FINGER ON THE PULSE: CHANGE AND CHALLENGES FOR CORPORATE COMMUNICATIONS IN ASIA S E RV I C E
B R O C H U R E
CONTENTS A new business environment
03
Internal Communications
04
Media Relations
07
Digital communication
08
This Service Brochure is part of a series published by the Asia-
Pacific Association of Communication Directors (APACD). They
are intended as constructive manuals that give advice on practical challenges and topics in communications.
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The author
Katrina Andrews //Executive Director, Head of Asia-Pacific VMA Group Katrina established VMA Group, Asia-Pacific, with the
APACD is a cross-national network for in-house communication
creation of the Hong Kong business in 2011 and Singapore in 2012. With
It aims to establish common quality standards and advance
specialising in marcomms recruitment and training, and has developed the
as debates, seminars and workshops. In addition, the non-partisan
Shanghai, Indonesia & Malaysia. Prior to joining VMA Group in 2011, Katrina
useful services and information for its members, and publishes
research business) where she started the company’s Asian operations by
communications and public relations.
tivities, Katrina leads regular industry forums for senior communicators as
directors, managers and spokespersons in the Asia-Pacific region.
over 15 years’ experience in communications, Katrina leads the Asia team
professional qualifications within the field by organising events such
team into the largest specialist team in Asia covering; Hong Kong, Singapore,
Association lobbies for the profession, offers practical advice, provides
was Managing Director, Asia Pacific at Melcrum (internal communications
Communication Director, a quarterly magazine devoted to corporate
developing offices in Australia & Thailand. In addition to VMA’s core ac-
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part of VMA Group’s strategy of community building with the profession.
THE EVOLUTION OF CORPORATE COMMUNICATION IN ASIA A NEW BUSINESS ENVIRONMENT Alongside the growth wave that is shaking up business in emerging Asian countries, the development of the corporate communications profession is also gathering pace. While the change drivers for communication professionals in the region may be different to those experienced by their counterparts elsewhere, the ongoing demand to adapt to new business environments is not. Even in markets where corporate communication departments are generally considered “mature” functions, business conditions seldom stand still for long. New challenges – shifting market conditions, new forms of competition, different demands from customers and employees – inevitably mean that once again the function has to review and reinvent itself to focus on new priorities. In this respect, communicators operating in Asia are no different to anywhere else in the world – but many of their challenges are still unique. VMA’s annual Pulse research was launched in 2012 to gain a deeper understanding of these challenges and how they are playing out for each of the eight1 corporate communications disciplines covered. Our aim is not only to track how each 1 The eight disciplines covered in VMA’s latest Pulse research include: Branding, Digital, Internal Communication, Investor Relations, MarComms, Marketing, Media Relations and PR.
discipline is evolving and relative levels of maturity compared to other more developed communications markets where VMA operates, but also to gain a sense of the priorities for each, their relationship with leaders, the skills they feel are in demand and changes on the horizon. For the purposes of this article we have drilled down into three of the disciplines covered in our latest Pulse research report published in September 2014 – Internal Communication, Media Relations and Digital Communications. But first it’s worth reflecting on four areas that we believe will continue to challenge professionals across the spectrum and shape corporate communications in Asia over the next few years. 1 Structure is under scrutiny as organisations seek best model for effectiveness Due to the huge amount of interest our clients have in this area, the latest research took a closer look at communication structures in Asia with a view to understanding how this is evolving. We discovered that most communications departments are now centralised. Structurally, most functions operate within a generalist model. For those operating as specialists, most fall within the Financial and Professional Services sectors (see graph on Pg 5) where budgets and team sizes tend to be larger. Some argue that the level of centralisation and number of specialists versus generalists are a direct reflection of functional maturity. But often these
