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Web Tools Expanding (Slowly) into Internal Communication

Thursday, September 9th, 2010

A small but eager group of professional communicators met 7 September to explore the current state of Web tools in internal communication and found a slow, but steady increase in their use.  Twitter-based #ICChat totaled more than 200 tweets in a fast-paced, hour-long online discussion from 2-3 p.m. North American Eastern Time.

The most basic tools — e-mail and intranets and RSS — are expectedly common, but social tools — blogging, varieties of microblogging (such as Twitter) and shared document management are seen as near-term priorities.

@irosen: Q1: There is an increased demand on “basics” found on the internet such as RSS feeds, microblogging and embedded media #icchat

@Wedge: Slowly reducing our reliance on emailing Word documents around; moving to intranet web pages and shared space on intranet for docs #icchat

Microblogging, including Yammer, offers the potential for collaboration and instant access, according to the company website. The tool could lower data processing costs by redirecting communication away from e-mail, particularly for the short, direct sort of questions-and-answers an employee might need on the spur of the moment. I made the same argument for RSS and other tools

@CommAMMO: One angle @csledzik is to quantify amt of email traffic – if you banned Word doc attch’s in fav of Google docs/Sharep methods #icchat

@CommAMMO: @wheati @irosen Less email through the wall means lower data proc costs – RSS is seemless, no? #icchat

But reducing direct cost wasn’t a prime driver in one person’s opinion:

@wheati: @CommAMMO @irosen @Wedge Weren’t concerned with data cost. Interested in ease, security of doc access. And “one stop” shop for info. #icchat

Trying to reduce e-mail — for the sake of employees’ productivity — is a critical factor, in my opinion. Aggregating nonessential (but still important) material is a decidedly old-school response, though social tools offer an advantage beyond financial impact.

@jpchurch: We’re about to launch a complete intranet re-do, and introduce more targeted info & collaborative tools. Still far too many emails. #icchat

@jgombita: Q1 If staff, clients R spread out (geog’phy), working with wiki (or Google docs) is effective and inexpensive #icchat

@csledzik: So theres 2 objtvs: 1) reducing data proc. $ & incr’g knowledge sharing. Soft goal is key, but not the driver. #icchat

There currently is no organization I know of which has gotten knowledge management particularly right — though many have made progress: Ernst & Young’s Center for Business Knowledge predates the Web, using Lotus Notes databases to gather info from employees and make it available. Kind of early crowdsourcing…

Microsoft’s Sharepoint suite — with its Wiki-Blogging-Discussions, etc. — came up a fair amount as a means of supporting knowledge sharing, with one participant looking for guidance on initial deployment.

@tnerko: Most excited about #SharePoint for wiki features as most in my company on a 3 year rotation and knowledge leaves often #icchat

The embrace of web tools within the workplace (particularly social media) is a referendum in organizational trust, transparency, according to one participant:

@csledzik: .@CommAMMO I see mgmt thatNot comf. w/ trust or transparency. Don’t understand benefits of sharing inter/externally. #icchat

The latter part of that tweet is pretty close to the truth: Internal communication, generally, isn’t as highly regarded in the workplace as is media relations. We shouldn’t be surprised that internal audiences are subject to fantasies of tight control — one senior leader told me that internal communication was, “a warm-fuzzy for employees” who don’t really care about the business.  It was some years ago, so I’m hopeful that opinions have moderated. But the advent of social media has shaken business leaders to their very boots in fear of loss of control. Control, by the way, that they haven’t had in 50 years, at least.

@wheati: A concern is also about company reputation. Exes want to control and package it, but SM is about neither. #icchat

@jgombita @pointsoftrue that’s why the key is guidelines #icchat

Indeed, guidelines are critical. The trick is to convince leaders that their employees can be trusted to follow them. This is a huge issue in regulated industries, such as securities firms, banks, medical.

The too-fast conversation wrapped up talking about how these web tools — in particular intranets — are measured.

