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.

What’s the secret behind company values that work?

How would you describe the personality of your business in just a few words? And how would your colleagues describe it? A company with an identity connects your employees and aligns them with  your overall mission and vision. Square Circle provides you with interesting insights to help define and implement your values.

Involve your team in the process

Values should be worn like a suit, not kept in a suitcase that you only open when you need it. You embrace values because they are personally meaningful and because they add something to the way you work as a team. They need to be shared by everyone in your company to be effective. That is why values cannot be determined top-down and employees should be involved in creating values that work.

Create clear and limited values

Values shape your company culture, how employees behave, how strategies are decided, and how successes are celebrated. Values should be lived by your employees and expressed in their day-to-day interactions. For this reason, it is important that your values clearly express what is expected of your employees. Do not hesitate to fundamentally review your values, and involve your employees in the process, in order to (re)formulate them and clarify these expectations. You will see how energising this is!

Limit the amount of your values to three or four. A higher number will be hard to translate into specific behaviour, increasing the chances that your employees won’t live by them. Do you have five or more values? Review them critically, perhaps you are overestimating the capabilities of your team.

Set an example and promote the right behaviour

Values should be promoted top down, by talking about them regularly at team meetings. By using them as a compass in evaluating employee behaviour. By emphasising proper behaviour as well as speaking up to those who don’t put your values into practice.

Management plays a key role in implementing a company’s values. As a leader, you must think about them daily and talk about them regularly. If values are upheld, employees are more motivated, more involved and more connected with management, benefitting, in turn, your customers, partners and stakeholders.

Need support in reviewing or defining your company values? Square Circle helps employees reflect on values through interactive workshops. Working bottom-up, we help define values and their corresponding behaviours, always taking care that they are equally supported by upper management. Together, we can come to clear agreements. Curious to know more? Get in touch.

How do you define your company’s mission and vision and why should you?

In a world teeming with ideas and aspirations, the bedrock of any successful venture lies in a clear purpose, encapsulated in the trinity of vision, mission, and values. But what makes a strong vision and mission, and how do you define them? Square Circle offers strategic advice to help you get started on your winning strategy.

Leave ‘missions’ to the military and James Bond

A word of advice: replace the term ‘mission’ with ‘core purpose’. Ask your receptionist what her job’s core purpose is and she’ll be able to answer it. Inquire about her mission and she’ll most likely stare at you in bewilderment. The same holds for your employees. A core purpose gives meaning to their work. It is the reason why your activity was created and your organisation exists. Without roots, we don’t know where we’ve come from and even less, where we can go.

A core purpose does not have to be unique. Feeding people is the core purpose of many food companies. Yours can be to feed people healthily and sustainably. What makes you unique, however, is how you translate this core purpose into a powerful vision: what kind of company do you want to become? Without a core purpose, there can be no vision.

Don’t know where to start? Square Circle helps your company self-reflect and define its core purpose through interactive workshops. Together, we’ll come to the roots of your company, helping you understand where you come from and how you can grow. Curious to know more? Get in touch.

Prepare for the future with a strong vision

A strong vision can transform a boring strategy into a scoring strategy. It describes how your company responds to technical, technological or societal evolutions – think of challenges such as climate change or the rise of AI – and what opportunities they offer your company.

Identify pillars

The first step is to determine the pillars of your vision: what areas determine the evolution of your activities? For a building company, this might be developments in civil engineering, the ability to build more complex structures or to ensure safety.

Define goals

Next, strong and ambitious goals need to be defined for each of the pillars, the kind that gives you goosebumps, that excites and motivates you. These goals can be both qualitative and quantitative. To give you an example, the following is a goal formulated by an American manufacturer of concrete:

“In 10 years, we will be producing engineering and civil engineering structures that will be 2 times more resistant, 2 times more durable and half as expensive – both in terms of construction and maintenance – than those of today. We will also build them twice as fast.”

Rely on your team

Pillars can be defined by your management. For specific goals, we recommend drawing upon the knowledge and creativity of your team. Divide your employees into small working groups and have them discuss and analyse these pillars and define goals for a period of 3 years, 10 years, or more depending on your type of market. You’d be surprised what they can come up with.

Developing a vision is fascinating work. It forces you to imagine your company in the future, to respond to ongoing developments in the world and to come up with bold ideas. However, there’s one key ingredient missing to implement your vision: your corporate values.

Need support defining your goals? Square Circle helps you harness the creativity of your team. We facilitate workshops where your employees can freely share and discuss ideas to define powerful and ambitious goals for your company. Working closely together, we help you shape a short or long-term vision to guide your employees. Curious to know more? Get in touch.

Developing the reason for existence, the vision and the values

Antonissen Development Group is a dynamic real estate group that selects urban locations with exceptional potential and has a preference for transforming existing properties into high-quality, modern buildings that are accessible to all.

