It’s a great day at Zappos how may I help you?

Wow – just did a keyword search on Zappos and realised I haven’t blogged about them yet. How can I possibly expect to be taken seriously as a communications professional if I haven’t even mentioned them before?

Let’s put the record straight. I love Zappos. I love Tony Hsieh. I love their new website. I love their core values. I love their weirdness. I love the fact that Amazon paid $900m for an online shoe shop.

I’d probably love to work there if I was not so utterly in love with Betfair.

Zappos core value number 6 is a thing of beauty: Build Open and Honest Relationships With Communication. Zappos believe that open, honest communication is the best foundation for any relationship. They don’t need to spell out if they mean internal or external communications. For Zappos they are the same thing. Zappos internal communications are conducted in public, in the full view of their customers and their fans.

They acknowledge that communication is always one of the weakest spots in any organization, no matter how good the communication is. That’s why I guess they are so driven towards communicating with their customers and their people so openly and honestly. Because it creates trust and trust is the basis of any relationship, especially an online commercial one.

So if anyone was going to create a TV ad campaign based around real customer and staff interactions, it was going to be Zappos. I really like the results. What a great way to expose your company’s personality!


If you are interested in Zappos, you can follow Tony Hsieh on Twitter – alongside 1.6m other doting fans. I can’t think of many other CEOs who can command such a following.

Actually I can’t think of any – can you?

The soft stuff is the hard bit

I went to a very interesting breakfast ‘roundtable’ this morning, hosted by People in Business (PiB). We were there to talk about Employee Communications During Mergers & Acquisitions and to mark the launch of a book by the same name written by PiB’s Jenny Davenport and Simon Barrow.

There were a few grim faced, hardened old M&A advisors at the table and some of the things they said got me thinking about their trade.

Why is it that M&A advisors are not subject to qualitative measurement around the long term value created by the transactions they advise on?

Seems to me that they are simply measured on the total fees they manage to acquire in any given year. Check out this list of 2009’s top ten M&A advisors to see what I mean. I had a hunt around for a top ten based on long term sustainable value creation and couldn’t find one.

There is plenty of research which suggests that M&A activity fails to create value for the companies involved more often than not. The failure rate of mergers and acquisitions is similar to that of any large corporate change initiatives – around the 70% mark. And in both cases, it is the so called soft stuff that is widely recognised as the root cause of failure. Insufficient attention to the people agenda, clashing cultures and poor communication in particular.

If the M&A advisors know this, why is it that they don’t do something about it – or at least advise their clients to? It’s because their focus is on getting the deal done. Their priority is to sell the financial and operational value of the deal to the analyst community and institutional shareholders. And these guys have a short attention span. They are looking at the share price graph on the day of the announcement. They are not really interested in how well the company will be performing in 5 years time. And the advisors are interested in getting their fee – which is obviously paid upon completion, not incrementally on a long term performance related basis.

The same can be said of executive search and recruitment. How many head hunters are measured on their ability to fit the right person into a senior leadership role in a company on any long term success metrics? How many would be willing to accept that they got it wrong? None of course. It’s a numbers game, and their job is done once the offer has been accepted and their cheque is in the post.

Actually, I believe that the clients get it. Companies are far more likely to instruct external specialists to conduct cultural due diligence than the advisors. PiB said as much today when I asked them how many of their clients came from advisor instructions. The answer was just one out of the 26 significant M&As they have been involved in. In all other instances it was the company or companies involved in the transaction that called them in.

PiB also mentioned that recent research conducted by Brewin Dolphin indicates that these same PiB clients have outperformed the FTSE 100 index by 68% since the relevant transaction.

So why am I banging on about this?

Because I am communications professional and I believe with all my heart that the role we have to play in the day to day running of a business, and in particular at times of major corporate change, what we do or don’t do has a serious impact on company performance.

Internal Communications is all about creating a climate inside an organisation where the major factors that influence employee engagement can thrive: respect, trust, openness and recognition.

We represent the conscience and the consciousness of the company and no-one is better placed to advise and deliver on the hardest bit during times of change – the soft stuff.

Internal Communications on Linkedin?

I recently started a discussion on my company’s group on Linkedin about using the site as an Internal Communications channel. The main strands of the feedback were:

  • We don’t need yet another channel to have to keep an eye on
  • Fear that ex-staff are also part of the group
  • Fear over security features on the site
  • The lawyers said no!

I was somewhat surprised at the push back until I realised that it was my fault for not positioning the idea quite as I had intended.

My own considered definition of Internal Communication is likely to be very different from everyone else around here – after all, I’m the only one who thinks about it all day every day, and occasionally wakes up in a cold sweat in the middle of the night thinking about it too…

Most people not immersed in the dark art would naturally assume that Internal Communication is communication exclusively within an organisation. The fact is, these days with the speed, ease and penetration of digital and mobile communication, there is growing convergence between internal and external communications. There has to be.

