In-house communication consultancy strengthens internal brand.

In February 2001, Westpac Banking Corp.'s in-house communication consultancy, Group Internal Communication, opened its doors with just one consultant and one client. From that small beginning, the consultancy grew in less than two years to 35 consultants serving internal clients from every part of the bank.

Throughout 2000, multiple signs indicated a need to change the way internal communication was managed among the Australian bank's 27,000 employees. Two audits by external communication consultancies found fragmented messages, duplicated efforts and poor use of resources, all of which were diluting the bank's internal brand.

Employee communication had become highly fragmented because of varying levels of resource allocation. The 23 staff undertaking internal communication operated as silos. In addition, a large number of external agencies produced material for internal purposes. There was a proliferation of inconsistent messages being communicated through myriad channels, resulting in many different corporate identities. This structure also made it difficult to ascertain the cost of internal communication and impossible to demonstrate any return on investment.

To remedy this fragmented internal communication, an in-house consultancy was formed to serve as an aggregate platform designed to help its clients--the bank's leaders--achieve improved business performance through effective, cohesive communication.

OBJECTIVES

Four goals--and methods to measure each--were developed for the in-house consultancy:

* Drive tighter alignment to the bank's business model while addressing clients' communication needs to build a stronger internal brand. This is measured with an annual bank-wide staff cultural survey as well as an internal communication effectiveness survey.

* Manage communication as a business process by instituting procedures, methods and systems that enable communication consultants to partner with their clients. For example, Service Level Agreements between consultants and clients specify the charges, performance measures and timelines for each communication program. Client satisfaction surveys and communication effectiveness surveys issued quarterly evaluate the level of achieving the stated business objective.

* Recover all costs associated with the provision of any services and pass on the full cost of all products. The consultancy has no budget, so clients pay for any communication services or products provided to them.

* Build a centre of communication excellence. Performance indicators for knowledge sharing are included in each consultant's half-yearly performance review.

IMPLEMENTATION

Unable to secure a mandate for existing communicators to join the consultancy, the project started with just one consultant and one client. While the existing 23 internal communicators and numerous external agencies continued to operate, the consultancy positioned itself as an alternative force--one that applied rigour around performance measurement and cost management.

Still, there were many challenges to overcome:

* The "fee-for-service" principle was a sticking point for many months, particularly because the existing communicators continued to be available free of charge. The consultancy countered that by offering free measurement of the effectiveness of its communication programs in meeting clients' business objectives. This was a win-win solution because it also helped the consultancy evaluate and refine its model.

* To establish credibility, team members constantly had to demonstrate the business value of the in-house consultancy model.

* Because the in-house consultancy model was a new concept for many team members, it was necessary to provide comprehensive induction and training programs to ensure consistent standards and practices.

* Sustainability of the model became an issue as the consultancy's rapid growth and increased workload adversely affected the work-life balance of the team. A number of corrective measures were introduced, such as capping the number of hours consultants worked per week except in exceptional circumstances.

RESULTS

Throughout 2002, the consultancy grew at a rapid rate, progressively consolidated its learning and refined its model. In March of that year, a mandate was issued for all internal communication across the bank to be managed by the in-house consultancy team. By December, the consultancy had grown to 35 people and achieved an average 79 percent cost-recovery rate and billed AU$2.4 million of business to achieve a $0 cost budget for the year.

Now with 47 communication professionals, the consultancy has account managers to serve every part of the bank's business. The consultants also forge strong alliances with functional areas, such as HR, and work to build links with other critical business groups to ensure that clients benefit from a holistic communication approach.

At the very nucleus of the consultancy's structure is the bank's DNA--its vision, values, strategy, purpose and mission. In the same way that DNA carries the genetic information of a cell, consultants carry these corporate values to every part of the organisation, building the cornerstone of a powerful internal brand through cohesive communication.

RELATED ARTICLE: Building a shared-services framework.

During late 2000, Westpac's HR, finance and procurement groups began operating as shared-service functions. The intent was to achieve greater transparency of costs, better utilization of resources and a consistent standard of functional support throughout the bank. The in-house consultancy also adopted a shared-service strategy from which five guiding principles were developed to address the inadequacies identified in earlier communication audits.

* COMMUNICATION SERVICES ARE PROVIDED IN RESPONSE TO CUSTOMER DEMAND. Consultants also act on identified communication opportunities, but only when a client can be found to bear all associated costs. This practice ensures that all communication programs that are not primarily customer-driven are performance-based and measurable.

* CUSTOMER PAY FOR ANY COMMUNICATION SERVICES OR PRODUCTS PROVIDED TO THEM. The consultancy recovers all costs associated with the provision of any services and passes on the full cost of all products. This accountability affords real transparency around the cost of internal communication to the bank.

* COST AND PERFORMANCE MEASUREMENT ARE AGREED UPON AT THE OUTSET WITH CLIENTS.

* THE CONSULTANCY IS A CENTRE OF COMMUNICATION EXCELLENCE, sharing best practices and using tools such as skills maps, psychometric profiles, client databases, daily online bulletins, weekly account managers' meetings and monthly consultancy meetings.

* THE CONSULTANCY STRIVES FOR CONTINUOUS IMPROVEMENT BY RAISING THE BAR in its approach to internal communication and the fundamentals of ensuring the sustainability of its consultancy model.

Lorraine Lennon, ABC, is head of Group Internal Communication for Westpac Banking Corp. in Sydney, Australia. She can be reached at [e-mail].