Page 5: Communicating with stakeholders
It is not enough to have a winning strategy; it is also important to communicate what you are doing. There are a number of ways in which an organisation can communicate.
One approach would be a top-down method where messages are sent by a company to its stakeholders - shareholders, employees and customers - with no possibility for feedback. Communication would flow along a chain from the sender to the end receiver.
Northern Rock rarely operates in this way. It believes in multi-channel, multi-directional communication with stakeholders. In other words, it uses many different methods in which to impart information. For example, for shareholders this would be:
- through the post (annual report, notices)
- online (website)
- in face-to-face meetings (Annual General Meeting)
- on the telephone (dealing with queries).
By encouraging shareholders and other stakeholders to provide feedback communication, Northern Rock is best placed to give them what they want.
For example, independent market research shows levels of satisfaction are so high that over 85% of Northern Rock's customers would recommend it to their relatives or friends.