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Management and Employee Perceptions of Internal Strategy Communication: a Case Study Management and Employee Perceptions of Internal Strategy Communication: A Case Study International Business Communication Master's thesis Jussi Herlin 2012 Department of Communication Aalto University School of Economics Powered by TCPDF (www.tcpdf.org) AALTO UNIVERSITY SCHOOL OF ECONOMICS ABSTRACT Master’s Thesis in International Business Communication 18.7.2012 Jussi Herlin Perceptions of Internal Strategy Communication: A Case Study Background and objective of the study The objective of this study was to research internal strategy communication within a case company (KONE Corporation). The aim was to discover what kinds of perceptions the management and the employees held about the strategy process, internal strategy communication and internal strategy communication actors and methods. Furthermore, the study aimed to discover what kind of activities and background factors correlate with a better understanding of strategy and perceived effectiveness of strategy communication. In particular the use of social media tools and their connection with approaches to strategy communication was examined. Theoretical background and methodology The literature reviewed consisted mainly of existing theories in the fields of strategy formation, strategy communication and social media. An analytical framework for modelling internal strategy communication was proposed as a product of the literature review. The data was collected from two primary sources. Three semi-structured interviews with the case company’s top management were conducted and analyzed using qualitative methods. One complementary background interview was also performed. Furthermore, an online survey for the case company’s employees (N=413) was carried out and analyzed using quantitative and qualitative methods. The qualitative and quantitative results, when of similar topics, were contrasted against one another and compared in order to gain a holistic picture of the phenomena. Findings The findings of the study showed that on a general level strategy communication is perceived to be reasonably effective in the case company. The CEO’s role as strategy communicator was seen as important, as were all other forms of superior-subordinate communication. The findings also indicated that vertical dialogue has a positive effect on employees’ understanding of strategy. The use of social media was not found to have a direct effect on the perceptions of strategy communication. Differences between cultures and the difficulties in reaching all employees were seen as challenges for strategy communication. Also, the role of middle managers as crucial bottlenecks for information flow was highlighted by the study. Keywords strategy; international business communication; internal strategy communication; dialogue; social media; II AALTO-YLIOPISTON KAUPPAKORKEAKOULU TIIVISTELMÄ Kansainvälisen yritysviestinnän pro gradu –tutkielma 18.7.2012 Jussi Herlin Näkökulmia sisäiseen strategiaviestintään: Case-tutkimus Tutkimuksen tausta ja tavoitteet Tämän tutkimuksen tavoitteena oli tutkia sisäistä strategiaviestintää case-yrityksessä (KONE). Tarkoituksena oli selvittää, minkälaisia näkemyksiä yrityksen johdolla ja henkilöstöllä oli strategiaprosessin, sisäisen strategiaviestinnän ja sisäisen strategiaviestinnän metodien suhteen. Lisäksi tutkimuksessa selvitettiin minkälaiset toiminnot ja taustatekijät korreloivat strategian paremman ymmärtämisen sekä strategiaviestinnän koetun tehokkuuden kanssa. Erityisesti sosiaalisen median työkalujen käyttöä ja käytön yhteyttä strategiaviestintään tutkittiin. Teoreettinen tausta ja metodologia Tutkimuksen kirjallisuuskatsaus rakentui pääasiallisesti strategian muotoutumisen, strategiaviestinnän sekä sosiaalisen median käsitteiden aikaisemmille julkaisuille. Kirjallisuuskatsauksen tuloksena esitettiin analyyttinen viitekehys sisäisen strategiaviestinnän mallintamiseksi. Data kerättiin kahdesta pääasiallisesta lähteestä. Tutkimusta varten suoritettiin case- yrityksen ylimmän johdon kanssa kolme puolijäsenneltyä haastattelua, joiden tulokset analysoitiin kvalitatiivisin menetelmin. Myös yksi täydentävä taustahaastattelu suoritettiin Lisäksi laadittiin ja julkaistiin henkilöstökysely (N=413), jonka tuloksien analysointiin käytettiin sekä kvantitatiivisia että kvalitatiivisia metodeja. Näitä eri kautta saatuja tuloksia verrattin toisiinsa tilanteen niin salliessa. Tulokset Tutkimuksen tulokset osoittivat, että yleisellä tasolla case-yrityksen strategiaviestintä koettiin suhteellisen tehokkaaksi. Toimitusjohtajan rooli strategian viestijänä koettiin tärkeäksi, kuten myös muut esimiehen ja alaisen välisen viestinnän muodot. Löydökset myös viittaavat pystysuuntaisen dialogin korreloivan positiivisesti strategian ymmärtämisen