by Russell Grossman

The British Broadcasting Corporation (BBC) may be one of the UKs most loved institutions, but its under pressure to remain a relevant, responsive leader of public service broadcasting in order to survive. This article looks at how, faced with an intense, dynamic market and a new leader, the BBC

he BBC is not a commercial organization, but it nevertheless operates in one of todays most dynamic business environments a market dominated by the pace of technology and global competition and mergers. The BBC may have started out life as the worlds only broadcaster but media content providers and platforms are now hugely diverse. Mergers which would have been unthinkable just a couple of years ago (such as Vivendi and Seagram or AOL and Time Warner) are creating a pressure for change throughout the industry. Generating a matching internal pressure for change is equally important if we are to get our own people thinking more responsively and less introspectively. Our ambition is that they continue to make great, creative and relevant programs which audiences want and which will sustain the UK licence fee (see sidebox, right). Our change objectives are both structural and cultural (see Figure One, right). Similar to those of most organizations operating in a highly competitive market, these objectives are to: become more creative and collaborative; speed up our decision-making; communicate more effectively internally and externally; enhance value for licence-fee payers in an increasingly competitive world; and create significant (bottom line) savings which deliver better value to licence-fee payers.

Change in a goldfish bowl

is using internal communication to help its people through major change.

LAUNCHING CHANGE AT THE BBC

Driving a national institution into the 21st Century
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The prospect of change has given the BBCs internal communication team an opportunity to demonstrate how a consistent and proactive approach can work well. Its also allowed us to use the arrival of a new leader Greg Dyke, the former London Weekend Television (LWT) director of programs and Pearson chief executive as a catalyst for attitudinal change. As a national institution, internal changes at the BBC are followed sometimes in minute detail by the UK media. Few organizations have their internal workings dissected and speculated on to this extent. Rumors about whos in and whos out, every movement outside Greg Dykes open plan office and even what is or isnt on the menu at breakfast or lunch all find column inches in the national press. So much so that, in May 2000, media evaluators Impacon concluded that BBC was the most written about organization in the UK. This means all our change communications have to take account of the public factor,
Strategic Communication Management August/September 2000

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KEYPOINTS
The structural change at the BBC is flattening the organization and removing layers of management to improve communication and knowledge flow . Culture change is focused on continuous improvement and development of a more open culture. The new organizational structure was launched on a Monday and all staff were informed within five days. Developments were passed onto employees face-to-face in order to minimize the risk of speculation and suspicion in such a high profile organization. As the BBC has a very public profile, communicators try to capitalize on external media, as well as internal, to get the message across. New director general Greg Dykes visible leadership style has allowed for creativity and collaboration whilst reducing the risk of internal resistance endemic in change management efforts.

Russell Grossman
joined the BBC in 1999 after two years as director of communications at Royal Mail, London. Before this, he spent three-and-a-half years in consultancy, mainly on assignment to London Underground as PR Manager for the Jubilee Line extension. This followed seven years with the London Docklands Development Corporation.

where media whispers of varying accuracy need interpreting in an open and honest way with our employees. In fact, our integrated communications program goes nowhere without being scanned from both internal and external perspectives. The current change program has brought internal and external communicators even closer together: a rapprochement that many other companies will identify with. The actual structural change seeks to create greater centralization while flattening the organization and removing duplication and management layers. Cultural change has been given a longer time frame. Indeed, part of the game plan here is not having a culture change program as such, because this would kill it dead and instantly raise peoples suspicions. What we have instead is a series of stages to take people from where we are to where we want to be. In this journey, leadership and communication are the two most important elements.

Regular internal measurement at two-weekly intervals suggests that our people now feel they get about 10 percent of their information from the external media. If this is correct, this is a big pat on the back for our internal communication especially given our high external profile and the fact that many of our employees are the media.