@Wedge: To Q4: behaviour change. Impact, rather than ‘hits’ (although ‘hits’ are a baseline to indicate use / usefulness. #icchat #intranet

@wheati: Loosely…% of front line adopting RSS was one measure. #icchat

@CommAMMO: @wheati Tying the stats back to outcomes, even just simple correls is helpful – language of C-suite. #icchat

@tnerko: Word of mouth and feedback links for now, looking forward to commenting in sharepoint and will run focus groups as well #icchat

Next #ICChat is 21 September, 2-3 pm Eastern (North America), and we’re open to suggestions as to topic and potential guests. Hope to see you then.

What would you add to this? How can we make #ICChat better? Use the comments, or send me an email.

Sean Williams can help you: Consulting, Strategic Planning, Measurement, Training, Writing/Editing.

CommAMMO: One angle @csledzik is to quantify amt of email traffic – if you banned Word doc attch’s in fav of Google docs/Sharep methods #icchat
6:16 pm CommAMMO: @wheati @irosen Less email through the wall means lower data proc costs – RSS is seemless, no? #icchat
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Posted in Internal Communications, Intranet, Measurement, Social Media | No Comments »

Employee Engagement Still Relevant

Thursday, August 26th, 2010

On 24 August, a group of internal communication folks gathered on Twitter for #ICChat, the twice-monthly discussion that a few of us think might be valuable. The topic: Employee Engagement, the Gallup Q12-fueled effort to make employees feel good enough about their organization that they turn into brand champions. (Or peer leaders, or influencers, or advocates, what have you. Pick a term).

This edition was far and away the most participation we’ve had, thanks to interest from several prominent IABC’ers and, no doubt, relentless marketing by Yours Truly (grin).  We’re following in the huge footsteps of Twitter mega-chats like #SoloPR, #PR20Chat, #BlogChat, #B2BChat #PRStudChat #IMCChat and a bunch of others, so 20 chatters and 241 tweets gives me hope.

By the way, #ICCHat and those other # thingies are ‘hashtags‘ – a string of text that makes it so that you can find tweets that contain it when you search on Twitter.  I use a third-party application, www.TweetChat.com, to organize my chatting — it automatically puts the hashtag into the tweet and makes it so you can see the chat stream separately from your other Twitter activity. E-mail me if you need a primer.

If you’d like to work through the transcript, you can find it here. Otherwise, read on for my summary and opinions.

Defining employee engagement was quite the task, as you can read here.  Not much consensus, but many interesting perspectives. I liked @DMarkSchumann‘s line:

“you know, engagement is simple – we all simply want to believe we matter – silly us”

I also loved @JGombita‘s:

“Q1: Employee engagement is when corporate values can talked about without eyeball rolling or sniggers”

@JPChurch said:

Q1: EE is the point where emps are in synch with your org’s goals, know how they affect their own jobs, and can take the ball & run

And the capper of employee-focused employee engagement-ism from @CSledzik:

“Q1: we’ve been using a 1st person description. An EE can say: ‘I fit, I’m clear, I’m supported, I’m valued, I’m inspired.’”

We talked about how to foster engagement — and our answers ran the range from the general, from @HeatherSTL:

“Honestly? Extend trust, hold ppl accountable, reward success :) ”

to the specific, courtesy of @BenjaminRossDC:

“The best way to foster engagement, hands-down, is though profit-sharing incentives”

and @JostleMe:

“helping each individual understand they are part of a winning team that is making a difference”

and @JGombita:

“One of the best ways to foster engagement is if you ask employees for feedback, .actually do something with it”

Walking one’s talk — building trust through authenticity and openness — was another frequently offered mode of generating engagement. Responses to the question, “Why is authenticity, transparency, ‘do right’ seemingly so difficult for organizations to embrace” were fascinating. @JPChurch:

“Because leaders wrongly think those things are “soft,” and have no obvious ROI. Au contraire.”

