Case Unigro: how to communicate a restructuring to all stakeholders

Due to economic circumstance and strategic motives, the Belgian e-commerce firm Unigro had to cease its activities. CEO Yves Moens faced the challenging responsibility of informing stakeholders and employees about the reorganisation. For support in their crisis communication, they got in touch with Square Circle.

 

Why did Unigro decide to contact Square Circle?

“For various reasons, Unigro had to stop its activities, which resulted in a collective dismissal of all our employees”, says Yves Moens. “In the first phase, we had to communicate this to our works council, our employees, and all our other stakeholders: customers, labour administration, partners, suppliers, and the media. Considering our inexperience with this type of communication, its delicate nature and the importance of timing, we decided to contact an outside expert.”

How Square Circle offered crisis communication support

Roadmap

Crisis communication is about conveying a narrative, tailored to the concerns and needs of its target group. That is why Square Circle first organised a workshop to map out stakeholders, decide what to communicate to each, what channels would be used and who would be responsible for the communication.

Crisis communication

Next, we further developed the narrative so it could be presented to the Works council in Belgium. Once approved by the group management and labour lawyer, we started creating the necessary communication artefacts, information tools and documents the management team could use to anticipate questions from stakeholders.

“It was incredibly important to involve the local management team in the process”, says Katrien Decroos, crisis communication expert at Square Circle, “If they understand the narrative, they can pass it on more easily to employees and onboard others. That would inspire trust. And trust was needed, as employees would have to continue work at Unigro months after the layoff announcement.”

Media training

Once Unigro’s story was clearly defined, Square Circle provided the management team with media training, showing them how to adjust their message to stakeholders and communication channels, and coaching on how to manage the employees on a day-to-day basis in uncertain times. Finally, on the day of the announcement, Katrien Decroos was present at Unigro’s headquarters to receive and address the press. “We were grateful to have a partner in our building who could accommodate the press, guide them and answer their questions”, says Yves Moens. “That was very favourable to our company’s image.”

Did Unigro consider the communication to be successful?

“We were very pleased with the final result”, remarks Yves Moens. “Our message was nicely tailored to each stakeholder and, thanks to a highly detailed roadmap, everything was planned out down to the minute at the announcement. Also, with Square Circle’s guidance, we were able to retain our employees’ trust through effective communication and uphold the long-standing reputation of Otto Group, our parent company.”

Would Unigro recommend the partnership with Square Circle?

“Absolutely”, says Yves Moens. “Their approach was very pragmatic and we loved that. They had tools and templates at their disposal which they could customise to our project and company. It offered a foothold for this difficult process. Add to that their flexibility and responsiveness, their readiness to answer any immediate questions we had. That is very valuable during a communication crisis where timing is everything. Without Square Circle, we would not have been able to communicate so accurately and professionally.”

What advice would Unigo give other companies undergoing a restructuring process?

“Make sure you are well prepared”, suggests Yves Moens. “That means surrounding yourself with the right partners to determine a communication strategy and roadmap, so you can convey the layoff announcement adequately to the stakeholders involved. Of course, this kind of preparation takes time. In many cases, headquarters wants communication to follow quickly, but you can only communicate this delicate message once. Luckily, the Otto Group gave us enough time to prepare. So, don’t rush it. A nuanced message takes time to compose.”

Do you need support with crisis communication? Square Circle has more then 20 years expertise in preparing, developing and implementing crisis communication strategy for restructurings, reorganisations and closures.  Square Circle trains spokespersons in handling the media and onboard internal communicators in communication in uncertain times. Get in touch with us for more information.