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Communication Strategy in Corporate Culture Change
XIONG Wei, LI Qun
School of Economics and Management, Beijing Jiaotong University, P.R.China, 100044
[email protected]
Abstract: Communication plays an important role in the corporate culture change. Good
communication can not only greatly reduce the resistance to change but promote the change. There is
little research in communication strategy in corporation culture change. In this paper, the author puts
forward some important communication strategies before, in and after corporate culture change.
Keywords: Corporate Culture Change, Communication, Strategy
1 Introduction
As enterprises, in modern times, are faced with dynamic changes of the external environment and
"continuous innovation and leading change" is becoming the nature of entrepreneurship, enterprises are
having the strategic transformation and organizational change. However, the failure rate of business
change is amazing. For example, we all know, almost three-quarters of process reengineering, overall
quality management, size reduction of organizations have completely failed or caused serious problems
for enterprises. What lead to these failure? Many reports show that the neglect of corporate culture is the
reason with the highest frequency. Therefore, changes in corporate culture directly determines the
success of business change. In the transformation of corporate culture, communication plays a vital role.
Good communication can not only greatly reduce the resistance to change but promote the change.
2 Literature Review
The importance of corporate culture has been recognized by the majority of entrepreneurs. Scholars
have devoted a great deal of effort in the transformation of corporate culture. They discuss the corporate
culture in different perspectives, and make some steps to change corporate culture. Although the steps
vary, all of them, to some extent, stressed the need for communication.
Cameron and Quinn(in 1999), professors from University of Michigan, wrote a famous book
Diagnosing and Changing Organizational Culture. In this book, the authors put forward Competing
Values Framework. According to the authors, the best way to communicate organizational culture is
illustrative cases The change team should cited 2 to 3 illustrative cases to describe the core values that
the organization should have in the future Spreading a new organizational culture in this way is more
effective than any graph, strategy and sensational speech of CEO. In the fifth step of strategic action, the
authors also stressed the need for interpretation and communication. When people know the reasons and
necessity for change, they will be less resentful. Studies show that people explain the "why" to the ones
who care about and respect to, explain the "what" to the ones not very concerned about and respect to.
In the book Value Management, Simon L Dolan and Salvador Garcia (in 2006)described in the 21st
century, order management and objectives of management are insufficient to lead to success, value
management is to survive. In the book, the authors, in much content, emphasizes the role of
communication. Communication is the tool to start changes, a medium and goal of change.
Communication can deal with emotion of resentment, fear, and optimism. After refine the values, we
should draft these principles or norms carefully, and communicate throughout the organization.
According to different sizes of companies, values communication can be made in a variety of media and
technologies, but the most important thing is that the lectures must be made in person.
In Todd • Jack`s 10 commandments in changes, the ninth article refers to communication, to promote
participation and maintain the integrity. PwC's "effective change" procedure proposed 15 "effective
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change" guiding principles, the principles of article 8 is to continue to communicate. John • Curt's eight
step model of radical change, emphasizes the fourth step to communicate the vision, to use all possible
means to communicate the new vision and strategy.
WangYingLong divided the enterprise culture change into four parts, the investigation stage, the
preparation stage, the implementation stage and the consolidate stage. In the investigation and the
implementation stage, the author emphasized the necessity of communication. WangNan said enterprise
culture includes five elements, the enterprise environment, values, hero, culture and cultural network.
Communication is crucial to promote the values.
While many experts and scholars in the cultural transformation invariably stressed the importance of
communication, they did not identify the communication's role in the whole process. This is the stand
point of a whole cultural change, from the beginning to the end of the change, proposed by the
application of communication strategies to achieve cultural change.
3 Communication Strategy in Culture Change
Existence determines consciousness. The core values of corporate culture are formed in the survival and
development of enterprises. Culture is a dynamic product of our consciousness, not a negative
reflecttion of objective environment. The objective needs of a culture are often intertwined in a variety
of conflicting interests, astricted in the deep-rooted traditional practices. So only a few people first
began to understand. They put forward opinions on culture that reflect the objective needs and
advocated of changing the old concepts and behavior, to become the pioneers in corporate culture. A few
leaders and model worker made examples, inspired and led the rest of the enterprise to form a new
culture.
As for formation of corporate culture, there are three stages: the entrepreneurial culture - Leadership
Culture - Corporate Culture. Employees understand the new culture through imitation or obedience to
stage, assimilation stage and the internalization stage. When entrepreneur's personal cultural vision
extends to leader team and that of the leader team extend to the whole company, communication plays a
vital role.
