The Importance of Internal Communications: Accelerating Organizational Growth

Hot Take: Internal Communications might be the most important business strategy you’re not properly leveraging.

Internal Communications (IC) is not just memorandums and office happy hour invitations. It’s a viable business strategy that encompasses each of the core competencies of an organization: Human Resources, Finance, Operations, Marketing, and of course Communications. Think of it like the organization's centralized hub for resources and information across departments and made available for everyone. 

Before we dive into how IC can help build a productive company culture, create cost savings, mitigate inefficiencies, support your market share expansion, bolster brand loyalty, and accelerate your revenue growth, let’s set the record straight: To do this correctly, you’ll need a written strategy and an actionable plan. I repeat, you need both. Your IC strategy and plan cannot be a few inconsistent emails with executive updates.

What’s the difference?

 An Internal Communication Strategy (ICS) outlines the steps for communicating with your employees within your organization. It includes topics such as who should be included in the communication, what types of information should be shared, and when you should share it.

 Whereas an Internal Communication Plan (ICP) outlines what steps are needed in order to achieve a goal or objective. This could include any number of things, such as how often you will communicate with employees or how many different channels you will use to distribute the information.

What you should know about Internal Communications?

 It’s changing and evolving. As I mentioned, it’s a business strategy. Take the approach that Internal Communications can be used to align and guide teams on how to prioritize work and distribute effort. A robust and well-thought-out strategy can ensure employees are aware of deadlines and how their work relates to the growth of the company. This helps to inform why pivots are made or why priorities are in place.

 You should also look at Internal Communications as a two-way conversation that includes cross-department collaboration instead of a top-down approach only. Updates can and should come from a variety of Subject Matter Experts within the company instead of solely the most senior-level executives.

 According to a study conducted by IBM, 72% of employees don’t understand their organization’s strategy, which is a result of poor communication.

 Now that we’ve got the basics out of the way, let’s jump into how IC supports the organization’s core competencies across departments.

Human Resources: 

Diversity. Equity. Inclusion. Belonging.

While some organizations are abandoning DEI&B, forward-thinking companies are doubling down and using Internal Communications to support the need for company culture to be a retention tool.

In 2022, the Pew Research Center cited 57% of employees left their roles due to feeling disrespect at work, while Statista published a similar report in February of 2024 for the same reason coming in at 56%.

Employees who feel a sense of respect, value, and belonging are motivated, engaged, and productive. They are likely to be methodical about their decisions if there is insight into how their work contributes to the company’s success. This is especially important for Millennial and Gen-Z employees who are revolutionizing the way we think about employee/employer relationships. 

 It also serves as a roadmap for communication between managers and their team members. An ICP will ensure all employees have a fair shake at being set up for success during onboarding. So often employee success and ability to learn company nuances are in the hands of their managers and department heads. And let’s face it, some leaders are more thorough than others. A reduction in turnover will save your company the cost of recruiting, onboarding, and training.

Finance:

 Poor communication is not just frustrating—it’s hitting your bottom line. Hard.

 The consequences of this oversight are tangible, quantifiable, and expensive. According to a research study conducted by Grammarly and The Harris Poll, poor communications costs businesses approximately $12,506 every year—per employee. According to this research study, business leaders estimated they lose 7.47 hours per week as a result of ineffective internal communications.

 The larger the organization, the more expensive it is to skip Internal Communications Strategy and Planning.

Operations:

Change management is essential for business growth. It’s a structured process which is a valuable tool but without communications, it’s a tool without batteries. Change management IS communications.

 An internal communications strategy mitigates misinformation about what is most important and empowers employees to leverage industry and company guidelines or best practices in their day-to-day work.

 Without a streamlined plan, you play the hopeful game of chance in that strategies get filtered down by department which inevitably creates silos that are VERY hard to break. An ICP will equip leaders with the proper tools and skills to communicate strategies and goals effectively to each employee. This also gives employees a clear North Star to follow because we’ve all experienced droves of passionate employees prepared to run the race but when the starting pistol goes off, every department sprints in different directions or against each other.

