Identity, Image and Reputation

"The FedEx brand is more than a famous name. It’s a set of values, attributes and artwork that reflects the spirit of the company. What comes to your mind when you hear or see FedEx? Speed, Service, Flexibility and Reliability. How did this company manage to portray themselves like so to their constituents? This is where their image, identity and reputation come into picture."

A company's identity is the visual manifestation of the company's reality as conveyed through the organization's name, logo, motto, products, services, buildings, stationery, uniforms, and all other tangible pieces of evidence created by the organization and communicated to a variety of constituencies. Image is a reflection of an organization's identity, so it is the organization as seen from the viewpoint of its constituencies. Image can vary among constituencies, and advertising is helpful to get people to adapt the image that the company wants to have. A company can have different images. A company's identity and image are two of the most critical components the corporate communication function has to deal with. When an organization's identity and image are aligned, the foundation for a solid reputation exists. The image and identity of a company also helps the company differentiate itself from others in the eyes of their constituents.

"Nike's marketing strategy is an important component of the company's success. Nike is positioned as a premium-brand, selling well-designed and expensive products. Nike lures customers with a marketing strategy centering around a brand image which is attained by distinctive logo and the advertising slogan: "Just do it". Nike promotes its products by sponsorship agreements with celebrity athletes, professional teams and college athletic teams. So what happens when a giant soccer ball meets the nike headquarters in Mexico? It promotes the identity and image of the company in the eyes of their constituents."

Reputation differs from image because it is built up over time and is not simply a perception at a given point of time. It differs from identity because it is a product of both internal and external constituencies, whereas identity is constructed by internal constituencies (the company itself). Reputation is based on the perceptions of all constituencies.

In the changing environment for business, corporate philanthropy and social responsibility are gaining visibility and importance in the eyes of many constituencies. A company that has a good understanding of its own constituencies and what is important to them, and that gives thought to how to tie such programs into its corporate vision, will be well positioned to create programs that will enhance reputation.

So the corporate should take care of their identity, image, and keep the communication well to make sure they can provide good product and service to keep the high reputation.

What i have learnt from my personal experience is that the first impression/appearance/contact with any company is extremely important. When I interact with a company for the first time and something goes awry, I tend to have a negative image of the company and will try my level best to avoid contacting the company again. This happened to me with Sify Inet India. I had gone to Sify's office to apply for a new internet connection. What I witnessed over there was that all the people working there were very unorganized and took a lot of time to do anything and everything like getting application forms, clearing my doubts etc. This inturn lowered the image of the company in my mind and thus I not only did not take the connection but I even asked my friends to avoid Sify.

References:
Corporate Communication - Paul A. Argenti
http://en.wikipedia.org/wiki/Corporate_identity
http://en.wikipedia.org/wiki/Corporate_image

21st Century Trends

Stephen P. Borgatti identified five organizational trends which influence the workplace of the 21st century. The five key 21st century organizational trends which he identified are Globalization, Diversity, Flexibility, Flat, and Networking.

1. Globalization
Globalization is the tendency of businesses, technologies, or philosophies to spread throughout the world, or the process of making this happen. The global economy is sometimes referred to as a globality, characterized as a totally interconnected marketplace, unhampered by time zones or national boundaries. McDonalds restaurants around the world is an example of globalization; the fact that they adapt their menus to suit local tastes is an example of globalization.

Whether or not the establishment of the global marketplace will be beneficial is in dispute.
Supporters believe that globalization has the potential to create greater opportunities for growth throughout the world, benefiting the developed nations while leveling the playing field everywhere else; Critiques of globalization believe that it will merely increase the opportunities for the wealthier nations to take advantage of the poorer ones and, furthermore, could eradicate regional diversity and lead to a homogenized world culture.

2. Diversity
By having workers from culturally diverse backgrounds into their workforce companies become much stronger. However, many firms don’t understand the importance or challenges of workplace diversity. Diversity needs to be seen as an integral part of the business plan, essential to successful products and increased sales. This is especially true in today’s global marketplace, as companies interact with different cultures and clients. Example of a well diversified company would be Google wherein there is a very good mix of cultures and diverse backgrounds in their workforce. Among the advantages of diversity in the workplace are: increased creativity, increased productivity, new attitudes, new language skills, global understanding, new processes, and new solutions to difficult problems.

3. Flexibility
Flexibility is the quality of adaptability of an organization to different situations. Flexibility of an organization plays a major role in it's success. In this ever changing business environment of today, every organization should be flexible or must be able to adapt to the changes in the environment to run smoothly. Flexibility in an organization helps it achieve:
a) Funding for diversification and acquisations
b) Programs that meet changing needs
c) Efficient management and planning
d) Proper implementation of innovation
Some examples of companies that are flexible are Toyota and Dell.