The change of enterprise culture is lasting and the arduous. and the communication strategy should be
taken in each step of change
3.1 Communication stratery before the culture change
(1) Before the change, communication strategy is able to make all staff understand "the change". In a
bestseller, Who Moved My Cheese, “changes is only invariable” is vividly elaborated. Each of us,
mentally wants to have his own "cheese", we pursue and want to get it, because we believe that it will
bring us happiness and joy. But once we obtain the cheese which we even pursue in dreams, we are
prone to be dependent on it, will become its vassal. Before the change in the enterprise, to let all
employees understand the inevitability of change itself, yesterday's success would not necessarily bring
a victory today, business as usual will only lead to a detachment of the world, resulting in failure.
(2) For the specific problems of the company, communicate with members. Because the changes will
bring anxiety, changer and employee communication aims to build awareness, frustration and a sense of
urgency and a sense of crisis. Allow members to see the problems the company is able to directly
experience the power of these thaw. In Corporate Culture Survival Guide, Schine calls it discontented
and the threat —— The source of falsification, including economical threat, political threat, technical
threat, legal threat, moral threat and intrinsic disaffection. The economical threat refers to that make
change, otherwise you go bankrupt, lose the market share or suffer other losses. The political threat
refers to, make change, otherwise some more formidable community will exceed you, or will win some
kind of superiority. The intrinsic disaffection refers to, make change, otherwise you will not achieve
some of your goals and the ideal. It reduces the survival anxiety from change if the members fully
understand the problems, .
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(3) Diagnose and the analyze future through the communication. What should be discussed in this stage
is: To be more successful, what kind of organization we need to be? what kind of trend we need to know?
How can we become the industry leader? What we lack? What the customer and the competitor request
to us in the future? What kind of change we need to become the profession the control? In the discussion,
noone's viewpoint can be neglected. Everyone should give enough evidence and principle for his own
viewpoint. The cradle of their culture is the different cultural needs of the small number of people. No
matter how great the leaders or changers are, they are not able to understand the overall conditions of
the company. So com munication and populace's wisdom are needed to collect information as
comprehensive as possible. Brainstorming is a good way for communication. Collectively established
corporate vision can be accepted by members more easily and the, changecan be made moreeasily.
3.2 Communication stratery in the culture change
(1) To propagate the esteblished vision and mission with kinds of channels. The propaganda is also a
form of communication. Write the common vision and mission on paper, and then put them on the wall
of the room or workshop. Use multimedia presentation, business etiquette and ceremonies to convey the
spirit of enterprise. Jack • Welch, former CEO and chairman of General Electric, printed the values on
card and distributed them to all levels of employees in the company. He said, "Taking this card with you
is not only a symbol of honor, but also the support of values". New enterprise culture can be extended by
the use of illustrative stories.
(2) Build the harmonious transformation team with the full communication. In the process of
transformation, the contribution of transformation team should not be looked down upon.
Communication plays an important role in making a tacit coordination among team members,
maximizing team's strength. Team members are in various backgrounds, with different world views and
values, understanding of change varies. Adequate communication makes their ideas more close, also
enables team members to be more harmonious.
(3) Changes implemented, use communication to resolve the bad emotions. From an economic
perspective, because the status of different members, different positions, change will inevitably bring the
interests of certain groups or individual aspirations can not be achieved. Some loss, doubt, jealousy,
resentment and other negative emotions will result. If we can not communicate and resolve, conflicts
will be heavier, evolved into instability and obstacled to change. Good communication can ease the
minds and discontent, resolve conflicts, to stimulate creativity and reinforced cohesion.
(4) Using communication to make employees quickly accept new incentives system. The transformation
will often bring about incentive system changes. The incentive system is closely related to the vital
interests of employees, is the most sensitive part of the staff. At this time, good communication can
promote rapid acceptance of new employees incentive system.
3.3 Communication stratery after the culture change
Changes often bring periodical results, and timely communication with staff on the results, can make
most of the staff to recognize changes and make the staff have a firm belief in change, which will help
consolidate and expand the results of change.
4 Conclusion
Communication plays an important role in corporate culture change. There is little research in
communication strategy in corporation culture change. In this paper, the author puts forward some
important communication strategies before ,in and after corporate culture change. Although
communication can greatly promot the change of enterprise culture, communication itself is not easy. To
make effective communication, it requires a lot of methods and skills, and the senior leaders should be
directly involved in various communication strategy formulation, and build varied kinds of channels for
communication.
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