Pay the price when you ignore these three key principles of communication
-Lessons from Northern Rock
Three key principles of effective communication and customer care were ignored in the first 48 hours of the recent panic in the UK's financial sector. The result –customers voted with their feet. The disconnect between official statements and customers’ actions were classic in demonstrating that ACTION speaks louder than words.
What am I referring to? Northern Rock, of course. If, like me, you first learnt about the apparent turmoil in the mortgage market in the UK, at the start of the weekend, then we are among the millions of others –including customers and investors of the bank, who received a common message. A bank was in trouble.
Not surprisingly, depositors in their hundreds acted swiftly on the message they received –‘bank in trouble’, ‘something is wrong’. Both online and off, they rushed to get their hands on their funds. A message about ‘the bank being open for business as usual’ seemed rather inappropriate and made customers even more concerned. Customers knew that the scenes at their local banks and on their TV screens were not close to what they would consider normal. Highly inappropriate choice of words for what was anything but a normal situation!
What went wrong? The message! In the first 24 hours everyone received the same message, all’s well with Northern Bank, despite the fact they approached the Bank of England to borrow directly from them, should the need arise. While that message may be reassuring to financial analysts and investors of major funds who understand the workings of financial markets, to depositors, small investors and ordinary members of the public, the message was ‘bank in trouble’.
Deposit holders received the same message as financial analysts –and the result is panic. The opposite reaction to what was intended. One message could not target the concerns of all interest groups –one size did not fit all.
Questions that should have been asked to ensure that three key principles of effective communication and customer care were observed are:
- WHO are the intended recipients of your message?
- WHY this message (purpose), i.e., is it to inform, reassure or persuade?
- WHAT information will be relevant to them?
The answers to these questions would have provided guidance on the messages that should have been prepared and the best way of reaching and addressing the concerns of the various interest groups. One message could not address the concerns of all interest groups –one size did not fit all.
Hopefully vital lessons about communication principles were learnt by officials and observers.
Veronica Broomes
Training Director
Executive Solutions (Training) Ltd
17 Ensign House, Admirals Way,
Canary Wharf, London E14 9XQ
Tel: 0845 054 2870
Email: veronica@executive-solutions.co.uk
Blog: http://executive-solutions.blogspot.com
Editor’s note:
Veronica is available for comment/interview. She can be reached by phone on 07834704259 or email: veronica@executive-solutions.co.uk
Author of communication tips: Speaking with Confidence, 77 Key Tips for Public Speaking