One reason for this is simply because staff are participating in social media channels like Facebook and Twitter in ever increasing numbers. And just as we can’t and shouldn’t attempt to regulate what they say to their friends in the pub or their family across the dinner table about what it’s like to work here, we should not attempt to do so online either.

Most staff are natural and willing advocates of the company they work for, and rather than trying to script them with carefully crafted words, or banning them from contributing to certain online communities, or threatening them with disciplinary action if they cross some digital line, surely companies are far better off working hard to constantly improve their experience at work.

The growth of social media channels is making even email look very slow and cumbersome these days, and communications professionals have to assume that anything broadcast internally has the potential to reach the outside world within seconds – and spread across the globe just as quickly. At best, IT security measures can only ever hope to shut the stable door after the horse has bolted and provide the necessary evidence to invoke disciplinary procedures.

Of course there have to be some rules and there certainly has to be some advice and guidance. But demonstrating trust in people and creating a climate of authentic advocacy through increased transparency, openness, humility, honesty, integrity, personal growth, professional development, meaningful work and fun looks to me a lot more effective and rewarding.

I agree that we should not be in the business of creating more places where people are expected to have to visit to find information or provide give feedback. That was never in my mind. I know how hard it is to drive traffic to a single very accessible source already, let alone encourage them to contribute to discussions and leave feedback.

My thinking here was simply that where you have an existing pervasive channel it feels like a lost opportunity to ignore it just because it is external. It would only ever be a complementary alternative place for people to find out what is going on and have their say in case they were finding it hard to find their way to the single source of corporate truth that is the intranet.

The presence of ex-staff is a complete bonus! I’d like to think that most people that have moved on from the company still love the place. Academic institutions and many large companies make an effort to keep in touch with their Alumni and so should we. Plus their perspective on issues has real value. They are just as likely as current staff to be customers and investors.

Oh yes – nearly forgot. It came as no surprise that Legal would be so dismissive. I think it’s time to go and talk to them!

Semantics

I’ve found myself compelled to contribute to a few online discussions recently, both I hate to admit, sparked off by nothing more that my own intolerance. One here and another here.

You see I have this thing about arguments seemingly based on nothing but semantics. It winds me up a treat when people start arguing about the meaning of words and hold up long lists of alternative dictionary definitions as reasons why current terminology needs to be re-defined.

My own industry is full of it. Many of my peers* seem determined to find alternative labels and terminology that more accurately reflect exactly what we mean by Internal Communications and Employee Engagement. In one recent discussion on the Employee Engagement Network, ‘syntropy’ was held up as the contributor’s ‘terminology for the antithesis’ of the ‘malpractice’ of managers and consultants who disengage employees in ‘the Entropic Enterprise’. Make of that what you will. I gave up trying to work out how that would help anyone understand what a disengaged employee looks like after getting bogged down in medical glossaries in search of a spot of clarity.

An article I came across in an in-flight magazine the other day may help to illustrate what I’m somewhat inelegantly trying to say here. The article, which explored the evolution of music, began by defining the word ‘music’ as “an art form with the medium of sound based around vibrations”.

Now what bloody use is that to anyone? Music is music. We all know what it is. We all have our own opinions on what constitutes good and bad music. But it’s still music.

I have to confess I couldn’t be bothered to read the rest of the article. The attempt to define ‘music’ was too big a turn off to draw me any further into the story. I was disengaged.

*Maybe not quite peers. Consultants seem more prone to this activity than in-house practitioners, who I consider to be my true peers.

A personal perspective on Internal Communications

Hands up those who think that the primary role of Internal Communications is to craft and deliver corporate messages?

I’d like to think any communications professionals reading this have kept their hands firmly pointing to the floor. I’m sure I’m right on this. I’m just as sure however that a significant proportion of senior executives across the land are tempted to raise their hands if they haven’t already thrust them up towards the heavens.

I believe that the primary role of Internal Communications is to create or at least contribute to a climate where people are increasingly receptive to receiving those corporate messages in the first place.

Communication does not take place until the intended recipient receives and accepts the message. You can shout as loud and as often as you like, but if no one is listening you are not communicating.

Every so often I come across people who believe that if you craft an email containing all of the relevant points you wish to get across, once you have hit the send button you can put a tick in the ‘communication done’ box. As George Bernard Shaw famously once said “The single biggest problem in communication is the illusion that it has taken place.” Yep – I buy that.

A big part of my job is to educate and support those around me who believe they have communicated when they haven’t – as well as to undertake all manner of activities to increase the likelihood that when a corporate message is sent out there is a natural demand from the recipient to accept delivery. I don’t want to see people hiding behind the curtain when the postman knocks on the door.

You can lead a horse to water, but you can’t make it drink. The horse will only drink if it is thirsty. The job of Internal Communications is to create thirst.

This is where things get a touch more complicated. Every organisation is different. There is no one size fits all approach that will work from one company to the next. The sort of things I mean will usually involve varying degrees of getting down and dirty, lots more listening, creating more opportunities for conversation, finding the right balance between push and pull, and equal measures of transparency, openness, humility, honesty, integrity and fun.

