Australia
Retailer’s Association CEO’s Retreat - June 10th , 2000
I
was invited to speak to you on Business Communication, but as I've reflected
on these issues, it seems to me that the key thought is not Business Communication
– which is just a meaningless piece of jargon really, but rather,
reinventing conversation in a business context.
Let
me say at the outset that I am not talking about the “plain English”
movement, worthy as that is. The advent of plain English in annual general
reports, prospectuses, life policies etc. is surely a useful tool, but
it does rather tend to confirm what the punters always secretly thought
– business is really boring.
Plain
English is not a conversation.
Conversations
are dynamic, engaging, and I would argue – a potent business tool
– but we seem to have rather neglected them of late for other, more
controllable, forms of communication, and I think that’s a pity.
I don’t know whether it was the rise of corporate governance, or
the fear of litigation that did it, but over the last decade we have developed
a form of business jargon which is largely impenetrable to the great majority
of Australians.
Now
there are two important reasons why we should cut it out. The first is
it’s bad for business, and the second is – it’s rude. It’s
bad for business because it isolates us from our most important stakeholders
– our customers. It’s rude because it’s isolating and exclusionary,
and it makes people mad at us.
Reinventing
conversation means that we accept the importance of a two-way dialogue,
which involves us in listening with understanding. Most business communication
these days focuses on telling people things we want them to know. A conversation
provides an opportunity to find out what people would like to know about
us, and then allows us to tailor make a response that has the potential
to give us a significant strategic edge.
Less
that sound like a statement in the bleeding obvious, consider those famous
retailers of money, the banks, who seem united in their refusal to see
that there’s a moose on the table, and that sending out warm, fuzzy
messages, when people really, really hate you, is a complete and absolute
waste of money.
Thirdly,
conversation is absolutely fundamental to the creation of trust –
the hallmark of all great brands.
At
Saatchi & Saatchi, we define a brand as “the intangible values
created by a badge of reassurance.” Now brands can have any number
of intangible values associated with them, but if trust isn't one of the
top two or three, you’re basically stuffed.
Everything
your mother told you about trust is absolutely true. Trust is like respect
– you have to earn it – and it’s dynamic – it grows
over time, but it can be lost in an instant. And people don’t trust
anyone who doesn't listen to them – who they don’t understand
– or who they think is taking advantage of them.
Now
conversations are messy things – they often don’t go according
to plan – there’s always the possibility you might find out
something you would rather not have known, and most companies are not
set up to take account of the fact that someone might actually answer
you back.
But
the conversational revolution has already begun – it’s everywhere
you do business – it’s immensely powerful and completely unmanageable.
In
e-mail's and chat rooms around the globe people are talking to each other,
and in the process they are transforming the language of business.
People
communicate in cyberspace in the same way they talk. E-mail's have no
punctuation and very little structure. They’re pure stream of consciousness
– there are no salutations and no sign-off’s – you say
what you want to say, and get off – they’re immensely efficient
and supremely personal all at once.
If
you don’t already know about it, may I draw your attention to a web
site called cluetrain.com? It’s an infuriating, controversial web
site that is nonetheless indispensable reading, particularly for anyone
over 40. It contains the Cluetrain Manifesto – 95 Theses on Networked
Markets.
It
extols the power of conversation as the language of cyberspace, and posits
that in the brave new world, the current homogenised voice of business
– the sound of mission statements and brochures – will seem
as contrived and artificial as the language of the 18th Century French
Court.
Let
me quote you the opening 5 of the 95 theses;
1.
Markets are conversations
2. Markets consist of human beings, not demographic sectors
3. Conversations among human beings sound human. They are conducted
in a human voice
4. Whether delivering information, opinions, perspectives, dissenting
arguments or
humorous asides, the human voice is typically open, natural, and uncontrolled
5. People recognise each other as such from the sound of this voice.
I
must say that although there is much that I profoundly disagree with on
the Cluetrain site, it has been an epiphany for me.
Our
loss of conversational skills certainly predates the net, but the net
will be vital to its resurrection.
I
first started thinking about these issues in 1993, when I was asked to
Chair the Australian Council for Women – the advisory body set up
by the Federal Government to advise on our participation in the Fourth
UN Conference for Women, held in Beijing in 1995.
