Running head: THE IMPORTANCE OF TWO-WAY IN

The Importance of Two-Way Communication in Public Relations

Abigail Yaney

Southern Methodist University

THE IMPORTANCE OF TWO-WAY COMMUNICATION IN PUBLIC RELATIONS

Purpose of the Paper

The purpose of this paper is to research the importance and evolution of primarily internal and how increasing internal communications can be beneficial in balancing the needs of everyone connected to the corporation. This in turn will lead to more effective, ethical and respected methods of communication.

External communications is defined as the passing of information from inside of an to external audiences. Internal relations is an area of public relations focused on employees often being overlooked as a “public” and focusing on improving internal communications. Stakeholders are the publics of an organization that are defined by social, economic, political and/or cultural ties to an organization. Some examples of stakeholders include employees, partners, customers, investors, competitors and activists. Shareholders are defined as someone who holds a financial interest in an organization through owning part of the organization. Their interest is more financially driven. Shareholders are always stakeholders but not every stakeholder is a shareholder.

As communication and public relations practices have evolved throughout the years there has been a growing need for the balance between external and internal communications within corporations. Public relations practices used to be primarily one way communication with the corporation pushing out a message to the public. The average citizen was not a part of the like they are today. They were merely a receiver of the message and not a sender.

There was less of an emphasis on the importance of internal communications. It is critical for a company to balance the needs of its shareholders and stakeholders. There is a desire for open communication both internally and externally of a corporation. THE IMPORTANCE OF TWO-WAY COMMUNICATION IN PUBLIC RELATIONS

Historical Figure Profile

Arthur W. Page had a major contribution to the field of public relations. Referred to as

“The Father of Corporate Public Relations” he is best known for his work at AT&T and the evolution of corporate public relations. He is credited for his seven principles on corporate public relations that are used in corporate practices today. The Page Principles are seven guidelines for good practices in public relations (Page, n.d.).

His first principle is “tell the truth” and this principle is the foundation for ethics in public relations practice. You must let the public know what is happening and provide an accurate picture to them in order to maintain a good relationship. His third principle is about the importance of listening to stakeholders. This principle is important for keeping the lines of communication open between stakeholders and the company. Internal communication is critical for the growth and success of a corporation. Page emphasises the importance of listening effectively and engaging through an inclusive dialogue.

Another principle include managing for the days ahead to create goodwill and eliminate future difficulties and issues if possible. It is about being prepared and letting your employees know that you are prepared. His fifth principle is “conduct public relations as if the whole enterprise depends on it” where the impact of the stakeholders should be considered before any decisions can be made. It is important to factor in all background, beliefs and positions of stakeholders before making a decision that will impact them. Finally, his principle “realize an enterprise's true character is expressed by its people” is based on people that have been involved with the enterprise at some point and each of those people hold unique values and opinions and these should all be valued and respected. THE IMPORTANCE OF TWO-WAY COMMUNICATION IN PUBLIC RELATIONS

Review of the Literature

Public relations practices began with the press agentry/ publicity model of public relations. This model’s purpose was based on propaganda, persuasion and manipulation. The success of this model was judged by a change in audience behavior. In this model, the truth is not essential and it is primarily done through one-way communication. This is in direct contrast with

Arthur W. Page’s first principle: tell the truth (Page n.d.). From this original model, the practice of public relations has evolved to the public information model, the two-way asymmetrical model, and finally the two-way symmetrical model. The two-way symmetrical model is the goal of long term communication practices. It is based on negotiation and conflict resolution with a goal of mutual understanding. The success of this model is judged by the level of understanding reached by an organization and its publics. Two-way balanced communication is necessary for the success of this model.

As public relations practices have evolved, so have the values held in each generation.

Gen Z adults consider the three most important values to be honesty, reliability and commitment

(The Morning Consult, n.d.). In order for an organization to survive in this new climate they must have the ability to increase communication to the level desired by each new generation.

This extends to both internal and external communications.

There are current issues and concerns with internal communication. In a study conducted by the Plank Center for Leadership and the North American Communication Monitor (NACM) reports that only 69.2% of respondents said that their organization practices two-way communication (Meng, Reber, Berger, Gower & Zerfass, 2019). This report also listed building ​ ​ and maintaining trust as the most strategic issue for public relations and communication THE IMPORTANCE OF TWO-WAY COMMUNICATION IN PUBLIC RELATIONS management (Meng et al., 2019). Currently employees feel as if their organization does not practice open lines of communication. This can cause long term issues for an organization.

