Case Studies

Goals

• NS Group, a company that produced tubular products for the energy industry and certain industrial markets, had decided to restructure by ceasing its steel and hot band production in Kentucky and divest its special bar quality (SBQ) business in Pennsylvania. The company contracted Ward Creative Communications to tailor specific and comprehensive communication plans for employees (those who would be displaced and those that remained), the local community, unions, vendors and shareholders.

• The publicly traded company wanted to convey to shareholders and investors that the company was doing what was necessary to improve shareholder value and increase the bottom line, despite the company’s 100-plus-year history as a steel manufacturer.

• The goal of the plans were to minimize negative perceptions while communicating the benefits of the restructuring to remaining employees and other target audiences.

• The company wanted to minimize union backlash and foster goodwill in the community upon departure

• NS Group also wanted to demonstrate cooperation, responsibility and a sense of caring to employees, unions, media and local community.
  

Strategy

• For the Kentucky steel mill closures, the agency’s strategy was to convey NS Group’s cost-cutting message to analysts, bondholders and equity holders; minimize employee attrition through communication; use the media as a third-party source to reinforce the company story to audiences; designate prepared spokespeople to deliver the company message to media, employees and community; communicate with other local employers to help place displaced workers; and maintain communication with all employees, financial community, customers, unions, local community and vendors during and following the announcement.

• For the Pennsylvania SBQ divestiture and complete exit of NS Group from the community, the strategy was the same as above, but with special attention paid to the community and remaining employees as the mill would remain open for 30 days after the announcement of layoffs.

• Ward Creative Communications created customized plans that incorporated a host of comprehensive tactics such as press kit materials; minute-by-minute execution plan; media and employee communication training; executive speech writing; communication protocol documents; letters to laid off and retained employees (both pre- and post-restructuring); by-lined editorials to local newspapers, and extensive media communications conducted by the agency.

Results

• The restructuring was a success for NS Group. There was no voluntary employee attrition and unions, which had previously surfaced grievance issues via the media, cooperated as a result of the organized, fair communication efforts.
  
  
• The media reported the story fairly, with company messages dominating the coverage because company’s executives were well prepared and trained by Ward Creative to deliver quotable, memorable messages to the employees, community and shareholders.
  
  
• The company’s stock price rose from $7 per share to as much as $17 per share during the course of the restructuring, so the message of company stability was ultimately conveyed throughout the restructuring, which was critical to minimize the opportunity for a takeover due to the low stock price.