In my two articles on internal corporate communications (Bottom-up communication and Top-down communication). Of course, internal corporate communication is particularly important, as employees need to be taken along on the journey. But companies should also not neglect stakeholders in change processes. This is why external corporate communication is also very important.

Inform stakeholders

Companies do not operate in a vacuum. Public limited companies must inform their shareholders - about turnover, profits, profit distributions, bonuses for managers, profit expectations and also about restructuring and change processes. Shareholders have a right to receive this information. Public limited companies are therefore probably the most important example when it comes to the importance of external communication.

Gaining trust through external corporate communication

After all, the aim of transformation processes is to make companies fit for the future on the market in the long term. However, the road to this goal can be rocky. Conflicts have to be resolved, restructuring implemented and cultural changes put in place. In the short term, this can even lead to losses and collapses. A prominent example of this is the recently dismissed head of Deutsche Bank John Cryan. Under his leadership, the bank was radically restructured. He settled legal disputes from earlier years. All important points - but the profits failed to materialize. This led to a loss of confidence in the bank and its boss, both internally and externally.

Avoiding uncertainty through transparency

External corporate communication is extremely important in such situations. This is because competitors in particular will use the upheavals and associated uncertainties to weaken the company's external image in terms of communication. After all, the transformation process ties up resources, at least in the medium term. Customers and business partners can easily be unsettled by the statement that the company is primarily preoccupied with itself. External corporate communication should therefore not be underestimated when it comes to customer loyalty and business partner retention.

Score points through strategic communication

How can companies counteract such developments through strategic external corporate communications?

• Communication Proactive and positive design: Providing information transparently and thus countering concerns from the outset
• Through authentic messages Promote a positive image of the company - social media play a particularly important role here.

Using social media in the transformation process

The loss of control over the company's public image that has resulted from social media has already been described many times - including on this blog (Employees as company spokespeople: social media in employer branding). However, companies should not see this development as a risk, but rather as an opportunity for their external corporate communications. This is because they can use social media to credibly and authentically strengthen their openness and transparency. As part of transformation processes, companies can present themselves to the public via social media and thus communicate a contingent image of their values and vision for the future. This promotes credibility with customers and business partners, earns sympathy points and a positive image - which in turn has a positive effect on sales and profits.

Internal and external corporate communications must be contingent

The central challenge in strategic corporate communication is its contingency: internal and external corporate communication must be based on the same values and communicate these credibly and authentically on all channels. Only then can corporate communication contribute to a successful transformation process and improved business success.

(Cover image: © alphaspirit | fotolia.com)