Internal Communication True Software Inc.

Internal Communication

True Software Inc. is a software firm that specializes in developing business software. Most of its clients are mid-sized businesses in the United States. The firm has a total of 60 people working at its head office in New Jersey and around 30 are software developers with the rest being in administrative and finance departments. The clients usually contact the administrative department with their orders and it is the duty of the administrative staff to inform the developers. In some cases, developers visit the clients or vice versa if need arises but in most cases, administrative staff is trusted. It was on June 02, 2005 that software developer John Adams received a phone call from the staff at Genius Inc. wanting to know when their accounting software would be delivered. Adams was surprised because he had not been assigned this project and wanted to make sure if the staff member of Genius had correct information. That day an employee of Genius Inc. visited Adams with a transcript of the communication the firm had had with one of the administrative staff members. It showed that on February 13, 2005, Sally Michaels had booked the order, accepted advance payment and assigned the project to John Adams. However while it was all on paper, John Adams had never been told about this assignment and this had resulted in serious loss of time, trust and money. People at Genius Inc. was visibly upset and it was later found that since Sally had resigned three days after booking this order, she had failed to inform other people about this order and hence the mess. With Genius Inc. shouting for compensation for loss of valuable time, True Software Inc. decided it was high time the firm had an internal communication strategy. They knew that this problem had occurred because of lack of communication and they did not want to find themselves in a similar situation ever again. A questionnaire was sent to employees regarding communication issues and it was found that most of the employees were dissatisfied with the lack of communication. They were not only concerned about communication between departments but also about information about important changes in the firm that never reached employees in a timely manner.

The firm spoke to some communication experts and they recommended the development of an internal communication strategy which would not only make communication easier among departments but would also allow for flow of necessary information from top management to various relevant departments.

Solution:

Lack of communication within the firm is in fact the most serious problem any company can face and one that gives rise to the an air of mistrust among the employees. It is very important to understand that communication plays a very significant role in the company's success because this is what creates a feeling of trust as employees begin to feel like an integral part of the organization. Normally people would work for a company and never feel as if they belong unless the management and leadership make them feel so.

Communication is a major problem in many organizations as employees feel they do not know what exactly is happening within the firm. Especially in today's corporate environment where 'change' is the only predictable factor, it is extremely important to have an internal communication strategy in order to ensure smooth flow of relevant information within the firm. When changes are being planned, the importance of communication is heightened. The employers should take the staff into confidence and explain clearly why improvement measures are being implemented. Internal communication is important because various surveys and studies reveal that employees are seriously concerned about lack of access to relevant information. However the type of information they need may differ from person to person.

A survey in this connection was conducted with employees of a major international organization. This survey was mainly concerned with why internal communication was needed and what were the major communication concerns of employees in business organizations. The survey revealed that one concern that topped the list and was shown by 30% if employees was connected with internal organizational culture. These employees wanted feedback on their performance and said it was important for them to know if their work added value to overall organizational performance. 22% needed to know how safe their working environment was. A significant majority needed information about overall performance of the firm. How a company is doing is one of their major concerns. 17% workers were concerned about daily improvements and another 17% wanted to know more about annual goals and objectives of the firm. (Geddie, 1995)

Apart from the employees, other stakeholders are also involved in the internal communication system. People such as the shareholders, suppliers, business partners also need to be kept abreast of every change that is likely to have an impact on the company's progress, success or its revenues. However without an effective internal communication strategy, it is seriously impossible to expect success and smooth operation in the long run. Internal communication programs must be developed with one thing in mind i.e. stakeholders have a right to know what is happening within the firm or with the firm and they must be taken into confidence. David Brown (2002) explains why an internal communication strategy is crucial to a firm's success: "Without effective internal communications, the crisis of confidence in businesses and corporate leadership could hurt sincere efforts to build a positive corporate culture and to enhance employee morale and productivity, and devastate the overall image of an organization. The importance of a comprehensive internal communications program, particularly at a time like this, cannot be understated. How employees, association members and other related audiences such as investors, trustees and business partners, perceive the organization is crucial to its success." [1]

Corporate culture is undergoing serious transformation as stakeholders from employees to investors demand transparency in organizational operations. This transparency however cannot be maintained without the help of an effective internal communication strategy. Fortunately more and more firms are beginning to realize the need and importance of internal communication programs. They are beginning to see the importance of keeping employees well informed because that is only way management can convey company's goals and objectives to them.

It has been noticed that companies of all sizes benefit from developing and implementation an effective internal communication strategy. Mirian Graddick-Weir, at&T executive vice president of human resources has this to say about internal communication: "Internal communication is more important today than in previous years partly because the business and market conditions are more complex,...There is a lot of information in the marketplace and it's crucial that employees understand it. We put it in perspective -- what does it mean to the company and the individual." It is true that there is American workforce today is bombarded with information. However a business organization can filter this information to ensure that only the relevant facts reach its employees with the help of a good internal communication program, Graddick-Weir further adds: "When you've got informed employees who understand the business, it helps them do their jobs more effectively."

The three principles that must be kept in mind when developing an internal communication strategy is that it should be effective and relevant. This means it should be effectively connected with the core values and objectives of the firm. An internal communication program that doesn't incorporate the organizational mission and values destroys its own purpose. Another important thing is the channel through which information flows within the organization. Who will be responsible for delivering messages and how will they be conveyed are the kinds of questions that need to be answered in this stage of development. The third important thing is management and leadership endorsement. Without their support, it is neither easy nor practical to have an internal communication strategy.

Every major organization understands the importance of internal communication strategy and what drives their communication strategies may differ from firm to firm however some principles remain common throughout as we notice in the examples given below.

Three personnel of three different firms responsible for their internal communication strategy were asked what drove their IC programs. Their answers help us understand the dynamics of internal communication.

Margot Myers, manager, employee communication and creative services., U.S. Postal Service, Washington, D.C:

Corporate objectives in the Postal Service are defined under three "voices:" the voice of the customer, the voice of the business and the voice of the employee. Our communication strategy is tied to these three voices and decisions about internal communication are based on whether efforts support achievement of goals in these three areas. Though you might think we're most strongly influenced by the voice of the employee objectives, we also make significant contributions supporting business and customer goals.