Open communication

Cultivating a culture of open

communication If social media represent the first big communication

idea of this century, the larger goal of creating and leading open

communication cultures is certainly the next big idea

by Roger D'Aprix, ABC, IABC Fellow

2 8 Communication World • July-August 20i www.iabc.com/cw

S ocial media represent the first big communi- cation idea of the 21 st century. Yet as internal

communication tools, they have not had easy sledding, with senior leaders nervously contemplating what it means to give voice to everyone in the organization.

The strategy of the social media evangelists has largely been focused on piecemeal advocacy and the creation of discrete initiatives. But social media's relatively modest suc- cess with senior leaders sug- gests that the strategy has been a bit of putting the cart before the horse.

Our profession has long advo- cated tor more open communi- cation cultures. Practitioners have seen social media as a virtu- al "communication crowbar" in furthering that openness. How- ever, the existing degree of openness in any organizations culture is really what deter- mines the acceptance of new tools like these. The more attuned the leadership's in- stincts are to openness, the more likely those leaders are to

tolerate the expression of con- trary opinion and diverse view- points, the twin hallmarks of social media activity.

Many of our colleagues argue that we should simply become "facilitators of a con- versation" among the members of our audiences, and that lead- ership communication is passé at best and irrelevant at worst. Such arguments ignore the fact that organizational leaders are major influencers of the cul- tures they lead. The long- standing traditions of hierarchy and autocracy, which remain very much with us, are also powerful forces in opposition to openness. Still, some observ- ers argue persuasively that there is no choice—that the variety and impact of social media in the world at large will inevitably force both their acceptance and greater open- ness in the corporate world.

Some of the most ardent social media advocates have been perceived as radicals fighting for freedom of expres- sion and greater institutional democracy. But one can also argue that they have aimed too

low, that their ambitions were not radical enough. That as they tried to sell every social media program in a sort of quasi-subversive campaign of attrition, they have been seek- ing the wrong endgame. Rather than seeking the approval of tactical solutions, the better strategy would have been to lobby for more open communication cultures in the first place and to support that goal with all of their resources and imagination. If social media represent the first big communication idea of this century, the larger goal of cre- ating and leading open com- munication cultures (OCCs) is certainly the next big idea.

There are forces at work that make such cultures increasingly important and urgent. The vir- tual lack of organizational boundaries, which allows information to move seemingly at will, is one such force. The equally urgent need for collab- oration and employee engage- ment to enhance innovation and competitiveness is another. And ever-changing technology is the wild card that forces

Without the

conviction that an

open communication

culture is beneficial and

necessary to business

success, the effort

will likely fail.

Cisco celebrates open communication by Brad Whitworth, ABC, IABC Fellow

There's a reason Cisco embraces open commu-

nication: It keeps the company competitive.

Cisco is a US$40 billion player in a high-tech

world where innovative products burst onto

the global stage every day. A straightforward,

direct and candid approach to communication,

enabled by a strong dose of its own technol-

ogy, has helped establish the company as a

global leader in computer networking.

Like many other Silicon Valley firms, Cisco

has practiced open communication since its

start 26 years ago. The company is explicit in

its cultural expectations for the workplace:

The back of every employee's ID badge lists

17 cultural components that link the "Cisco

family" (employees) to customer success.

"Open communication" is listed there along

with other factors such as "trust," "empower-

ment," "innovation" and "fun."

John Chambers, Cisco's chairman and CEO,

sees his job as involving four critical roles: set-

ting the company's vision and business strate-

gy; recruiting and developing the leadership

team; driving the corporate culture; and com-

municating all of the above. Chambers drives

and models that culture and open communica-

tion in his interactions with employees, cus-

tomers, analysts and shareholders.

Six times a year he hosts question-and-

answer "birthday chats." San Jose, California-

based employees celebrating birthdays in

January and February, for example, are invited

to meet face-to-face with Chambers in January

at Cisco's headquarters. Such sessions typically

draw more than 300 employees in the room

with Chambers, while thousands more partici-

pate "live" via Cisco's Telepresence, a high-defi-

CONTINUED»

www.iabc.com/cw Communication Worid • July-August 2011 2 9

We need to

understand the

obstacles to openness

and to differentiate the

legitimate restrictions

from the i<nee-jerk

opposition to

sharing.

greater openness irrespective of the desire ior control.

A vision of openness What does openness look like in practice? Here is a detailed definition inspired and endorsed by an informal group of Forttine 200 senior communication executives who meet periodically under the sponsorship of ROI Commu- nication, a change communi- cation consultancy:

"An open communication culture is one in which informa- tion flows freely and is easily accessible to both insiders and to the public at large. Consistent with the culture and values of the organization, its leadership enables, advocates and provides open access to information in which employees, customers, shareholders and the general public have a legitimate interest. Proactive communication initia- tives and dialogue with and among the various stakeholders are the primary means for achieving open communication objectives. Among the obvious exceptions to the rtile are propri- etary, regulated fmancial and competitive information or con-

fidential employee, customer or client information."

