Why townhalls are a necessary
corporate communications tool

In the hallways, in the parking lot, in the cafeteria, and at the desks. Internal communication takes place everywhere in an organization. That's why town hall meetings constitute the perfect opportunity to influence what managers and employees talk about, how the company is perceived, and ultimately, how it performs. We spoke to our Associate Partner and Senior Advisor, Anders Monrad Rendtorff, about why town halls are such an important and challenging communication discipline.

Interview by Anders Monrad Rendtorff, written by Anita Østergaard Sørensen

When it comes to internal communication, it’s quite simple, according to Anders:

“The management team in a company must make sure that the employees of the company understand something in a certain way in order for the it to be successful. And this can be done effectively through unified, clear, recurring, dialogue-creating and actionable town halls.”

Today, employees – or internal stakeholders, as Anders likes to call them – have become an even more important part of a company’s business than in the past. This is because they are more specialized, they tend to be more knowledgeable about the business than they used to be, and in many cases, they come from different geographic locations and cultural backgrounds. These are all factors that can quickly create parallel and, in the worst case, conflicting environments and agendas within an organization if internal communications are not aligned.

The head of communications and the 4%

Most large companies have a Head of Communications whose job it is to manage internal communications. And it’s a complicated job, says Anders, who recalls a quote from an accomplished professor: “As a communications director, on a good day – in fact, one of the best days – you control 4% of what the organization talks about.” That may sound discouraging, and the percentage will vary from organization to organization. But the reality is that people talk over the coffee machine, on the way to lunch in the company restaurant, or after the Monday meeting:

“Informal conversation among colleagues is a prerequisite for a vibrant organization, and it is critical to how the organization talks and thinks about itself,” Anders says.

A professional organization, as Anders describes it, must try to manage the many internal perspectives and viewpoints, because ultimately, it’s about the company’s performance. It’s the 4% who emphasize that internal communication and town halls are essential to moving a company in the right direction. Without accurate and actionable internal communication, for example, the strategy won’t be followed, the new IT solution won’t be implemented on time – all in all, behavior will fall short of the goal.

A symbolic centerpiece in a buffet of leadership actions

The dream of most people is that a town hall meeting is an inspiring, large-scale event with a large turnout, where top management can say something important that everyone understands, and then everyone knows what to do. That’s probably not what happens, Anders says, explaining:

“The town hall can be a symbolic centerpiece in a buffet of management actions that, because a town hall affects everyone, sets the stage at a given time. The town hall can have a really big impact and set the mood for the moment, but when the smoke clears, employees can be left wondering: “What does what I’m hearing really mean for me? Or for my department?”

According to Anders, if the communication is not directive enough, such as providing a clear prioritization of what everyone needs to do next week, next month, and next year, then there is only interpretation left.

And this is where, according to Anders, mass communication (what happens at a town hall) becomes relatively sophisticated internal communication when it comes to getting more people to say the same thing in parallel and repeatedly across the organization. That is, of course, if you as a company want to build momentum for the next town hall.

Town hall meeting format and requirements

Town halls can take many forms, and there is no right or wrong way to do them. What Anders warns against, however, is if you, as a senior manager or executive, are more concerned with “getting something off your chest” and engaging in one-way communication throughout the town hall meeting. And this is where, according to Anders, top management and senior leaders need to figure out what the goal of the town hall meeting is. He describes:

“If the goal is to give employees the impression that you as a top manager are really boring, that you have no situational awareness, and that employees shouldn’t directly see you as the one driving this company forward, then it’s a good idea to stand up and talk non-stop for 45 minutes. Of course, that’s rarely the goal, but it’s often what happens. And it underscores that keeping it short, focused, and inviting requires modern communication and constant practice.”

And practicing is like operating, which is a difficult discipline, Anders says, continuing:

“Many people don’t see the light in operations. Operations are boring and difficult. Most people would rather work on an exciting development task than systemize things and repeat the same pattern repeatedly. Practice and operations and respect for repetition are critical. And that respect for operations can be lacking in some organizations.

Here are Anders’ three quick tips for the communications manager or department planning town halls:

1. Be clear about what you want to accomplish with a town hall
2. Think a year ahead when planning the next town hall – and set a repeatable standard
3. Make sure a town hall is fun

If you’re interested in learning more about internal communication or how to organize a good town hall in your workplace, please contact our associate partner Anders Monrad Rendtorff at anders@relationspeople.dk or our CEO Kristian Eiberg at kristian@relationspeople.dk.