4. Flat Organizational Structure
A flat organizational structure is one in which there is relatively fewer layers of managers between the top level managers and the normal employees. There is a very less chain of command in such kind of an organization. Applying such an organizaional structure has many benefits such as:

a) More effective and simpler communication processes. Minimal bureaucracy.
b) Increased flexibility to cope with changing circumstances through more decentralized authority to take decisions.
c) Matches the needs of the modern knowledge worker to have more responsibility, autonomy and authority.
d)Smaller resource commitments to the task of employee supervision.
e)Improved customer relation management through more personal contacts and quicker decision-making.
f) Most beneficial for R&D companies as there is more freedom.
Yahoo has a flat organizational structure. This helps them in being more creative as they are more independent to make their own decisions and have both the responsibility and authority to do what they think is right for the company.

5. Networking
Networking is process of establishing mutually beneficial relationships with other business people, potential clients and customers. Effective networking need good communication within the organization.
Benefits of a Networked Organization
a) Being closer to the customer - there is rapid communication between those at the sharp-end and those who support them.
b) Maximizing the knowledge potential of an enterprise; network members tap into expertise wherever it may reside.
c) Minimizing disruption; a network has resilience to operate even if some parts fail (e.g. in a natural disaster).
d) Responsiveness and adaptiveness. Like an amoeba, a network is sensitive to stimuli and adjusts accordingly.
Microsoft is a very good example of a company having strong social networks with people and organizations.

References:
http://www.analytictech.com/mb021/trendsin.htm
http://www.ethnoconnect.com/html/articles_09.html
http://www.skyrme.com/insights/1netorg.htm
http://www.12manage.com/

Communication Theories

"A simple communication model with a sender transferring a message containing information to a receiver."




In the history of philosophy, Aristotle first addressed the problem of communication and attempted to work out a theory of it in The Rhetoric. He was primarily focused on the art of persuasion. Communication is the production and exchange of information and meaning by use of signs and symbols. It involves encoding and sending messages, receiving and decoding them, and interpreting information and meaning. Initially, linear models dominated communication research. We will look at several of the more famous linear models and then look at now convergence models of network communications evolved.

1. HAROLD LASSWELLS MODEL Lasswell, a political scientist, provided a general view of communication that extended well beyond the boundaries of political science. He said that the communication process could best be explained by the simple statement: "Who says what to whom in what channel with what effect." Both Aristotle and Lasswell viewed communication as a one-way process in which one individual influenced others through messages. The addition of the channel as a component was a response to the growth in new communication media, such as print, the telegraph, the radio, etc. Lasswell's approach also provided a more generalized view of the goal or effect of communication than did the Aristotelian perspective.
http://www.cultsock.ndirect.co.uk/MUHome/cshtml/introductory/lasswell.html

2. SHANNON AND WEAVER'S MODELThe information source selects a desired message out of a set of possible messages. The selected message may consist of written or spoken words, or of pictures, music, etc. The transmitter changes the message into the signal which is actually sent over the communication channel from the transmitter to the receiver. Shannon and Weaver introduced the term noise. Noise was used as a label for any distortion that interfered with the transmission of a signal from the source to the destination, such as static on a radio, rain-soaked pages of a newspaper etc.
http://www.cultsock.ndirect.co.uk/MUHome/cshtml/introductory/sw.html

3. SCHRAMM'S MODELS

First, the source encodes his message. That is, he takes the information or feeling he wants to share and puts it into a form that can be transmitted. the pictures in our heads can't be transmitted until they are coded. Once coded and sent, a message is quite free of its sender. And there is good reason for the sender to wonder whether his receiver will really be in tune with him, whether the message will be interpreted without distortion, whether the picture in the head of the receiver will bear any resemblance to that in the head of the sender.

Schramm's second model of communication - Without a common background and culture, there is little chance for a message to be interpreted correctly. He introduced the concept of a field of experience, which he thought to be essential in determining whether or not a message would be received at its destination in the manner intended by the source. He contended that without common fields of experience, a common language, common backgrounds, a common culture, and so forth, there was little chance for a message to be interpreted correctly.

