Brexit: Five Tests For Effective Communication

BREXIT FIVE TESTS FOR EFFECTIVE COMMUNICATION

B R E X I T: T H E I M P L I C AT I O N S F O R C O M M U N I C AT I O N S | L O N D O N B R E X I T TA S K F O R C E | 6 J U LY 2 0 1 6

On June 23rd the UK public rejected the consensus view among experts from politics, business, finance and the international community – and voted to leave the EU. The result reverses more than four decades of integration, has triggered leadership battles at the top of both major parties and, many believe, threatens a constitutional crisis.

Voters have upended the card table that business has been playing on, so investors, customers, partners and employees are carefully watching your next moves.

Every major relationship, public position and strategic or operational assumption must now be re-evaluated.

The vote also reinforces a trend that Edelman Trust BarometerŽ data has been tracking for more than a decade – the decline of traditional authority and top-down communications models.

The communications challenge for business at this pivotal time is to focus more than ever on the things that matter most: developing the messages, systems and relationships that will protect and build reputation in a post-Brexit environment.

This is a guide to the communications questions that every business needs to answer now.

Page 3

B R E X I T: T H E I M P L I C AT I O N S F O R C O M M U N I C AT I O N S | L O N D O N B R E X I T TA S K F O R C E | 6 J U LY 2 0 1 6

brexit: FIVE TESTS FOR EFFECTIVE COMMUNICATIONS Legislation how will you participate in the debates to forge a new settlement for the UK?

Reputation

is your corporate reputation exposed and do you have a strategy for leadership?

Employees

how will you engage your employees during a period of uncertainty and speculation?

Stakeholders how will this change relationships with existing stakeholders and how will you forge new ones where required?

Influence elite expertise was rejected by the UK voters.

Do you have a model for engaging in a world where “people like me� are most trusted?

Page 5

test one: legislation How will you participate in the debates to forge a new settlement for the UK? In the aftermath of a political explosion it is tempting to retreat to the sidelines and wait for the dust to settle. At stake, however, is the ability to influence the future policy framework of the UK and its relationship with the EU.

Those businesses that can offer a clear viewpoint on legislation, invest in building new relationships and provide assistance to Government are likely to get a fairer settlement in the post Brexit landscape.

As Oliver Robbins begins forming a team of 250 Civil Servants to prepare a roadmap for Brexit, it is paramount that this team appreciates not only the concerns of uncertainty but also the opportunity that arises from reviewing 80,000 pages of complex and, in some cases, unnecessary, legislation.

This may be a fraught time for politicians but as far as the business of Government is concerned the Civil Service, at least, is open for business.

the key questions 1

Do you have an effective radar to best understand the fast-changing situation and the right processes to internally report and escalate issues of importance?

2

Have you undertaken any analysis to identify the key opportunities and challenges in regulation and legislation and the impact it would have on your business?

3

Are you prepared to build the new relationships in Westminster, Brussels and with the devolved assemblies in the weeks/months ahead?

4

Will you be taking an active advocacy position on the future relationship of the UK with Brussels and to what extent will you be externally communicating this?

5

Do you have the in-house expertise to deliver a new programme?

Page 7

B R E X I T: T H E I M P L I C AT I O N S F O R C O M M U N I C AT I O N S | L O N D O N B R E X I T TA S K F O R C E | 6 J U LY 2 0 1 6

test two: REPUTATION Is your corporate reputation exposed and do you have a strategy for leadership?

Whether or not your company took a public position during the referendum campaign, Brexit will prompt questions about your long-term prospects in the UK and the degree to which the changed environment will impact your operations, investment plans and ability to serve local customers.

You will already have prepared holding statements and Q&As, and briefed your most important

influencers on the immediate impact of volatility, but the next step is to develop a positive long-term narrative and a plan to communicate with a wider set of audiences.

Those companies that can quickly and credibly chart a future for their business in post-Brexit Britain will reassure stakeholders and build a leadership position.

the key questions 1 2

How do your existing statements and positions need to evolve?

3

Do you now have the right spokespeople - prepared and trained - to represent your company’s interests?

4 5

How will you demonstrate strength, resilience and agility in a post-Brexit Britain?

What vulnerabilities will influencers be evaluating and what defensive steps do you need to take?

How will this change your communications model locally and globally?

Page 9

test three: EMPLOYEES How will you engage your employees during a period of uncertainty and speculation?

Your employees will be looking for three things right now.

First, they need reassurance. It is during times of uncertainty that a company’s values matter most.

You need to show that you are taking your duty of care to your employees seriously – especially for EU citizens, who will be particularly worried.

Providing them with clear, accurate and well-sourced information will be critical.

Second, employees want you to give them confidence by demonstrating you have a plan for the future and are in control. They will understand that some change is inevitable

and that many questions remain unanswered, but they will want to want to see that there are opportunities, not simply risks.