@RobinRox offered the contrary example:

“Depends on how you get to that bottom line. Container Store site “what we stand for” makes me want to shop there more.”

I could go on, but just read the transcript – there are great quotes (one cool by-product of Twitter chats)…

With so much responsibility falling on the shoulders of leadership, we discussed the role of communication styles on the engagement equation. @RobinRox:

if the leader’s style is so contrary to the “feel” of the company and its values, it is harder to gain a loyal following

@CSledzik:

“Culture of comm. equally important. Nothing beats two-way open comm channels, esp when leadership is involved in the convo.”

@JGombita:

“Q4 don’t think it’s so much whether the leader is an extrovert/introvert, it’s whether s/he actually LISTENS & implements”

@DMarkSchumann:

“[...]engagement only matters to employees if leadership demonstrates that people matter”

@JPchurch:

“Must be careful not to change comm efforts too much to match exec style, though – messages must be genuine & lasting.”

@DMarkSchumann

“no longer can a leader delegate engagement to others – it is the job”

It was a terrific conversation.  You could see for yourself.  If you’re not on Twitter, just sign up for a name — you don’t have to do the rest of the stuff we Twitter-people do if you don’t want to.  Just use the account for participating in Twitter meetings like #ICChat.  By the way, we resume our discussion September 7 at 2 p.m. Eastern time — topic is likely “Emerging Internal Web Tools/Trends.” Hope to see you there.

By the way, Jostle’s Brad Palmer wrote a summary here; and D. Mark Schumann did so too.  Many thanks to all of you.

Q1: EE is the point where emps are in synch with your org’s goals, know how they affect their own jobs, and can take the ball & run #icchat
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4 Steps to Build Relationships with HR (& others)

Tuesday, August 17th, 2010

It’s an axiom that the Human Resources and Public Relations teams often don’t get along, though as with the IT crew, we should be fast friends and excellent partners.

Let’s face it, it can’t be easy to be an HR pro these days. “HR jobs are often the last to go in a recession. Layoffs, wage freezes, benefits cuts, discrimination lawsuits, new government regulations and other recession-fueled workplace developments all generate additional HR work…” (Workforce Management, May 2010, p. 16).  All that extra work, especially the human factors, have to bring a boat-load of stress.

We PR folks haven’t had it easy the last couple of years, either, as our staffs and budgets got squeezed. Long hours, multiple shifting priorities…  That’s even more a reason to partner-up, even as compadres in misery.

Whether in good times or bad, HR or IT, what do we do to foster professional relationships? Follow these four steps:

1. Communicate: Start by opening lines of communication. Reach out, go for coffee or lunch, ask lots of questions about HR’s business goals and how they’re striving toward them. Put yourself in their shoes. HR folks have a lot to offer, and a lot of times, just need your expression of interest to open up. Besides, that’s how we’re supposed to gather business intelligence, anyway — by talking to people.

2. Coordinate: Where do your worlds intersect?  HR content is important, whether for employees or for external constituencies. What events, projects, initiatives are on the horizon? Again, look at it from their perspective.  It may seem basic, but the big issue is the old right-had/left-hand disconnect. Help to reconnect by sharing information from your broad perspective and by being ready to make a few changes to your plans to accommodate HR’s situation and goals. You want employees to be informed, and so does HR. You want the organization to attract qualified prospective employees, and so does HR. We’re not so different from one another — we’re professionals with jobs to do.

3. Collaborate: Every department has been doing more with less. Pitch in and offer to help out.  At Goodyear, I volunteered to be part of an organizational effectiveness audit. My participation allowed the audit to move a bit more quickly and spare some folks a couple of really long days. It also allowed me to hear from our front-line employees face to face. They weren’t shy about their experiences with leadership, and communication. I was able to look through HR’s lens — thinking and talking about how to improve the organization. Plus, I built trust, won some allies and made some friends in the organization, always helpful outcomes for a communicator. Yes, we’re all busy, but it’s worth the investment of time.

