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Managing communication as a business asset
IABC International Conference June 2007 New Orleans, LA Diane Gayeski, Ph.D.
CEO, Gayeski Analytics Associate Dean and Professor, Roy H. Park School of Communications, Ithaca College 407 Coddington Road Ithaca, NY 14850 (607) 272-7700 diane@dgayeski.com Never before have communicators been more challenged to demonstrate the value of communication. Buteven ROI calculations, often considered the “Holy Grail” of communication measurement, often fail to deliver numbers that are attention getting or credible.

Vicious Circle
don’t know how to or are afraid to evaluate practitioners not valued & not included in “the loop”

no documented ROI

interventions miss the mark

no info. to help improve future interventions

Copyright 2003 gayeskianalytics

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Typical measures: □ Communication audits – satisfaction □ Readership / user stats (e.g. intranet page hits, attendance at meetings) □ Focus groups / communication councils □ Return on expectations □ Cost / benefits or ROI o ROI% = (net program benefits / fully loaded costs) x 100 Limitations of ROI □ Difficult or impossible to isolate effects □ Correlation does not equalcausation □ When to measure? Effects may take place over a long term □ How to measure? Costs and logistics of measurement may be prohibitive □ It’s a one-shot measure—does not measure the effects of the entire system □ Often the results aren’t that impressive. $100,000. may look like “lunch money”

Another approach: Managing Communication as an infrastructure or “intangible” asset

Performanceinfrastructure builds intangible equity Intangibles drive future profitability The past What’s on the books The future intangibles
Copyright 2003 gayeski analytics

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Intangible assets are the “premium” on the value of a company’s tangible assets. They are often inexpensive to build, but difficult for the competition to replicate. They include: • brand name / reputation / recognition • customerloyalty, word of mouth • employee loyalty, word of mouth • corporate culture / lore / history • ability to innovate and change quickly • knowledge assets (best practices, templates, formulae, processes) • ability to manage, survive, profit from a crisis • communication and feedback systems • recruiting, retention, and performance management systems • training and performance improvement systemsMarket Value of a company
(based on Sveiby, 1997)

Visible equity Intangible assets (Stock price (book value) premium) Tangible assets minus visible External Internal Individual debt structure structure competence
(brands, customer and supplier relationships (management, (education, communication experience of & learning employees) systems, R&D, software

Copyright 2003 gayeski analytics3

How to talk to management: uncover a “hot item” Place a check mark next to each item that is a problem in your organization We don't do a good job in capturing knowledge from customers and employees We are having trouble recruiting and/or retaining the kind of employees we need Our brand and image are not well established nor consistently communicated Employees seem to lack confidence ormotivation to do what they're trained to do Employees are narrowly focused on their own jobs and don't see the 'big picture' People waste a lot of time trying to find the information they need at work We are losing our competitive edge with regard to customer service We have trouble finding and managing business partners and contractors Our employees are unaware of market trends that affect ourbusiness We lack the ability to change organizational structures and processes quickly HICCUP Model (copyright 2000, Diane Gayeski)

Five Step (HICCUP) System Diagnostic Model Hot Item (i.e., We don’t do a good job of documenting the experiences and advice of employees and customers) Consequences: What do you think are some of the results of this? How does it affect the performance of the...
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