Both Citigroup and Barclays are going through major restructurings. Reorgs require a lot of support from communications pros – there are many stakeholders and it’s a sensitive subject. Senior managers should buddy-up with their comms teams. It will be worth the effort, says Jezz Farr.
The “narrative arc” is an evocative phrase, conjuring images of a Disney-like star leading the reader over complex and messy issues to calm green pastures. It should tell the story of what is happening and why, and can be a very useful tool when faced with a big communications project.
Few projects are as complex and challenging as restructuring. I’ve been through many and shudder at the memories of the earlier ones. This was when “change” communications was in its infancy and the media was seen as the most important constituency. Employees? Who they?
If done properly, the narrative arc becomes the source of all truth, a document from which hangs the majority of the communications needed to land a large and multi-layered restructuring project. Its creation needs time and thought, and enlightened senior managers who recognise the value of getting the language right. I used it often and it worked well.
The reason is simple – consistency. Ensuring the key reasons for a reorg are communicated clearly and consistently is vital for achieving buy-in.
And let’s not forget, audiences differ – employees (those affected – some possibly facing redundancy – and those not); shareholders; regulators; the media; policymakers; and government officials. And each stakeholder group is looking at the reorg through a slightly different lens. Plus, the content delivery varies, such as spoken word, company email, press release, social media or regulatory announcement.
Gone are the days of a press release for the media, slightly retooled for an internal audience, and the CEO having a quiet word with a handful of important titles, backed up with some media nudging and clarifying by the PR team.
The potential for key messages to go off piste is huge. Most questions should have been anticipated but there are always a few that can catch senior management unaware. And there is often a persistent interrogator diving into the nuts and bolts of the reorg looking for greater understanding or inconsistencies.
This is where it is wise to have a communications plan to reflect that a restructuring impacts real people with real lives and families. Experience has taught us to be careful with the words we employ when talking about the fate of employees. HSBC was criticised heavily when it announced several years ago it was going to “demise” nearly 1,000 roles (“HSBC has done the impossible and invented a euphemism for firing people that is harsher than the real thing. It made it sound as if it were not merely sacking staff – it was exterminating them,” the FT wrote.)
It is easy to get lost in numbers when dealing with restructuring, and important not to. As communicators, we are in the perfect position to suggest more thoughtful language, to remind senior management of the enormity of their actions on individuals. A decent manager will already be receptive. Some won’t care. No doubt Citigroup employees will be hoping their bank is in receptive mode as it moves towards the second part of its “reorg first; headcount after” approach.
The next requirement is discipline in sticking to the script. This is not always straightforward and challenges to the narrative often come on the front line.
Here is a question several journalists once asked me: “Didn’t your bank dismantle only five years ago the organisational structure you are announcing today?” This, they suggested, was due to poor performance and weak showings in league tables.
The answer was yes and no. To the outside world, at first glance, one or two organisational themes looked similar. Inside the bank, there were enough differences and developments for the PR team to argue this was change.
And, in the world of investment banking, apples are rarely compared with apples. An impressive and painstakingly prepared Powerpoint presentation, echoing our narrative, showed the world that the investment bank had in fact improved its performance in key markets and businesses. It is just that these had shifted from five years earlier, reflecting changes in the economy, world events and market appetite.
But it’s fair to say that I’ve seen restructurings for questionable reasons. For example, there is the reorg following the arrival of a new senior manager. “I am delighted to be here and look forward to building on the great work of my predecessor,” the new exec tells the gathered masses at an internal comms event. Then a few months later, the predecessor’s great work seems to have been forgotten and rumours of an impending major reorg start to seep out from the exec’s office. Often, the new exec doesn’t mind too much. They are making their mark and like to be seen doing so.
“The reorg represents the best use of resources,” we say if asked. Budgetary discipline, we would claim, which is a good thing, we would say. But it would often require trying to fit square pegs into round holes, which hardly ever works in the long run.
I have also worked for bosses who are serial reorganisers. One, having instigated a relatively difficult restructure, announced to the surviving and slightly shaken management team that although there was still much work to be done, the pain of restructuring was over. He then proceeded to trigger a seemingly continuous series of mini restructures across the whole department. The result? No one was happy and people left. Not a good look for the senior manager or the bank, and hard work for the comms team.
Whatever the reason for a restructure, robust communications need to be in place to inform, instruct and mitigate. Reorgs can be complicated, painful and drawn out, but sticking to the script – one that is thoughtfully crafted – and anticipating the difficult questions, an organisation should come out the other side in a shape that works for all stakeholders. The comms teams at Citi and Barclays will know this. Their bosses should listen to them.
Jezz Farr has been a senior communications adviser to major international banks for more than 25 years.