CONTENT PAGE
Section Page
No
Introduction 3
1:
The importance of corporate communication to B&L
1.1: The purpose of a corporate
communication strategy for B&L 4
1.2:
The link between B&L’s communication and its key objectives 5
1.3
The relationship between B&L’s communications and their branding 6
2:
An internal corporate communications audit for B&L
2.1:
Plan of an internal corporate communications audit of B&L 7
2.2:
Internal communication audit conducted so for 9
2.3:
The effectiveness of current levels of practise at B&L 10
3: An external
corporate communication audit for B&L
3.1:
Plan of an external corporate
communications audit of B&L 11
3.2:
External communication audit conducted so for 13
3.3:
The effectiveness of current levels of practise at B&L 14
4: The development
of a corporate communication strategy for B&L
4.1:
The objective of a corporate communication strategy for B&L 15
4.2:
The audience for B&L to influence with a corporate communication strategy 17
4.3:
Appropriate measures to monitor a planned corporate communications strategy for
B&L 18
Conclusion 20
Bibliography 21
Introduction
“Corporate
communication” is being used to describe the management function and the
effectiveness of how information is communicated internally and externally. (Grunig, 1992) . Furthermore,
corporate communication is also seen by some as referring only to an
organisation’s external communication.
Corporate
communication strategy can best be described as the responsibility of the board
and top management for the organisation’s financial performance. The focus of
corporate communication is mainly on the internal and external environment,
with great emphasis on the financial sector.
This
paper discusses the importance and the effectiveness of corporative
communication, Communication plays a very important role in the acquisition and
the integration of Barclays and Lehman Brothers.
According
to the case study, the integration of the two businesses had to be done quickly
to prevent the disruption in the business and mitigate the transfer of clients
to other investment banks.
The
paper also look at the cultural issues and the motivational issues that the
company face during the integration process and how communication plays a great
role in solving these issues, while creating a healthy working environment for
the employees of both companies.
B&L
Corporate communication strategy is based on assisting the organisation to
adapt to its environment by achieving acceptable behaviour; identifying and
motivating the demotivated employees, while managing the cultural differences
facing the organization. Corporate communication strategy is based mainly on
the ‘corporate community’ approach to strategic management where the
organisation is viewed as a social-economic system and where employees and stakeholders
are recognised as partners who create value through communication.
Corporate
communication strategy entails formulating clearly what should be communicated
to stakeholders to solve the problems created by the implications of a
strategic issue or to capitalise on the opportunities presented. Communication
goals to be addressed in plans/campaigns are developed based on the corporate
communication strategy for each strategic issue. The major constructs of the
concept corporate communication strategy are therefore seen to be environmental
scanning, issues analysis/ management as well as stakeholder analysis/
management.
1.1:
The purpose of a corporate communication strategy for B&L
Good
communication is an important element to any organization; good communication
can make or break an organization.
B&L
face many challenges these include culture differences, employees lack of
self-motivation B&L had to address the communication issues in order for
them to create a healthy working environment. Communication help the management
to understand the difference in cultures and it help them to implement
correctional measures to reduce the problem created by cultural difference.
The
Lehman’s employees were very demotivated and demoralized due to a number of
factors these include job security and cultural issues. Example, “Lehman staffs leaving to pursue other
opportunities and others refusing to join Barclays, hence seeing them just
leaving”
According
to (www.livestrong.com, n.d) communication is the
process of sharing information thoughts and feeling between people through
speaking, writing or body language.
Effective
communication creates awareness and gives a clear understanding of the
direction the organization is heading. Effective communication helps with the
motivational aspect of the organization therefore the company can gain
competitive advantage over their competition through good communication; good
communication was an important element to the successful acquisition and
successful implementation of B&L. Example the, “Leadership of Barclays and
Lehman played a critical role during the acquisition and integration and the
process”
Companies
have to think about their stakeholders, shareholders and customers and the
impact their decision may have therefore B&L have to communicate effectively
with their stakeholders/customers/ shareholders and investors about the company
current financial position. Government bodies such as, HMRC is a stakeholder
who is more interested in the revenue generated while the Financial Service
Authority (FSA) is more concern with how the business conduct itself.
