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Edelman Corporate Affairs: A Guide to Leading the Dialogue Building Relationships | Pioneer Thinking

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Leading the Dialogue

Gone are the days when pushing out a set of buzzword-based messages was an effective communications strategy. To lead a compelling dialogue with stakeholders, a company must define a master narrative that captures what it is doing, where it is going, what it values and why. A master narrative is the most important story a company wants to tell—expressed in an elevator pitch, stump speech and supporting message architecture. The master narrative is also the basis for a communications toolkit that includes a playbook, media storylines and a range of multi-channel content. It guides management and employees in how to articulate the company’s story and respond to both the seemingly easiest and toughest questions. For a company to credibly lead a dialogue, it must also demonstrate leadership through action. Empty words are not sufficient to drive the firm’s perceptual momentum. While communications don’t dictate action, they can inform the kind

• f behavioral leadership that enables corporations to excel.

Figure 1. Master Narrative Toolkit

Master Narrative

Message Platform Media Storylines Message Platform Message Platform Playbook

catch phrase, examples, catch phrase, examples, catch phrase, examples, statistics, anecdotes, statistics, anecdotes, statistics, anecdotes, analogies, stories analogies, stories analogies, stories Elevator Pitch Stump Speech

Message Architecture

Multi-Channel Content

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Figure 2. Master Narrative: Annotated

Current perceptions Stakeholder concerns Expectations Directed perceptions Stakeholder understanding Belief/Trust Today Desired Future Master Narrative Toolkit Company Actions

Master Narrative

Message Platform Media Storylines Message Platform Message Platform Playbook

catch phrase, examples, catch phrase, examples, catch phrase, examples, statistics, anecdotes, statistics, anecdotes, statistics, anecdotes, analogies, stories analogies, stories analogies, stories Elevator Pitch Stump Speech

Message Architecture

Multi-Channel Content

Working Backwards

The purpose of most positioning initiatives is to change an outdated, uninspired, or shallow understanding of an

• rganization to one that is fresh, energized and consistent among multiple constituents. For communications to effect

change, a company must first have a firm grasp of both current perceptions and how it wants to be viewed in the future. The master narrative process—identifying drivers of and barriers to stakeholders’ perceptions and then aligning the story with company actions—can be a powerful tool for building trust and ultimately changing stakeholder behavior. Figure 3. Change Map

The Elevator Pitch: A short oral narrative (50-75 words) that channels the most compelling element

• f a company’s story.

The Stump Speech: A one-page narrative (250-350 words) that dimensionalizes a company’s current defining story. Message Architecture: Three to five message platforms supported by proof-points—the “reasons to believe” in a company’s story—organized as a quick reference guide. Media Storylines: A cadence of headlines that maps the master narrative over time. Playbook: A guide for engaging in dialogue around core questions (easiest and toughest) and for setting the agenda in everyday interactions. Multi-Channel Content: The content and focus—including audio, video, and images—that are reflected in the company’s annual report, corporate website, external and employee communications, and corporate advertising

Elements of a Company Story

As the old saying goes, “Everyone loves a good story.” Why is this so? A story works on two levels: It imparts information about the subject or events at hand and it engages a listener emotionally, through suspense, conflict and other elements. This ability to forge a gut connection is critical for any narrative to truly reach stakeholders today. Let’s examine some of the key components of a compelling master narrative. Back Story: The company is your narrative’s main character. Where did the company come from? What enduring char- acteristics are still guiding it today? Or, what of its past is being abandoned for a fresh start? Complication & Struggle: Like any hero, the company must overcome barriers and challenges. What is happening in its business or regulatory environment that may keep the company from achieving its goal? What societal pressures are forcing the company to recalibrate the way it does business? What are the obstacles that stand in the way of success—tough competitors, marketplace turmoil, or disruptive technologies? What is the “inciting incident”? Stakes: What is at stake for the company, its employees, its industry and society at large? Future Promise: Unlike a traditional story, the resolution in this case is necessarily open-ended. Which of the solutions, processes, or activities the company is engaged in are charting its path to success? Payoff: After a stakeholder hears the company’s story, what are the key takeaways and calls to action that should stand

• ut? How will the story prompt dialogue and behavior changes that the company needs in order to achieve its goals?