That is, an OCC is a culture in which nonconfidential and nonproprietary information is actively and freely shared with both employees and interested stakeholders with the leader- ship's blessing and proactive participation.

The kicker in all of this is winning the understanding and support oí senior leaders in creating more open commu- nication cultures. It is not a task for the fainthearted because it requires a com- pelling business case, patience, the ability to deal with ambigu- ity, and personal conviction. It also requires the understanding of limits and thresholds for openness.

What leaders must do In his book The Future of Management, business guru Gary Hamel argues that there are three universal challenges for the 21st century organiza- tion: • Building a company capable

of continuous, trauma-free renewal in a changing world without precedents

• Making innovation every- one's job

• Creating a company culture that inspires everyone to give their very best

But how do business leaders establish the open communica- tion culture necessary to con- front these complex challenges? And how can communication professionals help them to do it?

The first question is: What is the leader's tolerance for greater openness and its consequences? Does he or she want to foment a cultural revolution in the organization or begin an order- ly, step-by-step evolution toward specific targets? How does the leader understand his or her options and the limita- tions of those options? And what are the steps in creating that understanding? What are the risks to legitimate confiden- tiality, and what is the cost of ignoring the damage that can be done by continuing the naïve belief that information can be tightly (or even loosely) controlled in today's world? Those are the critical questions any interested leader must con- front with the assistance of his

V ^ I S C O CONTINUED

nition, life-sized video collaboration system, or

on their laptops via the Cisco TV network. It's a

no-holds-barred session where Chambers' pri-

mary agenda is to listen and respond to hard-

driving questions. The sessions allow him to

keep up with what's top of mind for the com-

pany's 73,000 employees. Each chat is recorded

and posted on Chambers' intranet page for on-

demand viewing.

If he feels an employee's question isn't

direct enough. Chambers will often rephrase it.

When an employee recently asked him about

Wall Street's evaluation of the company's prior

3 0 Communication Worid • July-August 2011

quarterly performance, he took it a step

beyond the original question: "What you're

really asking me is why our stock price hasn't

gone up." And then he went on to answer the

tougher question. He'll often preface a

response with a candid "We need to keep this

inside the Cisco family," demonstrating candor

and trust before delivering an answer to thou-

sands of employees.

Other Cisco executives are just as open,

including the chief legal officer. In most com-

panies, the corporate legal department is one

of the most cautious and conservative groups

when it comes to communication. But in 2007,

or her communication and HR teams.

The first task for leadership is to rigorously define its own business case for greater open- ness. Without the conviction that an open communication culture is beneficial and neces- sary to business success, the effort will likely fail. Like all worthy visions, this one is a long-term effort that must be nurtured, defended and sup- ported with evidence, strategy, policy and practice.

Once the business case has been articulated and em- braced, the next step is finding out where the organization now stands in relation to its own aspirations. Companies fall somewhere on a continu- um when it comes to their degree of openness. At one end of the continuum are the pio- neers—the Googles, Ciscos and their ilk. At the other is any type of organization that holds secrecy and confidential- ity as sacred operating princi- ples. In the middle is likely the great mass of organizations that either have not chosen to think about these issues or are gen- uinely ambivalent, confused or

divided about how to proceed. So what can we and others

do as a profession to support OCC initiatives? Clearly, research instruments are needed to help gauge the extent of openness of a company culture. As experts in communication, we can help design those instruments, whether they take the form of surveys, interviews or other measurement tech- niques. We also need to under- stand the obstacles to openness and to differentiate the legiti- mate restrictions from the knee-jerk opposition to shar- ing. Furthermore, we need to identify and bring to light the consequences of unnecessary restrictions on information and their impact on collaboration, innovation and the desire to contribute one's best efforts.

The other fundamental con- cern is the implications of the OCC decision. How should communication be strategized? What are the relevant tactics that flow from that strategy? What does an OCC mean for a broad range of HR policies and practices, including selection, recruiting, leadership develop- ment, measurement and com-

Measuring the benefits Open communication, engagement and performance are inevitably

linked together in a virtuous cycle. And the payoff? In their 2Oio

report. Towers Watson researchers found that companies that met

their standards for highly effective communication had 47 percent

higher total returns to shareholders over the five-year period from

mid-2004 to mid-2009.

Need more evidence? Consider some of the other proven perfor-

mance benefits of an OCC:

• A culture of communication, integrity and innovation increases

employees' discretionary effort (Corporate Leadership Council),

• There is a direct relationship between employee and customer

satisfaction (Northwestern University),

• Satisfied employees create loyal customers, A 5 percent increase

in customer loyalty yields a 25 percent to 95 percent profit increase

(author Frederick Reichheid in The Loyalty Effect: The Hidden Force

Behind Growth, Profits and Lasting Value].

• The primary driver of employee satisfaction is effective commu-

nication (Northwestern University),

• Communicating a clear vision of the future is the No, 1 factor

in building employee commitment (Melcrum),

• Internal communication is the top factor in determining a

CEO's reputation, which in turn is critical to shareholder value

(Burson-Marstellar), —R.D.

pensation strategy? What accountabilities will be essen- tial to promote and, even where necessary, restrict OCC practices? All of these will require debate, deliberate deci- sions and integration of the initiatives that will prodtice a tailored OCC.

when Cisco and Apple got in a legal tussle over

the "iPhone" name (Cisco owned the trade-

mark, and Apple wanted to use it for its new

cellular phone), Mark Chandler opened up with

his personal insights on Cisco's external blog.