4. Counsel: The heart of being a trusted counselor is the relationship. Working hard at forging professional bonds with your HR team gets noticed. For that matter, you could apply these steps to any constituency, whether you’re in conflict or not.  When you’re known for your curiosity, willingness to help and ability to add value to a discussion, you’re setting a strong foundation for relationships and your role as a trusted adviser — a seat at the strategic table.

You still need to bring the goods, by the way — your planning, advice and writing have to be first-rate. The assumption of expert status must be backed up by your outstanding performance, again whether you’re working with HR, Finance, IT or whomever.

When you do it right, you’ll discover what great partners they can be.

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Posted in Internal Communications, Public Relations, Strategy | 3 Comments »

5 Reasons Why HR & PR Don’t Get Along

Wednesday, August 11th, 2010

Ask any corporate communicator who they want to report to and they’ll say, “the CEO!”  Now ask who they’d NEVER want to report to. They’ll say, “HR.”  why is that?

Our corporate cousins in Human Resources have many of the same issues that we do. They want to be seen as strategic resources, not mere tactical cogs in the wheel. They struggle to be taken seriously outside of their functional silos.  They fight for budget and resources with some difficulty, because they “don’t drive sales,” or “don’t understand the business.”  By these lights, we should be strong partners — the shared pain of the back-office services would seem to be a logical impetus for a good relationship.

My own experience demonstrates that possibility. Goodyear’s (now retired) Kathy Geier was a trusted member of then-CEO Bob Keegan’s cabinet.  She reached out to me often on all kinds of matters, and recruited me onto a task force on business process optimization. Many of her team sought me out (and I, them), and we forged a strong, positive relationship. KeyCorp’s Diane Coble and Jeff Darner (since moved on) and I enjoyed similar mutual respect and partnering. Even my brief tenure at National City Corporation included positive experiences working with HR.

But in other organizations, jealousy, turf wars, even outright stiff-necked opposition are the order of the day. Why?

Here are 5 reasons why HR and PR don’t get along.  Next week, 5 ways YOU can build a good relationship with them.

1. HR thinks they’re smarter than PR. There’s a stronger academic body of knowledge in HR, a business school connection missing from most all PR programs, which reside in Journalism.  They think their college experience was more demanding and quantitative than ours.

2. HR is hungry for budget and control.  They want more than just the functional duties of compensation, personnel, etc.This is key to their strategic aspirations; the “support services” model often puts an HR person in charge of all the support functions, elevating them to higher pay and bonus as a result of larger budgets and spans of control.

3. HR often believes that only information critical to the employee should be communicated to them — and that means comp/benefits, business conduct and training opportunities should be top of the fold in the employee newsletter and front-and-center on the intranet. They believe that they know more about communication than we do (and sometimes they’re right, but that’s another post).

4.  HR provides training in many fields, so it believes it knows better how to train managers to be communicators than we do.

5. HR likes checklists. Communicating something is an output to be checked off, not a process with a closed loop. They prefer push to pull, wanting to declare that a communication has been sent and therefore is complete. This is especially fraught when discussing how to measure the effectiveness of communication activity.

Just a reminder — these aren’t hard and fast rules, they’re examples. Your results may vary.  In fact, share your thinking here!  Do these resonate with you? Am I full of it?

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Posted in Internal Communications, Public Relations, Strategy | 4 Comments »

Internal Communications at its Best

Tuesday, July 6th, 2010

The UK’s Liam FitzPatrick wrote a post decrying the tendency of internal comms people complaining about manager communication incompetence.  FitzPatrick says: “I believe we get the internal clients we deserve.  If senior managers are used to a diet of crap communications support, that is all they’ll ever understand.”

He’s right, and he’s wrong.

