Discovery @ Olin

Winds of ChangeCasting

In case you haven’t heard, Google bought YouTube for $1.65 billion – a deal that made headlines and turned YouTube creators Steve Chen and Chad Hurley into twentysomething tycoons. YouTube’s popularity (Time magazine named it “Invention of the Year”) helped ignite a video communication explosion that is changing our perception of entertainment, advertising and news. It’s a grassroots revolution based on information sharing and collaboration.

Video communication also is good for business, according to research by Olin Professor Jackson Nickerson. Nickerson and advertising executive Brad Fels are writing a book for managers on “ChangeCasting,” a process they describe as “a set of tips, tricks and techniques for communicating with and listening to your community to lead and accelerate organizational change.”

What are ChangeCasts, and what are their advantages?

Nickerson defines ChangeCasts as two- to five-minute videos CEOs and other executives use to talk with their workers on a regular, ongoing basis. Employees are invited to respond to these communications through anonymous e-mails that encourage honest feedback. This aspect is important, Nickerson said, because employees who fear repercussions from their comments “hide their concerns and misunderstandings.”

“To boost understanding, managers must enter into two-way conversations that focus both on the message and on reducing uncertainty,” he added. “Leaders must communicate how change will affect every person in the organization.”

The “a-picture-is-worth-a-thousand-words” adage holds true for ChangeCasts, Nickerson said. “Eyeball-to-eyeball communication enhances understanding and memorability. You get a lot of cues from a speaker’s facial expressions and body language.

“E-mails, memos and phone calls don’t attract enough attention, convey an emotional connection or lay the foundation for a conversation that builds clarity and trust,” he continued. “This may explain why organizational change is likely to end in failure and why communication is blamed. ChangeCasting leverages the same revolution that exacerbated the problem in the first place: information technology and the Internet.”

Nickerson’s research revealed a trend away from slick, rehearsed messages to communication that is open, authentic and sincere. “We’ve found that people prefer integrity over flawless delivery,” he said.

ChangeCasting has practical benefits, as well.

“Conversations require time and effort,” he said. “Imagine what it would take to successfully change an organization one person at a time, talking to thousands of people. For companies of substantial size, personal conversations are impractical if not impossible. Large meetings, on the other hand, also impose great costs on productivity and the bottom line. ChangeCasts are a cost effective way of delivering messages to the troops.”

In addition, Nickerson believes ChangeCasts reduce the amount of time managers spend in meetings. ChangeCasts don’t interfere with work flow; employees view the communication during breaks and can replay the video to reinforce understanding.

The technology behind ChangeCasting isn’t new. But inexpensive webcams and easy-to-use software have made video communication more pervasive. “The use of cable modems has been sufficiently upgraded during the past five years so that everyone can participate,” Nickerson said.

“For instance, a growing number of people are receiving their news through video sources like NYTimes, MSNNBC and Bloomberg Clip Syndicate. As people get used to receiving information through this format, it can be used for more types of communications. Several universities make at least some course content available through pod casts and video casts. They’re exploring what works and what doesn’t. In time, we’re likely to see additional communication channels integrated into course material. I’m suggesting we may see a similar explosion with respect to communication within companies and the way executives lead organizations.”

Are ChangeCasts productive for all businesses?

“I’ve seen enough positive signs to want to invest time enabling executives to get the most out of this medium,” Nickerson said. “I’m writing this book to make success more likely and failure unlikely.”

by Jill Pfeiffer