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Communicating in Times of Change and Crisis

APEX

September 14, 2011

Tim Flaherty, Principal

Dr. Tim Tinker, Senior Associate

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Communicating strategically is a key factor in effectively facilitating

transformation and change

“The proactive and targeted development and delivery of key messages, and engagement of key stakeholders at the right time and in the right manner”

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Developing a compelling case for change that drives consistent messages across an organization to achieve desired business goals

Partnering with key influencers to create custom communications solutions and deliver the compelling case for change

Predicting reactions and developing strategies to mitigate resistance and encourage action

Advising leaders and project champions on tactics to influence the behaviors needed to achieve success

Leveraging multiple tools and tactics to best reach and influence stakeholder groups

Communications Is… Is Not…

Crafting a one-way dialogue from leaders to employees

Creating only tactical materials like plans, newsletters, and memos

Developing a “one size fits all” approach or tools for all audiences

Implementing communications as the one and only tool for change management

Creating communications in isolation from management and project workstreams

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Defining Change Communications

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Ownership Building – Moving from uncertainty to readiness

Uncertainty Readiness

Awareness Understanding Acceptance Adoption Ownership

Ownership Continuum

Organization

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… focuses on developing strategies to help our clients build ownership of critical initiatives throughout the organization

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Change communications lifecycle

• Understand corporate culture

• Understand nature, timing,

objectives of change initiative

• Identify and access change communications

benchmarks• Determine how

stakeholders can assist with strategy

• Develop strategic & tactical

comm plans• Define target

audiences and unique needs

of each

• Tailor messages• Determine optimal delivery channels

• Determine optimal timing of delivery

• Determine feedback

loops & strategies

• Engage & train change

champions• Concurrently

deploy multiple tools and tactics• Adapt message

& delivery in response

to feedback• Provide business experts as needed

• Keep feedback loops current

• Routinely evaluate

communications effectiveness

• Use independent parties for

measurement• Communicate

results of evaluation• Redirect

resources as necessary

• Remain open to stakeholder input

PlanningResearch Implementation Evaluation

ONGOING INTERNAL & EXTERNAL STAKEHOLDER INPUT

• Develop initiatives, programs, and

products which assist the organization in

meeting its strategic communications

goals

Development

ONGOING INTERNAL & EXTERNAL STAKEHOLDER INPUT

COMMUNICATIONS PLANNING LIFECYCLE

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Basic Concepts for Communicating in Times of Change

Targeted Development and Delivery of Key Messages

Stakeholder analysis should inform more than user needs, business processes and preferences Thorough stakeholder analysis uncovers values, attitudes and concerns Key messages begin here and evolve as initiative progresses and stakeholders react to change Reaching this level of early understanding can be a key success factor

Engaging Key Stakeholders at the Right Time and in the Right Manner

Accurately identifying those impacted by the initiative often means “casting a wider net” Traditional cascade approach of securing executive buy-in first and cascading down through organization

often misses organizational pulse While senior leadership buy-in and sponsorship is key success factor, open and deliberate efforts to start at

the point of impact and leverage peers to build buy-in can be wise investment Important to identify appropriate channels and forums for this involvement

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Degree of Support

Support

Unknown/Undecided

Oppose

Low Unknown High

Potential PartnersStakeholders who support

reforms but are less influential

Unknown/Undecidedstakeholders are placed

on the axes

AlliesStakeholders who are

strong reform supportersand have

high influence

AdversariesStakeholders who opposereforms and are influential

OpponentsStakeholders who oppose

reforms but have low influence

Level of Influence

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Stakeholder segmentation based on support & influence

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Communications Tools By Level of Engagement

CATEGORY FACE TO FACECYBER ENGAGEMENT/

MULTIMEDIA HARD COPY

PUBLICATION

SPECIALTY ITEMS

Communication direction between communicator and audience

Communication direction between

communicator and audience

Reachand richness

Advantages

Disadvantages

Low reach/high reachness

Largely considered to be most effective means of communication

Time consuming One-time event, not repeatable

unless recorded Requires qualified speakers Requires physical space Limited audience size

One-way or two-way

High reach / richness varies

Efficient, fast to disseminate, update ( systems are compatible) Easy interaction with audience Usually easy to publish 24/7 availability

Labor/time intensive (to produce/review/clear)