Even with all of these elements in place, a good story alone is not enough; it must take into account the most pressing issues or opportunities facing the organization. Finding the appropriate context is crucial to choosing which story to tell. For some, the narrative is about the company and its transition. For

• thers, it is about changing industry
• r creating a new market. And for

still others, it is about the company’s impact on society as a whole. In all cases, a master narrative aligns a company’s story with its aspirations

Company (“Us”) Company & Business (“Us & Them”) Global & Societal (“All of Us”)

Figure 4. Finding the Right Context

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Crafting a Narrative

To help craft a master narrative, Edelman leads the company’s communications team through a three-part process of Discovery, Discourse and Development. This process helps the company review its current positioning and examine how it is perceived by internal and external stakeholders, working toward the goals of crystallizing the company’s identity and creating the written master narrative that will inform its future communications. The Discovery phase consists of a review and analysis of the company’s current communications efforts and its voice in the marketplace. We discover what the company currently is—and is not—saying about itself and its environment and what others say about it. We also examine its competitors’ share of voice in order to identify any areas it can own. In the Discourse phase, the team explores the desired future state of the company’s image as well as the hurdles and

• pportunities along that path.

At the start of the Development phase, the team sifts through the information, opinions and research that were gathered in the first two phases and examines their meaning, relevance and implications for communications. With these insights in hand, Edelman drafts the master narrative. Edelman will work with clients to finalize the approach, pressure-test messages for effectiveness and develop the accompanying toolkit.

1 For a step-by-step description of the Discovery-Discourse-Development process, please see the Appendix on page 5.

Communications Audit Discovery Discourse Development Competitive Research

1 2 3

Narrative Refinement Narrative and Message Development Narrative Workshop Internal Current State Assessment Managment Audit Stakeholder Perception Assessment

Appendix: A Step-by-Step Approach

Discovery 1) Communications Audit: Auditing a company’s communications clarifies what they’re saying—or not saying— to their constituents. It is also a benchmark to measure how the company is portrayed. This review would include press coverage, analyst reports, online dialogue, employee surveys and market research—viewed from both a qualitative and quantitative perspective. 2) Competitor Research: This follows the same path as the communications audit. It offers a clear view of the company’s place in the competitive landscape. It looks at major competitors in terms of how they position themselves and how they are portrayed—while also quantifying their share of voice, earned media and online presence. 3) Stakeholder Perception Assessment: The message sent is not always the message received. For that reason, it is equally important to review the way a company’s constituents perceive it. This assessment looks at levels of understanding, drivers of perception and degrees of acceptance and legitimacy. It also spotlights communications risks and opportunities. Discourse 4) Internal Current State Assessment: The initial research is followed by an internal review, with the client’s communications staff, to re-examine how the company positions itself and to pinpoint communications risks and underleveraged opportunities. This is also the time to develop the management audit conversation guide. 5) Management Audit: This is a critical part of the process. It is a window into the company’s business strategy, the character of its leaders, their ambitions and their assessment of the public forces that will move the company forward—

• r threaten its license to operate. These are the people who are charting the company’s course and capturing their

voice will make a master narrative authentic.

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Master Narrative Process

Review existing communications and third-party commentary Research competitor communications

Discovery

Activity Outcome

Discourse Development

and about the company Plot competitive positioning context Communications Audit Competitive Research Stakeholder Perception Assessment Narrative and Message Development Narrative Workshop Narrative Refinement Conduct in-depth interviews Identify current perceptions among constituents Management Audit Internal Current State Assessment Assess communicators’ goals, risks, opportunities Examine management’s perspectives, concerns, ambitions Gap analysis Key themes Trigger Points Candid assessment of what is working and what is not Present research and brainstorm communications bridge Review findings, research and interviews gathered so far. Develop first draft Audience prioritization, key concerns, Theme prioritization, Catch phrases, Anecdotes, Statistics Draft core Master Narrative materials (e.g., stump speech, elevator pitch, messaging architecture), Formulate accompanying communications recommendations Test communications in focus groups, soft soundings, pilot initiatives. Make necessary course corrections Final narrative, messages, proof points, key elements of core materials. Starting point for future evolution

Development 6) Narrative Workshop: This brings all the players together in a workshop to tease out the elements that fuel the master narrative. Who should be there? Management or a spectrum of a company’s communications staff. What to look for? Catch phrases, anecdotes, history, revealing facts—whatever will serve to support the story. What’s the purpose? Considering message architecture, critical differentiators, misalignments and potential storylines. Added employee interviews, outside the workshop, also will yield some insight into other layers in the organization. 7) Narrative and Message Development: This is where it all gets put together. Everything gathered up to now is grist for the master narrative, its supporting messages and accompanying communications recommendations. It is tempting to see the story in the most favorable light, but the truth counts here. It drives the actions and behaviors that make the master narrative believable. It alone establishes the company’s credibility and demonstrates its leadership. 8) Narrative Refinement: Real stories do not have convenient endings. The same is true with companies; their narratives keep going and evolve. That is why continued testing—through dialogue with constituents—is vital.

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