Stakeholders
such as employees are more interested in job security and financial and
non-financial gain, communication is and will remain an important element of
any successful organization.
Base
on the organizational behaviour theories cited in the case study cited by (Douglas, Zivnuska, 2008) , it seems like the
action going forward by Barclays is to build the organizational commitment of
Lehman employees while ensuring the effectiveness of the leadership of Barclays
senior managers. This will strengthen the communication and improve the support
to Lehman staffs moving to Barclays.
1.2:
The link between B&L’s communication and its key objectives
According
to (biznik, n.d)
corporate communication is about managing perceptions about an organization,
i.e. its corporate culture, it’s corporate identity, its corporate philosophy,
its corporate citizenship and it’s place in the market.
The
structure of both organizations was completely different in spite of having the
same business objectives. After taking a look at both companies the major
differences includes culture, work ethics and the flow of authority and the key
objectives of B&L is to bring together two set of different work force to
form one common workforce, that is, a healthy working environment. It was very
challenging for the employees of both companies to work together, this was due
to the cultural and work differences B&L manage to pull through by using
their communication skills.
According
to the case study, Barclays had to solve
the conflicts between the employees of both organizations; this was
achieved by strategically allocating resources to Lehman employees by providing
relevant roles and responsibilities for the key employees.
The
integration process was a bit challenging due to the cultural differences and
the difference in work ethics. B&L had to form a communication strategy to
motivate the staff of Lehman Brothers; the staffs were very demotivated because
of the failure of the company and to worsen the situation their jobs were at
risk. A strategy had to be put in place to effectively join both companies
together through corporate communication; both companies were able to come up
with a suitable solution to effectively carry out the integration process.
Example, “provide meaningful rewards for
the Lehman employees at year end, giving opportunity prospect”
The
objective of good communication is to achieve the company mission and
objectives, the shareholders and stakeholders are concern whenever an
acquisition or takeover is announced. It is the company responsibility to
reassure the stakeholders and shareholders of the possible impact the takeover
might have on the company whether negatively or positively.
Barclays
had to reassure the shareholders and stakeholders that the new acquisition will
not harm the future or the strength of Barclays PLC in fact the acquisition
will see the company gaining competitive advantage over their competitors. “The link between Barclays and Lehman is to
communicate effectively to the customers and stakeholders, reassuring them of
the benefits and the market advantage the acquisition”.
B&L
were able to improve their working environment through the use of good
corporate communication, communication played a major role in addressing the
cultural and demotivation issues of both organization.
1.3:
The relationship between B&L’s communication and their branding
Lehman
filed for bankruptcy on September 15, 2008, the largest bankruptcy filling in
American history. Barclays capitalized on the weakness of Lehman, seeing them
acquiring Lehman at a record price below market value at a Wapping $1.85bilion
Barclays benefited from a massive windfall of $13bilion.
Major
concerns were raise over the record deal and the integrity of the acquisition.
It was important for Barclays to respond to the stakeholders, shareholders and
investors, more importantly Barclays was face with the dissatisfied and
demotivated Lehman staffs, resulting
some of them leaving or pursuing other opportunities.
Investors
and shareholders were worried about the position the acquisition may put
Barclays in, even though the windfall was tremendously great. Employees for
both financial groups were worried about their jobs and job security; the
culture difference did not help the situation.
Barclays
have a responsibility to the employees, shareholders, stakeholders and
investors; this is where communication plays a pivotal role, Barclays had to
communicate both internally and externally, this was necessary in order to
address any concerns the affected parties might have.
According
to (www.brickmarketing.com, N.d) , a brand is the idea
or image of a specific product and service that consumers can connect with.
Barclays and Lehman Brother is two different and well-known brands during the
integration process Barclays had to reassure the customers of Lehman that
Barclays is capable of handling their accounts with little or no disruption at
all. Communication is an effective way of communicating to shareholders and
customers of both companies, according to the case study “The managers of Barclays had to work together to build and enhance the
Barclays brand”.