The BBC
(British Broadcasting Corporation) is funded by a statutory licence fee paid for by the British public. It provides television and radio audiences with entertainment, education, and operates 14 TV channels and 48 radio stations and runs BBC Online. The BBC is answerable to Parliament and operates under a Royal Charter the current one expires in 2006. For more information visit www.bbc.co.uk

Petal heads lead the BBC

We represented the new final structure pictorially, as a flower, with each division known as a petal (see Figure Two overleaf). These labels stuck, and the diagram and the petals have gained internal acceptance directors are even referred to as petal heads! The flowers been a small device but perceptually has had some effect in softening the change for people. We estimate that our penetration on that first day (deliberately a Monday to maximize cascade opportunities in the ensuing week) was about 50 percent immediately, with the remaining staff covered in a cascade within the next five days. Wed liked to have streamed a broadcast of the launch briefing over our
Figure One: The change approach

Launching the change headlines

We launched the main principles behind the change on April 3, 2000 after one of the most far-reaching and challenging internal reviews that the BBC has ever undertaken. Internally, this was the start of huge uncertainty for many people; externally, it marked the start of renewed interest and speculation about the organizations future. There had already been considerable media anticipation about the launch. But it was important to keep this under wraps, because we wanted our staff to hear it first, in person, in a studio (or on our internal TV and radio). To a large extent, we managed to achieve this aim. Despite lots of media speculation in the weeks beforehand, there had been no significant leaks by the time we launched on April 3, face-to-face, to all our senior managers. It was fresh to our employees, and theyd got to hear it first internally.
August/September 2000 Strategic Communication Management

Strategy

Structure change

Culture change

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Launching change at the BBC

TV
Broadcasting & Development New Channels Support Genre Commissioning New Media Development BBC CHOICE

Drama, Entertainment & Children

Children Entertainment Drama Fun

Factual & Learning

Education Features Arts Science Natural History

New Media
Interactive

Sport

Radio

Radio 4

Radio 5 Live Music Production Radio 3

BBC ONE BBC TWO

News
Business Current Affairs News

History Docs

On-line Radio 2

National & Regional

English Regions Scotland

Radio 1 Wales NI

World Service

BBC
Secretarys Office

Strategy

Worldwide

involving people in designing the detail of the new structure. We havent been able to involve all 23,000 employees, but directors have involved far more people than ever before in the BBCs strategy and many people do feel they have a personal involvement in the new world through activity clearly and visibly sponsored by the new directors. And even though many of the board the BBCs executive committee are old faces, weve been keen to stress that old faces dont mean old ways.

You cant talk about successful change without successful Public Human leadership, and weve Policy Distribution Resources & been able to use Greg & Technology Internal Dykes arrival as director Comms general at the start of 2000 to maximum effect. Gregs predecessor, John Figure Two: The flower illustrating the new structure at the BBC Birt, moved the BBC a long way in his 12 years as director general. In time, history will intranet, Gateway, but the bandwidth probably credit him with turning the BBC into wouldnt allow this. However, we put a the commercial wind at a time the good ship transcript of the session up on Gateway within could have let all else sail by. Birts most The licence fee two hours and most people had heard at least enduring, if presently unsung, achievement will Every UK household the headlines before they saw it on external have been to realize the importance of digital with a television is newsfeeds (BBC News Online, which many technology at an early stage and give the BBC a required to pay an annual color TV (104) people browse at some stage in the day, the world-leading start in this field. However, John or black and white London Evening Standard, and TV and radio Birt was not a man of the people. And the BBC, (34.50) licence fee. bulletins that evening including our own). like many creative organizations, is nothing This brings the BBC in around UK2 billion a Importantly, we used a range of channels for the without those people so there was a natural year, and pays for most limit to what he could achieve. initial announcement (See Figure Three, right). of the organizations Enter Greg Dyke. A man with quite a Just using one or two wouldnt have got the public services in radio, television and on-line. different communications approach. So much so penetration especially as the internal There are some newspaper, Ariel, is not well perceived at present that weve been able to mould the nine-month exemptions: senior media honeymoon since Gregs appointment in and believed by many to be just a management senior citizens (over 75year-olds) get a free June 1999 and reflect it internally in a very mouthpiece (something were working on). But licence, as do blind positive way. While the internal honeymoon will this was only the beginning. Although the people and those who restructure theoretically applied from Day One, fade, were using it meanwhile to help align live in some categories of sheltered only the new directors were actually appointed. attitudinal change. Whats more, Greg Dyke has accommodation. The following three months has been all about always been Greg, never Mr. Dyke. This
Finance, Property & Business Affairs
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Marketing & Communication