Marketing:

 Internal communications should be a part of your company’s overall marketing strategy. It’s integral to your mission because your employees also must be your customers and your biggest brand advocates. If you sell a productivity app, your goal should be to ensure your employees are committed to the value of your product and if they’re not, you need to know why.

 Employees represent the customer's voice and by making internal communications a dialogue instead of a monologue you’re encouraging innovation, improvement, and excitement around the workplace. Why wouldn’t you want to mobilize your built-in army of brand ambassadors? Each employee has a network that you can tap into by sharing information sooner and more often. The standard end-of-the-quarter update is simply not sufficient, and you shouldn’t expect your employees to go search for company, service, or product updates amidst trying to complete their individual work. You can just make it readily available through planned communications.

Simply put, when employees feel like they truly matter to the company, they become more than just workers—they become part of the mission. This shift boosts morale, fosters loyalty, and makes retaining top talent a breeze, ultimately driving profitability. Plus, valued employees are more likely to share valuable ideas and suggestions, potentially leading to better processes and even superior products or services.

 Now that you know why Internal Communications is an important business strategy, come back for part two to learn how to build the strategy and the plan.

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Hennessy's Brand Refresh: A Strategic Move to Stay Relevant in a Millennial & Gen-Z Driven Consumer Market

In the ever-evolving marketing landscape, legacy brands face a crucial challenge: maintaining relevance and resonance with millennial and Gen Z consumers. As these digitally savvy generations (myself included) wield significant buying power, it’s time for brands to start taking note of our distinct purchasing behaviors. Enter Hennessy… beyond the chokehold the spirit has had on black and hip-hop culture, its reputation is generally known as a sipping drink. Henny on the rocks, Henny straight, or of course… Henny and [insert Coke, ginger-ale, or apple juice]. That’s kind of where it ends… because we’re not talking about the dark time of Henny and Hpnotiq (I despise the spelling but I digress). Recently, Hennessy has decided to shake things up… literally. Hennessy's recent brand refresh serves as a compelling example of how legacy brands can navigate this landscape and connect with today's very discerning consumers.

In its recent brand refresh, Hennessy has pivoted towards a focus on versatility, and meeting audiences where they are as well as what their interests are today.

Hennessy’s “Made for More” campaign positions the iconic cognac brand as the perfect mixer. From margaritas to mules, it showcases its deep commitment to embracing cocktail culture through thoughtful marketing. Leaning into the target market audience, Hennessey leveraged the holy trinity of marketing to engage Millennials and Gen-Z’ers:

1.     Social Media Lifestyle Content

2.     Influencer Partnerships

3.     Personalization

Let’s dive in:

First and foremost, the campaign is fun. Using recognizable faces like singer and actress Teyana Taylor and actor Damson Idris in five (5) thirty-second videos, viewers watch these two beloved artists craft cocktails using the spirit in quirky fashion. During the commercial, viewers are supplied with the very recipe they seeing come to life in the video  for them to try while out or to make at home.

Why it’s brilliant:

This campaign was launched just in time for festival season where concertgoers can experience the cocktails through brand driven interactions at massively attended events like Coachella. People can choose their favorite version of the brand crafted Hennessy cocktail, modify one they enjoy or be inspired to create their own. Experiential marketing is a smart move because allows for immediate feedback, user generated content and encourages those at home to try it as well. This winning combination not only evokes FOMO but also builds community because of the savvy timing.

Overall, this strategic move acknowledges the shifting landscape of consumer preferences and positions Hennessy as a forward-thinking brand that is responsive to market trends.

