Crafting Attention Flows in Organizations: How employees can shape communication structures

Mid-Level Employees Hold Power in Shaping Strategy and Communication. Unlike the old belief of top managers as sole decision-makers, our study shows mid-level employees wield substantial influence over how strategic issues get attention and which communication channels are used for it.

Authors

Anna Plotnikova
Vrije Universiteit (VU) Amsterdam
Krsto Pandza
Leeds University Business School
Richard Whittington
Saïd Business School and New College, University of Oxford

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Plotnikova, A., Pandza, K., & Whittington, R. (2023). EXPRESS: Bending the Pipes: Regaining Attention through Reinvention and Renewal. Strategic Organization, 0(0). https://doi.org/10.1177/14761270231184616

25 September 2023

Think of organizations as intricate networks of communication channels—meetings, reports, calls, workshops, and other interactions. Communication channels are especially important in organizations that are organized into specialized units or departments. They help to align with strategic objectives, ensuring that each unit’s efforts contribute to the organization’s overarching goals. How this network is structured significantly shapes what leaders and other members find crucial, how they direct their day-to-day efforts, and where they focus their attention. The “pipes and prisms” of this attention architecture determine when, where, and how decisions are discussed and made, involving specific individuals and adhering to certain protocols.

While this organizational architecture might seem unchanging and dictated by upper management based on their vision and preferences, our study published in the journal Strategic Organization reveals that these ‘pipes’ aren’t rigid. They respond not only to top management teams but also to other organizational actors, adding dynamism to our understanding of attention architecture and the agency of mid-level actors.

Strategic shifts within an organization lead to changes in attention architecture

When an organization alters its strategy as a consequence of new technologies, emerging players, or shifts in the external environment, the attention of leaders naturally shifts too, resulting in changes to attention structures. However, such changes can bring both positive and negative outcomes for those who work with communication channels – mid-level employees. The communication channels they contribute to can gain or lose its importance. This was evident in our study of professional strategists at Ericsson (large telecommunication firm) who, despite losing their central role initially due to strategic transformation, managed to regain their position. Two strategies aided their resurgence.

Expanding and Connecting ‘Pipes’

First, the group we studied reinvented some of the communication channels. They explored digital tools, recognizing the potential of involving new actors in established practices, such as understanding industry trends. Traditionally, this task was performed by experts. Mid-level employees also harnessed existing connections with core customers, proposing a Customer Engagement Group to align with top management’s focus on customer satisfaction. This experimental approach aims to add novel elements to existing channels, often by broadening participation through digital tools like crowdsourcing or online communities. Such experimental thinking is the underlying logic of reinvention – what is the novel aspect we can add to the existing channel? Extending the number of participants involved in a communication channel could be one of the promising ways to reinvent or expand the existing ‘pipe’. The availability of digital  tools like crowdsourcing or online communities and chats are useful in it.

This experimental approach aims to add novel elements to existing channels, often achieved by broadening participation through digital tools like crowdsourcing or online communities.

Reviving and Repurposing ‘Pipes’

Another way to align communication channels with the evolving architecture is by revitalizing outdated channels. We called this renewal. To reintegrate old practices, it’s essential to identify gaps or areas where communication channels can bring value. Networking skills are crucial here. We observed how forming alliances with groups entrenched in the new attention architecture is the key. The group of professional strategists partnered with the technologists, who managed essential communication channels for top management decisions. The professional strategists’ strategic knowledge and industry expertise complemented the technological prowess of the technologists, successfully reintroducing joint strategy meetings into the new communication architecture. This approach of repurposing channels involves identifying how and when channels can be useful in addressing new strategic challenges. The selective reuse of familiar practices is the underlying logic of renewal. It is important to consider: what are the core communication channels for Top Management Team? Who is the core player in them? And what value can we add by partnering with those players? The ability to evaluate the new communication structure and clear value proposition for potential partners plays a pivotal role in reviving old ‘pipes.

This approach of repurposing channels involves identifying how and when channels can be useful in addressing new strategic challenges.

Organizational shifts might be an opportunity for different professional groups to regain their importance

Any transformation that an organization undergoes in its structure, culture, processes, strategies, or other fundamental aspects present opportunities for diverse professional groups to reclaim significance. The story of Ericsson’s strategists exemplifies how organizations can adapt to significant changes through flexibility and innovation. When traditional structures are disrupted, various employee groups, from strategy professionals to HR, Finance, and Marketing, can maintain their importance by creatively redesigning communication channels. As technologies like AI increasingly challenge professional roles, the ability to reinvent and renew communication channels empowers employees to strengthen their position, amidst major organizational changes.

Authors

Anna Plotnikova
Vrije Universiteit (VU) Amsterdam

Dr. Anna Plotnikova is Assistant Professor of Strategic Change at Vrije Universiteit (VU) Amsterdam, School of Business and Economics. Her research interests lie at the intersection of strategy practice and process research, focusing on topics such as open strategy and strategy participation.

Krsto Pandza
Leeds University Business School

Krsto Pandza is Professor of Strategy and Innovation at the Leeds University Business School. His research interests lie at the intersection of strategy, technology innovation and organizational theory.

Richard Whittington
Saïd Business School and New College, University of Oxford

Richard Whittington is Professor of Strategic Management at the Saïd Business School and New College, University of Oxford. His main current research interests are Strategy as Practice and Open Strategy.

Skidding in the global race for talent? Diversity at the top puts firms on track

As competition for the best talent takes on an international dimension, firms must find ways to attract the skilled employees. Our study shows that nationality diversity in the top management team matters for employer attractiveness – either directly or mediated via firms’ efforts to promote diversity.