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Resources

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Launching change at the BBC

may seem a semantic point, but at the BBC this approach is a huge leveller. Weve used many opportunities to reflect Gregs no-nonsense approach, visible leadership from the front and a penchant for saying things people want to hear in an open, honest, realistic and straightforward way. One of the core messages of the change is the need for creativity and collaboration, and here Greg has led from the front. This is a fresh concept at the BBC, which has previously taken decisions in a very hierarchical way with little internal discussion. We should always remember that change, where it fails, does so most from internal resistance, so we strongly believe such discussion is essential to stand a chance of a successful outcome. Deeds are far more important than words, so Greg has made sure that, since he joined, he was visibly listening and talking to people at all levels and in all parts of the BBC. Hed been to nearly half of our 39 local radio stations and most of our television centers before he actually took over as director general at the end of January 2000. At these visits, the more senior managers were encouraged to hold back to give the staff and Greg free rein to chat. This resulted in consultation which is especially informal and very spontaneous but powerfully communicated, mostly by reputation and the grapevine. Its a central part of his style that Greg will ask ordinary people at random for their views. And while less systematic or scientific than a structured

Intranet 13%

Other 3% Greg Dykes Studio Session 20%

Staff newspaper (Ariel) 17%

Briefings 2% Your manager 9% Video 4%

E-mail 23%

Team Briefing 9%

Figure Three: The range of communication channels

Whats more, Greg Dyke has always been Greg, never Mr. Dyke. This may seem a semantic point, but at the BBC this approach is a huge leveller.
August/September 2000 Strategic Communication Management

involvement program, the powerful message being communicated is that anyone is entitled to give a view and many have done. In fact, the change ambition is dubbed One BBC after Greg got it from a program-maker who said thats what he thought we should be going for. The Greg factor has meant weve at least had peoples ears from an early stage. Weve been careful to communicate this in a way which doesnt over-excite people into thinking everythings now wonderful. Equally, though, our strategy is to use communication which builds on the initial wave of optimism and slowly lever that to gain an understanding of where the BBC is, where it needs to go, and then change behaviors to suit. Change isnt going to happen overnight and well need to wait for the noise of the structural alterations (which will result in some job losses) to pass by but by the end of August 2000 we intend to begin cascading both the BBCs new vision for the 21st century and the people values we believe need to accompany that.

Getting some quick wins

Most people are proud to work for the BBC proud of our programs and proud of the services we deliver. But they were concerned about too many layers of management, irrational internal trading rules and bureaucratic processes that have been slowing us down. People have also been frustrated by the culture of division thats existed within the BBC, and the energy wasted on internal competition rather than producing great programming and services. This pointed to some early quick wins.
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Launching change at the BBC

Segmenting audiences through tribes

The BBC takes its responsibilities as a public service broadcaster very seriously. The original vision laid down by its founder, John Reith, was of an independent broadcaster that could educate, inform and entertain the whole nation, and these values are still cited today. However, the rise of digital and cable channels and a shift in viewing habits has meant that todays audiences are fragmenting into smaller and more personalized niches. Is it possible for a single network to meet the needs of a fragmented nation of viewers? As part of its response to this question, the BBC announced a pioneering method of audience analysis. Recognizing that simple segmentation tools (such as ABC socio-analysis) were not sophisticated enough to understand its audience groups, it used a tribal grouping system to stratify viewers. The aim was to include likes, dislikes, media preferences and passions into a stratification model to form a picture of the tribes people attached themselves to. Between 1998 and 1999 over 70 journalists conducted interviews with 7,500 BBC viewers and quizzed them on their preferences. The resulting research characterized tribes through a number of factors: Life stages and demographics (age, marital status, number of children, etc.); Social communities (religion, ethnic background, disabled); Interests (hobbies, sports and the degree of passion felt about them). The resulting data discovered a multitude of tribes (over 100 at the initial research stage), a picture complicated by those people with multiplemembership of different tribes, however, by drilling down into the tribe-based research it became possible to define its audience groups and see how BBC TV, radio, publishing and Internet interests were being used by each of them. The resulting information is fed into marketing and program-making decisions so that the BBC can recognize those groups being poorly served and target them with specific initiatives. Its also given it a new argument to use to stakeholders when justifying its continued relevance to the nation.

charging it back to the users department. The chargings still there, but its at top division level and is transparent to the people who want to use it. It also passes responsibility; from the organization preventing it through internal pricing, to the individual restricting use to only what he or she needs. In communications terms, its been a very important quick win. Its allowed us to demonstrate were serious about change, and that the organization listens. Its also allowed us to begin building internal relationships based on contact rather than contract.

