"Oh joy ... a bill!" was my reaction to the British Gas envelope landing on my doorstep this morning. Several minutes later, after ploughing through no less than five pieces of literature giving me fantastic news about sales on boilers, my exciting new style energy bill that's a 'piece of cake', apparently, and my new British Gas bond that enters me into a draw to win fantabulous prizes ... I was genuinely feeling bemused about whether this WAS in fact my gas bill, or whether they'd just decided to write to me out of the goodness of their hearts and shower me with goodies. But aha, no, finally, wrapped up inside a leaflet, my bill was lurking. I shan't be at all surprised if loads of people end up with red reminders because they don't realise there's a bill in there at all.
What if there's no WIIFM factor?
I've noticed the tactics of 'let's hide the bad news away and hope customers don't actually notice it' since their prices started sky-rocketing. I was trying to work out whether a) I thought British Gas were quite clever in the way they had plied me with goodies before hitting me with the nasty part or b) I was fed up with them for trying to hide the real message, and it made me think back to a discussion we were having about messaging on the Master Class last week.
We were talking about the importance of finding the 'what's in it for me (WIIFM)' angle when putting together messages. Looking at things from the audience perspective instead of the company's point of view. The question that came up was, what if there is, absolutely, categorically, no WIIFM? My gas bill has gone up goodness knows how much in the past few months - what's in it for me? Where's the WIIFM in a cost-cutting programme that's purely about boosting profits and lining shareholders' pockets? Somebody told me a couple of weeks ago that her company had tried saying 'reducing costs now means we'll protect jobs and you'll get bigger pay rises later'. Nobody believed a word of it, oddly enough.
Some things that work
1. Be honest. Don't fudge it. I reviewed one set of communications for a 'streamlining' exercise and couldn't fathom out the reason why this company was actually doing it. As far as I could see from the communication, everything was going swimmingly well. Actually, it turned out all was not well at all, but the comms person told me she'd been taught never to talk about cutting costs, because it was too negative, and it might get into the papers. Why would people buy a cost cutting exercise if they can't see a need for it?
2. Use trusted sources to deliver your message. I'm afraid when energy suppliers tell me their prices are better value than anyone else's, I don't believe them, because I expect them to try and compare them in a way that means they'll look good. I probably WOULD believe an independent watchdog, or one of my friends that had tried every supplier going and found this one the cheapest. Understand who is most trusted in your organisation, and get them on board to help get the message across.
3. Make sure you're not cancelling out what you say on one hand with what you do on the other. If you tell everyone it will make all the difference if they make black and white copies instead of colour, turn off the lights when they leave a room and cancel the chocolate biscuits in meetings .... and then announce at £1 million bonus for the CEO, it's fairly obviously not going to work. (Or so you would have thought, but companies do it all the same.) Make sure the people at the top are role-modelling the changes.
4. Show people how much difference the actions they take can make to the company as a whole. I saw one company illustrate with a moving scale on a PowerPoint presentation at a conference how much difference a 1% reduction or increase in costs for one business area made to the overall company results, and what they'd contributed already.
5. Explain the process you've been through to decide on the cost-cutting measures and outline any other suggestions you might have considered and had to reject. Help people reach their own conclusions about why this is necessary, rather just telling them the decision and expecting them to accept it.
6. Compare the issue to something closer to home. Talking about EBITDA, being cashflow positive and market positioning doesn't help people make a connection. Comparing it to managing your monthly income and tightening your belt if you can't afford to pay the mortgage makes it more understandable.
7. Use a genuine burning platform, if there is one. When I was IC Director at NTL a few years back and we were heading into Chapter 11 bankruptcy, when we said we had no choice but to get costs down, it was obvious we weren't being overly dramatic. If you're talking about 'the competitive environment, a challenging year, blah blah blah' for the fifth year in a row, people probably stopped listening a long time ago.
And finally ... be sure the payoff is worth it. Actions like cancelling the Christmas party, taking the free vend off the coffee machine or reducing the subsidy in the staff canteen don't save millions, and the signal they send about your commitment to staff and the impact on motivation will cost the company far more in other ways. Be prepared to make sure the company really understands the implications of its actions, and challenge hard if you think it's the wrong decision.
Those are my suggestions for starters. What else have you seen work, or what have you seen go badly wrong?
Sue
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