These are turbulent times — geopolitically, economically, and for the many companies undergoing transformation. Budget cuts, potential restructuring, and ambitious growth targets set by management are adding to uncertainty among many employees. So how can companies communicate effectively in this environment? How can difficult decisions and significant cutbacks be communicated without ultimately damaging trust? Birgit Jakobs, Managing Director of dot.communications, discusses how to handle key
Ms. Jakobs, how well — and, above all, how credibly — do German companies communicate?
First, we need to distinguish between DAX-listed companies with regular reporting requirements and mid-sized companies, many of which are family-owned businesses. Depending on their structure, some publish little more than their most important financial figures. Generally speaking, of course, companies communicate much more than they used to because the internet has given them access to so many channels of their own. Social media has also had a major impact on B2B communications. Today, any company can use LinkedIn, Instagram, and podcasts. ESG-related reporting and communications are now subject to regulatory requirements, and the way companies address young professionals and talent has changed enormously as well. The question is whether more communication necessarily means better communication.
Doesn’t it?
Not necessarily. If corporate objectives are simply carried over word for word into communications, the result can quickly sound like empty corporate rhetoric. Growth is the classic example. In highly competitive and struggling industries, growth is naturally a key management priority. But for many people, that objective is simply too abstract. All they feel is the pressure, without understanding how they can contribute. Smart communications translate these objectives into narratives that motivate people rather than adding to their anxiety. That still happens far too rarely.
What are the biggest mistakes companies make?
I’m not a fan of the word “vision,” but it certainly helps to have a clear idea of what you want to communicate about the major issues. Having few or no answers ready is the first major mistake. Today, employees are right to expect positions and context from their employers, especially because trust in a company is so important. Communications can and should provide that. It helps when the team understands exactly why change is necessary and what each person can contribute.
What role does tone play in communications?
A huge one. Patronizing communications should be a thing of the past, yet we still encounter them frequently. And communications are often inconsistent. Employees then describe this in internal surveys as “erratic management.” Yet frequently, the strategy itself is not the problem. The problem is simply that the communications have failed to translate the task for the intended audience. A SPIEGEL interview is not the right template for a town hall meeting. And don’t misunderstand me: internal communications do not always have to be “woke,” either. Despite their differences with him, many managers see clear strengths in Elon Musk’s communication style. A deliberately confrontational approach can sometimes be effective. But you still need to keep the overall communications picture in mind.
What can companies do right?
Companies don’t have to do everything themselves. Depending on the challenge, there are countless experts who can help. Political communications demonstrate the influence platforms such as X and TikTok can have. You may choose to ignore them personally, but companies should consider how these platforms and their algorithms can be used to reach relevant audiences alongside traditional media. In business, communications should be viewed as an inexhaustible resource: telling your good stories in compelling ways, making less exciting ones interesting, and managing bad ones as professionally as possible. It is about ideas, content, and choosing the right stage for the right occasion.
Does that require a tightly defined strategy, a kind of storyboard — possibly developed with external consultants?
Absolutely, if you want to achieve results quickly with limited resources. Business is much like politics, to loosely paraphrase Kurt Tucholsky: “People misunderstand most things, but their instincts are usually right.” A professional communications strategy, consistently implemented both internally and externally — including when media coverage turns negative — can save a great deal of time and frustration. The good thing is that effective communications are transparent and measurable. You can see the results immediately.
What gives you reason for optimism?
Communications also move in cycles. For traditional media, after so much bad news around the world, there also has to be room for positive stories. For corporate channels, the principle is this: No matter how serious the situation, there are always interesting stories to tell.
And in our AI-driven digital world, ChatGPT favors recognized experts and the media evidence that supports their expertise. In the future, online visibility will therefore increasingly depend on communicating consistently and being clearly positioned. For executives and brands alike, investing in smart communications makes a great deal of sense. One thing is certain: it is an investment in the future.