1Audit (noun): "a methodical examination and review." (Merriam-Webster Dictionary)
On paper, the definition seems innocent enough, but for some reason the spoken word sends shivers down many executives' spines, reincarnating the onerous aura surrounding disasters
like Enron and Arthur Andersen's demise. However, threatening as it may seem, an audit can - and should - have positive implications for a communications department, although it
remains an oft-underutilized mechanism for facilitating change throughout the organization.
With today's tumultuous business environment and constant scrutiny, communications executives shouldn't shy away from engaging in a communications audit, nor should they feel the
need to serve up the idea of conducting one to senior management with a side of Xanax. A good reason, complemented by a strategic approach, can turn a disjointed, dysfunctional or
dystrophic communications department into a streamlined, integrated function that helps achieve organizational goals and contributes to bottom-line business results. A few reasons to
conduct a communications audit right now:
1. Your organization is in the midst of (or just completed) a merger or acquisition, and the communications personnel are scattered throughout business units as a result;
2. Fiefdoms of PR and communications practitioners have inadvertently developed, thus making messaging inconsistent and likely duplicating efforts;
3. There has been a change in senior management, and the newcomer wants to know how all of his/her departments' dollars are spent and what all of his/her people do, exactly;
4. A new communications leader has come onboard;
5. The company wants to change its direction, requiring all communications efforts to be integrated and as fiscally conservative as possible; or
6. The company has added international opportunities to its portfolio, creating complexities in both internal and external communications efforts.
If any of these scenarios is in play for your organization or client, a communications audit is the most effective way to accomplish any of the following goals:
- Identify each individual who performs communications or PR-related functions, including those who reside outside the formal communications department;
- Discover specifically what activities each person performs, and how they add to the organization's overall goals and mission;
- Establish reporting relationships;
- Benchmark how your organization is performing against competitors; and
- Pinpoint areas where efforts are being duplicated so as to streamline processes and save money.
"The point of a communications audit is to figure out what everyone is doing, and if they are working in the most productive, integrated fashion possible," says Professor Paul
Argenti of the Tuck School of Business. And while he admits that communications executives broaching an audit are often met with resistance because of the fear of lost jobs, etc., he
emphasizes than an audit is almost always in everyone's best interest.
"You are figuring out how everyone can work together more efficiently," he says. "It's very rare that you have too many people on the communications staff. Usually, you have too
few people doing too many things."
To take the fear and loathing out of the communications-audit process, use the following means to get to a sturdy, bottom-line-boosting end:
1. Get organized: The first step is to obtain the organizational chart, both for the entire company and for the communications department. Once these have been acquired, compile
a third chart that includes the communications function employees, as well as all employees who perform communications activities but aren't included in the department's
organizational chart. This process identifies all of the function's assets, including those who aren't on the official communications roster, and sets the foundation for streamlining
activities.
2. Hello, My Name Is _______: Have a meeting with all communications personnel to find out exactly what they do, to whom they report and with whom they interact. "You start to
unravel the mystery as you go through this process," Argenti says. This insight establishes both structural and functional effectiveness, and it sheds light on areas in which efforts
might be duplicated and thus not cost-effective. For example, if the communications department is working on a re-branding campaign and marketers within the same organization are
launching an ad campaign to promote the new brand, these efforts are most effective if they are integrated and coordinated, rather than competing.
3. Expect resistance: As Argenti warns, the word "audit" is often met with resistance. Employees don't understand the benefits of the process, and they often become defensive of
their jobs and their productivity. Assuage these cynics by making them feel involved in the process, and by explaining the benefits of an integrated function. Roles and reporting
relationships will be more clearly defined, and the organization as a whole will communicate more effectively to both horizontal and vertical constituents.
4. See how you measure up: If resources permit, go out and interview industry peers to see how their organizations operate. What do their organizational charts look like? Do
they have a centralized communications function, or are communications employees imbedded within various business units? If this is the case, how do they coordinate internal and
external messaging? Because of the sensitive nature of this information, many organizations may not be willing to share details. In this case, having an outside agency conduct the
audit for you can be beneficial. Another option? The Communications Executive Council, a membership-based organization of senior communications executives from global companies, has
organizational charts and other audit-friendly information. Much of it is classified by industry (and not by specific company name), but, if your organization has the budget for a
membership, it can offer a wealth of information.
5. Look for redundancies and efficiencies: Once you've identified who all your communications and communications-related people are, who they report to and what they do, you can
take a step back and analyze the information. Are there areas in which efforts are being duplicated? If the organization is global, is there an area or structure that would be more
efficient and cost-effective? "Audits do have a financial implication," Argenti says. "You may be doing the same thing three different ways when you could just do it once and do it
right."
This is also a good time to look at the different subfunctions and see how many people are involved. For example, do you have 10 people in your marketing department in addition to
three agencies on hand? If so, can this function be integrated or coordinated with another to be more efficient? The same holds true for investor relations.
6. Set the plan in motion: Once you know where you stand in terms of staffing and roles, focus on the organization's vision, mission and goals. Then, create a plan of action
around that mission and vision, and map people according to the strategy.
Granted, while the step-by-step process is straight-forward and the benefits are undeniable, the logistics of getting senior buy-in and funding for a communications audit can be
tricky. Emphasizing the potential to be more effective, both in terms of cost and productivity, is a good place to start. Then, if your communications department doesn't have the
staff or resources, hire an outside agency to do the dirty work. That can also lead to the most objective results and recommendations. But regardless of the means, the justification
comes with the end.
"The difficulty isn't knowing what the people who report to you do; it's understanding the roles of the people who work outside of the communications function but perform
communications activities," Argenti says. "It's knowing what they can do to benefit the bottom-line."
Contact:
Paul Argenti, [email protected]
Key Questions A Communications Audit Will Help You Answer
- Is the communication function's organization as effective as possible?
- If communicators are distributed throughout business units, are those business units consistent with views, messaging and risk management?
- Do all communicators have clearly defined roles and responsibilities; effective internal communications channels; clearly defined reporting relationships; and coordination
throughout the function?
- Is there an official process under which communications activities are carried out?
- Do the views and goals of communications executives align with those of senior management? Do they have the same expectations?
- Are communications activities integrated throughout all business units and organizational objectives?
- Is the communications team functioning at the highest, most cost-effective level? Are there redundancies or efficiencies that can be identified? Should the function be
centralized, or is it best for communicators to be nested in all business units?
- Do communications subfunctions such as marketing, PR and investor relations work together, or are their efforts conflicting with or duplicating each other?