Communicating Change Is Key to Success

A Harvard Business Review article reports that companies spent $3.3 trillion in 1999 on mergers and acquisitions, yet less than half reached their strategic or financial goals. Why have so many companies failed in their efforts to undergo a significant change? The answer, according to a Rice researcher, lies in something that should be second nature to most corporations but often is surprisingly overlooked: communication.

Employee communications can mean the success or failure of a major change program, says Deborah Barrett, a senior lecturer in management and director of the MBA Communications Program at Rice’s Jesse H. Jones Graduate School of Management. Often, the initiative fails because there’s not enough communication.

Deborah Barrett

“Communication about a change generally begins at a very high level within the organization,” Barrett says, “but it isn’t continued in a meaningful way throughout the company. Traditionally, companies have tended to focus on the external communications function, assuming that the human resources function would take care of the internal communications.”

In general, Barrett finds that senior managers make three common mistakes when communicating change: complicating the message, failing to tailor the message to different groups within the organization, and simply not communicating enough.

In an article for the journal Corporate Communications, Barrett discusses what she calls the strategic employee communication model, an analytical tool she developed to improve employee communications and help businesses facilitate change. The design was based on research Barrett conducted on high-performing companies to find out what works best regarding employee communication.

The model breaks down employee communication into separate parts but also shows how each part is connected when employee communication is positioned strategically. It places high emphasis on strategic objectives, supportive management, targeted messages, effective media and forums, ongoing assessment of the program, integrated processes, and a well-positioned staff—having communication people at the top level of the organization.

Barrett’s communication model calls for the formation of a strategic communications team; an assessment of current communications practices; implementation of employee workshops covering such topics as vision, strategy, and job redefinition; and an ongoing review of the program’s results. A key recommendation is that the company’s communications team consists primarily of noncommunication employees.

“People representing the different functions within an organization have a better understanding of what needs to be communicated and may be more trusted among the employees in their division or unit,” Barrett explains. “Also, by bringing other people into the communication process, the company is able to expand communication to the entire organization, so it is seen as something that everybody should do.”

Effective cross-cultural communication also is essential in times of change, Barrett says, especially at companies whose employees represent varied cultures. She cites the very word “change” as an example of something that holds different meanings for different cultures.

“It may raise questions about who is in control, it may make employees feel that a problem exists within their group, and it may connote devaluing the present or past by looking forward,” Barrett says. “In some cultures, there is no equivalent to the word at all.”

Barrett also encourages the development of a communication network that calls on company leaders to work with a cross-cultural advisory team consisting of representatives from the major cultural groups within the organization. Such a group should conduct a cross-cultural analysis to explore the differences among the company’s cultural demographics and then should develop a communication strategy based on that analysis.

“The success of any change program,” Barrett says, “depends on the company’s overall commitment to ensure all employees understand the changes and are motivated to accept and support them.”

—Debra Thomas