Communication Theory in Corporate Practice

							Strategic Management Communication Theory in Corporate Practice

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Strategic Management Communication Theory in Corporate Practice

Introduction A corporate organization without a strategy is inconceivable. Johnson & Scholes (2002) define a strategy by elements as long term direction to achieve advantage for the organization over competition by matching resources and activities of the organization. Managing communication strategies within a corporate organization is fundamental for being alive as an organization. Strategic management though has not been translated to the definition of Nag, Hambrick & Chen (2007) in which communication is as an intended and emergent initiative or communicating intended and emergent initiatives taken by the general managers on behalf of owners involving utilization of resources to enhance the performance of firms and in their external environments.

In the light of strategic management, strategic communication in corporate practice is communication as enabling factor for strategic activities. The difference between strategic management definitions can also be pinpointed in the role of communication in strategic management. Strategic communication can be translated to the definition of Nag, Hambrick & Chen (2007) in which communication is as an intended and emergent initiative or communicating intended and emergent initiatives taken by the general managers on behalf of owners involving utilization of resources to enhance the performance of firms and in their external environments.

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Johnson & Scholes (2001) emphasize the influencing aspect of strategic communication: strategic communication means communicating with stakeholders to create, strengthen or preserve, among key audiences (like stakeholders), opinion favorable to the attainment of corporate goals.

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Importance of strategic management communications For profits making organizations, the role of communications has evolved from traditional corporate public relations practices and media outreach. In both theory and practice, public interest organizations view corporate communications as a critical engagement to advancing their mission. Broadly speaking, strategic management in corporate communications is to speak to your stakeholders about what you do and what you want to achieve.

While some may call it „public relations‟ or simplify it as „media relations‟, corporate communications activities are not limited to press coverage or traditional marketing endeavors. Basic strategic management of any organization‟s communications program may include websites, brochures or flyers, direct mail, annual reports, or undertakings as large as issue advocacy campaigns and as basic as distributing talking points to all staff members. Making the right decision about what to do and how to do it is where the „strategic’ part of this practice becomes important.

Obviously the concept of strategic management in corporate communication implies intent. In the context of corporate world, it suggests an integrated decision-making process that leads to a clear understanding of goals and objectives that will guide the execution and implementation of a communications activity or activities.

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An often-used, much misunderstood phrase, „strategic communications‟ describes an organization's overall approach to its public image and program goals. As many corporate companies begin to learn more about communications, remember that it is not simply marketing or media relations. It is about telling people about the product or services issue and making an impact on the cause or profit.

To be strategic in management approach to communications it not to simply mimic the „best practices‟ exhibited by others or to adopt a set of tactics deemed strategic. Rather, the strategy is in the approach the management takes to the organization‟s overall communications from planning and stakeholder buy-in to outputs and maintenance of effort. Taking reference from the Tylenol Crisis faced by Johnson & Johnson in 1998, the company faced it boldly and could rely on its credo to help the company set clear priorities and deal with the constituencies. Its highly personalized and caring response to the consumers won the credibility back for the company and helped Johnson & Johnson to overcome the crisis.

Any corporate strategic approach in communications requires alignment of communications activities and outputs with the overall goal of the organization. It is not only about what it says about the organization but also how it can help to move closer to achieving the corporate mission.

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The determination of the objectives of corporate communication taking into account resources such as money, time and human resource is the basic foundation of strategic management in communication. From the various elements in the strategic communication framework the market constituent‟s response is the most important as it gives a basis on which the strategy can be prepared for effective future communication with that constituent.

Reputation of the company is based on the constituent‟s perceptions, so analyzing the organization‟s constituents is the most important thing for devising an effective communication management strategy.

Corporate communications is always been considered as a processes where a company uses to communicate all its messages to key constituencies. It encodes and promotes a strong corporate culture, a coherent corporate identity, an appropriate and professional relationship with the media, and quick, responsible ways of communicating in a crisis. It also defines how an organization communicates with its stakeholders and how that brings a company's values to life.