The challenge always is whether to keep fighting or just give managers what they want.  FitzPatrick relates a story about a senior manager who wants “intelligence” about what employees are saying and thinking from her internal comms support.  There are a lot of things a skilled internal communicator can do to gather that intelligence, but much of the budgetary process is more output-focused than outcome-focused (echoing the same tendency elsewhere in corporate communications.)

The key for any of us is research (he said self-servingly — my practice includes research services, just sayin;.)

The research doesn’t even have to be quantitative, though tying qualitative assessment to intranet traffic, for example, can shed a lot of light on the effectiveness of our internal comms activities. We don’t have to do formal surveys, which can be very expensive and time consuming, if all we’re looking for is a snapshot to share for planning and strategy.

At Goodyear, we used an intranet poll to get just that sort of intelligence — it was a great window into what at least some employees were thinking, and it gave us a source of content, too.

But, there is no replacement for more formal measurement — even with qualification of our poll results, we still got management questions about the reach of opinion, which is a valid criticism. The old ROPE method (Research, Objective, Programming, Evaluation) still holds truth.

Meanwhile, read FitzPatrick’s piece. It’s worth reading (and commenting — no comments on his blog, so I wrote this post!)

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Another IABC International Conference…

Wednesday, June 16th, 2010

I recognize that if I’m not a speaker at the big IABC soiree, I’m probably not the target audience for it. I’m not surprised, therefore, that my first blush reaction to the Toronto gathering wasn’t particularly positive.  My goal for attending this year was to meet some new people and make contact with some who I haven’t seen in a while. I hope to eventually get some business from it, but really just need to expand the network.

The programming and format are nearly identical to my first International, in 1995, also in Toronto. That one was a revelation — I was just 4 years or so into the profession, and everything was new.  Every session offered fascinating insights or enhanced skills.  I met scores of people and hung out with many, enjoying my first trip to Toronto and my first extended business trip in several years.

In 1997, L.A. was a different experience. Many of the speakers were the same as two years earlier, and in 2002 at Chicago, there were just a few sessions that really caught my eye. So I took a vacation from the big show until this year.

Things that impressed me:

Erin Dick from Pratt & Whitney — a social media case study that wasn’t from a Silicon Valley firm… Her use of blogs, Twitter, YouTube and Flickr to help support P&W’s client (the U.S.Government) on the selection of an engine for the Joint Strike Force fighter was off the charts — brilliant. And it had a fairly strong measurement component. I decided to Tweet the session instead of trying to take notes. The benefit was that I had a great summary, though my thumbs threatened to lock up from BlackBerry-itis…

William Amurgis from American Electric Power — Looking for use of social media in internal communications? Amurgis delivered. AEP’s blogs, discussion boards, employee-uploaded photos, etc., set a high standard of participation. The company’s intranet philosophy? Enhance employee productivity, reinforce corporate messages and provide a place to meet for all employees. Everything has to pass through that frame, or it doesn’t happen. And, rather than buy software solutions, AEP makes their own. Amurgis has a designer and a developer on his staff.

The UnConference — OK, it was a bit different than other UnConferences (usually low-or-no-cost, open to anyone; you had to buy the day (at least) for the IABC Conference to get in, and it wasn’t cheap) — but the method of operation was different and fun. There was no pre-set program, just a list of ideas posted on the TorontoTalks website (that a few people did discuss first), and three 5-minute “keynotes” — very informally delivered.  The three-hour session on Sunday afternoon was comprised of four 25-minute blocks of time with six possible topics (being held at six tables). We wrote on sticky notes our question or suggested topic, then stuck it on a flip chart in an empty time slot. The writer could lead the discussion, or someone else could.  I talked measurement (what a shock!) with seven other folks and it was fascinating. We didn’t solve the ROI question in full, nor did we get into other facets of communication, but it still was valuable and fun.

The thing is, the (nice) venue, formal structure and overwhelming size of the show made it hard to connect with people. Even the formal networking session (the big one held on the floor of the exhibit show) was just an hour long — not near enough time to connect. (I also didn’t attend Monday’s sessions — none particularly grabbed me. That might have inhibited my networking activities, so shame on me!)

