The Rise of the Red Headed Stepchild

Employee Comms for the Creative Economy

www.coxc.co

In the mass market industrial economy, communications was ruled by the Mad Men

Advertising was King

PR was the annoying little brother

Advertising was King

PR was the annoying little brother

Advertising was King

Internal Comms was the red headed stepchild*

*red headed stepchild A person or group treated without the favor of birthright.

The boss treats this department like his red headed stepchild.

Advertising had the brightest talent, the biggest budgets, and the best parties

No matter how dull your business was, the best advertising could always make you look better

And then we moved from the industrial economy to the information economy

Customers began to question the

advertising they were being served

Faced with an increasing array of choices, customers began to look for third-party validation of advertising claims

Customers also began to care about

the corporate behaviors behind

their brands

It was 2002 and according to marketing pros, Al & Laura Ries, we were experiencing:

The Fall of Advertising & the Rise of PR*

*fall of advertising Anytime anyone forecasts the fall (or the death) of something, they are always overstating the case

But if you forgive the hyperbole designed to grab your attention, there’s often an underlying trend worth paying attention to

The annoying little brother was fast becoming the 21st Century Spin Doctor

Advertising was King

Companies turned to PR to authenticate their message and put a human face to their story…

…even if that face was often media-trained to within an inch of automation…

…and the message vetted by lawyers to within an inch of being interesting

PR worked behind the scenes with media to ensure that readers and viewers were shown the truth they wanted them to see

PR mirrored the command and control management

style of the day

Messages were crafted

Messengers were trained

Media were managed

No matter what issue you faced, smart PR could always make you sound better

And then we moved from the information economy to the creative economy*

*creative economy an economy of continuous innovation & transformation

A new kind of organization is emerging, capable of achieving both continuous innovation and transformation along with disciplined execution...

...delighting those for whom the work is done and inspiring those doing the work

It is generating a new economy —the Creative Economy

Stephen Denning: The Leader's Guide to Radical Management: Re-inventing the Workplace for the 21st Century

As direct access to information increases, managed media is becoming as mistrusted as the advertising that supports it

Source: Edelman’s 2016 Trust Barometer

Less than half the population now has trust in the media

Press statements from official spokespeople are overshadowed by social media comments from authentic employees

“On a work call the other day, one of the managers said technicians like me were tools to accomplish a task.

We’re not tools. We’re the public face of Verizon. We talk with customers. We solve problems. We restore service.

And we help our company make $1.5 billion in profits every single month.”

Source: An Open Letter to Verizon CEO Lowell McAdam on medium.com

It’s 2016, and now we’re told by global PR leader, Robert Phillips, to:

Trust Me, PR is Dead*

*PR is dead Anytime anyone forecasts the fall (or the death) of something, they are always overstating the case

But if you forgive the hyperbole designed to grab your attention, there’s often an underlying trend worth paying attention to

Neither advertising or PR is going away any time soon

Nor should they

It still makes sense to look better and sound better when you can…

VW’s Europe Market Share Slumps to Five-Year Low on Scandal Volkswagen AG’s European market share narrowed for an eighth consecutive month since the German carmaker’s admission to rigging diesel cars to cheat on emissions tests…

May 12, 2016

…it’s just no longer enough

…in the creative economy, you can’t just look better, or sound

better, you actually have to be better

Alex Bogusly was a modern day Mad Man

Voted Creative Director of the Decade by Advertising Age in 2010

In that same year, he turned his back on the Ad World and wrote a book explaining why brands must think beyond advertising…

“The old rule was: Create safe, ordinary products and combine them with mass marketing.”

“The old rule was: Create safe, ordinary products and combine them with mass marketing.”

“The new rule is: Create truly innovative products and build the marketing right into them.”

“Creativity has become the ultimate business weapon.”

Alex Bogusly & John Winsor - Baked In

“The same creativity that's been used to change culture through advertising can also be applied to distribution, packaging, and even the product itself.”

Alex Bogusly & John Winsor - Baked In

“While collaboration with customers is key, the ability to collaborate internally is even more important.”

Which is why it’s time for the rise of the red headed stepchild

Only Employee Comms can help you actually become better

Great advertising can make you look better

Smart PR can help you sound better

But the red headed stepchild needs to evolve…

From message management, annual surveys and newsletters, to…

Talent management

Innovation

Authentic advocacy

Talent management

Innovation

Authentic advocacy

The war for talent is over…

…talent won!