Through increasing a two-way flow of communication, there will be an increased level of trust.

The more stakeholders feel as though they are a part of the conversation the more trust they will have in an organization. This issue with communication is also stated as an issue within corporate public relations. Practitioners feel as if they are not equipped to navigate internal communication and relationships (Cardwell, Williams & Pyle, 2017). They acknowledge that external relations are a large part of the corporate public relations function but that internal relations are also important (Cardwell et al., 2017). They may acknowledge that internal relations are important but necessary steps to increase internal relations are not being implemented. This dialogue needs to be opened in order for stakeholders to feel as if their views are valued within an organization.

Other issues with communication can stem from the hierarchical system within an organization. An in depth analysis of CEO’s and their role in communication found that “the extent that CEOs engage with investors in a way that fails to genuinely acknowledge investors’ legitimate concerns, these executives risk compromising their relationships with investors as key stakeholders” (Chandler, 2014). If the hierarchical system of management fails to recognize stakeholder’s concerns it will jeopardize the relationships it has built. Within a hierarchical system is also critical to recognize that “senior employees are not always the most suitable to act as change agents” (Ioannidis, Varsakelis, & Antoniou, 2019). This hierarchy can be harmful to an organization if they do not communicate within all levels of an organization. Those with seniority may not recognize the needs and desires of those around them This leads to a divide THE IMPORTANCE OF TWO-WAY COMMUNICATION IN PUBLIC RELATIONS within an organization between those who feel as if their voices are being heard and those who do not.

Increasing communication and dialogue will help to decrease some of the communication issues within corporations. Dialogue is critical to the success of an organization. The process of dialogue “contributes to narrowing the gap between stakeholder perceptions of the company and the company's real activity. An account of why operations are carried out in a certain way may help remove distrust of the company, and to encourage a closer relationship between the company and its publics” (Gutiérrez-García, Recalde, & Piñera-Camacho (2015). Open dialogue is necessary for the stakeholders to understand why decisions are being made and how this will directly impact them. If a stakeholder is not being given truthful information they will have distrust towards their organization.

Open dialogue and increased communication is the next steps for companies. More companies are “realizing employees aren’t just another stakeholder as their degree of ​ engagement is tied to key business outcomes such as profitability and customer satisfaction”

(Gallup, 2013). The future success of companies is tied to realizing the importance of internal communication. Some companies are recognizing this tie and are changing the way they focus on employee communication. This shift is seen through the “rise of internal channels...which are used for building intranets or as collaboration tools. Some of the features of these platforms include the ability for employees to like content, rate/review content, comment, and collaborate with other employees” (Neill, 2015). These tools can be used to foster more communication internally. With the increase of these social media channels it is also important to use face-to-face communication in order to “promote dialogue to build trust with key audiences, THE IMPORTANCE OF TWO-WAY COMMUNICATION IN PUBLIC RELATIONS manage the reputation of the company’s brand and image, and promote employee engagement”

(Neill, 2015). A more collaborative environment and face-to-face discussions will help to foster and grow internal communications and therefore lead employees to feel heard and understood.

This will strengthen the entire unit of an organization.

Two-way communication is the future of internal communications and employee relations. Interviews with executives revealed their understanding that building “trust through two-way communication with their key audiences or stakeholders” is important for maintaining employee engagement and managing the company’s reputation (Mishra, K., Boynton & Mishra,

A., 2014). If employees do not feel their voice is heard, then it is unrealistic for them to stand behind and support an organization to the fullest. This dialogue is not just an exchange of ideas with no goal. The goal is mutual understanding. Dialogue is “not just a matter of knowing what the other group thinks, but of understanding how they think, and being similarly understood oneself” (Piezka, 2011). This is the basis for the two-way symmetrical model of communication where the goal is a level of understanding achieved by an organization and its publics.

The future of communications and public relations is acknowledging that all levels of an organization have an impact on the organization. A public relations leader must “possess cultural awareness and intelligence and the courage to serve as professional change agents — advocates ​ ​ and role models for reducing or eliminating barriers to diversity, gender equality, shared decision making, enhanced two-way communication, and ethical decision making and practices (Berger,

2019). The future of public relations is through change agents that create two-way communication within an organization in order to eliminate barriers for that organization.