Accordingly
to (Brandirectory, N.d) Barclays became a truly global banking
brand in 2008 when it acquired the investment banking operation of Lehman
Brothers during the global economic crisis.
The
Brand has come under fire from all side as public support for banks
deteriorated and allegation swept through the banking sector of malpractice and
corporate greed, nevertheless, Barclays was still able to perform outstandingly
due to good integration and effective communication.
2.1:
Plan of an internal corporate communication audit of B&L
Internal
audit is very curial to any organization, the audit help companies to identify
the weaknesses and communication failure within the organization. In-regards to
B&L internal audit was necessary in-order to check if the integration
process is running as expected and the company needs and objectives are being
met.
Step 1
Identify
the area that need to be audited and the purpose of the audit
In
the case of Barclays the area that they should look at in the communication
audit is the way information is communicated to the Lehman Brother staffs and
how effective they are communicating.
Step 2
Selecting
the appropriate research methods.
There
are many different types of research method that can be used these include,
one-on-one interviews, telephone surveys, questionnaires etc.
Step
3
Evaluate
all the information collected and communicated in the past
This
step will see he managers of Barclays asking themselves some straight forward
questions these are:
How
did we communicate with the staffs of Lehman Brothers and Barclays? Did we
communicate effectively? Did they understand what was communicated? If not what
didn’t they understand and why didn’t they understand?
Base
on the finding of step 1-3 Barclays can use the information to put together an
appropriate method of communicating more effectively.
A
comprehensive internal communication audit consists of four major objective,
these are as follow:
·
Orientation
·
Method
of communication
·
Medium
of communication
·
Effective
communication
Orientation
The
most important element of communication is the way the information is introduce
into the company and how this is communicated to the employees.
The
culture difference was a big problem Barclays and Lehman Brothers face during
the integration process; therefore there should be consistent communication
during and after the integration process.
Method of
communication
The
way how information is communicated depends on the purpose for the
communication. The information must be communicated to the right group, more
importantly the message must not be a complete surprise to the affected group.
Medium of
communication
The
information must be readily accessible and communicated using several methods;
this will reduce the chance of communication failure. Some of these methods are
as follow
(1)
Emails
(2)
Post
(3)
Website
(4)
Telephone
(5)
Meetings
(6)
News
paper
The
above list is not exhausted
Effective
communication
In
the case of Barclays, the best way to communicating to employees should be via
meetings and emails, this will strengthen the relationship between the two
organisation, if communicated effectively this will help to create a healthy
working environment for bother organization.
2.2:
Internal communication audit conducted so for
Sharing
the core value between Barclays and Lehman brothers is very important during
the implementation and the adaptability of the employees.
Internal
audit is conducted to understand and check for weaknesses in the existing
communication system; hence weaknesses can easily be spotted and corrected on
time. Without good communication Barclays would have tremendous problems
selecting the right staff with the appropriate skills and good knowledge.
Internal
communication will help the management of Barclays to familiarize themselves
with the cultural differences of Lehman Staff.
Problems
Faced by Barclays
A. Cultural differences
B.
Demotivated
staff
C. Communication
Internal
audit communications help Barclays to identify and manage the conflicts that
existed and were starting to manifest in the integration of the business.
Lehman
brother staffs were very demotivated and worried due to the collapse of the
company, they were worried about their future and job security, this was a
major problem for Barclays to deal with and the difference is culture did not
help the situation much, therefore Barclays had to conduct internal
communication audit to ensure the effectiveness of their communication
strategy.
According to the case study “ Barclays as the key surviving entity, has
an advantage as its culture would have the dominant base, in spite of been the
dominant entity, through good communication Barclays were able to motivated the
Lehman staffs while creating a common culture that suit both the
organizations”.
Communication
audit is an on-going process for Barclays and any successful company, companies
should know at all times whether or not they are communicating effectively and
whether the information communicated is reaching the right targeted group, this
information can only be available through communication audit.