Not all graphics/layout compatible with technical means of delivery Technical capabilities not always at all sites

One-way (messagemoves from communicatorto audience)

High reach / richness varies

Provides for easy/desk side reference/referral

Great designs have visual impact Portable (easy to carry home)

Labor/time intensive (to produce/review/clear)

Snail-mail distribution Disposable Unchangeable

One-way (message moves from communicator to audience)

High reach / low richness

Creates “buzz” Supports branding Amplifies “message” Leaves lasting record of personal appearance

Relatively expensive Often must be produced in-house Rules about gift-giving may

restrict distribution

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Feedback and two-way dialogue allow for key message and theme refinement

Feedback Approach Objective

Feedback email form on web site(Intra/Internet Survey)

Allows the organization service providers and employee customers to give feedback on the program and on the communications materials received

Focus Groups Used to evaluate the effectiveness of the demonstration project; to test impact of change; and to obtain group feedback on communications and/or program components

Comment cards questionnaires at road shows and other gatherings

Provides direct and immediate feedback with little effort required of the developer or the respondent

Steering CommitteeProvides timely and consistent feedback from a well-informed and important set of stakeholders;

also provides an opportunity to address issues face-to-face with representatives of major stakeholder groups

Surveys/Data Collection Questionnaires Provides quantitative data. If done anonymously, respondents feel less pressure to give the socially acceptable answer and may provide more honest feedback

Town Hall Meetings Provides an opportunity for two-way dialogue with stakeholders. If the same questions are repeatedly asked, this indicates a flaw in the messages being sent

Roundtable Discussions Small group atmosphere allows deeper discussions, and will indicate if messages have been sufficiently customized. Additionally, provides focused feedback on localized issues

Feedback link available on theorganization intranet

Provides open invitation for feedback from all internal stakeholders, and allows for personalized response which will instill confidence that concerns are “being heard”

Sample Feedback Mechanisms

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To minimize resistance and add value, leveragechange agents throughout the organization

Change Agent Leverage Model

Be Ready to Change Be Able to Change Be Willing to Change

Engage the Top and Lead the Change

Cascade Down and Break Barriers

Mobilize the Organizationand Create Ownership

Make the case for change Build the leadership team Manage rumors Craft the vision and set direction Assess change readiness Develop overall change management

and communications plans Set expectations; define consequences Communicate with stakeholders

Select and engage change leaders Ensure performance-driven approach Cascade down and motivate Identify and remove barriers to change Communicate effectively-celebrate wins Establish and employ listening vehicles

Roll-out change program to the frontlines Measure change adoption Embrace learning and knowledge sharing Manage bottom-up vs. top-down Communicate effectively and establish

mechanisms for feedback Manage rumors; reduce fears Pilots to support fact-based decision making

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Identify and reach out to those who standto lose something because of the change

Explain the reasons for the change

Accept the importance of individual reactions,values and responses to change

Acknowledge concerns openly and sympathetically

Treat the past with respect (honor legacy) but emphasizeexciting current direction and opportunities

Challenge people with their integral part in making the change successful

Motivate others by displaying their own internalization and adoption of the change

Interact regularly, both informally and through team meetings(e.g., brown bag sessions) as appropriate

Maintain an approachable style and stay in touch regularly

Change A

gents’ M

ission

:

Identif

y and In

form

“Change agents” become the frontline of the communications efforts

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Communicating Change Scenario

A major IT program under your jurisdiction will change the way in which your workforce manages its budget process and financial reporting. You are now ready to implement the program---despite being a $500k over budget and two months behind schedule. Meanwhile, your public affairs office was monitoring mentions of your program online and informed you that someone posted the frailties on Twitter and an industry blog.

A major IT program under your jurisdiction will change the way in which your workforce manages its budget process and financial reporting. You are now ready to implement the program---despite being a $500k over budget and two months behind schedule. Meanwhile, your public affairs office was monitoring mentions of your program online and informed you that someone posted the frailties on Twitter and an industry blog.

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The account was traced to several of your employees who exaggerated the dollar amount and cited a year delay. Worse, the employees predicted a failed launch because few of the expected users of the new system knew much about it, how to use it, and that “the current system worked just fine.”

While nothing has been mentioned in the traditional media, it’s clear that rumors and misconceptions may threaten a smooth launch.

