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 spanning multiple sectors and geographies—such as remote work, digital and technological innovations, new and evolving regulations, geopolitical shifts, and social dynamics—are forcing business leaders to pursue continuous transformation in order 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, compared to the 30–35-year mark recorded in the late 1970s. This accelerated turnover rate compels companies not only to avoid disruption but also to unlock new value by pursuing more than one form of transformation. There are three common types of transformations: organizational changes that capitalize on new opportunities through proactive shifts in business models; turnarounds to address operational challenges; and financial maneuvers, including 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 — which surveyed more than 200 CCOs and communications leaders from leading brands in the U.S. and around the world — reveals that CEOs and boards of directors are recognizing the need to adopt a human-centered approach to business transformation, positioning communications professionals as key players and strategic partners.
The study reveals that half of current CCOs consider themselves strategic advisors, 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 before they make decisions about when and how to change employees’ behaviors and mindsets to align with new strategic priorities. And those who are most successful are proactively integrating the needs of their most important stakeholders—their employees—into every stage of the problem-solving process. A Harvard Business Review study corroborates Edelman’s findings that when companies listen intentionally and respond to their employees’ engagement, they are more likely to achieve transformational success.
Based on EDC’s experience and our advice to clients during times of transformation, 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 to present a unified vision and narrative that resonates with all employees. This means sharing both good and bad news early and often, as well as 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, focused on the widespread adoption of standards, values, and behaviors that are chosen and aligned with the organization’s mission. This will lead not only to a work environment that fosters a mindset of positive change but also to 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, as well as organizing pilot events or town hall meetings. Collecting real-time feedback and data from stakeholders will help measure the campaign’s impact and effectiveness and, ultimately, 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 along stakeholders’ transformation journeys.
As business transformation shows no signs of slowing down, companies must adopt an action-oriented approach. To achieve successful outcomes in an uncertain environment, we anticipate that executive leaders will continue to view communication leaders as key strategic partners.