2.3:
The Effectiveness of current levels of practise at B&L
Acquiring
Lehman Brother was a huge risk on Barclays, this raise concerns from the
shareholders and the stakeholders, nevertheless Barclays took the risk by
acquiring Lehman Brothers.
The
Acquisition was not only financial however Barclays were able to integrate both
companies together, the business style of Lehman was quiet different from the
business style of nevertheless Barclays were able to successfully integrate
both companies while addressing the cultural and motivational problems facing
the company.
Barclays
was very effective during the acquisition of Lehman Brothers, the acquisition
and integration of both companies was a big challenge for Barclays, Barclays
was able to effectively transfer some of Lehman most valuable clients to
Barclays while retaining some of Lehman Brothers most skilled staffs.
With good planning and effective communication
Barclays were able to successfully acquire and integrate Lehman Brother in
spite of the current economic crises.
By
understanding the existing culture Barclays was able to create and integrate a
new culture that is satisfactory to the employees of both companies, Barclays
was very strategic during the acquisition and integration process of both
companies.
Achieving
this was a Hugh challenge for Barclays, anyhow this was achievable by
recognising the hard work of Lehman employees and rewarding them while giving
them new important roles, hence Barclays was able to motivate the de-motivated
while getting them to start working has a team.
3.1: Plan
of an external corporate communication audit of B&L
During
the planning stage of B&L communications audit, all stakeholders and
decision-makers in B&L communications strategy are identified, and a plan
for interacting with employees, customers, and media during the audit is
define.
An external
communication Audit will ask the following:
·
What
are B&L current goals and objectives for communicating?
·
How
well is the current Communications Plan working? Are we delivering our messages clear and
consistent?
·
Are
we reaching key audiences with our messages and moving them to action?
·
Are
we effective in our communication? What
do stakeholders think of our communications?
·
Do
our communications support our overall strategic plan? What would make our
communications more effective? What communications opportunities are we
missing?
During
the communication audit information such as Information about B&L current
communication strategy is gathered with tools such as surveys, interviews,
focus groups, network analysis, content analysis and technology assessment, these
information is use to evaluate and analysed the current audit.
Whether
or not a communication audit is done internally or externally, a common set of
methods can be used to gather data needed to make assessments about practices. These
steps are as follows:
Step 1
Determine the area
to be audited
In the
case of Barclays and Lehman Brothers, the area that requires auditing is the
way how information is communicated during the integration process and how
shareholders and stakeholders are responding internally and externally.
Step 2
Choosing an
appropriate research method for B&L
The
research method objective is to gain an insight on the current internal and
external issues affecting B&L. Several methods can be used to gain this
information such as, one to one and group interviews, online and telephone
surveys, questionnaires and the World Wide Web.
Step 3
Evaluating
collective information’s from past communication
Past
information will be used to evaluate information already communicated
internally and externally to determine whether or not the information already
communicated was effective and if not, why and what can be done to improve
future communication.
Step 4
Conduct a SWOT
analysis
This
will help B&L to identify their strength, weaknesses, opportunities and
threats in their communication flow and what corrective method can be put in
place to improve or mitigate any communication issues while capitalizing on
their communication opportunities.
Step 5
Taking
all the previous steps into consideration, follow through, reflecting,
analysing and implement a action plan.
3.2:
External communication audit conducted so for
External
audit is conducted to understand and check the responses of the external groups
such as, customers, shareholders, stakeholders, financial bodies, government,
etc. External audit will highlight any problems or potential problems within
the current communication system, hence, giving Barclays the chance to rectify
and communicate any problems to the stakeholders, shareholders and investors on
time. External audit communication highlighted the key organizational behaviour
issues facing the business, according to the case study “there was considerable uncertainty in the integration that was only
made worse by the external environment which saw the worsening of the financial markets’ crisis”
Correcting external problems affecting Barclays wouldn’t be possible without
the use of external audit, external communication audit assist the management
of Barclays to understand and identifying the right external group which they
should communicate to.