kanssa. Sosiaalisen median käytöllä ei havaittu suoraa yhteyttä strategiaviestinnän kokemuksiin. Kulttuurien väliset erot sekä kaikkien työntekijöiden tavoittaminen nähtiin strategiaviestinnän haasteina. Myös keskijohdon tärkeä rooli tiedonsiirron pullonkaulana nousi esiin tutkimuksessa. Avainsanat strategy; international business communication; internal strategy communication; dialogue; social media; III ACKNOWLEDGEMENTS The idea for this Master’s Thesis began to form in May 2011, and the process gradually advanced on a conceptual level throughout the following autumn. The first Word document titled something along the lines of “GRADU draft” was created on December 12th, 2011. Hundreds of versions have popped into existence since, leading to this final version. Many people, places and personal habits have become closely associated with the long and seldom straightforward thesis writing process. I did most of my writing in the Kesko study area of the main building of the Aalto University School of Economics, typing on my reasonably faithful MacBook Pro. I enjoyed most of my lunches and innumerable cups of coffee in the building’s main cafeteria, Rafla. But the material things are only a small part of the setting, and nowhere as important as the several people, who have been explicitly or implicitly focal to the advancement and refinement of the thesis. Firstly, I wish to thank my thesis instructor, Dr. Anne Kankaanranta. She has provided me with encouragement when needed, helped me find resolve to pursue a certain line of research when my confidence wavered, and managed to infect me with a certain passion for doing science. I have also received help from other members of the faculty and from fellow students, particularly my thesis seminar group. Juho Leino, Essi Tani And Tero Oikkonen told me what was good and bad in my thesis, and professor Leena Louhiala-Salminen presented me with questions of the best kind: easy to understand, hard to answer. Timo Helosuo from Accenture was my main contact and a formidable discussion partner. He has helped me discover new research avenues and to focus on what’s important. Anne Korkiakoski, Christina Poulsen and other members of the KONE communications team helped me locate relevant data and to hone my survey. Nonetheless, the timeliest and most stalwart support came from my wife, Carina. She understood when I needed a hearty kick in the behind and when a gentler kind of encouragement was appropriate. She was always there when I needed help, yet never unduly imposed on my work. Last, but far from least, I wish to thank and dedicate this thesis to Frida. Contributing kicks and bumps every now and then, she was the best conceivable incentive to finish my work, and the best possible reward. Helsinki, June 2012 Jussi Herlin IV TABLE OF CONTENTS LIST OF TABLES ......................................................................... VII LIST OF FIGURES ...................................................................... VIII 1. INTRODUCTION ........................................................................ 1 1.1 Research problem and research questions ...................................................................8 1.2 Case company: KONE Corporation .........................................................................10 1.3 Structure of the thesis...............................................................................................15 2. LITERATURE REVIEW ...............................................................17 2.1 Corporate strategy creation and implementation .......................................................17 2.1.1 Strategy creation and reformulation ............................................................................... 18 2.1.2 Strategy implementation ............................................................................................... 22 2.2 Internal strategy communication ..............................................................................25 2.2.1 Vertical dialogue........................................................................................................... 26 2.2.2 Six frameworks for receiving strategy messages ................................................................ 28 2.3 Social media as a tool ..............................................................................................33 2.3.1 Social media as an Emergent Social Software Platform.................................................... 33 2.3.2 Social media as a matrix ............................................................................................... 34 2.3.3 The 90-9-1 rule in social media contribution ................................................................... 36 2.3.4 Classification of social media and grouping of social media channels................................
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