THE IMPORTANCE OF TWO-WAY COMMUNICATION IN PUBLIC RELATIONS

Interview with CCPA Advisory Board Member

Tara Payne is the current Vice President of Communications and Outreach at the Federal

Reserve Bank of Dallas. Prior to this position she worked in human resources and was involved with corporate communications in the energy industry with Tesoro Corporation, Valero Energy, and Ultramar-Diamond Shamrock. After her time in the energy industry she joined the Federal

Reserve Bank’s San Antonio office involved with public affairs and then as Assistant Vice

President in the communications and outreach department. From there Payne moved to Vice

President of Communications and Outreach at the Federal Reserve Bank at the Dallas branch.

She has a bachelor’s degree in business from Wayland Baptist University.

Her evolution from the oil industry to the Federal Reserve Bank changed her perception on working in two different industries. While working in the oil and energy industry there was more of an emphasis and focus on the bottom line. This would be reflected in the price of oil at the time. Now her job is less focused on a bottom line and is more mission based.

Her primary job responsibilities include communication and outreach both internally and externally. She is also in charge of executing strategies within the communications realm of the

Federal Reserve. It is her job to know when to “sprint” and when to “pivot” and make sure that these changes are communicated accordingly. In her position she has four senior executives that she reports to and one that is her direct and main point of communication. On her team there are around twenty different people who report to her. They are primarily made up of writers, editors, media and designers.

There have been challenges to overcome in doing communications for such an established organization. Working for the Federal Reserve is a high stakes communication job. THE IMPORTANCE OF TWO-WAY COMMUNICATION IN PUBLIC RELATIONS

Payne acknowledges most of the history of the Federal Reserve was going under the radar of the general public. She has had a hand in changing the perception and face of the Bank. One new way that the bank has evolved in this aspect is by creating social media accounts as a way to give a face to the massive building. She was looking for a way to humanize the bank.

Another challenge has been focusing on internal communications within the Federal

Reserve Bank. Her position used to be referred to as public affairs and not communication because of the negative connotations that bank leaders had with the word ‘communication’ and it has been a part of her challenge to change this perception. The change in leadership titles demonstrates an evolution. The bank leaders also used to shy away and avoid words like ‘brand’ and she has worked to establish that the Federal Reserve does have a brand and the public’s perception of the Bank does influence this brand. When conducting research and testing messages on the general populations' view of the Bank they were negative or mixed reviews.

Lots of people do not know what the Federal Reserve Bank does or what purpose it holds in their society. Payne believes that by giving the Bank a brand and an identity she can help to change the public perception of the bank and allow people to become more informed about the roles and responsibilities of the Bank.

Her current challenge is to work with leadership within the Federal Reserve to implement and create these changes. By increasing two-way communication in the Bank, employees can have their voices and insight on the bank be communicated to higher leadership. Although the

Federal Reserve Bank of Dallas may be slower at this evolved way of communication she acknowledges that there is a move for change.

THE IMPORTANCE OF TWO-WAY COMMUNICATION IN PUBLIC RELATIONS

Findings, Criticisms, and Conclusions

The main finding of this research was the importance and evolution of two-way internal communications. Internal communication as a public relations professional has been more of an overlooked aspect of the profession. However, to have successful internal communications there is a need for two-way communication and open dialogue. This helps to ensure that the organization’s stakeholders are being informed and also feel as if their concerns and opinions are being heard. Without this two-way dialogue there is a breakdown of communication within the organization.

Tara Payne aligned with the literature I researched as she stressed the importance of ensuring everyone is on the same page of communications internally. The hierarchical structure of leadership only further stresses the need for effective two-way communication. Without this communication there would be a lack of progress of communication with the Federal Reserve

Bank of Dallas.

A personal critique of the research would be there was only one in person interview conducted. Another interview with someone in corporate communications would have allowed me to compare and contrast the two points of views. I did not conduct any original research myself. The ability to survey multiple public relations professionals to analyze their viewpoints on communication would have added beneficial quantitative data to this research.

In my own public relations practice I will ensure to make two-way communication internally a priority. This will help to make employees voices heard and have upper leadership be able to learn more about the innovative ideas and changes that others in that corporation may have. THE IMPORTANCE OF TWO-WAY COMMUNICATION IN PUBLIC RELATIONS

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