Authors

Sebastian Baldermann
Vrije Universiteit Amsterdam
Tobias Dauth
HHL Leipzig Graduate School of Management
Stefan Schmid
ESCP Business School Berlin

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Dauth, T., Schmid, S., Baldermann, S., & Orban, F. (2023). Attracting talent through diversity at the top: The impact of TMT diversity and firms’ efforts to promote diversity on employer attractiveness. European Management Journal, 41(1), 9-20.

 

8 May 2023

What increases firms’ chances of winning the race?

The simple answer: nationality diversity! But, in order to truly have a positive impact on employer attractiveness, not only are diversity initiatives in the firm required – but an implementation of diversity at the very top of the organization, i.e., in the top management. Our empirical analyses for a sample of firms from four European countries reveal that diversity in the top management team (TMT) has a direct positive effect on employer attractiveness for job seekers from foreign countries. What is more, TMT diversity may enhance initiatives to promote diversity in the firm, which then in turn positively affects the perceived favorability of the firm for talent from abroad.

TMT diversity may enhance initiatives to promote diversity in the firm, which then in turn positively affects the perceived favorability of the firm for talent from abroad.

We argue that this is because diversity, either in the form of TMT members’ background or concrete initiatives, affects the brand of the employer, i.e. the firm’s perception. Employer branding that appears to place emphasis on diversity signals to potential employees that a firm offers a positive environment and development opportunities for them irrespective of one’s origin. As a consequence, potential employees might be more likely to apply, fueling firms in the global race for talent. However, the association between diversity and employer attractiveness may come across a bit abstract, and begs the question:

So what can firms do practically?

There are several hands-on measures firms can consider in their race strategy for talent. To begin with, be open with regard to nationality background when appointing new TMT members – and not just favor those for top positions who went through the ranks of the focal firm in a conventional “domestic career”.

But, at the same time, avoid pure signaling and lip service by introducing nationally diverse top managers only for the sake of having them. Actual initiatives to enforce a supportive climate for diversity matter as well – or might serve as a mediator that only enables an (indirect) association between TMT diversity and employer attractiveness in the first place: refocusing our empirical analyses on all job seekers, instead of just foreign job seekers, we show that TMT diversity by itself has no direct effect on employer attractiveness for the entire pool of talent. However, once again, it affects firms’ efforts to promote diversity, which may then impact favorability as an employer. In other words, for all job seekers, diversity initiatives are mandatory in order to have a positive employer attractiveness effect of diversity at all.

Given the empirically evident association between TMT diversity and firms’ efforts to promote diversity, it appears to make sense to directly tie the responsibility and ownership for diversity initiatives to individual members of the TMT. This might signal credibility of firms’ statements to foster diversity in their organizations. Examples of diversity initiatives could include, but are not limited to, mentoring programs, special trainings for people with a non-domestic background or efforts to enable equality e.g. in terms of pay.

In a nutshell: firms that depend on talent from all over the world should embrace diversity, but in a credible and long-term oriented manner. Of course, this is easier said than done, but firms appear to be the architects of their own fortune … or not?

In a nutshell: firms that depend on talent from all over the world should embrace diversity, but in a credible and long-term oriented manner.

So it’s all in the firms’ hands?

Not entirely. Indeed, firms can do a lot to signal a favorable climate for diversity in their organization. But their sphere of influence is also limited. Especially country level factors could hamper diversity efforts of firms. Is there a welcoming societal and governmental climate for foreign employees? Is the country struggling with (military) conflict? Are there protectionist measures that signal that an economy is shutting off? These could be factors preventing foreign job seekers from considering a firm as a potential workplace, despite efforts to offer an inclusive environment for people with diverse backgrounds.

However, this is not meant to discourage firms from enhancing the diversity of the top management or introducing initiatives to promote diversity. Macro level factors might be subject to change as well, and eventually, firms’ diversity focus will pay off. Or, returning to the metaphor, the winner’s rostrum in the global race for talent will be in sight.

Authors

Sebastian Baldermann
Vrije Universiteit Amsterdam

Dr. Sebastian Baldermann is Assistant Professor of International Business at the Management & Organization Department of Vrije Universiteit Amsterdam. His research focuses on how individuals and their characteristics shape organizations, with a particular focus on internationalization. Furthermore, Sebastian is interested in the internationalization strategies of Multinational Corporations (MNCs) and the implication of global trends and developments for International Management. He has published several journal articles, chapters and practitioner-oriented articles on these topics.

https://nl.linkedin.com/in/dr-sebastian-baldermann-810a34117?trk=people-guest_people_search-card

Tobias Dauth
HHL Leipzig Graduate School of Management

Prof. Dr. Tobias Dauth holds the Chair of International Management at HHL Leipzig Graduate School of Management. In his research, he focuses on strategic, organizational and cultural challenges of international firms. He is a member of the German Academic Association for Business Research (VHB), the European International Business Academy (EIBA) and the Academy of International Business (AIB). Moreover, he serves as reviewer for several international academic journals.

https://de.linkedin.com/in/tobias-dauth

Stefan Schmid
ESCP Business School Berlin

Prof. Dr. Stefan Schmid is Professor and Chair of International Management and Strategic Management at the Berlin campus of ESCP Business School, where he is also the Academic Director of the Executive MBA. He has published widely, in particular on firm internationalization and TMT internationalization. His contributions appear in a broad range of different formats, such as academic journal articles, practitioner-oriented papers, books and case studies. Learn more about Stefan Schmid: escp.eu/imsm.

https://orcid.org/0000-0002-4277-1116