The war for talent is over…

“Capital is being superseded by creativity and the ability to innovate - and therefore by human talents - as the most important factors of production.”

Klaus Schwab Founder of the Word Economic Forum

“Capitalism is being replaced by Talentism”

Klaus Schwab: Founder of the Word Economic Forum

A ruthless pursuit of efficiencies, with employees seen as cogs in the machine

A ruthless pursuit of customer delight, with employees seen as the differentiating factor

20th Century Capitalism 21st Century Talentism

The need to attract, retain and motivate top talent has risen to the

top of the boardroom agenda

13%

Source: Gallup

24%

63%

But most employees are not engaged, or are actively disengaged

Not Engaged

Actively DisengagedEngaged

Employee Comms can help attract top talent and retain a more engaged workforce

Purpose-driven companies have 40% higher levels of retention, and tend to be 1st or 2nd in their market

Source: Deloitte - A New Model for Employee Engagement

Smart Employee Comms can help leaders articulate a

purpose beyond profit, and bring it to life with stories

that attract new recruits and inspire employees

80% of organizations

believe their employees

are overwhelmed with

information at work

21% cite the issue as

urgent

Fewer than 8% have

programs to deal with

the issue

Source: Deloitte Global Human Trends 2014

Smart Employee Comms can simplify the work environment, by giving employees the information they need, when they need it, in their preferred format

In high-turnover companies, the 2nd-highest-rated issue in employee engagement is the organization’s

willingness to “listen to an employee’s perspectives.”

Source: Quantum Workplace

Smart Employee Comms

can help leaders to listen…

…create safe environments

for employees to speak…

…and strengthen the

organization through

honest and open dialogue

Talent management

Innovation

Authentic advocacy

Three-quarters of CEOs now regard innovation as at least equally important as operational effectiveness

Source: pwc Innovation Report

But companies understand that innovation is no longer the preserve of the lone creative genius

The key ingredient is creating an organizational culture that encourages innovation in all areas

Innovation

Collaboration

Communication

is built on

which is driven by

The better your organization communicates, the stronger it will collaborate, the faster it will innovate

Smart Employee Comms can help every employee become a better communicator

Great storytelling is an art mastered by a few…

But the basics of storytelling can be learnt by all

It takes a lifetime to master the tools of visual design…

But it only takes a few hours for employees to (re-)learn how to draw

Smart Employee Comms can help coach and mentor every employee to become a better communicator

Talent management

Innovation

Authentic advocacy

Only 30% of buyers trust brands

of people trust recommendations from people they know

30% trust brands…

90%…while

of consumers are more likely to buy a product they hear about from family and friends

77%

Those family and friends are more likely to be your employees…

…than your company spokesperson

Which is why 90% of brands are pursuing, or have plans to pursue, an employee advocacy program

Source: Altimer

But if most employees aren’t even engaged in their work, why will they be engaged in an advocacy program?

You can’t pay employees to be

authentic advocates

And if you give employees permission to speak on your brand’s behalf, what will they say?

The Edelman Trust Barometer shows that one-in-three employees doesn’t even trust his or her own company

The implication is clear:

Employees who trust their leaders will be more likely to say good things about their employer.

And consumers will believe them.

Source: Edelman Trust Barometer

By the same token:

Employees who don’t trust their leaders will be less likely to say good things about their employer.

And consumers will believe them too.

Source: Edelman Trust Barometer

Employee advocacy begins with Smart Employee Comms

Smart Employee Comms can help ensure their organization is one that employees will be proud and passionate about

Smart Employee Comms can help employees understand the personal benefits of being an authentic advocate

Smart Employee Comms can help discover and develop compelling stories that employees will want to share

Employee advocacy is the dividend you get for being a remarkable employer

If advertising is the tax you pay for having an unremarkable product…

Evolving from corporate messaging, annual surveys and newsletters, to:

Talent management

Innovation

Authentic advocacy

It’s time for the rise of the red headed stepchild

Chris Cox is a integrated communications professional with a passion for the power of employee comms.

He works with clients to design and deploy programs that inform, inspire, involve and improve employees; helping organizations and brands become better, rather than just look better or sound better.

www.coxc.co