External
audit conducted so for allow Barclays to address concerns raised by
shareholders and stakeholders and also help the managers of Barclays to
understand the problems facing the financial market. Shareholders and customers
were very worried about the future of Barclays lead alone the future of Lehman
brother. Barclays had to communicate with the different groups in a timely and
appropriate manner giving them the assurance and confidence that the
acquisition is a good thing for the company and how the acquisition will help
the company to compete better in today’s global competitive financial market.
The
financial market is very fierce and financial companies are now competing with
each other for the same customers therefore communication audit is an on-going
process for Barclays and any successful company.
Companies should know at all times whether or
not they are communicating effectively and whether the information communicated
is reaching the right targeted group, therefore B&L had to carry out
external audit on a regular basis to determine what people are saying about the
company, hence resolving and correcting any problems that might occurred.
External audit help Barclays to understand the financial, hence, problems can
be dealt with in a timely manner, therefore external audit is of great
importance to the success of the Barclays and the integration of Lehman
Brothers
3.3:
The Effectiveness of current levels of practise at B&L
Barclays
knew that the acquisition of Lehman Brother is a big decision and must be
handle with care, Barclays were very much aware of the potential problems that
will come with such a decision. Some of the problems faced by Barclays during
the acquisition and integration process were, the difference in culture by both
companies and the stakeholders and shareholders concerns about the performance
of the company and the likely risk the company might face if the acquisition
should go wrong.
In-order
to save time and meet the organizational goals and objective, Barclays
capitalized on the external and internal information communicated to help them
with the acquisition process. Barclays was very effective during the
acquisition and the method of communication used to convey the message to the
stakeholders, shareholders and investors was very effective.
Through
corporate communication, Barclays were able to gather the information need to
acquire Lehman Brothers; this is one of the biggest acquisitions in the
American history. In spite of high criticism and the bad financial crisis
Barclays were able to demonstrate a high level of transparency during the
acquisition of Lehman Brothers.
Effective
Practice
Barclays
were able to withstand all the criticisms thrown at them while maintain
transparency during the acquisition and
the integration of Lehman.
Effective
communications are developed over a period of time and Barclays was able to
clearly demonstrate how effective communication can be during any economic
crisis.
Barclays
could not have achieved the company objective without proper internal and
external communication, communication work as a tool to highlight and correct
or take advantage of a given situation.
4.1:
The objectives of a corporate communication strategy for B&L
Corporate
communications plays a critical role in the public image of Barclays, as an
effective provider of financial services Barclays is responsible to its
stakeholders, shareholders and investors, communication allow Barclays to meet
its objective effectively.
The
objective of corporate communication strategy is to inform stakeholders and
shareholders of any changes or new acquisition taking place in Barclays.
Corporate communication help with the image of Barclays while building public
confidence and boosting the performance of employees while creating job
satisfaction and reducing the cultural difference between B&L. Similarly,
corporate communication strategy recognised the need to build strong
communication both internally and externally while delivering excellent service
to the customers.
Corporate Communication
Objectives
·
To
use the best channels of communication, to ensure the right people get the
right message at the right time in the appropriate format and develop and
improve existing systems and processes
which enable staff to be well informed and involved in decision-making
·
To
use the corporate image for communications and develop consistent messages to
make sure staff feel part of one
organisation, which is moving forward
·
To
make the best use of technology, which will improve the targeting and timing
of Communications and To develop
networks internally and externally, which will share good practice, promote
effective communications at all levels
and build good working relationships.
Communications
is a part of management responsibility and the task of communicating to
internal and external audiences is regarded as an integral part of the overall
management of B&L. communication objective is to ensure that there is a
flow of relevant information between B&L and its stakeholders, shareholders
and investors. Information and communication channels should be equally
accessible to the public, irrespective of personal background and
circumstances. All communications activity will therefore be undertaken in
accessible and appropriate language.
Effective
communication is essential to how B&L work and provide services.
Consequently, the communications strategy endorses communication as a priority
issue for B&L and demonstrates Barclay’s commitment to achieving effective
communication.
