The two big upheavals in communications

-?and why collaboration matters

Klaus Treichel, Mannheim/Germany

Both society at large and the business world are facing two fundamental challenges: First, digitization has triggered the fourth industrial revolution which is turning entire industries upside down, driven by new business models based on "big data". Secondly, sustainability reminds us that there is only one planet and ultimately calls on us to live up to our responsibility to conserve resources and reduce CO2 emissions. This summer's catastrophic floods in Germany and forest fires in southern Europe are among the examples highlighting the urgency.?

The two revolutions in digitalization and sustainability are taking place simultaneously and are already changing the way we live and do business.?And finally: they are transforming corporate communications. Both upheavals are here to stay. Revolutions always come with opportunities and threats, and every change offers an opportunity to progress to a higher level.?

Similarly, both upheavals have the potential to create something that is long overdue: much more intensive collaboration between communications and marketing. Digitization is a classic cross-cutting technology that affects all areas. And sustainability is a cross-cutting theme that needs to be brought to life by all functions - especially communications and marketing. The future is one of integration and involves everyone: Shareholder value becomes stakeholder value; the customer journey becomes the stakeholder journey.?

Upheaval through digitization?

Looking first at digitization - it is currently the most important driver for business and society. The scale and scope of the fourth industrial revolution (Industry 4.0) is leading to a rapid digital disruption which no company is immune to, no matter how large or successful it may be. Companies are forced not only to accept this process, but to embrace it and act boldly.

In communications, we have now learned to use digital channels to engage with target groups. Communications managers have more or less accepted they have lost control over messaging. After all, anyone who can operate a smartphone has long since become a producer of news; this is no longer the privilege of journalists and the corporate press offices that supply them. The triumph of social media, the radical openness of communication, but also the spread of disinformation can, in a sense, be described as the first disruptive upheaval brought about in communications by digitization.???

The second disruptive upheaval is now taking place away from content, and that is through "big data." Many things have suddenly become measurable. Data can tell us how effectively communication measures are working. We have data on media coverage, we know how many reports are positive or negative. A whole new transparency is emerging about how reach and tone are developing, which messages are going viral, and which are fizzling out. Every communications department must address the opportunities presented by new digital measurability and define the success factors, or key performance indicators (KPIs), that are relevant to them.

Depending on what data traces tell us about the reception of content, entire campaigns can be automated. Marketing already very much embraces the benefits of this trend. In marketing, the path from information, for example about a new product, to the purchase decision by the consumer is defined in a "customer journey". The analysis of data triggers a new action along this path again and again; sophisticated algorithms decide what information an individual needs, and when, to move from prospect to customer. And it works, especially in consumer goods marketing.

Quantity versus quality

But can a company's reputation also be shaped in this way? Do data-driven communications help to achieve desired image profiles or approval of difficult corporate decisions? In other words, is this creating a brave new world of communications??

I'm not sure. Quantity conflicts with quality here. All data-driven communication works quantitatively, it is centered around numbers, and results can be colorfully presented in clear dashboards. There is no question that the collection of "big data" improves analysis. But what follows from the analysis? Communications managers who are suspicious of any fixation on numbers will get their money's worth here in future. Because to derive and implement the right measures, creativity, imagination and experience are still required. This cannot be digitized. In this respect, quality is key.?

There is another point where digitization is triggering a small revolution. By its nature, digitization is a cross-sectional task, it penetrates every function of a company, it connects all the dots. If digital tools - like content management systems - are used in only one function, that is not efficient. If process consistency in a company stems from one common philosophy, then it makes sense to make common cause. In such a case, digitization catalyzes better collaboration between functions, not just between corporate communications and marketing - HR and sustainability must also get on board. All functions win by learning from each other, opening up, and working off the same page when positioning companies.

Upheaval through sustainability?

No other topic currently highlights the need for integrated collaboration as clearly as sustainability. The need to operate sustainably runs through a company. Sustainability provides the "social license to operate" for companies and organizations. Shareholder value was yesterday’s mantra. It has been replaced by stakeholder value.?

The call two years ago by the influential Business Roundtable in the US on the world's CEOs to not only serve capital markets as a priority, but to also create added value for society as a whole, has spurred the idea that sustainable management is imperative for companies and organizations. It becomes part of their raison d'être.?

In parallel, companies are being forced to become clearer about their ?purpose" and to actively communicate it, both internally and externally. The massive increase in the importance of purpose and sustainability must be reflected in a company’s positioning. And it’s also a great hook for storytelling.??

CSR has the greatest potential to reach broad target groups?

Right now, the field of sustainability is dominated by climate protection. This is understandable to some extent - the recent flood disaster in Germany stirred people up and sensitized them to environmental issues just as much as the latest report by the Intergovernmental Panel on Climate Change (IPCC). However, sustainability strategies must include more facets beyond just the environmental.

For example, social issues must be considered in the context of corporate social responsibility (CSR). Social responsibility is, however, having a hard time breaking through as a topic. Yet I firmly believe that CSR has the greatest potential to reach broad target groups and build reputation. After all, CSR is about the direct impact of business activities on people, whether employees, neighbors, or the general public.?

There are very good reasons why a company purpose statement has to include references to people. And it is hardly surprising that programs for more ?diversity & inclusion" are currently booming. With and through CSR, companies show their social and human face - a central point in employer branding, which is more relevant than ever in times of a shortage of skilled workers. Important: Every CSR strategy must be presented authentically in communications. The trick is to find unique content - and anchor it as a tangible element in the company.?

Meanwhile, many companies struggle with the problem that functions retreat into their silos, and as a result cross-cutting issues such as sustainability are not represented with "one voice". Efficient work and effective communication, however, require someone to wear the hat and coordinate the messages. Whether this is coordinated in a newsroom or through good cooperation between different actors in the functions is of secondary importance. It just has to work and suit the company.???

Sustainability communication only works with integrated communications. Companies need to align their organizations - and especially their resources - so that their messages are delivered in a coherent way and to all target groups equally. While it may have been sufficient in the past to focus campaigns on a target group of customers in a sales-oriented way, it is now essential to cover broader social groups and aim for a broader buy-in, not just sales. This is only possible if communications are truly integrated.?

The original article has been published by the magazine "Kommunikationsmanager" (in German):

Klaus Treichel: Die gro?en Umbrüche in der Kommunikation