Words have power. The right ones can reinforce your vision, helping you spread the value gospel within your company. The wrong ones can delay or even sabotage your progress. Think about what you say every day. Do you use words that get people thinking about value and how they can create it? Or are you substituting semantic shortcuts that fail to reinforce a commitment to value – and at worst inspire doubt or even fear? For instance: - The phrase “cost cutting” often inspires the thought “What will the company take away from me?” What it means, however, is improving efficiency and boosting margins – objectives that require buy-in from employees (and that many employees will gladly embrace).
- The term “people costs” links an asset – your company’s human capital – with the negative idea of a cost burden. It may be a cliché, but it’s nevertheless true: People are your business.
- Would you rather “hit quotas” or provide “great customer service?” It might be possible to do both. But if you emphasize the importance of sales targets, that’s what your people will hear – and your customers become merely the means to an arbitrary metric.
- Are you always talking about “risk” or “downside?” These terms have their place. But to the extent there’s an upside, your colleagues will be more motivated it they hear both sides.
It’s no accident that great managers are also usually great communicators. As these points suggest, a culture that embraces value can’t happen without communication that reinforces value. And communication starts at the top. Managers that create value provide direction that isn’t misinterpreted. They are assertive – no need to be a mind-reader, no chance of misunderstanding. Think about your own experience: How often has a directive that seemed crystal clear been misinterpreted? Being vague or sending negative signals won’t likely get the job done. Some people seem born with a gift for words. Unfortunately, many managers aren’t among them. More importantly, not everyone recognizes the role communication plays in creating value. In a Deloitte* survey conducted last year, executives were asked to indicate their level of agreement with the following statement: “The goal of creating value need not be articulated as long as employees do their jobs well.” Over 65% of the respondents either completely agreed of somewhat agreed with this statement indicating that reinforcing a value creation message is not important as long as people just do their jobs.1 This does not sound like the kind of environment where employees are motivated to create value. Where does your organization stand? Over one-quarter of senior executives don't think it's necessary to mention value creation 
Employees need not be privy to every management decision. But leaving them in the dark doesn’t make much sense either. By putting effective processes in place, you can increase the chances that all managers use words to inspire behavior that can help create value and support the company’s objectives. This may seem like common sense. And it is. But it’s also surprising how many companies fail to communicate value consistently. In a poll conducted by Deloitte Consulting LLP last year, almost half of the respondents said that value goals were communicated sporadically or inconsistently across their companies. Polling Question 
Case Study: AstraZeneca
AstraZeneca, a global pharmaceutical company with 2005 sales of $24 billion, has given plenty of thought to the issue of communication. The product of a merger between Swedish and British firms, AstraZeneca operates in more than 100 countries. Katharina Auer, a former GE executive, is in charge of keeping internal communications strategy in alignment with the company’s business objectives.2 Here are some of the key lessons that Ms. Auer offers: Educate management on the importance of internal communication.
Many senior executives and managers still see internal communications as the home of the employee newsletter. But good communication can have a much deeper impact. Consider ROI. Auer notes that hiring and training new employees costs more than retaining existing employees. If employees feel more motivated and engaged, they are less likely to leave. Because effective internal communication is strongly correlated with motivation and engagement, the financial benefits of retention are measurable.3 Identify the communication priorities of different stakeholders.
Auer finds that top management likes to focus on the big picture. For employees, the question is often “What’s in it for me?” The task for management is to link the value creation strategies of the company to the individual interests of each employee.4 Measure the performance of the communications function.
All companies distribute internal communications to employees in one form or another. But many fail to see whether the message is understood – and, more importantly, acted upon. And without measurable results, management isn’t likely to completely buy into the communications program. AstraZeneca’s Auer conducts exhaustive quarterly performance reviews which show whether employees “get it.” She then compares the results to her own objectives and those of the senior executive team.5 Do they hear you? If you want alignment, you need communication. People won’t likely work towards value-creating objectives unless they understand the objectives and their role in achieving them. By extension, it’s equally important that all stakeholders have a clear understanding of your game plan. Employees—and investors—are always listening. They hear what you really say day in and day out, regardless of what you mean or what’s written in the mission statement. If you’re not “talking the talk,” they won’t respond the way you want them to. The specific language you use to communicate with your people, shareholders, and other stakeholders can inspire value creation or destroy it. Choose your words wisely. 1"Adopting the Value Habit (And Unleashing More Value for Your Stakeholders," Copyright © 2006 Deloitte Development LLC, in association with the Economist Intelligence Unit.)
2 Ibid.
3 Ibid.
4 Ibid.
5 Ibid. *As used in this document, “Deloitte” refers to Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Tax LLP, and Deloitte Financial Advisory Services LLP. This publication contains general information only and Deloitte Consulting LLP is not, by means of this publication, rendering business, financial, investment, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte Consulting LLP, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication. | 
