Institute of Internal Communication

New research unveiled at the CiB conference today (24.05.07) challenges top teams and senior decision makers to recognise the potential of internal communications (IC) to drive up the cohesion and performance of organisations.

Note: CiB members can download a copy of the IC:UK research in the members' section.

A study of 596 large, mostly multi-site organisations in the public, private and voluntary sectors, finds that IC is working increasingly closely with chief executives, as IC specialists take the lead in helping staff understand the business they work in and internal PR. However, it also notes that IC teams may on occasion be too reactive.

The highest performing organisations use IC both for downwards and upwards communication - a capacity that is not widely shared across organisations.

Dr Michelle Mahdon, researcher at The Work Foundation and co-author of the report, said: "Communicating effectively inside organisations is not something to be done for the sake of it - it is a central performance and productivity issue.

Burden

"On the shoulders of the IC function rests the heavy burden of ensuring the strategic direction of an organisation is known, understood and, above all, acted on.

"Get it right and the result is increased engagement and productivity, with employees performing the role of ambassadors for the corporate brand.

"Get it wrong and top teams will soon learn just how contagious apathy and cynicism can be. 'As we move towards a more knowledge-based, networked economic model, where teams do not necessarily sit together in the same office, internal communication is almost certain to rise in importance and sophistication.

"Yet it is also the case that with so much information whizzing about - not all of it high quality - getting good, consistent messages across calls for increasingly complex sets of skills."

Argues

The report argues IC professionals need to connect better with line managers, recognising the central role they play in contemporary organisations and not seek to bypass them by dealing directly with staff. IC:UK found:

• IC is involved in major decisions in 90% of organisations, while IC budgets have increased in 42% of organisations in the last three years.
• Although 91% of IC professionals use e-mail, it is judged the least effective communication channel. Instead, mostly 'old media' techniques such as team briefings, newsletters and magazines and face-to-face events were seen as the most effective.
• The two key roles that IC played across all sectors were helping staff to understand the organisation and internal PR. However, in profitable private sector organisations IC employees were more likely to see their role as supporting line managers.
• The report noted the retreat of collective forms of communication at work. Over 60% of organisations across all sectors had no collective mechanism for communication, preferring individual techniques.
• However, high performing organisations across all sectors generally mixed individual and collective forms of communication
• Smaller companies tend to spend more of their budgets on IC. Organisations with 5,000+ employees spent approximately £10 a head on IC. Those with under 1,000 (but more than 500) spent £66 a head.
• CEOs were felt to be the most important stakeholders for IC professionals - especially in the private sector.

After the CEO, important stakeholders were employees, the HR function and line managers. Michelle Mahdon added: "It is often said that new technology has revolutionised the way we communicate. But although organisations now have a whole bag of new tricks, it appears as if low tech trumps high tech in communications terms.

"E-mail as a channel for communicating strategy is seen as largely ineffective, though this does not stop organisations from using it.

"Interestingly, it is the more personal techniques such as face-to-face interaction and personal presentation type events that are believed to be much more successful. It seems there may be some truth to the old saw that effective communication involves the exchange of pheremones. Increasingly, leaders are seeking authenticity in the way they communicate, which is adding to the difficulty of getting it right."