The cost was pretty high for a new entrepreneur, not only in travel but in the conference fee. I’ll be considering very carefully before jumping on again soon. But, if I wind up as a speaker…

{FYI, I’m speaking in November at IABC’s Research and Measurement Conference in Seattle, as well as at the PRSA National conference in DC in October.  I’m also willing to come to chapter lunches, etc., and can make a deal for my PRSA/IABC fellow members!}

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Posted in Intranet, Measurement, Public Relations, Social Media, Strategy | 12 Comments »

CEO Transitions Need Employee Attention

Monday, June 14th, 2010

When you’ve worked most of your life in big companies, as I have, it’s easy to forget that major change is a huge employee issue regardless of the size of company.  Big company complexity can be daunting to contemplate, and I’ve heard people pine for smaller firms with the idea that big change would be easier. News flash: It ain’t necessarily so.

Central Federal Corp and CFBank – a four-branch bank headquartered in suburban Akron with 66 full-time employees, according to Yahoo! Finance — is going to find out how easy it will be, now that former kahuna Mark Allio stepped down. According to Crain’s Cleveland Business, Allio offered his resignation at the company’s annual meeting, and now the firm is searching for a new leader, with General Counsel Eloise Mackus steering the ship in the meantime (and “indicating interest”, per the Crain’s piece).

During any big change process — and a CEO transition is usually a big one — employees get distracted; it’s human nature. There are at least 65 people at that company wondering 1) Who’ll be the boss? 2) What will he/she change? and 3) What will it mean for me. It won’t help matters that the company’s financial performance (as with many banks) has suffered during the recession. Now the boss quits and there’s going to be a “process” to replace him.

Employees are ripe for worry, and worried employees seldom give great service, which ostensibly is the raison d’être for community banks.

The tendency of the board and leadership team is to look inward to themselves and the shareholders. Yes, they have a fiduciary responsibility to those owners, but they must not ignore their wider team. I don’t know that they have or have not — but they will need to ramp up the contact with the ordinary employees and be sure they’re equipped with the right tools to manage the customers and prospects.

Here are three “must-dos” –

1.  A note to employees with a draft customer letter — explaining the change and next steps, including a basic timeline.

2.  Questions-and-answers document anticipating what customers, community leaders, friends and family will want to know about the change.

3.  Commitment to a weekly email note and a twice-monthly conference call for managers updating everyone on progress.

It’s not a hard thing to do at all, and following these steps can make it a whole lot easier to glide through the transition.

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Posted in Internal Communications, News Analysis, Public Relations, Strategy | 1 Comment »

HBR: Research Shows Futility, Not Fear, Quashes Employee-Manager Dialogue

Wednesday, May 26th, 2010

A group of researchers looked into the state of employee-manager discussion and found that fear of retribution is not the leading cause of employee silence.  Instead, it’s futility, at least among the professional class, and among women, a Harvard Business Review story said today.

If this research can be extrapolated, the emphasis we communicator-types have placed on helping managers create a “safe” environment for people to speak up isn’t helping managers get the straight scoop that they need. It’s almost an HR article of faith that humanistic style, paying close attention, smiling and telling people you really want them to share is the path to effective leadership. Now this.

Does employee feedback matter? It does to employees, but we can’t get at the problem presented by this research without addressing the elephant in the living room… When they give feedback, does anything happen to fix the issues they share? It’s just like doing employee surveys — if you aren’t willing to change your organization as a consequence of the research, don’t do it.

The disappointment of truly thinking like a business owner and offering suggestions that go nowhere is soul-crushing. Why do it if it just doesn’t matter? Cue up Bill Murray and “Meatballs.”

On the other hand, what if organizations committed to changing where it makes sense and letting people know. Sounds kind of, well, motivational.

Nah.