The account was traced to several of your employees who exaggerated the dollar amount and cited a year delay. Worse, the employees predicted a failed launch because few of the expected users of the new system knew much about it, how to use it, and that “the current system worked just fine.”

While nothing has been mentioned in the traditional media, it’s clear that rumors and misconceptions may threaten a smooth launch.

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The Communications Challenge

How would you begin to counter the rumors and misconceptions?

Is the source of the misinformation a concern?

What types of actions might you employ to prevent similar events in the future?

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Underestimating the degree of culture change vs. structure and process change

Approaching stakeholder involvement as a “Decide/Announce/Defend” strategy

Not recognizing the need to tailor the message and the delivery channel

Not calibrating the level of engagement stakeholders desire

Underestimating the depth and breadth of stakeholder interests

Creating a robust and targeted communications strategy but failing to prepare to implement

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Why do so many initiatives fail?

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Urgent & Emergent Risk

An event or issue that can occur at:

ANYTIMEANYWHEREto ANYONE…

And can cause GREAT PAIN!

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Your PR&C Scorecard

Rank: ___Our Operational Success___Our Workforce ___Our Stakeholders___Our Reputation

#1 Threat (Describe) ____________________________________________________________________________________________________________________________________________________________________________________________________________

Your PR&C Scorecard

Your Threat Readiness Score:_____

Your Controversy Readiness Score_____

Your Worst Outcome Readiness Score_____

Your Adversary Readiness Score:_____

Your Message Readiness Score:_____

Your Traps & Pitfalls Score:_____

Your PR&C Score:_____

YOUR TOTAL SCORE:

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Crisis and Executive Confidence42% were the subject of a government inquiry or investigation24% had faced a natural disaster, data loss or security breach21% experienced at least one employee injury or fatality

resulting in legal action9% were the target of protesters or consumer boycotts &

actions52% of crisis plans did not specifically address how to effectively

handle negative postings to Twitter, Facebook or YouTubeOnly 29% felt confident their organization would respond

effectively if a crisis occurred

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Truth Is…

Some people may not like you…

Some people may want you to fail…

Some people may not want to find common ground…

Some people may not want to seek solutions to issues…

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Organizational Identity & Objectives

Our Operational Success

Our Workforce

Our Stakeholders

Our Reputation

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Reputation

“Everything that you and your organization does, how it does it and how audiences think, feel and

act as a result”

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Personal Reputation Index (PRI)

Words & Actions – e.g., Do/Don’t Do Intention & MotivationCompetence & ExpertiseTrust & CredibilityInnovation & QualityLeadership & Vision

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Reputational Risk

Top 3 Threats to Your Personal (and Organizational) Reputation?

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Controversy & Reputational Risk

What is the potential controversy for our threat scenario?

How will we know when the issue moves from “risk to “crisis?”

What difficult questions can we anticipate?

Will the controversy go away on its own? Why or why not?

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Reputational Outcomes & Consequences

Best Possible Outcome

Most Probable Outcome

Worst Possible Outcome

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ADVERSARIES (Negative/Oppositional)

Who are they and why are they adversaries?

What is their position on the issue?

What are they getting wrong about the issue?

Who do they look to for advice; who do they trust and perceive as credible?

Hidden motivations? If yes, what are they?

What information do they need from us?

*(Allies & Ambivalents)

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Rule of 3

3 Minutes3 Hours3 Days 3 Weeks 3 Months

APP – Anticipation-Preparation-Practice

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Trust Restoration Template

Stop the Wrong (e.g., define “the wrong” in clear, specific and measurable terms)

Right the Wrong – Tell them what you’re doing about it (e.g., immediate actions/steps in the next 30-60-90 days)

Remove the Potential for Wrong – Tell them how you are ensuring that it won’t happen again  (e.g., preventive measures)

(KDG, TBC, 27/9/3)

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Communications Traps and Pitfalls

False Allegations/False Negative Questions

Guarantee Questions

What If (e.g., Worst Case Scenario) Questions

Blame/Accountability Questions

Yes/No Questions

Emotionally Charged Questions

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Warrant Buffett on Reputation

“It takes 20 years to build a reputation and five minutes to ruin it.”

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Contact Information

For more information, contact:– Tim Flaherty

(flaherty_timothy@bah.com)/703-902-7042

– Tim Tinker (tinker_timothy@bah.com)/301-444-4034