Chapter 14 –
Leadership Through Effective External Relations
Teaching Notes
In this chapter, student will learn to do the
following:
•
Develop an external relations strategy.
•
Build and maintain a positive reputation.
•
Work with the news media.
•
Handle crisis communications.
The applications for
this chapter require students to apply what they have learned about
communication strategy and audience analysis to external audiences. First, they will revisit the Spree case with
the challenge of communicating to customers and then writing a press
release. The instructions for writing a
press release are included with the applications since they are not covered in
the chapter. Most managers working at
higher levels in an organization will probably not have to write their own
press releases; however, it is a popular assignment in many upper level
managerial and corporate communication classes since it does provide an
opportunity for students to demonstrate the ability to think carefully about the
messages they might send to external stakeholders. The instructor will probably want to
emphasize the content more than the format in Application 14.2. Finally, the students are asked to review the
HADWIT case again, but to focus on external audiences for this assignment and
to write a letter to the clients.
The instructor will
want to begin the class by taking the student through the PowerPoint lecture,
which will take ~45 minutes. Then, the
instructor will probably want to assign one, or at most two of the applications. Application 14.1 and 14.3 are similar enough
that you may not want to do both. Application
14.3 is the most complex of the three and will provide an opportunity for the
instructor to test the student’s mastery of developing communication strategy
and crafting messages for external audiences.
Application
14.1: Case Study – Communication with Customers
After
A Crisis
The Case: Spree Cruise Lines Revisited
Students have an opportunity to write a letter to the
customers who were on the Spree cruise, whether they disembarked at Cozumel or
stayed aboard. The purpose of the letter
is to apologize, rebuild credibility and trust with customers, and retain their
patronage for future cruises.
Approaches to
Teaching
Each student should write the letter independently. If students work in peer teams or groups,
they could discuss their strategies for the communication and compare
approaches and writing styles.
Example Response to
Assignment
See Sample Letter below.
Spree
Cruise Lines
6700 Main
Street
New
Orleans, Louisiana 70112
Date
|
Dear Spree Guest:
On behalf of Spree Cruise Lines, I sincerely apologize for
the itinerary changes stemming from mechanical difficulties on your 5-day
cruise that departed New Orleans on ____.
We know the cruise did not meet your expectations, and we would like to
extend you a special offer to encourage you to sail with us again.
In addition to the $100 shipboard credit each passenger
received, we want to offer you a 50% discount on any 3- to 5-day Spree cruise
departing prior to December 30, 2015. We
hope you will join us; please understand that this offer is not
transferable.
To take advantage of this offer, simply call our special
booking number, 1-800-724-4000, and we will be pleased to assist you in booking
your repeat cruise. Again, we apologize
for the itinerary changes on your recent vacation and are looking forward to
having you as a guest again on a Spree cruise.
Sincerely,
Marcie Smith
Senior Vice President – Sales and Marketing
Application
14.2: Writing a Press Release
The Case: Spree Cruise Lines Revisited, Again
As students approach the assignment to write a press
release, they have the opportunity to consider both content and organizational
style.
Tthe press release is about the dry
dock, the improvements to the vessel, and the Plentitude as a replacement vessel.
If students want to include information on the vibration issue, they
should be advised of the importance of having corporate counsel review the text
of any release. The corporate counsel
should ensure that no statements are made that could damage ongoing discussions
with Spree’s insurance companies or any arrangements with those possibly suing
Spree over the damages to historic buildings.
Note that students might choose to feature either the new
vessel or the dry dock as the main message of the press release; both are
acceptable:
Spree Cruise Lines
Announces Plentitude to Serve New
Orleans Market
As Sensation Receives Multi-Million
Refurbishment
Or,
Spree Cruise Lines
Announces Multi-Million Refurbishment of Sensation;
Sister Ship Plentitude to Serve New Orleans Market
Example Response to
the Assignment
See Sample Release below.
PRESS
RELEASE
Spree Cruise Lines
6700
Main Street
New
Orleans, Louisiana 70112
Spree Cruise Lines Announces Multi-Million Refurbishment of Sensation;
Sister Ship Plentitude to
Serve New Orleans Market
New Orleans (date: 00/00/00) –
Spree Cruise Lines today announced that their 1,285-passenger cruise ship, the Sensation, will enter dry-dock for a
multi-million dollar makeover. Its
sister ship, the Plentitude, will
serve the New Orleans market during the Sensation’s
two-month dry dock.