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It is important to build up an image of a company by demonstrating its integrity and to listen and speak to its stakeholders honestly. This makes corporate social responsibility as a vital component of corporate communications, making it as a strategic tool in which a company stand out by creating competitive advantage

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Strategic Management Theory and Corporate Practice

As stated earlier, effective management and strategic communication practice is closely related to the success of the organization, through which company‟s reputation, survival and its success is communicating to the public as well as its own employees and stakeholders. Communication is closely linked to business objectives and strategies. It is essential if organizations are to inform and influence external stakeholders including their customers, and to harness the efforts of all their members towards the successful accomplishment of organizational objectives.

The purpose of strategic management in corporate communication practice is the ability and accessibility of information to flow from top management to bottom. It will be effective only when officials are communicating information effectively to all the employees. Thus all parties should be communicate and transfer the necessary information meaningfully and resourcefully. The development of the organization depends on its communication process. Since each and every business process communication is inevitable. It is an exchange of information and knowledge with the internal groups as well as stakeholders who have direct relationship with the organization, which will enhance the growth of the organization.

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Corporate communication is the strong and consistent message which is influencing and motivating its employees and stakeholders and also it aims to attain business development success. If there is any change or business crisis, corporate communication plays a very vital role to handle it effectively. Every body is looking forward how will the change or crisis affect the organization and how it handled by the authorities. They also have the curiosity to know how a company tackles the situations even after the event is over.

Strategic communication practice is the cornerstone function of every organization to buildup its status in the corporate world as well as its stakeholders. Their work is very concerned with internal communications management from the standpoint of sharing knowledge and decisions from the enterprise with employees, stakeholders, suppliers, and partners. Communications is one of the most important links between an organization and the public as been demonstrated by Springfield Re-Manufacturing Corporation (SRC) case, stakeholder participation can be a long-term success if employees, armed with knowledge, are active players rather than passive spectators in determining the company‟s future.

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Major corporate companies are considered managing strategic communication as an effective tool to intensifying its scope and rationalizing its service. They have renewed their communication strategy to expand their branches in various parts of the country. Organization interaction with the community, its stakeholders, staff and other interested groups always canalized its progress. Leading organizations have their own communication team with efficient communicators who are responsible for communication function with various national and international organizations.

For these corporate companies, to get input from the external and internal environment or to be able to utilize resources it is necessary to managing communication in corporate organization. An organization communicates with the external and internal environment to get information about the SWOT (Strengths, Weaknesses, Opportunities and Threats), which is the input for a good strategy. A SWOT-analysis is done to reach alignment between the internal and external factors which derive from the stakeholders.

The external environment exists of stakeholders like customers, politicians and suppliers. The internal environment refers to shareholders, employees and management teams. A strategy based on SWOT though exists of internal and external elements. For this reason, strategy shaping at corporate level is subdivided in external and internal strategy.

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These two coincide closely is explained in the resource dependency theory, which explains the importance of alignment between the internal and external environment.

This theory states an organization not only depends on the environment, but that the environment is also in a certain degree dependent on the organization. The degree of dependence is established by the control the organization has concerning the sources which determine the competitive advantage, the importance of these sources for the competitive advantage and the alternatives which are available to obtain a competitive advantage. The organization can arrange this control by communicating with the environment to align the internal and external factors.

Therefore, strategic management process of corporate communication includes both theory and practice. It is important to identify the role of communication in corporate relationship for the effective functioning as well as to provide organizational objectives. Apart from these, it aims is to create a personal portfolio which portrait the skills across the range of professional communication areas. Other areas like skills in managing and planning projects in the areas of corporate communication is also essential.

Enhance the knowledge of corporate communication to an advanced level, developing and presenting plans for corporate communication in a range of different scenarios, including crisis management and the development of corporate brands.

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Conclusion

In conclusion, corporate communications represents the corporation's voice, its reputation, integrity and the images it projects of itself on a global and regional stage populated by its various audiences and stakeholders. Strategic management in corporate communication practice is the key factor in the creation, implementation, monitoring and reporting on all corporate activities. Through communication, stakeholders understand company‟s purpose, goals and values. Strategic

communication also aimed to influence employee‟s attitude toward the workplace loyalty and pride in the company in which they are working. Theoretically speaking, strategic management in corporate communication plays a critical role in building and maintaining relationships with the stakeholders of a corporation. Strategic communication management is an unavoidable practical tool in the corporate sector.

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REFERENCE

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