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Posted in Internal Communications, Strategy | 4 Comments »

Communication Important in Change Management (Shocking!)

Tuesday, May 25th, 2010

A professor from San Francisco State used three quick cases to show that when employees are dealing with difficult change initiatives, leaders have to talk with them.  Stunning, eh? OK, I’m feeling snarky today, I admit it!

Professor Mitchell Lee Marks writes in the 24 May issue of the Wall Street Journal (in the MIT/Sloan Review section) that empathy, making the business case and getting employees to think about the future are essential to getting them to let go of the past and move on. It ain’t brain surgery, but for many business folks, the fact that there are actual people hiding under the numbers on the income statement can be a bit of a shock. Here’s a quick rundown of Dr. Marks’ thinking, and my two cents.

  • Dr. Marks likes empathy, because employees often feel that no one understands their pain. He calls for leaders to acknowledge the feelings of fear and resentment. My Take: That’s an oversimplification. You run the risk of insincerity– remember President Bill Clinton’s “I feel your pain…”? You will have to demonstrate that you care — and it’s anyone’s guess whether you’ll be believed. You have to try, but it’s not a certainty that it will work. Nor is it certain exactly what kind of demonstration is most likely TO work. It’s trial and error. A bit of venting IS healthy, but not too much and not too often.
  • Making the business case is the hardest dictum to follow, because the most persuasive facts and data from the leader’s perspective are often not-so-much for employees. My Take: Don’t make the business case into a pie-in-the-sky employee benefit if there is any chance of downsizing, layoffs, firings — whatever you want to call it. Making the business case is like the flip side of empathy, because it’s much more a left-brain activity.  Facts and data eventually win the day, but have some pity for these folks.
  • Looking to the future — the visionary leader sees the next objective, then the next and so on, and is supposed to keep us focused on the future. My Take: I don’t think you can get people to focus on how great the future will be until they exit the “anger” stage of their mourning. The world is changing fast. Talk about customers to move from problems to solutions.

I think what set me off was Dr. Marks’ tone (probably the editor’s tone, now that I think about it). It was as though all of this was brand spanking new.

News flash — every leader should know this backwards and forwards. It’s part of leading.

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Posted in Internal Communications, Measurement, News Analysis, Strategy | 1 Comment »

Puffery in Merger Communications

Wednesday, May 5th, 2010

Continental Airlines CEO Jeff Smisek will run the new United Airlines when the two companies finalize their “merger of equals” later this year, so maybe he’s right to insist that no one bought anyone, as he did in an internal message according to media reports today. But I can’t help thinking that saying it in that way is spin.

In every business combination, there is an acquirer and an acquired. United is the surviving entity, Continental stockholders will get United stock, and the headquarters will be in Chicago, United’s home.  But, the planes will sport Continental’s color scheme and logo. Half the board will come from United and half from Continental, which also are the proportions of management, the company said.  In many previous “MoE”, it takes a couple of years, but one culture dominates; it becomes evident who acquired whom.

So why did Smisek insist he was correcting misinformation, saying no one is acquiring anyone?

It could be that the Houston-based employees FEEL like they’ve lost the war. I know what it’s like to be on both ends of mergers, and I know how I feel about it. It’s better if the company name used is yours rather than theirs. Continental was admired, well-run, even enlightened under former leaders Gordon Bethune and Larry Kellner. Mr. Smisek, since ascending to the top job, joined the industry in cutting free food and charging for bag-check. Now the United deal.

Employees may well see this as a loss — the HQ move, management changes, name change — what will become of what Continental was?

United hardly commanded similar levels of loyalty, at least as far as I can see (though I did not research that at all) – I try always to fly CO from our little hub here in Cleveland, if for no other reason that I liked the service, the people and their support for my city.  I hear horror stories about United service, especially on board.

What do you think? Is Smisek’s declaration that neither company is buying the other puffery, or truth?

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Posted in Internal Communications, Measurement, Public Relations, Strategy | 3 Comments »

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