Understanding the Power of Millennial and Gen-Z Consumers:

While this is primarily about Hennessy's brand refresh, it's essential to recognize the influence of millennial and Gen-Z consumers in shaping the marketplace. With combined spending power constituting around 30% of all spending in 2021, these generations have reshaped consumer preferences and habits. From an emphasis on sustainability and customer experience to a penchant for authenticity and community engagement, millennial and Gen-Z consumers prioritize brands that align with their values and resonate with their lifestyle.

What’s next:

I’d like to see the brand take it a step further and engage social media influencer that have loyal followings and engaging communities because of their online presence to help push the new normal for the brand. Also, I’ve yet to see the more traditional ads pop up on my feed and/or timeline but if all goes well this spring with the initial introduction, I’m sure they’ll start rolling in.

Why Hennessy's Pivot Matters:

In conclusion, Hennessy's brand refresh serves as a powerful example of how legacy brands can adapt and thrive in the face of evolving consumer preferences. By embracing versatility while staying true to its core values, Hennessy reaffirms its position as a timeless brand with enduring appeal. As other legacy brands look to navigate the complexities of the modern marketing landscape, they can draw inspiration from Hennessy's strategic pivot and commitment to staying relevant in a rapidly changing world.

Now, let's drink up... Here's the full list of cocktail recipes. From Mojitos to Negronis. Will you be trying them?

• Hennessy Pineapple

• Hennessy Berry Mojito

• Hennessy Honey Highball

• Hennessy Margarita

• Hennessy Sangria

• Hennessy Apple

• Sidecar Cocktail

• French Negroni

• Hennessy Manhattan

• Hennessy Guava

• French 75 Cocktail

• Old-Fashioned Cocktail

• Hennessy Sweet Tea

• Hennessy Berry

• Hennessy Colada

• The Negronissimo

• Hennessy Paloma

• Hennessy Espresso Martini

The Generational Shift: Millennials and Gen-Z Shaping the Future of Giving

In a world where the digital landscape is ever-evolving, a new narrative of philanthropy is being written by the next generation of givers and advocates. Millennials and Gen-Z, the digital natives, are using the tools and technologies of their time to reshape the very essence of giving and non-profit advocacy.

Gone are the days when charitable giving was a simple transaction between donor and organization. Today’s young philanthropists are reimagining the entire landscape. Not only has their giving cadence changed but they’re also invested in the outcome of the cause and how they fit into the narrative.

For Millennials, philanthropy was not a detached act of charity; it was a way of life. They gave when they felt a kinship with an organization’s mission, weaving philanthropy into the fabric of their daily existence. Trust and transparency were deciding factors, guiding them on where to place their support and when to retract it if that trust was broken. This reiterates the need for social impact organizations to be transparent with their supporters in their marketing efforts.

It began as a ripple – a small act of kindness that echoed through the lives of many during the Covid-19 pandemic. Nearly 75% of Millennials reached into their digital wallets to support family, friends, or nonprofits. Platforms like GoFundMe became their stage, where they played the dual roles of benefactors and activists, rallying support for causes that resonated with their values.

Much like Millennials, Gen Z philanthropists sought more than just a name on a donor list; they craved a deeper connection with the organizations they supported. They aspired to be architects of change, involving themselves in decision-making and social impact. Volunteering their time and resources, they engaged with causes that sparked a fire within them, and at the center of that is user-generated marketing.

The voices of the younger generations were amplified and their influence magnified through the megaphone of marketing’s crown jewel: social media. Younger donors became digital advocates for the causes they were passionate about, turning social media into a formidable tool for philanthropy.

They understood the power of their online presence, harnessing it to raise awareness and encourage others to contribute. Causes like social justice, human rights, and climate control showcase the transformative role of Millennials and Gen-Z in the non-profit and cause-driven sectors. They’ve carved out a new space where true connectivity and their preference for thoughtful marketing on digital platforms reign supreme.

In the end, social impact organizations that are playing the long game and are looking to build marketing campaigns that continue to engage new donors should embrace the next generation of philanthropists in a way that is native to them.  More importantly, utilizing digital trends that are as much about the heart as they are about the hashtag.