“Spree is committed to having the
best cruise ships in the world. Our
substantial investment in the Sensation will
include elegant new passenger rooms, a redesigned purser’s lobby, beautiful
restaurant décor, new corridor and stairwell carpeting, and a complete engine
system refurbishment. I know our
passengers will be thrilled with the enhancements,” stated Spree President and
CEO, Robert Nelson.
While the Sensation is in dry dock, the Plentitude
will serve the New Orleans market. The Plentitude has recently completed an
extensive upgrade, and guests will be impressed by its spacious rooms,
sophisticated entertainment stages, and its fast, quiet, 25-knot cruising
speed.
Spree contracted Tillberg Design,
the lead architect for the refurbishment of the Queen Mary 2, the world’s largest ocean liner, for work on both
vessels in a shipyard in Freeport, Bahamas.
Spree is currently accepting
reservations for the Plentitude’s
four- and five-day Caribbean cruises from New Orleans. For additional information, contact any travel
agent, call 1-800-MY SPREE, or log on to www.spreecruiselines.com.
Application 14.3: Developing External Communication Strategy
The Case: HADWIT Revisited
As HADWIT (see Chapter 13) commits to broad internal changes
designed to strengthen the company and reduce its cost structure, the CEO will
need to manage the impact of the changes on external audiences. Application 14.3 allows an opportunity for
students to reflect on how internal changes affect external audiences and to
develop and execute a strategy for communicating to external audiences.
Approaches to
Teaching
As in earlier chapters, the instructor can have students
work to develop the strategy in teams or independently. We recommend that students write the letter
working on their own; they may then compare their work or use peer review to
develop a final draft for distribution to the external audiences.
As before, the instructor might want to begin by discussing
some shared assumptions about HADWIT’s actions:
Although they have decided to close their Singapore and Aberdeen
offices, clients would still have access to individuals on site if they choose
to pay the per diem rates. The company
has also purchased the latest in computer technology, which allows them to be
connected virtually across the globe to both colleagues and customers.
For an advanced class, the instructor might consider adding
some further assumptions, such as a decision on the part of HADWIT to raise
prices or delay payments to suppliers, each of which would add another level of
complication to the assignment.
Finally, the class may want to identify or make assumptions
about external audiences. Since the
company is small, a press release to the national media might not be needed;
however, the energy press and local press in Singapore and Aberdeen should
perhaps be contacted with the information.
Other external audiences include suppliers and clients, and possibly the
public and local government representatives in the overseas offices.
Two sections of the communication strategy warrant some
additional discussion here.
·
Students might want to consider what, if any,
other ideas belong in messages to external audiences. For example, do the clients need to know that
HADWIT reduced contributions to dental plans, cancelled bonuses, and eliminated
vacations? These details are probably
not of interest to clients since they are probably more concerned with whether
they can still get high quality services for the prices they have been
accustomed to paying.
·
Students might also want to consider whether to
use a direct or indirect approach in writing the letter to the customers. If students begin with the premise that this
is bad news – the market is difficult and therefore we need to cut costs and
are closing offices – they might want to build the case before divulging the
news. However, if
students start with the premise
that new technology enables HADWIT to offer cost-effective, worldwide services
that add new features for customers, a direct approach could be very effective.
Example Responses to
the Assignment
See the table, Example 14.3 Strategy below, for an outline
of the key content you might want to look for in students’ strategies in
addressing external audiences.
Example 14.3 Strategy
|
Communication Strategy –
Key analysis for external audiences in the HADWIT case
|
||||||
|
Audience
|
Medium
|
Purpose
|
Message
|
Spokesperson
|
Timing
|
Measure of Success
|
|
Clients
Customers are both small
and large exploration and production companies.
|
Personalized letter (since
it is a small company) followed by sales call
|
· Inform clients of changes
· Persuade them to remain HADWIT customers
· Reassure them that they can still get the quality
services they need from us on a timely basis and that HADWIT will do what it
takes to provide them with the level of service they are used to.
Note: Most will probably want HADWIT to stay in
business to serve them, especially if we assume that HADWIT has some
proprietary services that customers cannot get elsewhere.
|
Announce plans for more
cost-effective operations:
· We’ve invested in new computer equipment offering
efficient new services that can connect worldwide.