The company wants to support its growth by standing out in the market with a dynamic vision of its activity. But that is not all. Antonissen wants to involve all its employees in this exercise, namely the development of a motivating reason for existence (the ‘mission’), an inspiring vision and strong corporate values.

A challenge?

At first glance, involving all staff members in such a project seems utopian. Yet the company managed to achieve this with excellent results. After two days of working in small groups, all the objectives had been achieved.

What lessons can be learned from this process?

Does it make sense to involve the staff in creating a vision? Isn’t that the job of management?

Involvement of all staff members is an undeniable asset, as experience has shown time and again. In this case, we were able to get the entire team of 30 staff to work together in one workshop. For larger organisations, we recommend going beyond the strict framework of management by organising mixed working groups that reflect the different layers of the company. Here too, the results are surprisingly rich and insightful. In the end, of course, it is always management that validates the work done.

What do you have to do to get results?

Careful preparation and continuous coaching during the workshop are essential. Each group has a pilot who is well prepared to lead the entire exercise. Square Circle takes care of the focused approach and facilitation during the sessions.

What if staff proposals are not accepted? This can demotivate the staff!

Practice has shown that the results of the group work are highly relevant and rich in strategic insights and proposals. The management was always impressed and pleased with the quality of the work.

What happens when everything is validated? The expectations are high!

Now that Mission, Vision and Values are on paper, we want to take action to really bring them to life and integrate them into our daily operations. Here, the Results Roadmap™ was used to carry out concrete actions in a decentralised but synchronised way.

All this is framed by dynamic and mobilising communication. Since there was broad participation in the creation of the vision, we see great commitment in the teams afterwards to realise the vision.

My department is changing, can such an exercise be done to refocus all employees on our goals?

We strongly recommend this. The raison d’être of a service may remain unchanged, but the vision of its activity may evolve significantly. Knowing that a vision is a set of ambitious but concrete goals to be achieved in a certain period of time, building it together is the best way to motivate employees to achieve it.

Why persuasion is so difficult

In a company, persuasion is a daily necessity. Changing operating methods, launching new ideas, successfully completing transformation projects, improving quality, ensuring safety at work, selling new products to customers, successful negotiation… This often requires investing a lot of energy for a result that does not always meet expectations. And there’s a reason for that: We do not use the ‘persuasion machine’ present in the form of the three brains that make up any human being.

The 3 brains that govern us
Did you know that the process of persuading a human being involves engaging the three brains that he possesses? Unfortunately, when we want to persuade, most of the time we deploy arguments that use just a small part of the first brain. So we shouldn’t be surprised that the impact of our communication is often unpredictable!

Our first brain is the one everyone knows. It contains 100 billion neurons. It is composed of two hemispheres. Simply put, the left side is essentially rational. It wants to understand everything, analyse everything and make a detailed assessment of the information provided to it, step by step. You should also realise that the left side does not want to take any risks. This is the origin of the resistance to change that one naturally observes in humans.

We all have a right brain hemisphere which is our spatial, creative, visual, relational side. It anticipates constantly. It is ready to take risks, without much calculation about them.

It works through mental images. Concepts, ideas, projects are all mental images, sometimes complex, that our brain has to decode.

A beneficial interaction
It was long thought that the two sides of the brain functioned with one being dominant over the other. At times either basically rational. Or then again, more emotional. But it has recently become clear that this is not the case at all. The two hemispheres are in constant interaction and continuously influence each other. When you communicate, you create a real ‘battle’ of the hemispheres in the hope that the outcome will be favourable to you.

Your communication will therefore be aimed at reassuring the left side of your target audience about the relevance of the arguments in order to control the analytical phase of reasoning. In doing so, your communication will also need to convey the ‘mental images’ that will lead to buy-in by the right side and then to action.

But never forget this: persuading an audience requires not only rational arguments, which is what 99% of managers do most of the time.

Rationality often fails to convince
Our second brain consists of our heart and our digestive system. It is composed of 540 million neurons. This second brain is the centre of our emotions. The most important decisions we make in our lives are initially processed by the two hemispheres of the first brain. But then, quite often it is based on ‘our gut feeling’ that we ultimately decide to go ahead or not, by ‘sensing’ that it’s the right decision.

In your communication you will therefore also have to integrate emotional arguments (the ‘what’s in it for me’) and action-orientated arguments to ‘move people’. By addressing the second brain and its emotional power of persuasion in this way, you double your persuasive impact.

A brain that remains little known
But there is also a third brain. This is made up of 300 billion glial cells that surround our first brain. These cells, whose name is related to the English word for ‘glue’, are specialised in various tasks: supporting neurons, supplying them with nutrients, accelerating neurotransmission, for example. We are only just now discovering the full potential of this veritable third brain.