Third, they need focus. In times of great uncertainty, gossip, rumour and doubt often compromise company performance.

Customer service is often the area hit hardest. Employees need to be helped and encouraged to focus on the customer.

Edelman Trust data found that only 65% of employees trust their employer. This is a critical test – a moment where trust can be earned or lost.

the key questions 1

How are you demonstrating to employees that you are in control and ensuring that customer focus remains their top priority?

2

How will you involve your employees in a discussion about the implications of Brexit?

3 4

Have you equipped your managers to talk to employees about Brexit?

5

Do you have the internal capacity to manage your employee communications?

What systems do you have in place to listen to employees and understand their concerns and expectations?

Page 11 Page 11

B R E X I T: T H E I M P L I C AT I O N S F O R C O M M U N I C AT I O N S | L O N D O N B R E X I T TA S K F O R C E | 6 J U LY 2 0 1 6

test four: STAKEHOLDERS How will this change relationships with existing stakeholders and how will you forge new ones where required?

Brexit necessitates a comprehensive review of your stakeholder relationships.

New lobbying positions will require new partnerships, while new operational models will require careful communication to your supply chain.

For some companies, European policy makers and trade bodies will cease to matter, while for others, there will be an urgent need to develop new relationships in Brussels and elsewhere in Europe, to replace the void left by the UK government reassure stakeholders and build a leadership position.

the key questions 1

Are your business interests effectively represented through your trade body relationships in the UK and Europe?

2

Do your customers and suppliers understand that you remain committed to Britain and to their needs?

3

Do you need to build new partnerships in the UK to support your thought leadership positions?

4

Do you understand which organisations now matter to help your business negotiate the new national and international landscape?

5

Do you have the right systems and internal owners to best manage your stakeholder relationships?

Page 13

test five: INFLUENCE Elite expertise was rejected by the UK voters.

Do you have a model for engaging in a world where “people like me” are most trusted?

The outcome of the referendum underlined the extent to which traditional top-down models of communication have been inverted.

In January 2016, Edelman Trust data highlighted a growing divide between ‘informed publics’, who are heavy news media consumers, well educated, prospering in their careers and more trusting of the institutions that govern them and ‘mass publics’, who are much more hostile to traditional authority.

This pattern was mirrored in the referendum and indicates a huge challenge for business, whose views were largely irrelevant to voters.

As debate now focuses on what kind of post-Brexit settlement the UK achieves, business needs to review the way it participates in policy debates if it wants to campaign effectively on issues like access to talent, terms of trade, taxation and regulation.

Moreover, it highlights the need for corporate communications strategies to build trust with key audiences to leverage the voices of regular employees, deliver more emotive, personal narratives and develop direct communications channels.

the key questions 1

Even the biggest companies now have to earn the right to be heard in national debates – do you have a clear and compelling point of view?

2

Acting on feedback from customers, stakeholders and employees is a key behaviour for trusted businesses – how are you demonstrating a responsive approach?

3

Do you have an employee advocacy strategy, to empower regular employees to communicate your key messages?

4

Have you developed communications channels that allow you to engage key audiences directly?

5

The public responds to leaders who can tell a personal story. Are your leaders equipped to talk about the experiences that shaped them?

Page 15 Page 15

The Five Tests sit at the heart of Edelman’s Brexit Advisory offer Our experts will help you review your company’s preparedness for the communications challenges posed by Brexit, taking you through each of the Tests to identify: • Areas of vulnerability and opportunity • Advocacy priorities • Communication requirements This will form the basis for your Brexit communications strategy and plan and our ongoing counsel.

Edelman’s Brexit Advisory Team is an integrated group of senior communications experts covering each of the Five Tests:

Stakeholders Stephanie Lvovich, Global Head of Public Affairs

Responsible for Edelman’s international network of public policy experts, with 30 years’ experience

Influence Katie Waring, Director

A former BIS Special Advisor and Director of Communications, who combines insights from government and industry

The team is led by

Legislation

Lord Myners

Ed Williams

Gurpreet Brar, Managing Director, Public Affairs

Chairman

CEO

Leading a team of 25 public policy experts from across the political spectrum

Reputation Nick Barron, Managing Director, Corporate Reputation Leading a team of specialists in crisis, legal affairs and strategic media planning

Employees Nick Howard, Executive Director, Employee Engagement

Led employee communication for the merger of Lloyds and HBOS.

Alex Bigg General Manager

If you are interested in receiving further insights on Brexit, please contact Alex Bigg on alex.bigg@edelman.com and +44 20 3047 2150 for details of how we can help.

Page 17

Southside | 105 Victoria Street | London SW1E 6QT | edelman.co.uk +44 20 3047 2000 | @edelmanUK