Chandler, Cisco's senior vice president and

general counsel, was able in his version of the

unfolding drama to go far beyond the official

corporate press release that factually reported

that Cisco had filed a lawsuit against Apple for

trademark infringement. As one legal colum-

nist blogged at the time. Chandler, by offering

his own views of the legal case, was "abie to

add pathos to the story, appealing to the emo-

tions of the audience,"

While the tone for openness is set high in

the organization, survey data prove that it

reaches across the company. Results from

the company's annual pulse survey consis-

tently show that employees believe Cisco's

culture is an open one. Three of four employ-

ees responded favorably to the statement

"Cisco's senior leadership team communi-

cates openly and honestly to employees,"

And nearly four of five agreed that "the peo-

ple on my team speak openly and honestly,

even when the news is bad."

CONTINUED >

Communication World» July-August 201 1 3 ^

Greater openness

is not necessarily

the solution for all

organizations. Even

the most open must

retain and protect

some information.

about the author Roger D'Aprix, ABC, IABC Fellow,

has four decades of experience in

corporate roles and Fortune 500

communication consulting.

The business case What is today's business case for more open communication cultures? Let's begin by facing the fact that the tipping point in any leader's decision to cre- ate and lead a more open com- munication culture will be the conviction that such a culture will improve both performance and the bottom line.

There is a growing body of research that shows the correla- tion of open communication practices with both employee engagement and business suc- cess. Annual surveys by Towers Watson, for example, show that openness is a critical compo- nent in engaging employees. The Gallup Organization long ago demonstrated that the extent of such engagement is a crucial element in company performance—that hiring the right people and trusting them were essential to both engage- ment and performance. Open- ness and trust are co-dependent.

In the words of Towers Watson's 2008 survey report of 90,000 employees in 18 coun- tries: "Three key elements emerge as particularly critical

in closing the engagement gap: • "First and foremost, organi-

zations must have effective— and engaged—leadership at the top.

• "Second, organizations need to customize and shape the work environment and cul- ture to match their unique basis for competitive advan- tage, tangibly aligning work- force strategies with business priorities.

• "Third, organizations need to put their workforce under the same microscope as they do their customers—to under- stand employees' needs, issues, values and...(motiva- tional) patterns."

Some may look at these chal- lenges and ask why open com- munication cultures are the next big idea. They may argue that an OCC initiative is too ambitious, and that our best strategy is to wait out change and react as it unfolds. The trouble is that by the time we have that under- standing and an appropriate tac- tical reaction, the damage has been done.

Greater openness is not nec-

essarily the solution for all organizations. Even the most open must retain and protect some information—competi- tive secrets, new business strategies, proprietary informa- tion, private personal informa- tion and the like. But most information in and around organizations does not meet the standard of legitimate secrets, particularly when it comes to the people who must help the organization succeed.

Gary Hamel has stated the ultimate case for openness far better than I ever could:

"For the first time since the dawning of the industrial age, the only way to build a com- pany that's fit for the future is to build one chat's fit for human beings as well. This is your opportunity to build a 21st century management model that truly elicits, honors and cherishes human initiative, creativity and passion Do that, and you will have built an organization that is fully human and fully prepared for the extraordinary opportuni- ties that lie ahead."

Amen. •

CONTINUED A key factor to the broad-based support for

openness is the pervasive technology and

tools that encourage direct, two-way commu-

nication among employees. Cisco has one of

the most extensive corporate broadcast tele-

vision networks in the world, with a monthly

calendar that covers everything from sales

training to companywide meetings.

In addition, there are more than 600 Cisco

Telepresence videoconferencing rooms around

the globe. A single Telepresence meeting can

bring employees in as many as 48 different

rooms together into one virtual high-defini-

tion conference room.

Cisco has its own internal video-sharing

capabilities in "Show and Share." While Show

and Share serves as a repository for high-end

corporate video productions, the vast majority

of its content is employee-produced videos.

Think of it as a corporate implementation of

YouTube, where employees can (and do) post

anything from an effective sales rep's pitch to

customers, to a retirement celebration, to a

tutorial on using new companywide software.

Employees are encouraged to use video to pro-

duce and post their work across the company.

To help leaders and employees make the

most of the available technology, the com-

pany's corporate communications and IT

organizations jointly created a Professional

Communicators Network. The online reference

center, within Cisco's collaborative workspace,

helps employees select the best communica-

tion technology to use to tell their story. And

they can launch "how to get started" lessons

from the same spot.

The combination of powerful collaborative

communication technology and a culture that

embraces open communication has proven to

be essential to fueling Cisco's global growth.

Brad Whitworth, ABC, IABC Fellow, is a senior

communication manager at Cisco's campus in

San Jose, California.

3 2 Communication World • July-August 2011 www.iabc.com/cw

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