There’s no doubt that bringing in a communications consultant at the eleventh hour to help deal with a pension funding crisis is better than not dealing with it at all, but it’s far from ideal. The problem is, no matter how well conceived, how well written, or how skillfully implemented the eleventh-hour communications might be, it won’t change the fact that communications without substance is propaganda.
Effective communications, that is to say, communications that will actively influence plan members’ willingness to accept tough messages, is not a one-off event. To succeed, a communication program must be ongoing, strategic and interactive. It involves the alignment of three key variables in the following order of importance:
1. Leadership
2. Plan design
3. Media
Leadership
We all know what happened when the CEOs for the Big Three automakers flew their corporate jets to Washington in their first bid for a bailout from U.S. taxpayers. Before sending them home empty-handed, one representative from the House asked the question that many of us had on our lips: “couldn’t you all have downgraded to first class or jet-pooled or something to get here? It would have at least sent a message that you do get it.”
The scale of the crisis may not be quite the same, but pension plan leadership in Canada could still learn a lesson or two from the CEOs of the Big Three. The first thing they could learn is that plan members will take their cues directly from their leaders. Leadership must be credible, compassionate and willing to walk the talk. Unless the leadership visibly buys into whatever they are trying to promote, it will be impossible to sell it to the broader member population. Period.
Getting the leadership onside and helping them speak with a unified voice is the communication consultant’s first, and often toughest, order of business.
Plan design
No matter how unpopular a proposed measure might be, plan members will be more inclined to accept it if they honestly believe that it is necessary, appropriate, and fair. The best way to ensure this is to involve them in the decision-making process. When plan members have a hand in deciding on a course of action, it makes it much easier for them to accept the outcome.
There are a variety of ways to involve members—and what’s right for one plan may not be practical or effective for another. For instance, surveys work well if you’re looking for quantifiable data. However, focus groups are a better choice if you’re looking for more qualitative information (the “why” as opposed to “what”). Setting up a “test team” or “challenge team” to provide feedback on a proposed communications strategy or a draft communications piece is an excellent way to bring unofficial leaders into the process. That said, for some plans the only way to get member input in a way that’s perceived as fair is to take key decisions to a vote of the full membership.
Media
In a time of crisis, the purpose of the communications strategy is to provide consistent messaging to help avoid confusion, demonstrate leadership, and restore confidence. Ultimately, the goal is to provide a window onto the situation and to make it as transparent as possible. To accomplish this, communications must be well crafted, honest, and accurate. Moreover, the media—whether print, electronic, face-to-face, or some combination—must be carefully chosen to meet the needs of the target audience. Media that isn’t accessed or understood by plan members can’t do its job.
The “perfect storm” of 2001-2002 (the last time we faced major pension funding issues) was a kind of trial by fire for many plans. Faced, often for the first time, with a serious funding shortfall, plans were forced to learn about the pitfalls of propaganda the hard way. If nothing else, the current crisis has given them an opportunity to put some of their hard-earned lessons to work. For those plans that didn’t “get it” the first time, figuring out that there’s more to effective communications than issuing a news bulletin might be the one good thing that comes out of the current crisis.