To overcome the problem of noise, Schramm suggested the importance of feedback in his 3rd communication model. The roles of sender and recipient are taken on by both parties, and communication becomes circular, and create a relational model of communication and a beginning of a convergence or network approach. Communication is reciprocal, two-way, even though the feedback may be delayed. Some of these methods of communication are very direct, as when you talk in direct response to someone. Others are only moderately direct; you might squirm when a speaker drones on and on, wrinkle your nose and scratch your head when a message is too abstract, or shift your body position when you think it’s your turn to talk. For example, politicians discover if they’re getting their message across by the number of votes cast; commercial sponsors examine sales figures to gauge their communicative effectiveness in ads; teachers measure their abilities to get the material across in a particular course by seeing their student's grades.
http://www.personal.psu.edu/faculty/s/j/sjm256/portfolio/kbase/Theories&Models/communications.html

4. WESTLEY-MACLEAN MODEL

Bruce Westley and Malcolm MacLean, Jr suggests that communication does not begin with a source, but, rather, with a series of signals or potential messages. Their model suggests that in a given situation some of the many signals in one's environment at any point in time were selected by an advocate and combined to form a new message- a news story, advertisement, or speech, etc. If the audience had some first hand knowledge, they might question the advocate, and their questioning would be classified as feedback. Events occur. Advocates may choose to comment upon those events. What the advocates say may be picked up on by the channels. The channels then move that information on to the audience. Channels may also choose to report directly on events. Note that the audience never interacts directly with the events or with the advocates this is the nature of mass media. Feedback is possible, from the channels to the advocate, and from the audience to the advocates and channels. This model accounted for both mass communication and interpersonal communication, as well as the relationship between the two.

5. KINCAID'S CONVERGENCE MODEL
In this convergence model, "communication" is defined as a process in which participants create and share information with one another in order to reach a mutual understanding.
Information and mutual understanding are the dominant components of the convergence model of communication. Information shared by two or more participants in the communication process may lead to collective action, mutual agreements, and mutual understanding.
In this convergence model, "communication" is defined as a process in which participants create and share information with one another in order to reach a mutual understanding.
Information and mutual understanding are the dominant components of the convergence model of communication. Information shared by two or more participants in the communication process may lead to collective action, mutual agreements, and mutual understanding.

References
http://www.rpi.edu/~krullr/commt/communicationmodelsoverview.pdf
http://www.cas.usf.edu/lis/lis6260/lectures/shannon.htm

Corporate Communication Relevance

The success of a company’s communication strategy is largely contingent on how closely the communication strategy is linked to the strategy of the business as a whole. In addition to thoughtful planning and careful design of firm strategy, a company must have a strong corporate communication function to support its mission and vision. Hence, it’s important to understand the relevance of corporate communication.

Corporate communication is about organizations communicating with both primary and secondary constituencies. The clarity, alignment, and integration of communication to all these constituencies have the ability to make or break a corporate reputation. An organization’s reputation management strategy is the most critical part of any corporate communication function. While image is the corporation seen through the eyes of its constituencies, identity consists of an organization's defining attributes, such as people, products, and services. Identity should not vary from one constituency to another, but each constituency can have another image of the company. A company’s image can also be enhanced or altered through corporate advertising. Issue advertising or advocacy attempts to influence the attitudes of a company's constituencies about specific issues that affect the company. It is performed by the corporate communications function. Media Relations also plays an important in being a sub-function of the umbrella “Corporate Communication”. Although the media relations sub-function started off as a “flacking” service for managers in response to requests from news organizations, today the best corporate communication departments actively set the discussion agenda of the firm in the media. Technology has helped companies communicate through the hundreds of media services available from virtually anywhere in the world. As companies are getting more and more influential in our every day life, consumers started to establish counterweights by founding customer groups. As a consequence, companies need to deal with these quasi-political activity groups which claim to represent constituencies. Additionally, individual customers and potential customers contact the firms for information requests, service requests, etc. Companies need to have a Marketing Communications department which manages customer relations, corporate advertising, and other activities related to customers. Internal communications strategies, developed by the corporate communication function, make sure the workforce is more engaged, productive, and loyal - because it feels informed. Internal communications should make sure employees get information which is affecting them before the public gets it. Investors Relations is becoming one of the important sub-function of corporate communication. For a corporation, it is crucial to have an open dialog with its investors. Investors need information about the company, otherwise the investments become too risky and they would withdraw their money. Corporate communication also has relevance in the corporate social responsibility of the organization, in government relations and also during crisis management.

Hence, we see that the increased globalization of business has also led to the growing importance of corporate communication. It’s become an imperative organ of any organization.

References:

Corporate Communication - Paul A. Argenti
http://en.wikipedia.org/wiki/Corporate_communications

http://findarticles.com/p/articles/mi_m4422/is_1_19/ai_82353627

Communicating Strategically

Right from birth, a new born baby tries to communicate to his/her mom. In this globally competitive era, communication is one of the most important aspects of an organization. The business environment has been changing gradually, and so are the theories of communication. But the basic fundamental principal of communication remains the same – getting the message across. Businesses use communication as a medium to get their message across to their constituencies. If managers think strategically, they realize that they spend most of their time “communicating”. By corporate communication, we mean the corporations voice and the images it projects of itself on a world stage populated by its various audiences or constituencies


"Corporate Communication is the means by which companies connect with customers, stakeholders & employees with 'One Look, One Voice'; Integrating Public-relations, Marketing-communications and Employee communications. Corporate Communication creates and protects the image and reputation of a company and its products, so that customers and employees identify with and feel good about the company they are working for and doing business with."