· We will be consolidating our offices into Houston,
and closing Singapore and Aberdeen.
· We will still make personnel available to you on
site at existing per diem rates.
· We value you as customers and look forward to
offering high quality data services.
|
President of HADWIT – since
this is a small company and he is the key representative. Sales personnel may follow up with
individual clients.
|
Before the offices are
closed, but only after the employees have been notified
|
Number of clients who
decide to stay with HADWIT – measured in the US, Singapore, and North Sea
markets
|
|
Suppliers (Local overseas suppliers
will be disappointed, but Houston based suppliers will just want to know
facts of new office and service arrangements.)
|
E-Mail or Letter
|
Inform of changes and
reassure that you will pay invoices in a timely manner, motivate them to
continue offering HADWIT good service and good rates for products.
|
We will be needing services
only at the Houston offices now.
We will be paying invoices
regularly and would like to maintain our relationships with vendors.
|
President or Chief
Operating Officer, since that person most probably deals with the suppliers
|
After employees and
customers have been informed, but within 24 hours if possible.
|
Number of vendors who
reduce services or increase demands for faster payment terms
|
|
Energy Press and Local
Media in Singapore and Aberdeen
|
Limited distribution press
release may be useful
|
Inform of changes (this
could be chance to promote the new equipment)
Local press will want to
know information about how many are being laid off in office closures. Students should also be sensitive to
cultural context in international communications.
Energy media will be
accustomed to office closures in this market, but may be interested in new
technology and services offered by the new software and hardware at HADWIT.
|
HADWIT has upgraded all
hardware and software, we have new services available, we are consolidating
offices to offer more cost effective services to customers, and the changes
should be transparent because of the new data capabilities.
|
President quoted in press
release with follow up as needed by Team Leaders in country
|
Immediately following
employees and as letters are sent out to customers.
|
Level and nature of
coverage – does the press spin the news as negative or positive?
|
|
Local government in
Singapore and Aberdeen
|
Meeting or personal
contact. The need to address this
group also depends on assumptions; if only a small number of people are laid
off, it might not be necessary to coordinate with local government.
|
Assure of company’s
intention to treat employees fairly and comply with all applicable
regulations
|
Information as above on
office consolidation
|
Team Leaders in each
country
|
After other external
audiences are informed; probably before actual office closures occur
|
No lawsuits or penalties
levied against HADWIT for closing offices
|
January 10, 2013
Mr. Jim Lock
President and CEO
Deepfield Exploration Company
1640 Eldrige Parkway
Houston, Texas 77079
Dear Jim:
Deepfield has been a valued HADWIT customer since our
inception. We have always enjoyed working
with your team to interpret your 3-D seismic, and I believe that working
together we have developed a successful exploration track record. I’m writing today to tell you about some new
equipment we have acquired and some changes we will be making here at HADWIT to
ensure that we continue to provide you with the most accurate and
cost-effective 3-D seismic data analysis services.
We have just invested in two new advanced, high-speed 3-D
seismic computing systems for our Houston office. They feature fully integrated software that
now allows us to work more efficiently and provide you with data services we
believe are unique in our industry. The
computers are able to connect virtually anywhere in the world, allowing us to
receive and process your data from any of your global sites, even those in
remote, hard-to-reach areas. John Katok,
our senior sales manager, will be contacting your office next week to set up an
appointment to tell your operations staff more about our new capabilities.
With our new ability to connect globally, we have made the
decision to consolidate our Singapore and Aberdeen operations back into our
central Houston location. While I wanted
to give you this news, I hope that the closure of these two offices will be
fairly transparent to you since your data will be received and interpreted on
the same time schedule as before. The
combination of new equipment and consolidation of offices will also enable us
to keep our pricing structure unchanged, so Deepfield will be getting the most
cost-effective and accurate data analysis available in the market today.
HADWIT Letter
(continued)
Our mission has always been to offer our customers the
services they want, when and where they want them. I assure you that should Deepfield still require
personnel on site at one of your global offices, we will make our people
available at our regular per diem rates, as we have for the past eleven years.
With these changes at HADWIT, we believe we will be a more
cost-effective, responsive company, able to meet your needs worldwide. Please give me a call if you have any
questions, and again, thank you for being one of our most valued
customers. We look forward to our
continued relationship with Deepfield.
Sincerely,
Student Name
President, HADWIT International Services Company
