Establishing Effective Internal Communications

Who told you about that new program? Who signed that agreement and was the CFO involved to determine any potential impacts on financial reporting? I didnt know that we were holding our 2016 convention in Orlando, did you? These are all questions that can result from the lack of an effective internal communications plan. Most organizations devote significant resources to external communication with members, donors, and other constituents through websites and email blasts which deliver real-time relevant information. Keeping external parties informed is important to ensure the organization is meeting the needs of its members and other interested parties in a timely and effective manner, but what about keeping staff informed so they can better serve your membership? Although an organization generally has an effective external communication plan, structured, timely and relevant internal communication may be lacking. We will use the following base-line information from a sample organization as a platform by which to develop a more effective internal communications plan. - The organizations strategic plan was developed solely by the board of directors and executive director without the input of any departmental senior directors. Senior directors have never seen the strategic plan. - There is a stovepipe culture where the flow of information only occurs vertically within a specific department and, as a result, there is no collaboration between membership, finance, and development. - Senior management meetings are not held on a consistent basis. - Annual reviews of staff are sporadic and in some cases have never occurred. Effective Internal Communications Effective communication starts from the board of directors and senior management and flows both vertically and horizontally within and across the various departments of an organization. In the above example, there are issues with the flow of information between the organizations leadership and senior management as well as between senior directors in the various departments. In order for a strategic plan to be effective it needs to be created with the input of those on the front line executing the details of the plan on a daily basis. In addition, the final plan needs to be shared with the organizations senior directors so that programs and daily decisions are appropriately aligned with the organizations overall strategy. Departmental senior directors who are unaware of and not involved with the strategic plan resemble a ships crew without a charted course to the next port of call. In both instances individuals go about their tasks without a plan to reach the next destination and may unknowingly take actions that can impede progress towards the overall end goals. Communication between departments is one of the cornerstones to an effectively run organization. The lack of communication between departments leads to duplication of efforts in programs as well as departments entering into agreements that undermine the efforts of another department. In our example, this came to light in connection with a sponsorship agreement. The development department entered into an agreement with a sponsor which also included an advertising element in the organizations publication. Unbeknownst to the development department, this sponsor was a direct competitor with a long standing

advertiser in the publication. Under the terms of both agreements, competing ads would not run in the same publication. Because of the lack of communication between departments, the organization has now put itself in a compromising position with two of its business partners. Situations like this can be avoided by organizations taking the following actions: Foster an environment of teamwork by having, at a minimum, standing monthly senior departmental director meetings where initiatives are discussed, ideas are vetted for potential roadblocks and solutions are developed that benefit the overall organization, not just one department. Ensure that all contracts are subject to a final review by either the Chief Operating Officer or Chief Financial Officer in order to identify potential conflicts between agreements and unintended financial consequences such as the payment of unrelated business income taxes. Disseminate a simple employee newsletter that highlights new initiatives and celebrates organizational and personal accomplishments. This enhances communication throughout the organization and helps to develop a stronger bond between departments and their employees. Remember the office is where we spend the vast majority of our hours during the week and providing a medium to encourage teamwork and collaboration will further help the organization achieve its long-term goals. Ensure that all employees in connection with their manager establish goals that are SMART (Specific, Measurable, Attainable, Relevant and Timely). An employees progress towards these goals should be reviewed and evaluated annually and timely feedback should be provided.

Effective communication encompasses two key factors: it is timely and it is relevant. Communication is accomplished through various mediums, including email, social media, newsletters, conference calls, and in-person meetings. The size and location of the organization will somewhat drive the appropriate level of communication to use, but what is important is that organizations just dont assume that information spreads without have a communications plan in place. This can lead to misinformation being disseminated as well as employees feeling like they are not valued or important to the organization. All of this can distract an organization from its mission and from achieving its overall goals. Christian Spencer is a senior manager in Tate & Tryons Audit and Assurance Services department and can be reached at cspencer@tatetryon.com.