For businesses, change remains the only constant. However, the way organizations communicate in the face of change has evolved into a competitive advantage. Disruptive changes span multiple sectors and geographies. They include remote work, digital and technological innovations, new and evolving regulations, geopolitical shifts, and social dynamics. As a result, business leaders must pursue continuous transformation. This allows them to proactively manage their reputation, ensure relevance, and protect their license to operate.
According to a study by Innosight, the average lifespan of S&P 500 companies is projected to decline to 15–20 years. This compares to the 30–35-year mark recorded in the late 1970s. As a result, this accelerated turnover rate compels companies not only to avoid disruption. They must also unlock new value by pursuing more than one form of transformation. There are three common types of transformations. First, organizational changes capitalize on new opportunities through proactive shifts in business models. Second, turnarounds address operational challenges. Third, financial maneuvers include portfolio expansion and realignment.
However, many companies still fail to successfully complete their transformation efforts. So, how can business transformations be successful?
One of the key findings of Edelman’s 2023 study, The Future of Corporate Communications, stands out. The study surveyed more than 200 CCOs and communications leaders from leading brands in the U.S. and around the world. It reveals that CEOs and boards of directors are recognizing the need to adopt a human-centered approach to business transformation. As a result, they position communications professionals as key players and strategic partners.
The study reveals that half of current CCOs consider themselves strategic advisors. This is an increase from just over one-third (35%) two years ago. Furthermore, the proportion of CCOs who view their role as reactive and/or responsive has decreased by 20 points, to 10%.
This scenario illustrates that communicators are now, more than ever, being brought in earlier to advise CEOs. They advise before CEOs make decisions about when and how to change employees’ behaviors and mindsets. The goal is to align them with new strategic priorities. Those who are most successful proactively integrate the needs of their most important stakeholders into every stage of the problem-solving process. These stakeholders are their employees. A Harvard Business Review study corroborates Edelman’s findings. When companies listen intentionally and respond to their employees’ engagement, they are more likely to achieve transformational success.
EDC has advised clients during times of transformation. Based on this experience, we have identified four key strategies adopted by the most successful executive leaders:
Ensure clear communication. Launch transparent communication and employee experience campaigns. To do this, synthesize and simplify internal and external factors and voices. The aim is to present a unified vision and narrative that resonates with all employees. This means sharing both good and bad news early and often. It also means clearly articulating the “why” and “what’s in it for me” at every stage of the process.
Maintain a positive and supportive work environment. Translate the transformation strategy into a human-centered vision, with employees at the core. For example, create an internal culture change program with employee ambassadors. It should focus on the widespread adoption of standards, values, and behaviors. These should be chosen and aligned with the organization’s mission. As a result, you will get a work environment that fosters a mindset of positive change. You will also see stronger business results.
Provide opportunities for employee feedback and input. Incorporate opportunities for employee feedback and input into the design of the stakeholder journey. This involves conducting routine surveys or trust surveys with open-ended response options. It also involves organizing pilot events or town hall meetings. Collecting real-time feedback and data from stakeholders will help measure the campaign’s impact and effectiveness. Ultimately, it will also better inform what and how to communicate.
Promote a diverse and inclusive workplace. Understand and assess the various mindsets, beliefs, and motivations of stakeholders within a workplace. In practice, this may involve conducting a behavioral and communication audit to inform the development of persona and empathy maps. Mapping this information can help identify the critical moments and factors that lead to a positive relationship. These appear along stakeholders’ transformation journeys.
As business transformation shows no signs of slowing down, companies must adopt an action-oriented approach. We anticipate that executive leaders will continue to view communication leaders as key strategic partners. This will help them achieve successful outcomes in an uncertain environment.
