Four Internal Communications Lessons Learned from Brand Failures

(Originally published in IABC Toronto’s Communicator)

The greatest power comes from within, and communications are no different. Effective communications strategies are key for the survival of any company and aren’t limited to creating bold marketing campaigns or addressing external communications issues. Some companies and managers may take internal communications for granted, but one simple internal fumble can lead brands both great and small to communications nightmares with a simple slip of the tongue or misplaced email.

Though external PR or marketing “fails” are the obvious examples of where companies have gone wrong, some of the most disastrous communications errors could have been prevented with the right internal comms system in place.

Here is a list of four companies that ran into hiccups, and how their troubles might have been avoided:

1. Google/Nest Labs merger
   
   In 2014, Google bought a four-year-old startup, Nest Labs, as a way to enter the smart home game. Founded by two former Apple engineers, Nest Labs offered innovative programming that would have put Google on the cutting-edge of the smart home industry; however, internal politics and fighting prevented innovation and prompted the Nest Labs founders to leave the company entirely.
   
   The problem: A happy and productive team can’t be made without instilling a shared sense of purpose.  
   
   The solution: Mergers and acquisitions can be extraordinarily tricky. In most cases, the blending of companies requires layoffs for duplicate employees; the introduction of new policies, procedures and directions; and a complete overhaul of an employee’s sense of purpose along with the brand identity. Making sure that employees are kept aware of all steps of the merging process is key, as an effective internal communications plan can keep colleagues from feeling like they’re being kept in the dark. Being uncertain of what changes are coming is a scary position—perhaps the founders of Nest Labs wouldn’t have felt compelled to leave if the merger clearly defined the company’s new goals and intentions. Knowing what changes will be put into place, and what new directions the company will be heading, will help keep your team looking forward to new growth. 
   

2. Nike denies female athletes maternity leave
   
   In 2019, an Op-Ed was published in the New York Times condemning athletics brand Nike for its hypocrisy in celebrating female athletes without guaranteeing them a salary during pregnancy and early maternity, or outright reducing sponsorship payments because of pregnancies. The biggest issue? Those responsible for negotiating contracts for track and field athletes include four men, and four men only. Female athletes felt that their voices and issues weren’t heard or addressed, or worse—they feared their sponsorships would be taken away entirely if they spoke up.
   
   The problem: Diverse challenges require diverse perspectives. Everyone deserves to be heard.
   
   The solution: Companies perform best when all perspectives are considered, and everyone deserves to feel safe and comfortable wherever they work. Your employees are your stakeholders—building trust ensures they feel comfortable and that they can express themselves without fear of being reprimanded. Try creating an internal task force dedicated to ensuring all voices are heard, or consult with various demographics—especially those affected by the decision(s)—before launching a brand-wide program or change. Employees and managers with different backgrounds can offer unique perspectives that you may not have considered before. Alternatively, an anonymous feedback system works just as well for individuals to share their complete thoughts with management.
   

3. Hand and Stone client assault
   
   Hand and Stone Massage & Facial Spa has 31 locations across Canada, with some in recent years offering a not-so-relaxing experience for clients. Two spas in Toronto have had staff members brought to court for sexual assault charges in the last two years alone. Though each location is owned and operated independently by franchisees, the brand name overall took a hit, and few (if any) changes were made to staff training policies.
   
   The problem: One for all and all for one; franchises require universal standards and communications policies.
   
   The solution: When it comes to franchises, what affects an individual business effects the reputation of all. Communications and training procedures need to be universal, and consistent across the board. If any changes or new training standards need to be implemented, this needs to be communicated in a timely manner, and to all employees. Creating an easily-accessible intranet or other streamlined platform makes it easy to share news, updates and procedures to ensure that all employees, across all franchises, are on the same page.
   

4. Adidas Boston Marathon email
   
   During the Boston Marathon in 2013, two homemade bombs were detonated near the finish line, killing three people, injuring hundreds and shocking North America. Just four years later in 2017, sporting company Adidas sent an email to runners who completed the annual event, including repeat runners who also ran in 2013, with an email titled “Congrats, you survived the Boston Marathon!”
   
   The problem: Without a filter, insensitive comments (no matter how well-intentioned) can cause havoc when shared.
   
   The solution: Everything needs a second set of eyes. Regardless of whether your communications materials are written by the highest C-suite executives or a brand-new intern, revisions and filters are necessary to prevent mistakes like this one. Introduce an internal communications system where employees are comfortable reviewing each other’s work before it’s distributed or published. This goes for internal documents as well as external – well-edited presentations and internal memos are just as important to maintaining the integrity of your company and a professional work environment.