As
part of our work, we held 30 consultations with groups of women all around
Australia, and those consultations had a profound effect on me in unexpected
ways.
I
grew up on a small farm in Queensland – I left school at 15 –
bought up 2 kids on my own – and didn't settle down to being a staid
old married lady with a career until I was well in my 30’s –
so I would have thought that I would have no trouble talking to Australian
women.
But
I was mortified to discover that I might as well have been from Mars as
far as many of these women were concerned. The language used by women
with careers is a sort of patois – we've been hanging around blokes
for so long, we've started to sound like them a bit. Our language is much
more fact-oriented – it has a beginning, and a middle, and an end
– and it’s often extremely boring.
Women
from rural and regional Australia, women with part-time jobs, older women,
women living on the fringes of capital cities don’t sound anything
like us.
Invited
to list their greatest concerns, our respondents would immediately launch
into a story. They’d say something like “This morning the kids
wouldn't get up, and I was running late for work, and when I backed the
car out I ran over the dog, and when I got to the child care centre Justin
had broken out in hives, and the centre wouldn't take him because they
thought he was contagious, so I had to drop him round to my mothers.”
And
I would write down “Child Care.”
Women
without career pressures (and indeed, men without career pressures) have
a much more discursive communication style than people in business –
they like to have a chat – they’re not in a hurry, and they
can’t understand why we are.
And
it really brought home to me how differently we use the language we have
in common. In more recent times, the conduct of the referendum on the
republic was a spectacular example of failed communication.
The
conversation that the Republicans were trying to have was not the one
the voters wanted to have, and it was really damaging to Australia’s
social fabric. It was a great pity, I think, that the vote seemed to divide
along class lines, but the lesson to be learned from the referendum campaign
is that there is no point in talking at people about what you think they
should do. The majority of Australians have already decided that they
want Australia to become a republic at some point, but they’re not
going to be stampeded into a model they don’t want.
The
damaging, divisive, and seemingly endless dialogue about reconciliation
is another example of a failed conversation, where the unwillingness to
say one little word has mired the entire process in recriminations on
both sides.
But
I predict that the most important conversation we have failed to have
is on globalization. We have mistaken sullen acquiescence for consent.
Many Australians remain unconvinced of the benefits of globalization.
They can see what’s in it for business, but they can’t see what’s
in it for them – and that’s a dangerous place to be.
With
the benefit of hindsight, it might have been better to have had a national
conversation about the consequences of globalization, and to set in place
strategies for retraining and relocation at the outset. Our loss of nerve
will come back to haunt us, I suspect.
The
riots in Seattle and Washington are the precursors to something much bigger,
but what is fascinating about this particular civil unrest is that it
is not being run by organised groups – these people are finding each
other on the web – they’re talking to each other – about
us – and we can’t manage it or control it – and if that
doesn't frighten you, you’re not paying attention.
Much
has been written in recent times about the loss of trust in our major
institutions, including business. Rightly or wrongly, people don’t
believe us, and don’t trust us, and that’s happened largely
because the sorts of things we want to talk about are of absolutely no
interest or relevance to our fellow Australians.
I
suspect most Australians have decided that business will continue to push
for bigger profits by cutting back on servicing and reducing staff. They
certainly don’t dispute our right to do it, but they sure don’t
like us for it.
And
they sure as hell don’t want to have a conversation about it –
so earnest lectures from business groups along the lines of “this
is for your own good” simply irritate people profoundly. That nannyish,
hectoring tone – you almost expect them to say “this is hurting
me more than it’s hurting you” – is turning people off
in droves.
So
should you care about any of this? Does it matter? If you’re sitting
there having a testosterone surge and thinking “Who cares –
my job is to lead – I don’t have to be popular” –
may I respectfully suggest you think again.
You
will recall that I said at the outset that the definition of a brand is
the intangible values created by a badge of reassurance, and how critical
it is that one of those intangible values is trust.
There
are bottom line consequences for failed conversations, for a loss of trust.
Whether it happens this year, or next, or not for another decade, retailing
is being changed forever by the new technology – and your single
greatest weapon against the dot com’s is the power of your brand
– the trust that’s generated by the experience of your brand
over time. So anything that works against that trust is going to cost
you money.
So
what to do?
