Study

2

Creating a sense of identity

Background

The international construction and engineering group KM В is based in Munich, Germany and has manufacturing subsidiaries and associated companies throughout the world. Its company magazine is published five times a year and is distributed by post to staff worldwide. The following letter, sent by a member of staff in its Brazilian sales office, appeared in the magazine’s latest issue.

Dear editor,

I know I’m not the only one who feels uninformed about what’s going on in KMB worldwide.

When I was at our recent sales conference in Munich several other people from overseas subsidiaries said they felt a lack of involvement and wanted more information from head office about new developments within the group. For example, why has KMB bought a major civil engineering company in Australia? How does this acquisition fit into our overall strategy? Unfortunately we could only guess at the reasons.

We also think it’s essential to share best practice among our subsidiaries. We must know about ideas for improving efficiency as soon as possible. For example, if a marketing technique has been successful in one market, other areas of our business should be told.

We all agreed that the new Global Communications Director should overhaul KM B’s communication system so that all members of staff are kept fully informed — both about overall strategy, and about news from overseas subsidiaries. What’s the use of a worldwide network if no one knows what’s going on?

Aldo Renato

Sao Paulo, Brazil

The new Global Communications Director, Dominique Lapierre, sent the following e-mail to the Chief Executive of KM В after Aldo Renato’s letter had been discussed at a board meeting.

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From: Dominique Lapierre Sent: Monday, 11 September, 9.53 am To: Franz Zimmermann

Subject: Poor group communication

It seems this complaint is quite common. Overseas staff don’t think they get enough information about developments within the group, or about our latest acquisitions, etc. Ideas about best practice aren’t shared either.

We urgently need to improve our communication system to show that we value staff, and to strengthen their sense of common purpose within the organization globally.

Task

You are members of the working group which will discuss suggestions for improving KM B’s communication system.

• 1. Brainstorm ideas of your own which you could add to the draft agenda.
• 2. Choose the three best ideas and add them to the agenda.
• 3. Then, hold an informal meeting. Discuss the advantages and disadvantages of the suggestions. Also consider the cost implications of each proposal. Finally, work out an action plan for improving communications within the company.

Agenda (draft)

Suggestions for improving communications:

• 1. Introduce an «employee of the month» scheme.
• 2. _________________________________________________________________________________________________________
• 3. _______________________________________________________________________________________________________________
• 4. ____________________________________________________________________________________________________

Writing

As a member of the working group, write a memo to the heads of all of KM B’s subsidiaries. This should inform them that the meeting took place and should outline the plan of action agreed. Finally, the memo should ask for their cooperation in implementing the suggestions (See chapter 2, p. ??).