Changing Environment of Business

To trust or not to trust?

Times are changing. Have changed. Will change. The influx of technology in the past twenty years has changed the scope of the world. International communication is a click away. Information flows like the Nile. The public is inundated with media. The slightest slip up by an organization can cause a public outcry rivaling a bad call by a referee during a Steelers' game.

Companies have evolved through the years, there is nothing to dispute that. Not evolving, however, is the public's opinion of these companies. From the "robber barons" of early industry to the present day white-collar to orange jumpsuit clad executives from Enron, WorldCom and the like, public perception of these corporate titans is filled with resentment and bitterness.

Our text, Corporate Communication, by Paul Argenti sites a decades-old survey that asks the question, "Does business balance profit and public interest?" In 1968, the majority of the population (70%) answered yes to the question (Argenti). By 1999, only 28% of respondents felt companies balanced profit and public interest (Argenti).

It is of utmost importance to these organizations that they keep a pulse on the effect their company has on the public and the community.

Breaking down the walls

A wise organization keeps an open line of communication to their constituents. In this case, the word "constituents" could mean employees, customers, shareholders, competitors, the government and/or any other person or institution that is affected by an organization.

As previously mentioned, technology has created a new brand of business that companies and their managers must recognize. In order to manage and incorporate this change in day to day operations, organizations should adhere to a basic framework of topics to ensure they are "Keeping up with the Jones'".

Recognize the Changing Environment

The text mentions McDonald's realization that their customers were put off by the use of non-recyclable materials in their packaging. At first, the fast food giant resisted change. But as time went on, their desire to avoid alienating customers came to the forefront and McDonald's changed. This decision helped ease the consumers and McDonald's was applauded for their efforts.

My company recently debuted a new computer program aimed to enhance our presence in the very profitable value-added sector of the steel industry. Incidentally, part of my job function is to train colleagues to use this program. The ultimate goal is to have our employees and customers work in partnership on this system.

There have been restraints. Many employees are old hat in the sense they see no need for such an initiative. They have sold steel for twenty plus years and have always been successful, so why change now? Part of my training process is to explain the pros - and cons - of our new system. At times it is hard to sell our people on the need for change. They feel as if I am trying to sell the sizzle and not the steak. My objective is to help them recognize the benefits of the change and help them implement our plans. After all, if the users are not fully on board, how can they effectively present this new program to our customers?

Adapt to the Environment without Compromising Principles

To remain successful for an extended length of time, an organization needs to embrace a set of ethical standards and principles. These principles need to be adjusted and cultivated over time to ensure a positive reputation is maintained.

A few years ago, China began producing steel that was much less expensive than steel produced domestically. While resistant to do business with the Chinese, my company relented and began buying offshore. The decision was made for competitive reasons. Our management did not like it, but to remain a player in the industry it was necessary.

Eventually, the fears of our management were realized: A large shipment of poor quality material had been purchased by us and sold to our customers. Above all things, quality for our customers is the number one requirement. Hundreds of thousands of dollars in credit were issued to our valued customers. We adapted as necessary but did not lose focus on what remains most important.

Don't Assume Problems Will Magically Disappear

In short, remain diligent and stay focused. This is especially relevant today. Many times each day emails circulate that have three, four or more people "cc'd". Sometimes these emails involve problems or situations that require action. I always make sure to follow up on the topic at hand, even if the question or issue was not directly pointed towards me. Resolution happens when all parties communicate and work together to achieve a goal.

Keep Corporate Communication Connected to Strategy

Each morning when I get to the office I have three objectives: 1) Get coffee. 2) Check e-mail. 3) Log in to the "Strategic Plan" database and review objectives and goals I set for myself days or weeks prior. Many days are spent completing said objectives. Each employee of the marketing department is expected to keep their strategic plan up to date. Even though many of us are scattered in different offices across the country, we are able to catch up on each others' projects within minutes - simply by accessing the site.

If one colleague in Denver sees a similar objective from Boston, he/she is able to communicate this. Had the database not been available, the left hand would have been working and the right hand may have stayed idle.

Moving Forward

The dynamics of business are changing every day. Actions never before seen are in the forefront as I type this entry. While a cliche, we never truly know what will happen. Let us hope that during this massive financial crisis, the top managers of our nation's financial institutions adhere to the communication principles we have discussed thus far. Digging from the bottom up will not be easy, but sound communication will alleviate some of the pain.