4.2:
The audience for B&L to influence with a corporate communication strategy
Corporate
communications is no longer an amateur game (Winter, 1993) but has evolved into a key management
function. Before communication can be effective it is essential to identify the
relevant target audience group and the correct information must be prepared and
delivered correctly. In the case of Barclays the correct targeted groups that
were interested in the acquisition were the shareholders, investors and
stakeholders like, government bodies, financial bodies, customers, employees,
competitors etc.
Each target group has different needs and
expectations so it is important to use as many channels of communications as
appropriate to reach as many people as possible within the targeted group.
Method of
communication
Barclays has many established proactive means
of communicating with its target audiences, these includes:
Website
– a continually developing communications tool, particularly for customers,
investors and employees. In today’s fast moving global economy more people are
turning to the web for informational and transactional purpose therefore the
web has become a primary source of information.
News
releases – appropriately targeted to reach the relevant targeted groups both
national and internationally.
While
these will continue to have value, the communications strategy enables the
adoption of other modern methods of e-communications and social media sites,
such as:
·
You Tube – video recording/editing
equipment and associated staff training opens
the door to new opportunities to interact with audiences and new markets
·
Texting – identifying ways in which SMS
texting can be used to reach target audiences.
All
of these channels need to be considered to ensure the message reaches the right
audience, at the right time and in the right ways.
All
targeted group will have different interest in the activity of Barclay’s acquisition.
Example, shareholders were very worried as to how this acquisition will affect
their share interest with Barclays. Barclay had the responsibility to
communicate with them effectively and reassuring them of the company current
financial position.
Employees
are more concerned with job securities, growth and benefits. Most of Lehman
Brother employees have grown really unsatisfied and demotivated over the
acquisition; equally Barclay’s employees were worried just as much in fair of
their position becoming obsolete.
4.3:
Appropriate measure to monitor a planned corporate communications strategy for
B&L
When
measuring the impact of corporate communications activity relevant feedback
mechanisms can be used to judge the success of communication and the progress
of the overall strategy, i.e. surveys, annual reports and interviews, this will
help Barclays to gain an insight of its current position and how effective
their communication strategy is.
Types of
Measurement
To
determine the aspect of communication required measurement will vary from
organization to organisation and the objective of the information being
communicated.
According to (Snapcomms.com, N.d) , Prior
to communication, measure; existing knowledge, attitudes and behaviours of
employees, as well as determining the existing information available, how easy
it is to find, the current communications channels available and to identify
other factors influencing attitudes and behaviours.
To
monitor the appropriate communication strategy B&L have to create a two way
communication, this will see them getting the appropriate feedback both
internally and externally, the below can be used to monitor and give feedback
of the effectiveness of a planned corporate communication strategy.
Measure
to monitor a planned corporate communications strategy
Internal
·
The
Communications Forum - The Forum will provide feedback on the effectiveness of corporate
communications channels and share good practice regarding what works well in departments.
The exchange of ideas and views in this group will help generate new ideas and
improve existing channels/methods of communication.
·
Feedback
mechanisms - All internal corporate publications, for example spectra and Vital
Signs, have a feedback mechanism.
External
·
Daily
monitoring of press coverage and a daily email report of all stories concerning
B&L is produced, circulated and posted on the intranet. A weekly report of
press releases issued, responses given and media coverage received is produced,
circulated and posted on the intranet.
·
Considerable
effort is put into dealing with media enquiries, which do not result in
publication – these will also be recorded and monitored.
Review
·
The
Corporate Communications Framework and Action Plan will be reviewed on a
regular basis. The Communications Forum will undertake the review in partnership
with employees by using the most appropriate communications channel.
Conclusion
Focusing
the efforts of the corporate communication function within a functional
strategy, linked to the company strategy, will assist in proving its
contribution to organisational effectiveness.
In order to formulate corporate communication strategy, B&L will
need to understand the cultural issues that the organisation is facing and be
an expert in using communication to help remove barriers and culture clashes.
Barclays
will continue to face cultural issues therefore Barclays has to carryout
regular communication audit to identify and address any potential issues that
come with the integration of both organization.
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