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Chapter 13 - Transformational Leadership Through Effective Internal Communication
13-1
Chapter 13 – Transformational Leadership Through Effective
Internal Communication
Teaching Notes
In this chapter, the students will learn to do the following:
• Select appropriate leadership style and know how to communicate as a
transformational leader.
• Recognize the strategic and cultural role of employee communication.
The applications in this chapter require the students to have mastered much of the
instruction so far, including developing strategy, analyzing audiences, and writing for
diverse, complex organizational audiences. The first application calls on them to revisit
the HugeCo case and to develop a full-fledged communication program to roll out the
benefits across the organization. They will need to use the strategy framework and think
in terms of a strategic level of change communication. The second application also
depends on the students being able to employee the strategy framework, but in this case,
they will need to know how to write a bad news memo, similar to the one in the Superior
Foods Case. Finally, they are asked to develop a complete communication strategy for
major change.
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Application 13.1: Case Study – Merging Benefits
The Case: Huge Co Revisited
This application is designed to engage the students in thinking strategically about a
specific communication situation. Students should use the Communication Strategy
Approaches to Teaching
The students must be familiar with the Huge Co. case provided in Application 5.1. It will,
therefore, work more easily if this application has been assigned earlier in the semester. If
this has not been done, the instructor will need to assign the case as outside reading and
devote class time to discussing it before assigning Application 13.1. Since the application
involves change communication, it provides a good opportunity to review problem-
solving approaches that are particularly suited for analyzing changes.
The following response covers the basic elements of the communication program and was
prepared for the Instructor’s Manual. It could serve as the basis for further development
into an action plan or PowerPoint presentation.
Example Response to Assignment
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Purpose – The communication program is intended to provide the software engineers
with clear and complete information about the new benefits plan and persuade them that it
Audience – Huge Co.’s software engineers are now a more diverse group than the
engineers of either of the merged companies, and the communication program will have to
address the broader range of interests and concerns. The older Huge Computer engineers
will find few changes to their previous benefits, and none that diminish their value. It is
Messages – The great bulk of the information to be communicated is factual and describes
the benefits offered by the plan. This must be communicated clearly, completely, and
honestly. We will, however, take every opportunity to emphasize the positives for the
younger engineers and to encourage them to appreciate the longer-term benefits and future
orientation of the plan. The communications will attempt to bridge the gap between their
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Spokespersons – We want to let the engineers know that senior management cares about
their needs and values their talents and productivity very highly. The engineers must
perceive this message as credible. We will thus prepare a statement from the CEO
emphasizing their importance to the mission of Huge Co. and the advantages of the new
benefits plan. This will be a general-level, motivational communication. The SVP of
administration and HR will make amore detailed statement to all employees. The
Media/Channels – We will use electronic media to the greatest extent possible. The
engineers will be notified of the new plan by email about a week prior to formal rollout.
The email will direct them to sites on the existing HC and CC intranets where they will
find a general description of the new benefits plan. The site will also give them a
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Timing – The first communication, Day 1, will be an email notification about the
availability of information on the intranet. Booklets explaining the medical benefits and
choices will be mailed to arrive at employee’s homes on Day 3 with a message for the
employee and spouses. Official rollout and the first meetings will be held on Day 7 and
will focus primarily on medical benefits and the details of enrollment. Booklets will be
Feedback – The intranet and workgroup meetings will provide the bulk of initial
feedback. Supervisors will be asked to pass along feedback they receive to the benefits
manager. Employees will also be asked by email to send their comments on the program
to a benefits’ address. The benefits manager and internal communication director will
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Application 13.2: Case Study Communicating with Internal Audiences
The Case: The HADWIT International Services Company
Application 13.2 is similar to the Superior Foods case in Application 2.1, although in this
case, the changes underway at HADWIT are more far-reaching, including changes that
will impact all employees rather than just a few who will be laid off. The new technology
Approaches to Teaching
This case offers a wide variety of approaches and assignments. You might approach it in
a way similar to the Spree Case in terms of assigning teams to develop a strategy for the
partners, company officers, team leaders, and employees both domestically and overseas.