E-mail is a great leveller

Weve found e-mail to be a communications flattener and empowerer in communicating change. We were keen to uses email to supplement face-to-face communication, and especially to cross the hierarchy between top and bottom of the BBC rapidly, avoiding the refractive layer in the middle. People have been encouraged to e-mail Greg with views ever since he arrived and from his first day as director general, Greg has been e-mailing all staff at roughly monthly intervals to maintain visibility and accountability. While these e-mails are usually prompted and drafted by internal communications, theyre always Gregged by the man himself and he takes a personal interest. Theyre drafted very much from the heart, and the final versions, most especially, have very little gloss if at all. Each e-mail is personally addressed and its clear from the spontaneous responses we get that people set aside the fact that their e-mail has also gone to the other 23,000 staff. Instead, their focus is that its gone to them personally. This power of e-mail to flatten communications is enormous and its very cost-effective. Its more proactive than the intranet, although it has to be used sparingly to maintain effectiveness. E-mail has therefore grown to be the most predominant and popular broadcast means of communication in regular use and is currently at the top of how people receive information, although we want to make that second, after face-to-face. Every e-mail coming back up is responded to, and Greg usually reads the drafted replies personally, often changing words or phrases to suit his own personal style. Its a bit of a logistical headache for internal communications to make sure replies are sorted, but weve climbed up a learning curve and believe its far more important to get a short response quickly
Strategic Communication Management August/September 2000

The internal market

The internal market is a system for internal charging that allows the BBC to account for how money flows around the organization. It makes people responsible for their own budgets, and has so far saved the BBC some UK60 million.

Using e-mail, we asked people to tell us in depth about an especially reviled feature: the internal market (see sidebox, left). We asked: what was good, bad, or simply mad? We then asked people to contribute specific examples on a special intranet site. Although people hadnt been asked to express opinions like this before, nearly 300 detailed responses were received. Some were asking for paradise, but most were very sensible and pragmatic. Although the BBC is committed to keeping the principle of the internal market, there were some things which obviously were simply mad. Response has been swift. By early May, wed changed the most trumpeted feature, the need for program-makers to pay at source for basic program materials like CDs and pronunciation advice (the tale of the UK12 needed to borrow a music CD had run the corridors for months previously). So this was changed, along with a number of other jobsworth procedures, like counting every piece of mail posted and

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Launching change at the BBC

than a detailed response (which can also provoke more traffic) after a few weeks. In the first month after launch, we received over 300 individual questions to Greg. We were hopelessly overambitious in promising a fiveday turnaround five weeks has been nearer the mark. Even dividing the questions among the change team, we were unable to deal with the complexity of the draft answers in a sensible way without committing a lot of time and energy to the process and we were all leading other aspects of the change as well! It was, in the end, time well-spent because people did feel that theyd had a personal reply, although managing peoples expectations of such replies has also been important. Were also developing a change portal on our intranet as a one-stop shop where people can understand whats driving the change. As well as posting detail on the structural reorganization, two content-specific sites are now up and running: Extra! Extra! is a series of pages which updates people with the BBCs line on top running media stories (see Figure Four, right); Flash is a weekly digest on movers, shakers, deals and squeals in the broadcasting market and where the BBC sits within that. Early indications are that both these sites are popular, and both are helping to create internal pressure for change. Extra! Extra! is usually updated by 10am on the day of a breaking story and involves internal communication getting under the skin of what the press office is saying. This needed some confidence-building on both sides of the internal/external relationship, but is so far working well. The sites carrying about four story interpretations a week. Of course, its up to employees whether they want to use the BBCs line or not: our people are professionally cynical (after all, its a part of being a top journalist), but we try to ensure its never presented as spin.

Figure Four: The Extra! Extra! intranet

This will involve communicating our purpose, direction and values with a passion not previously seen at the BBC. The BBC will announce its new vision for public service broadcasting at the end of August 2000. That will also be the signal for us to cascade both vision and values internally to a degree the BBCs not previously experienced. We will need to engage not just our board members and senior managers but all the articulate, intelligent and at times deeply suspecting group which is the BBCs staff. So perhaps the easy bit is the one behind us.

The easy bit over whats next?

So that was the end of the beginning the first three months. Once the structural change which weve just announced has settled we intend to build on the positive start (but at the same time turn up the pressure for change), We will select key internal audiences who will then help to cascade it to others, creating and increasing an urgency, and repeating often and widely why we must change to move forward.
August/September 2000 Strategic Communication Management

Contact Russell Grossman The BBC E-mail: russell.grossman@bbc.co.uk

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