There's bad internal communication, and then there's downright sloppiness. Consider this cautionary tale, care of a public-relations pro who would rather remain anonymous.
Not long ago, a top executive at a family-owned international consulting firm tried to sell his stake and retire. The controlling shareholders weren't thrilled. Before he packed up his office, the executive took a brief vacation. While away, the owners drafted a mean-spirited letter stating they would not meet the buyback terms and that his services were no longer needed, effective immediately.
Presumably confused, the executive's assistant left the letter on a conference table in his office, where it was found by a group of employees in search of a suitable meeting room.
Within hours, the information spread like wildfire throughout the firm. After more than a decade with the company, the executive had a band of loyal followers who were angered and appalled by the family's maltreatment. While the owners eventually bought back the shares at the original terms, the damage was done.
"Unfortunately, the story circulated inside and outside the firm, often with embellishment," says the PR executive. "It made the firm's owners come across as insensitive and high-handed in their treatment of a loyal executive who had significant client relationships."
There's a reason mega-firms, universities and other large institutions have internal communications directors. At the cue of senior management, these folks keep the ranks up to speed on where the organization is headed and how it intends to get there--call them Chief Company Kool-Aid Officers.
While many entrepreneurs can't afford their own internal communications departments, they have to be smart about doling out the details if they aim to strategically align their companies, sustain morale, guard trade secrets and generally keep things on an even keel. As the recession worsens and payrolls shrink, employees are craving the scoop from management more than ever.
How to keep employees informed without divulging too much? Here are a few guidelines:
Never say 'never' or 'always'
Use these rigid expressions at your peril. Circumstances are sure to change, and you won't have room to maneuver.
Paul Bernard, a Manhattan-based executive career-management coach, says he ran into this problem while working with a large accounting firm after the Sept. 11, 2001, terrorist attacks.
In the days after the tragedy, "the company's top partners assured their employees that there would be no layoffs, but within a year they had a round of major firings related to losses from that event," says Bernard. "Eight years later, they still lack credibility with their staff."
Mum's the word until you have a plan
If you're preparing to share big news with your staff, whether it's good or bad, don't do it until the strategy is in stone. Any leaks can breed rumor and anxiety. For instance, don't tell your secretary that you're thinking of retiring in six months--wait until you've lined up a successor and have a transition plan you can share with your entire staff simultaneously.
Set expectations early
Employees know they shouldn't know everything, but total secrecy is unhealthy and counterproductive, too. Find a few areas where you can offer regular updates--new clients, product extensions, the state of your industry--so everyone feels engaged, says David Smith, managing director of Accenture's talent and organization consulting division.
Speak with one voice
Obvious friction in the corporate suite is unsettling for the rank-and-file, so be certain that managers, owners and partners are all preaching the same message. Mixed signals breed skepticism and, eventually, morale-crushing mistrust.
Tell the press last
Too often managers sweat their external-communication strategy before relaying touchy information to their employees, notes Samantha Topping, founder of Topping Media, a Manhattan-based media relations firm. Whether the news is a round of layoffs or a new product launch, make sure your staff hears it from top management within the firm before reading it in the newspaper or on a blog.
"Not only is the company out with bad news in the press, its greatest assets--the employees--can become distracted, fearful and unable to answer any customer calls with confidence," says Topping. "This can ultimately slow down operations and create a very negative environment."