There are many theories of communication; the oldest theory is by a political scientist, Lance Wells. He gave his moral in 1948 which was a simple linear model consisting of the speaker, message, channel and listener. After the message, we usually expect a feedback but in 1948 people were only looking for effects and results. The word feedback came in the another model of communication. Given by Schramm, the model was cyclical and hence had the component of feedback. The communication theories form a bridge between the corporate communication and the firm’s overall corporate strategy.

So how does a Corporation develop its communication strategies? The first part of an effective communication strategy relates to finding the objective for the particular communication, the resources available to achieve those objectives in terms of money, medium, structure, time and finally analyzing the corporation’s reputation. These are the building blocks of upon which all other steps in acommunication strategy depend upon. A second set of issues that the company must face in order to place a fully beneficial communication strategy is to assess the constituents involved i.e. all the people that are going to be affected by the communication. These could be employees, customers, shareholders, communities, media, suppliers, government, creditors etc. The organization must know who their constituencies are for a particular communication strategy and find out what each thinks about the organization, and what each knows about the communication in question. Armed with this intelligence, the organization is ready to move to the final phase in setting a communication strategy i.e. determining how to deliver the message by choosing a communication channel and structuring the message carefully.

The framework for strategic communication is therefore a 3 step process which signifies that the communication is an ongoing process, with no end. The corporation communicates messages through proper channels to its constituencies, which are the employees, customers, media, government etc. The constituencies then give their responses back to the corporation. The corporation then communicates another set of messages back to the constituencies. Both internal and external factors are responsible for an increasing necessity towards strategic communications. Constituencies play a very important role in deciding the reputation of the corporation. Hence, organizations are continuously developing their communication strategies to diminish the potential loss in reputation.

For example, when I was doing my internship with Tata Indicom, the company had partnered with Mast Mobile Media to distribute interactive advertisements in Tata Zone BREW(R) applications. It supports ‘click-to’ actions including interactive voting, free ringtone download, coupons, SMS and call. Tata Indicom was also the first mobile operator to launch India’s First Internet Radio Service followed by Reliance Communications. They decided to communicate this to their constituents via press releases after carefuly looking into their communication strategies.

References
http://sloanreview.mit.edu/smr/issue/2005/spring/15/
http://en.wikipedia.org/wiki/Strategic_Communication

The Chaging Environment of Business

"A fundamental shift is occurring in the world. As we live in the 21st century, the business world is constantly changing and becoming more complex in areas of global competition, information technology, and others. The "new economy" is upon us and we must adapt to survive and prosper. In every sector of the economy, effective management, responsive to an ever changing environment must meet these new challenges with new skills."

We are moving from a world in which national economies were relatively self contained entities, isolated from each other by barriers to cross border trade and investment; by distance, time zones, and language; and by national differences in government regulation, culture, and business systems. And we are moving towards a world in which barriers to cross-border trade and investment are tumbling; perceived distance is shrinking due to advances in transportation and telecommunication technology; material culture is starting to look similar the world over; and national economies are merging into an independent global economic system. The process by which this is occurring is commonly referred to as globalization – the creation of a world so interwoven by shared knowledge that it becomes a “Global Village”. This is the big picture that can be drawn up for the current scenario of change that is happening in the world. In this current era of globalization, the only thing that is constant is change.

Business philosophies keep on changing and it is up to the companies to keep up with these changes. Managers today have to anticipate and recognize the changing environment, adapt to the environment without compromising their principles, assume that things will only get worse if not dealt with urgently and keep corporate communication connected to strategy in order to survive in this ever changing world of today. Theodore Levitt has argued that due to the advent of modern communications and transportation technologies, consumer tastes and preferences are becoming global, which is now creating global markets for standardized consumer products.

For Example, when I was doing my project for Kirloskar, I found out about a technology online that was not present in India i.e. The Micro Diesel Engine Generators. The company that designed the product was based in Netherlands and was willing to sell the technology overseas. I did an opportunity analysis on the product and found out that such a product has a huge market in India. Kirloskar, after seeing this, imported the technology into India and presented it into a test market to see whether the product would run. This is an example on how companies nowadays are now getting accustomed to change. Another Example would be in the filed of communication technology. In the present world, communicating from one end of the world to another has become much more efficient enabling the transfer of information to be faster and cheaper. I remember the time when my parents used to communicate with me via letters. But now since the internet has revolutionized the way people communicate, my parents have also habituated themselves with the use of Emails to communicate with me. The world is becoming smaller and smaller by the second.

References
Charles W L Hill – Competing in the Global Marketplace
T. Levitt – “The Globalization of Markets,” Harvard Business Review