As an alternative, you could ask each student to develop his or her own strategy for a
selected audience or audiences and follow up by writing the memo to the management
team.
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Example Response to Assignment
Note that in the student example shown here, only audiences and messages are provided.
Internal Audiences
Messages
Company officers (direct
reports)
Financial crisis, and do not foresee a quick end to
downturn
Immediate cost cutting measures
- Closing of both international offices
- Dismissal of remote administrative staff
- Reduction in benefits
- Possible further job cuts
Domestic Employees
Downturn is lasting longer than expected
Need to trim costs, so closing international locations
Want to save as many jobs as possible, but may be
further cuts
Will need to reduce benefits some (explain how)
Remote Administrative
Staff
Downturn is lasting longer than expected
Unfortunately this means closing international offices
Details of office closing timeline
Next steps in wrapping up work
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HADWIT
Interoffice Memorandum
Date: December 9, 2013
From: Damon Murillo, CEO, HADWIT
To: Management Team, HADWIT
Subject: Meeting to discuss strategy for temporary cuts
I am writing this memo to ask you to meet with me on Tuesday, December 10, 2013. The
purpose of the meeting is to discuss our current financial situation and the need to take
immediate actions to ensure that we make it through these difficult times.
Cash Flow
We are experiencing the greatest negative cash flows in our history. Profits are down 25%
this quarter and are expected to fall by 50% in the first quarter of 2014. Although these
Necessary Measures
To remain competitive, we have had to reduce our cash outflows to compensate for the
substantial decrease in cash inflows. These cuts, including those of employee benefits and
the closing of our foreign offices, are only temporary. I am fully aware that HADWIT’s
external circumstances, and they will be in effect only until better times inevitably come.
Management’s Commitment
We must stay unified through these difficult times. I understand that many of you are
frustrated with the recent measures I have undertaken to reduce costs. You must,
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without tarnishing our level of service, our reputation, and our employees’ loyalty, then
we will have achieved something great. I have no doubt that we will be successful because
I have given this challenge to you, whom I trust and respect, both as colleagues and as
friends.
Meeting Agenda
Next Steps
Please organize your thoughts about the topics on the meeting agenda and be prepared to
participate actively. I need to know exactly how each of you feels on these issues for me
Application 13.3: Case Study – Developing a Change
Communication Strategy
Case: Rescuing Fly High
This application invites the students to think about internal communication strategy for a
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Approaches to Teaching
It is probably best to take a team approach to this application. The case is short and not
particularly complex, but it is rich with potential for creative thinking. You will need to
discuss the case in class only long enough to clarify what you are expecting from the
students. They should understand that the task involves developing a plan for improving
communications at Fly High, not the larger change plan that is needed to revitalize the
company. They should appreciate, however, that improving communications is both a
Example Response to Assignment
Improving internal communication culture and processes is an essential prerequisite for
successful implementation of a major change program at Fly High. The new management
team will not be able to effect the changes necessary to save the company without first
greatly improving communications. At the same time, improved communication is one of
the major elements of the change program itself. The major elements involved in
overhauling communications at Fly High include the following:
1. Begin at the top by initiating the formulation of mission and vision statements. This
element will involve all levels of management as well as input from representatives of
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Implement comm.
changes/monitor
Refine M/V/
address gaps
Perform analysis/
develop strategy
We must be prepared to take advantage of initial successes in changing communication
attitudes and behaviors. These can be leveraged to introduce the broader changes that
must be initiated, which will in turn reinforce the communication changes. Carefully
implemented and with a bit of luck, the new communication values and the new sense of
mission and vision will feed off each other synergistically, each confirming and extending
Action Plan for Improving Communication at Fly High
• Initiate mission/vision
formulation w/ CEO and
senior management
• Establish task force for
communication
assessment/ improvement
• Develop mission &
vision statements using
participative process
• Plan rollout of the M/V
statements
• Determine needed
• Rollout mission and vision
statements
• Hold group meetings at all
levels to communicate
messages and meanings
for individuals
Chapter 13 - Transformational Leadership Through Effective Internal Communication