However, there is one thing that can be applied to every enterprise regardless of size, age and location; and that is the need to enlist the unequivocal support of your line management community. I sit firmly in the Larkin & Larkin camp.

No amount of leadership summits, executive workshops, CEO breakfasts, engagement surveys, podcasts, blogs, Twittering, Yammering or firing out all-staff emails can make up for a tuned out line manager who does not regularly engage with his or her team on the important corporate issues of the day.

A word in your Shell-like

The Times today carries a story of the names and telephone numbers of up to 170,000 of Shell employees and contractors being sent by email to human rights groups and environmental activists, supposedly by a group of disaffected staff who were pressing for changes within the company.

I’d say the truth around this story has yet to be established, however regardless of whether this represents, as reported, the actions of a group of disaffected staff seeking change (which feels very unlikely!), or the actions of a single rogue ex-employee it will probably be a while before we know.

The story interests me primarily because it is a timely reminder to those who argue that social media should not be allowed in the workplace because of the increased risk of intentional or accidental reputational damage.  The same arguments were widely articulated in the early days of email – and who could seriously suggest these days that email has no place in business and commerce?

This is not a technology issue. Today’s story illustrates how the means of spraying information around the globe in minutes has been with us for donkey’s years. Social media technologies may speed up the spray from minutes to seconds, but this makes no real difference to the outcome. And security measures merely provide a way of mopping up after the damage has been done. They will never prevent such occurrences from taking place.

No – this has nothing to do with technology and everything to do with human behaviour. Last Friday’s Twitter storm involving Vodafone UK was very interesting. The storm turned very quickly into a storm in a tea cup and went on to illustrate to me the enormous potential that social media has in enhancing and protecting corporate reputations.

Had the employee sent his homophobic comments in an email to 8,000 people the story would have gone viral over a period of days and weeks and it would have attracted far more mainstream press coverage. Because this took place on Twitter the whole world knew about it in minutes – but they got over it in hours.

In my opinion Vodafone handled the incident magnificently. They could have gone quiet and said nothing (the route favoured by far too many corporate media relations departments) or maybe spun the story by blaming hackers or technology failure.

But no – they swiftly identified the issue as one of human behaviour and apologised openly and elegantly and as a result the story no longer has legs. In my opinion Vodafone controlled the incident beautifully by demonstrating agility, openness and a touch of humility.

I think there are lessons for us all in there somewhere.

Organisational Vietnam

Blogging has an unforseen advantage! I’m going to use this as a way of keeping track of my own contributions to conversations on other people’s blogs. It is all too easy to add your thoughts to someone else’s discussion and never find your way back to it.

Mike Klein recently set out a few questions to think about before deciding on whether an “employee engagement engagement” will be an exciting and worthwhile challenge or a quagmire worth avoiding. I had a few thoughts on how to avoid an “organisational vietnam”.

Discretionary effort

Great posting by Tammy Erickson in the HBR today on her predictions for 2010 Five changes in the way we work

I particulary agree with prediction 3 on the competition for discretionary effort, which I unashamedly reproduce here:

Engagement has been a hot topic in talent management circles for the past decade. But its benefits have focused primarily on attracting and retaining employees. Increasingly, managers’ focus will shift to competing for an employee’s discretionary energy — competing with other priorities in the employee’s life, including other options for work — but also competing against employees who are only “going through the motions.” More and more of the work in today’s economy cannot be done rotely — success requires a spark of extra effort, creativity, collaboration, and innovation.

Goes back to what I wrote about yesterday – the importance of creating a climate at work where people can be themselves!

Work hard, play hard

You see this rather hackneyed phrase far too much these days for my liking. People seem to like wearing it as a badge of honour. My problem with it is that it serves to reinforce the traditional boundaries between ones work life and social life, which in my book is a problem.

OK, some use it to justify work related jollies, which is fine. In fact it’s more than fine. If it’s true it’s a beautiful thing. However, others use it as an excuse to sneak out early on a Friday afternoon because their super human efforts have enabled them to pack into 4 hours what their less able colleagues take a whole day to achieve.

I’ve just finished reading a very interesting piece by Julian Birkinshaw, Professor of Strategic and International Management at London Business School called Is social networking at work good for employee engagement?

The fact that more companies in the UK ban the use of social networking sites in the workplace than don’t means that this is already a much debated issue. There was an excellent piece a while back on Mashable which pretty much articulated my own very strong views on the matter. What interested me most was the bit on the blurring of the boundaries between home and work, especially given that in my inaugural introductory post yesterday I boldly stated I like this trend.

It’s true, I feel this blurring is a very positive thing – what Professor Birkinshaw has done is help me think harder about why. The truth is I had never really thought about it, other than to rationalise that it is a very powerful force in creating stronger bonds between a company and its customers. I hadn’t really considered that people who like to keep their work life and social life completely separate may be leaving their more creative and playful side of themselves at home.

Professor Birkinshaw suggests that when people bring more of themselves to work the benefits are increased creativity, engagement and discretionary effort. Rock on!