Corporate communication, 4th edition, Paul A. Argenti, The Tuck School of Business, Dartmouth College.

http://www.rocw.raifoundation.org/management/mba/corporateimagebuliding/lecture_notes/lecture-08.pdf

Identity, Image and Reputation

The first and the most critical part of the corporate communication function is the corporation’s brand identity and image. It is very important to address how a close alignment between a company’s identity and image generates a strong reputation, and also to know how to distinguish between the image, identity and reputation in the minds of consumers, shareholders, employees and other relevant constituencies.

Identity and Image:

A company’s identity is the visual manifestation of the company’s reality as conveyed through the organization’s name, logo. Motto, products, services and all other tangible pieces of evidence created by the organization and communicated to the various constituencies like customers, media, employees, etc.

An image of an organization is a reflection of that organization’s identity. It is the way the various constituencies view the organization. An organization may have different images pertaining to different constituencies depending on their perceptions.

Shaping Identity:

Identity is the only part of the reputation management which can be completely controlled by an organization. There are various things that contribute positively to a corporate identity. They are:

1. An inspirational corporate vision: A vision that encompasses the company’s core values, principles, philosophies, standards and goals is the most central part of corporate identity. It is a common thread that all the constituencies relate to.

2. Names and Logos: Branding and strategic branding management are the critical components of identity management system. Companies change their names and logos to institute structural changes because of mergers and acquisitions, to shape and enhance their identity and to differentiate themselves in the marketplace. A good name adds a lot to the image building process of an organization.

3. Consistency: A company’s vision should be consistent across all its identity elements right from name, logo to employees’ behavior.

Identity Management Process:

Step 1: Conducting an Identity Audit:

An organization has to collect various facts from various constituencies to get a better sense of their image, which provides it with a starting point of creating an identity, by conducting research with constituents. This research should be both qualitative and quantitative in nature and should try to determine how consistent the identity is across constituencies including employees, analysts, customers etc, which can be used as a basis for potential identity changes.

Step 2: Set Identity objectives:

After analyzing the Identity audit, the company’s senior management should set goals and explain how each constituency should respond to specific identity proposals. The main goal should be to make customers aware of the dramatic transformations that are going on in an organization.

Step 3: Develop Designs and Names:

Once the Identity objectives are clear, the actual design should be developed. The changes in name or logo should be made in consultation with the experts because so many names already exists that the companies need to avoid any possibilities of trademark and name infringement. The logo should reflect accurately, the company’s reality.

Step 4: Develop prototypes:

The organization should develop prototype using new name or/and logo. The new identity should be applied to everything including ties, t-shirts, packaging, business cards, and stationery to see how it works in practice.

Step 5: Launch and Communicate:

This is the phase where the new identity of the company is formally introduced to the company’s constituency and the public. The presenting of an identity, particularly for the first time is a complex process and it is easy for constituencies to wrongly interpret the changes.

Step 6: Implementing the program:

The final stage of the identity management process is the implementation of the program. In order to ensure that the identity change program is implemented successfully, the company should develop an identity standard which shows the staff and managers how to use the new identity consistently and correctly.

Reputation:

Reputation represents Identity and image of the corporation as a whole. It differs from image because it is built over time and is not simply a perception of the people. It also differs from identity because it is a product of both internal and external constituencies. Companies with strong and positive reputation can attract and retain the best talent as well as loyal customers and business partners. Only when image and identity are in alignment will strong reputation result.

Example:

A classic case of turning around a corporate reputation and enhancing product sales involves the Ford Motor Company. Not too many years ago the American automobile industry was reeling from imported cars from Japan and Europe that simply outclassed and outperformed their American counterparts. US automakers simply could not match either the reality or the perception of the quality of imported automobiles, especially from Japan. Ford took the issue head on and launched its corporate program, "Quality is Job One."

More than an advertising slogan, although a good one at that, Ford made narrowing the quality gap between its cars and Japanese imports the overriding positioning for the Company, its employees, shareholders and stakeholders. The company changed its culture and its behavior. Quality truly was the Number One priority for the company. It made measurable progress, narrowed the gap and was rewarded by the buying public, perhaps best exemplified by the Ford Taurus, the best selling model in the world for three years running. Ford made good on its promise and the public responded.

Personal Experience:

During my internship in an Insurance company, I was working under a manager who worked with that company for over 10 years. He knew everything about the company, his employer and the people working with him. Since he was pretty friendly with me, he talked to me about all the negative things about the senior management and the company as a whole, which ruined the company’s image from my viewpoint. I feel that the Senior management should take steps to develop good relationship with the employees so that such instances can be avoided.



Reference:

“The Forgotten Brand: The Power of Corporate Reputation”, James H. Dowling Chairman Emeritus, Burson-Marsteller, Mexico City, December4, 1996
http://www.cem.itesm.mx/dacs/publicaciones/logos//anteriores/n6/forg.htm

Corporate communication, 4th edition, Paul A. Argenti, The Tuck School of Business, Dartmouth College.