Supporting change: how communicators at Scotiabank turned ideas into action.

In today's dynamic marketplace, businesses simply cannot afford to leave strategy execution to chance. Organizations that succeed will be the ones that can effectively mobilize and engage their employees in implementing new business strategies to produce immediate value for customers and results for shareholders.

This makes effective communication more important than ever--communication not as a series of activities but as a disciplined process to be managed and measured like any other.

In their 1999 communication survey, Watson Wyatt Worldwide and IABC found a direct correlation between high-performing organizations and strong communication practices. Furthermore, they found that these organizations do a better job of communicating change. "Half the respondents from high-performing organizations were satisfied or very satisfied with the effectiveness of their downward communication programs in explaining and promoting major changes, compared to 39 percent of respondents from all other organizations."

Managing communication well can be a significant factor in creating competitive advantage. Effective communication creates an environment of openness, trust and teamwork that affects an organization s ability to attract and retain the best and brightest talent. These factors are also known to be drivers of employee satisfaction. Research pioneered by retailer Sears and others has demonstrated a link between employee satisfaction, customer satisfaction and profitability.

The opportunity is evident. Effective communication can enhance long-term investor value. Scotiabank, one of Canada's largest financial service providers, understands this. There, communicators added value by supporting management in the implementation of a new business strategy while helping employees understand the context for change and their part in its success.

INFORMATION GIVEN IN STEPS

Like financial service providers the world over, Scotiabank is contending with new realities, specifically, the challenge of developing a customer-focused sales and service culture familiar in traditional retailers, but relatively new in the banking industry.

In 2000, the organization's communication professionals provided expertise to help implement this culture. Success hinged on employee buy-in. As part of a cross-functional team, these professionals developed a communication strategy to parallel the business strategy.

As a result, communication tactics were embedded in the overall implementation plan. This approach ensured that appropriate methods were selected and designed to achieve the desired results.

The communication solution had three components. The cornerstone was an unusual tool known as learning maps, which use visuals and facilitated group discussions to engage employees. By their design, the learning maps maximized employee involvement in the implementation and fostered two-way communication. They also provided for a remarkably consistent message and results that were not dependent on the individual skills of supervisors.

The bank's corporate newsletter supported messages in the maps by providing news and information in depth. Finally, a toll-free telephone line, TeamVoice, provided employees with a direct feedback channel. Its goal was to promote two-way communication and sustain a dialogue between frontline employees and the executive team throughout the change process.

Focusing on just three tactics enabled the organization to empower frontline supervisors and employees by controlling the volume of information related to the initiative. In times of change, there is a tendency to increase communication. But this can lead to information overload and confusion as frontline employees struggle to respond, reducing productivity at precisely the wrong moment.

Scotiabank avoided overload by limiting the number of communication vehicles used. The executive team developed the main messages, which were consistently communicated to all levels of employees throughout the organization, and the communication process was broken into manageable steps, each timed to begin a new phase of the business strategy. As frontline teams moved successfully through one part of the implementation, they were certified to move on to the next phase.

Measurements demonstrated the value added by this communication approach. A sample survey of approximately 1,000 employees showed that more than 90 percent understood the business strategy and their stake in it. A similar number reported that they understood how customers' expectations influence Scotiabank's success. One employee summed it up: "The learning maps give Scotiabankers the opportunity to be part of the whole process. It is nice to be informed."

EMPLOYEE BUY-IN PAYS OFF

In the year since implementation of the new business strategy, results have been outstanding. The most impressive indication of success was the speed at which employees across Scotiabank's retail bank implemented a new sales delivery model. Every branch in Canada completed implementation on or ahead of schedule.

Fiscal 2001 was the most successful year in Scotiabank's 170-year history, with net income up 13 percent over the previous year. Scotiabank was also rated the No. 1 bank in Canada in overall quality of customer service. And 83 percent of employees reported in the annual satisfaction survey that their branch was a great place to work.

Scotiabank's experience demonstrates that in an increasingly dynamic marketplace, the knowledge employees have and how they apply it to their jobs create competitive advantage and increase shareholder value.

Communication with employees is not a nicety; it's essential to success. To be most effective, communication must be viewed as a process that creates a direct line of sight between the organization's goals and what people do every day. Without a disciplined communication process, change can become a painful exercise that undermines employee morale, impedes business effectiveness and erodes shareholder value.

Tracey White is senior manager, employee communication, at Scotiabank in Toronto and will be a speaker at IABC'S international conference in Chicago this June. She can be reached at [e-mail] Scotiabank is a 2001 Gold Quill Award of Merit Winner.