Survey

Internal Communication trends in the Italian banking sector

Mario Spatafora

Simone Dell’OrtoMilan, September 2002

2 22

Context of reference

Main features of the I.C. function

Aims, contents and areas of impact

Media and tools

Evaluation of the results

Outcomes

Table of contents

1.

2.

3.

4.

5.

6.

Internal Communication

3 33

Composition of the sample

35%

40%

25%

Less than 1.000 employees

Between 1.000 and 10.000 employees

More than 10.000 employees

4 44

Changes of banks’ organisational structure

2001

70%

20%

10%

No answerSubstantial changesMarginal changesNo change

2002

5%

55%

30%

10%

5 55

Is there a specific function dedicated to I.C.?

On average, the I. C. function

has been recently established

(1999).

However, I.C. functions have

been established starting from

1991 and are still being

established.

If yes, since when?

Does a specific I.C. function exist?

45%55%

Exists

Doesn’t exist

6 66

Preferred position of the I.C. function

56%

22%

11% 11%

0%

0%

10%

20%

30%

40%

50%

60%

In the Human Resources

department

Integrated to external

communication /marketing

In the General Management

In the “organisational development” department

Autonomous department

7 77

Preferred position of the I.C. function

56%56%

11%11%

11%11%

11%11%

In the General Management

Autonomousdepartment

Integrated to external

communication /marketing/

other function

0%0%in the

“organisational development”

department

in the Human Resources

department

Today, in the banking industry…. …today, in the multi-national industry*

30%30%

45%45%

10%10%

0%0%

AutonomousDepartment

Integrated to external

communication /marketing/

other function

5%5%in the

“organisational development”

department

in the Human Resources department

Top management

Organisation

Internal communication

External communication /

marketingHuman

Resources

Communication Ext./int./mktg

Organisation

Human Resources

Top management

Internal communication

*estimates based on benchmarking studies

In staff of the management board

8 88

Number of persons employed on average in the I.C. function

On average one person every 730 employees is dedicated to internal communication.

9 99

Presence of an I.C. Committee

15%

85%

Present

Absent

10 1010

Functions involved

• Top management• Communication (internal, external, institutional)• Marketing and sales office

Partially involved: • Presidency • Legal area• Organisational area• Human Resources

The management of the Committee is often coordinated by the communication area or a specific manager.

The I.C. Committee

11 1111

Presence of a budget allocated to I.C.

55%40%

5%

Present

Absent

No answer

12 1212

Main functions related to I.C.Most important functions

36%

32%

12%8%

4% 4% 4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

HR External communication

Training Sales No answer

Marketing Other

13 1313

Main goals of I.C.

1. Develop coherency between culture and strategy 8,56 2,22

2. Promote change 8,06 2,36

3. Motivate and involve the professional resources 7,25 5,80

4. Develop the feeling of membership 6,94 8,27

5. Optimise the operative information flow 6,06 7,59

6. Spread the sense of responsibility 5,26 2,38

7. Accelerate decision making processes 4,70 6,59

8. Improve time management 3,25 3,25

(most important = 10; less important = 1)

MEAN VARIANCE

14 1414

Main contents of I.C.

1. Strategic fundamentals 8,94 3,11

2. Membership and compensation 8,13 6,61

3. Projects of change 7,60 7,44

4. Services and products 6,44 8,12

5. Organisational notices/memorandum 5,41 10,71

6. Socialisation and initiatives 5,24 11,71

7. Operational/organisational processes 5,24 7,47

8. Internal environment and services 4,94 9,81

9. Market 4,94 8,68

(most important = 10; less important = 1)

MEAN VARIANCE

15 1515

Tools for I.C. purposes

34%

34%

12%

20%

Paper media

Electronic media

Events

Relational media

16 1616

Paper media

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Percentage of use

90%

75%70%

55%

40%35% 35%

20% 20%

Press review Procedures

manuals

House-organNotice-boardNewsletter Reports on project results

Monographic booklets

Services brochure

Other

17 1717

Electronic media

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Company business TV

Videoconference

Cd-RomE-mail Intranet Info-point Other

Percentage of use

95%90%

60%

30%25% 25%

10%

18 1818

Events

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Convention Family DayTour of the company

Prize-giving and

celebrations

Launching of products and advertising campaigns

Internal climate surveys

Other

Percentage of use

100%95%

65%

40%

15% 15%

5%

19 1919

Relational media

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Head-employee relationship

Team briefing“cascade” meeting system

Group meetings Focus group

Percentage of use

65% 65%60%

55%

30%

20 2020

Outcomes of the survey

21 2121

Main aspects highlighted by the researchContest

• The banks analysed are characterised by strong changes in

their organisational structure

• As of today, the I.C. function:

is not yet widespread

has been recently established (on average since 1999);

is ideally placed in the HR department

• The banking sector is evolving and tending to fill up the gap

with multinational companies in order to achieve greater

competitiveness also through communication

22 2222

• Main I.C. tools are: paper media, electronic media, relational “tools” and events

• They focus on involving, addressing and motivating HR in order to guarantee a strong and effective communication

• The company business TV has the most interesting characteristics for the largest companies

• Due to the recent introduction of I.C., it emerges that the evaluating system of I.C. activities and initiatives is not yet widespread

Main aspects highlighted by the researchI.C. tools