One of the first applications we can draw from this is that the energy released by the glial cells decreases over time. A wise manager will therefore hold important meetings at the beginning of the week and at the beginning of the day rather than at the end of the week or at the end of the afternoon, because most brains will have difficulty concentrating, as the available energy has been partly exhausted.

If you want to have the energy and interaction to conduct a fruitful discussion, plan your meetings with the glial cells in mind!

Persuade by communicating
Persuasion through communication is within everyone’s reach. There’s no reason why you can’t make your persuasive power even stronger by from now on targeting the 3 brains of anyone you want to persuade. Want to find out how? Click here.

Emerging from the Covid Crisis

Unleash your company’s hidden performance

Stimulate recovery today.

After months of difficult containment and despite alarming and often alarmist forecasts, most Belgian companies are not ‘at the end of their rope’. But let’s be clear: the critical phase is coming now. In most cases it will be necessary to reorganize structures in order to control costs. But that will not be enough.

Tomorrow’s ‘winning’ companies must also look to the medium and long term. Transforming a company is of little use if it continues to be managed with pre-crisis concepts. One example: the freedom gained by employees through ‘forced’ teleworking will not disappear when the situation returns to normal. The classic hierarchy concept will be overturned. 

It is therefore time to thoroughly rethink not only your structures and ways of working, but also your ways of functioning and internal cooperation, in parallel with everything you are currently doing to return to normal.

And to help you achieve this transformation, did you know that your company has a hidden source of economic and human resources? A real reservoir of performance that can be perfectly mobilized right now to activate the economic recovery and get out of the crisis?

Mobilizing hidden performance: within the reach of any company

Let’s start with an obvious fact…often forgotten in recent years. The level of performance of your organization is strongly linked to its ability to maintain sustainable cooperation between employees, teams, hierarchical levels, operational and functional units. 

By interacting correctly, the ‘human’ organization develops and sells the products and services that keep it alive. But as nothing is perfect in this changing world, some of the interactions cause problems that need to be ‘regulated’. This regulation generates waste of time, energy, financial and human resources that it would be smarter to use to help your organization to (re)develop.

These losses of energy, human and financial resources are manifold. We will give a few examples, but check at the end of the article how your company fits into a more exhaustive list:

– Destruction of added value resulting from poor synchronization of activities

– Financial overloads caused by problematic operational implementation

– Overtime pay caused by shifts in functions due to a lack of delegation

– Time and resources consumed in the regulation of repetitive or predictable problems

– Over-consumption of resources due to a lack of steering of activities

– Losses in production and quality caused by a low level of responsibility of operators

– Implementation of change projects that are top slow, over budget or not meeting objectives because the strategy has not been cascaded throughout the company

More than 4,000 ‘dysfunctions’ of this type have been identified over 45 years of management research in companies and public organizations. They are also called hidden costs because they do not appear in balance sheets or management tools. However, they do have an impact on the final result.

These dysfunctions create losses of energy and means, but also create frustration and human disengagement. They undermine a company’s energy and strike force. Their economic impact has been calculated in several thousand companies. This real ‘source of additional performance’ fluctuates between €25,000 and €60,000 per worker per year, on a recurring basis.

Let’s take an example: a company with 100 employees has an additional source of economic performance at its fingertips, which is between €2.5 and €6 million per year. Amounts that could be used to finance digitalization, strengthen structures, improve competitiveness, invest in innovation, training, increase the investments necessary for successful transformation, support profitability.

So what are we waiting for to exploit it? 

An approach exists. It places people at the centre of economic performance.

While models such as Lean Manufacturing, Six Sigma and Kaizen have been able to contribute to the optimisation of certain processes, they no longer meet the new needs generated by the impact of the pandemic on mentalities, behaviours, working methods and the new challenges taken up in a very large number of markets.

The future belongs to companies that have truly integrated human and economic factors into their DNA. Such an approach exists: it is called ‘socio-economic’.  

This managerial approach applies itself to supporting growth by also continuously developing all the hidden sources of performance.  The additional resources released by this approach are used to strengthen competitiveness, turnover, the quality of products and services, innovation, growth, the attractiveness of work… according to the strategic priorities of each company.

Why deprive ourselves of additional sources of performance that are just waiting to be exploited to get out of the crisis?

Experience shows that up to 55% of the hidden sources of performance that all companies, whatever their size or activity, can recover annually. Provided that the elements that give rise to them are clearly identified, precisely calculated, analysed for their root cause and ‘recycled’ into performance by means of a structured management method that mobilises all the company’s stakeholders.

A socio-economic approach gives management, supervisors and employees the means and tools to effectively manage the company’s resources in their own area of responsibility. Man is no longer considered as a cog in a big machine that needs to be ‘oiled’ periodically, but as a co-producer of added value and a self-controller of his own management by dealing with malfunctions in a way that is shared by all and in close consultation with his colleagues and superiors.