The
great challenge for all of us in business is to understand that if we
want to grow our businesses, develop our brands, and add value for our
shareholders then we have to engage all our stakeholder groups in conversation.
We
must stop telling, and start asking. We must stop answering questions
nobody asked, and try to figure out the real questions people want us
to respond to. We need to develop our listening skills, and every communication
should be in the language of our customers, not the language of business.
As
the legal consequences of running a business have escalated, we seem to
have taken refuge in increasing obfuscation.
Most
business communication is now so vague as to be almost meaningless –
no-one knows what we stand for, what we believe, or what our values are.
Internally,
think about the language that's evolved around human resources management,
around marketing, corporate governance, and ask yourself do you know anyone
who sounds like that?
Externally,
annual general reports and media releases are the two most obvious examples
of business communications that often seem to be designed with no particular
target audience in mind. Why not an annual general report with pictures
of your shareholders, rather than pictures of your directors. Why not
set up chat rooms for directors to talk to shareholders or customers?
It’s fascinating to look at companies web sites – the technology
might be new, but the language certainly isn't. The net is a great place
for companies to have conversations, but most companies are as flat and
lifeless on the web as they are in all their other communications.
Conducting
a communications audit is a great way of taking a helicopter view of your
company’s ability to communicate.
When
you’re back in your office, I challenge you to lay out every piece
of corporate communication over the last 12 months, and take a long, hard
look at yourself.
If
your company was a person, would you like you? Would you take you home
to meet your family or out to party with your friends? What sort of person
is your company?
Are
you warm, approachable, energetic, and fun? Or are you the sort of stuffy,
self-opinionated bore that people hate getting trapped with at cocktail
parties?
Worse
still, do you suffer from multiple personalities? Do you try to be all
serious and sober with your institutional investors, a party animal with
your suppliers and business contacts, and a recorded message to your customers?
Clarity
and consistency are the hallmarks of great communication in any field
of human endeavour. You can’t be one thing to one group of stakeholders
and something totally different to another group of stakeholders –
you end up meaning nothing to anyone.
It’s
true for great advertising, too. Simplicity is the hallmark of all great
advertising. Great ideas, communicated simply – with warmth, humour,
and humanity. We in advertising are the great reductionists, we refine,
and refine, until we end up with a single, clear proposition that can
be communicated quickly and effectively.
Advertising’s
role in the marketing mix is to position the brand, and then defend that
position over time. So we have to be very sensitive to any shifts in what
Australians are thinking and feeling. Advertising lives in the here and
now – and we are acutely conscious that if we are to intrude into
busy people’s lives then we need to be respectful of their time,
we need to speak their language, and we need to reflect their humanity.
If
you think about the television ads you enjoy most, I suspect you’d
find that most of them tell a story. They are small, but perfectly formed
microcosms of life reflected back at you with warmth and style. Bad advertising
has all the hallmarks of bad communications everywhere – it talks
at you – it lists the features, not the benefits, it has no humanity
– it shows no respect for its audience – who disrespect them
right back – and most importantly, it doesn't work.
Increasingly,
advertising agencies are consolidating into giant global networks, like
Saatchi & Saatchi, so that we can reap the benefits of both globalization
and the new technology. The business we are in is the business of ideas
– communication solutions that transform our clients businesses,
brands, and reputations – which all sounds very grand, and it is.
But
we never forget that those ideas have to be transformed into communications
that are received by an audience of one, many times over. Our skill is
in understanding and interpreting human behaviour for our clients, and
transforming that into communications ideas that generate sales.
Sometimes
those ideas will manifest themselves in mass media, but increasingly we
will be driven by the power of the idea, rather than the medium.
And
while advertising is the most public face of the communication mix, it
is only a part of the total brand experience. The values and culture of
the organisation - the internal brand, if you like, are just as important
as its public face, because that’s how customers experience the brand.
So
because it’s our job, we never forget that all communication is human
communication. People are endlessly fascinated with other people –
it’s the basis of all mass market entertainment, and much of our
communication.
If
our communications reflect the human qualities we most admire or enjoy
then those communications will succeed.
If
we are open and transparent in our dealings with our customers, if we
will allow the possibility that we, like they, might be fallible, if we
deal with each other with simplicity and grace, then our businesses will
prosper, our communities will thrive, and people will trust us because
we deserve it. |