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issues are decided by necessity rather than preference; small teams are seldom in a position to hire only specialists. Interestingly, this debate has not necessarily been resolved in more mature markets. In a meeting recently hosted by VMA’s London office for communication leaders in the Financial Services sector, a number highlighted their desire to explore models that favour a generalist approach as a possible alternative to their current set-up. This raises the question: even if hiring communications specialists is a possibility in Asia, is it the best option for tightly resourced teams? 2 Digital skills and strategies under the spotlight but many still lagging behind We see the signs of steady growth in digital communications in this and last year’s research, yet there is still a sense that capability – in terms of strategy and skills – is not where it should be. All agree that digital and social activity in Asia will only increase, yet we know that experienced senior experts in the region are still extremely hard to find and invariably an international search is required to fill vacancies. There is a huge opportunity for locally grown talent to step up and meet the demand, but both professionals and leaders will have to start investing more in training and development. 3 Global best practice in demand but careful interpretation is required There is certainly scope for corporate communication functions in Asia to look to more mature markets to guide their evolution and ongoing professionalisation. But it’s seldom a case of just “parachuting” in new approaches to save the day. Creative and sensitive adaptation is often required, taking into account cultural differences and the unique communication
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needs and preferences of a diverse range of stakeholders. Successful implementation of global best practice can also require extensive change internally so communication professionals need to know how to pitch new strategies, approaches and tactics to gain buy-in at the outset. 4 Productivity moves up the agenda placing a stronger emphasis on employee engagement Asia has enjoyed an incredible wave of growth and prosperity, especially in comparison to many parts of the world still facing setbacks in the aftermath of the economic downturn and massive technological change. But to sustain such productivity employees will need to be nurtured and engaged in a much more focused and consistent way. If employee engagement is to take centre stage in the way it has in more mature markets, there will be a real need for communication leaders to review how the function can better support leaders in this new and complex area.
EXTRACTS FROM THE PULSE Internal Communications IC recruitment stable but teams under-resourced IC recruitment has slowed in Asia since its bumper year back in 2012 when global financial turmoil inside many organisations dramatically drove up the need for specialists. Team sizes have remained relatively stable over the past year, however, with 81% of respondents reporting that their function has either increased or stayed the same. While recruitment activity over the next 12 months looks set to
+ Figure 1 GENERALISTS VS. SPECIALISTS
FMCG, TMT, Healthcare & Education Unlike UK/European markets most of Asia has integrated communication teams – with many combined into the marketing function
Head of Marketing & Communications
Senior Marcomms Manager
62
% Generalist
Senior Corporate Communications Manager
Manager
Executive
Manager
Executive
Financial & Professional Services social media manager, internal communications manager, investment writer; or specific language needs; Korean, Japanese
Head of Corporate Affairs
Media Relations
Internal Communications
38
% Specialist
remain similar to last year – 21% are predicting an increase in team size compared to 19% in 2013 – a higher number of respondents predict a decrease in team size; 12% compared to only 2% in the previous year’s research. Larger IC teams remain a luxury in Asia with only 14% reporting a team size larger than 2-4 people, compared to the UK market where 36% operate from teams larger than this. In terms of the “IC professional to employee” ratio – often considered a measure of IC function maturity – in Asia the highest proportion falls into the 1:5,000 category, compared to the UK market where the most common ratio is 1:1,000. It’s worth noting, however, that of all the communications practice areas surveyed, IC had the largest proportion (59%) claiming their teams were under-resourced. While a privileged 31% could claim a 1:500 ratio back in 2013, this figure has since dropped to 22% in the latest research. There was a noticeable IC skills gap in the Asian market a few years ago, brought into even sharper focus by change and engagement issues relating to the economic downturn. Recruitment activity has slowed so perhaps there’s a perception that the need is no longer as acute as it was, or there’s a greater need to allocate resources elsewhere. Another very likely reason is that the demand for good IC specialists still outstrips supply. Unfortunately the data shows that many – in fact most – IC teams and professionals don’t feel they have the resources to perform at their best. This often means providing a less strategic service or being very selective about the projects that IC will work on to deliver the most impact.
Executive Communications
Government Relations
Marketing
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