This approach is neither a democracy nor a concept of self-management. On the contrary, it brings management back to its essential mission: to look after the employees so that they can look after the machines, the internal and external customers. In other words, it puts into practice the fact that in a company we are all ‘salesmen’ or ‘producers’.  

A self-financed approach, 

It is therefore in your company’s best interest to mobilise its hidden performance potential to reconnect with customers and markets, improve its competitiveness, its attractiveness to employees, its commercial strike force, its ability to innovate and to face the competition in full possession of its resources.

The socio-economic approach is entirely self-financed. The economic gains obtained in the very short term largely finance the relatively light investments in the training of management and the piloting of the method. Experience shows that self-financing is achieved on average over a period of 6 to 8 months, and very often over a much shorter period. 

With this self-financed approach, a successful exit from the crisis on a budgetary level is within the reach of every company.  Take the step! Join the thousands of companies that have already integrated this approach into their growth and development strategy. Hidden human and economic resources are at your fingertips. 

Implementation of socio-economic management.

The approach can be started as a pilot project in one or more departments or as a strategic project for a site, a factory, a company as a whole. It offers great flexibility in its implementation.

The first step in its implementation is therefore to define the scope of its application. This step allows management to concretise precise expectations, expected progress and to define the scope of intervention, which can be sequenced over time.

Second stage: start of training/concertation of management and supervisory staff on the socio-economic management method and tools.

At the same time, conducting a horizontal diagnosis and vertical diagnostics to highlight the sources generating hidden costs, monitoring groups of projects and the implementation of actions to transform them into economic and social performance.

Six areas are covered: working conditions, work organization, time management, communication-coordination-concertation, integrated training and strategic implementation.

A specific and unique software program allows to classify the sources of hidden costs by domain and reveals the convergences or divergences of opinion between management and management.

An expert’s opinion is issued together with a proposal for dealing with malfunctions by ‘baskets’.

The dysfunctions are then dealt with through project groups and priority action plans over 6 months, mobilising workers at all levels of the company.         

The method allows each employee to continuously assess the progress achieved and ensures that socio-economic know-how is passed on throughout the organization, in order to achieve sustainable results.

The first concrete results can be expected within the first 2 to 3 months, sometimes even earlier.

Most of the companies that have adopted socio-economic management have gradually integrated it into all their structures, creating a real continuous dynamic of human and economic progress. 

Does your company also encounter this type of problem? They form a hidden source of performance ready to be mobilised!

A non-exhaustive list, to date, over 45 years of research, approximately 4000 dysfunctions have been identified.

  • Poor consultation and coordination between people, teams and departments: maintenance of ‘silos’, loss of flexibility, cumbersome decision-making processes, additional costs of strategic implementation.
  • Unsuitable working conditions: impact on concentration, motivation, productivity and the quality of the work performed, additional cost of operational implementation.
  • Deficient communication: partial information and lack of feedback to steer change, insufficient valorisation of the skills potential present in the company, fixed corporate culture, strong resistance to change.
  • Weak management of working time: recurrent loss of time leading to overtime, multiple and unmanaged meetings, loss of quality in decisions, loss of time and efficiency in strategic implementation.
  • Fragmentation of working time: frequent interruptions due to inefficient work organization, chronic emergency work with impact on the quality of work, services, products, loss of productivity, cost of overtime.
  • Deficient or uncoordinated programming of activities: additional cost due to loss of time and energy, over-consumption of financial and human resources.
  • High staff turnover: loss of efficiency, additional recruitment costs, negative impact on the implementation of change and strategy.
  • High absenteeism: additional cost of temporary staff.
  • Lack of versatility in teams: failure to adapt teams to new and future needs, cumbersome and over-costing strategic implementation.
  • Insufficient, poorly adapted or poorly used programming and monitoring tools: lack of ‘steering’ of teams due to the lack of suitable indicators.
  • Non-integrated training: difficulties in developing skills, additional cost of training that is not adapted to the needs of the company.
  • Poor implementation of the strategy: failure to disseminate the strategy at all levels, failure to achieve the required transformations and the company’s objectives, chronic underperformance of management and staff in implementing the strategy and making changes.

These dysfunctions have two types of impact:

Economic impact: lower productivity, quality problems, loss of competitiveness, higher financing costs, reduced capacity for innovation, poor strategic implementation, increased costs, failure to achieve economic and financial objectives.

Social impact: Insufficient mobilisation of human potential to achieve change and goals, corporate culture frozen by strong resistance to change, lack of staff flexibility, under-utilisation of talents and skills, increased absenteeism and staff turnover, increased costs of strategic implementation.