Copyright Public Utilities Reports, Incorporated Jun 15, 1995John Huey (Fortune, Feb. 21, 1994) suggests that some corporate leaders resemble candidates running for office. Cynically, this conjures an image of the slick campaigner--a blue suit, a thick head of hair, makeup artists, acting class, and speech coaches. Yet, Mr. Huey raises an issue that cannot be ignored. How can public utilities learn to communicate better?
I've worked as a communications director at a major investor-owned electric company. I've learned firsthand that the corporate communications staff at a regulated utility faces an extremely difficult task. It must present the company in a such a way as to create a favorable perception, regardless of the situation or resources available. This job is not unlike that of a candidate's "spin doctor," who toils to "position" the candidate before the electorate.
Utilities tend to evaluate their communications efforts by the degree of public recognition and occasionally by increased sales. Some companies conduct customer opinion polls, but because the goal generally is to achieve high positive ratings, rather than collect information on which to build policies, the questions are generic and broad. Not surprisingly, the polls confirm that customers are overwhelmingly happy, and another media release is issued.
But competition and deregulation will force utilities to change to retain the allegiance of their customers. Instead of just announcing a new board member or a notice of a rate case filing, utilities will find it increasingly necessary to elicit a response or change in attitude from their customers. Political candidates "sell" both image and performance. They can provide a model for utilities in developing a new communications strategy.
I "rediscovered" four important facts while a candidate for the state legislature. First, public opinion is a myth. There only are millions of individual opinions. An effective communicator must target and reach each individual. That means more than just each household, because too often the persons living under the same roof hold different beliefs, attitudes, and "voting" preferences.
Second, individuals are generally self-centered. They confine their attention to family, work, or themselves. A person will resist outside intrusions like political or corporate messages. For both candidate and company, the correct question is, "How do we make the information so timely and salient that the audience will actually act on the message?"
Third, most of the audience already has a preexisting image of the candidate, company, or product. This preexisting image may fall anywhere between ignorance or apathy to full knowledge plus acceptance or rejection. A good communicator must delete the existing knowledge and replace it with a new "knowledge" designed to motivate the customer to action in support of the company.
And fourth, as a candidate for elective office you must repeat your message as frequently and in as many different modes as possible--until you are "sick of it." Only then will your audience perceive it. Yet utility communicators generally tell the story only once, and then expect the target audience to receive, process, and act on it.
Hearts and Minds
Candidates struggle to design packages that will break into the consciousness of voters and motivate them to cast their ballot. What issues, images, colors, voice, photographs will penetrate their self-centeredness? Corporations too often essentially ignore these questions, choosing to believe that their message is heard and accepted. The marketing department may understand the need for market research, repetitive message delivery, and luck, but the corporate communications efforts are more like one-time, broad-spectrum attempts to win the hearts and minds of the public. Such efforts are almost certainly doomed to failure because they fail to incorporate the lessons learned by political candidates when presenting the "corporate image."
Some utility companies rely on their monthly bill statements to pass along corporate information. Though cost-effective, this path is not a viable means of motivating the general public or addressing a crisis situation. Most recipients, even corporate senior managers, give bill inserts a cursory glance, at best, before tossing them in the trash. Corporate communications departments and company officers should instead consider nontraditional, innovative communication venues. Candidates mail literature to each household in colorful envelopes containing simple messages; so too should utility companies. Keep the message and format simple, but demonstrate the company's sincere commitment to the welfare of the reader. Personalize the message and educate the customer about all the unseen things the company and its employees do to provide safe, efficient, economical, reliable service. Simple, repetitive communications stylishly but inexpensively produced are essential to "reaching" the customer.
And don't hesitate to develop partnerships to help tell your story. Just as candidates secure endorsements from other prominent persons, so utilities should capitalize on their programs in support of the environment or senior citizens. Government agencies, advocacy groups, neighborhood associations, and others can lend credibility and personnel to the company's communication effort.
Door to Door
Candidates understand that individual messages, directly communicated to the voter, are most likely to be perceived and acted upon. Bill stuffers lose their effectiveness as their number increases. Candidates have learned that nothing impresses an individual more than personal contact. Ideally this means someone knocking on the door, during daylight hours, introducing themselves, and actually speaking and listening to the resident. Utility companies rarely use this communication technique to present the company's message, even during a severe crisis. Citizens report that they want to meet the persons seeking their vote. Thus, it is logical to assume that they want to have someone personally contact them about a problem or crisis (e.g., explosion, service outage, pipeline leak).
Voters/customers are particularly impressed when someone braves the elements to talk with them. The effort can be a test of courage and endurance for the messenger, but it achieves remarkable results. Make the most of your crisis situation as an opportunity to effectively communicate with the customer. Have employees knock on doors and explain what is happening. Not just the service crew, but other employees wearing company identification. And get senior management involved in making those personal calls. This approach will captivate the media. They can actually follow along with the company's management and employees and communicate the sincerity as well as the message.
Generations of political candidates have learned that the duration of the contact is less important than the fact that it occurs. Political candidates also know that if volunteers assist them through direct contacts with potential voters, the volunteers must present the appropriate image and convey the campaign's simple messages effectively. If corporate communications are to be successful, the company's messengers must also present an appropriate demeanor, commitment, and command of the message.
Extraordinary performance without effective communications will not lead to customer acceptance. It is not enough to quickly restore service and hold media conferences to extol the company's achievements; the personal touch is necessary to reach the target audience. Candidates are taught to think and speak in "sound bites." Company representatives at all levels must have a command of simple declarative statements that epitomize the corporate position. As candidates understand, all communications must be perceived by the target audience as sincere and personal. It may cost a little more, but the results can be impressive.
Thomas J. Sloan, PhD, was overwhelmingly elected to the Kansas House of Representatives on November 8, 1994. He is president of Sloan and Associates--Communication Consultants. Before that, he served as executive director of corporate communications, government relations, and economic development for Western Resources, Inc.
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