A New Role for the CCO – Defining and Activating Values

One aspect of the Page Society’s white paper, The Authentic Enterprise, that has gotten little commentary, is the recommendation that chief communications officers (CCOs) assert leadership in defining and activating values. Ironically, this recommendation is the one that may represent the biggest departure from the way most people think about the role of the CCO.
For companies to succeed in the rapidly changing and challenging global business environment, having a set of values that serves as a guide to authenticity is essential. But many would not see this as a place for leadership from the CCO.
Certainly, most CCOs at major enterprises have responsibility for internal communications, and the good ones obviously view this as a strategic lever, designing internal communications programs that achieve strategic objectives, often including values and culture change. The departure, however, is the paper’s suggestion that CCOs provide leadership in helping companies define their “business model, brand, culture, policies and, most importantly, values.”
Okay, you may say that’s not so new, either. The best CCO’s since Arthur W. Page himself have been senior counselors involved in the most important strategic enterprise deliberations. Yes, but the white paper goes beyond even that by advocating not just a participative, but a leadership role in defining values.
Now, suggesting that CCOs assert leadership is not the same as staking out ownership. Clearly, other staff and line business leaders will play in the values deliberations and if there’s an ultimate owner, it’s doubtless the CEO. But the CCO is in the best position to lead a companywide effort to define and activate values.
Why? Because the CCO sees the need to help the enterprise be consistently authentic from top to bottom, and with increasingly diverse and diffuse organizations, the only way to do that is with consistent behaviors. If you can’t control all the actions and messages, you must influence the entire organization to think, act and speak consistently, guided by a shared set of beliefs. Also, the CCO has the capabilities to lead in defining and activating values because it requires the kind of participative dialogue that is one of our core competencies.
When I was at Aetna, our new leadership team faced the need to implement a radical turnaround in a company that had lost its sense of who it was. We saw the need to agree on a binding pervasive philosophy that encompassed mission, values, goals and operating principles. I was asked to lead the business-wide council that created what the company now calls The Aetna Way. Initially, I was surprised by this assignment, but as I felt my way through it, I began to understand why the CEO thought the head of communications should take on this role.
Creating The Aetna Way was simultaneously a top-down and bottom-up exercise that drew on the company’s traditional beliefs, but updated them to reflect new realities. This required extensive dialogue – both to accomplish the best result and to achieve a sense of participation and buy-in across the enterprise. In a very fundamental sense, this was a communications exercise, and my familiarity with the disciplines of internal communications, branding, positioning and strategy prepared me well for the task.
It was critically important that the council I chaired had representatives from all staff areas and business lines and from several levels of management. We sought input from every corner of the company. This ensured that the effort was viewed across the enterprise as valid. For CCOs who understand the needs and the language of the business, leadership in defining values can be quite a natural role.
-- Roger Bolton
Senior Counselor
APCO Worldwide
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Member Comment:
Obviously, Steve, this is a real challenge for many companies. It’s unfamiliar territory for people who became successful doing things a certain way. When I was at Aetna, I talked the CEO into starting a blog, but when it came down to doing it, there always seemed to be a reason not to get started. And this was a CEO who really did “get” communications in the traditional sense—constituent outreach, speaking, media relations, etc.
I thought Jon Iwata had a good response to those who worry about ROI of social media in a podcast that was posted on the web this week: http://www.forimmediaterelease.biz/ I commented on that in my new post on this blog today.
The CEO research we did for The Authentic Enterprise shows that CEOs of consumer businesses “get” it more than B to B CEOs, and global company CEOs “get” it more than domestic ones. My guess is that those who are experiencing the impact of Web 2.0 stakeholder actions are more apt to want to use Web 2.0 to build relationships. Miles White of Abbott certainly understands gets it based on his comments at the Page Annual Conference last fall.
Your proposed ways to engage the C-suite make sense to me.
By Roger Bolton on May, 09 2008
Comment:
Roger, I’ve heard you speak about this before. Like you, I was given responsibility for the value development by the CEO. The Authentic Enterprise talks about the CCO taking responsibility to helping to define the values of the company, and I believe that this is an important aspect of our jobs (or at least the one I used to have).
The more I think about organizations, the more I come to believe that values are the foundation of their reputations, because values help define the acceptable and unacceptable behaviors of the organization. While Johson and Johnson rightly gets high praise for its handling of the Tylenol crisis, the take-away for me is not an outstanding example of crisis communications, but rather as an exampe of how a company lived by its values. J&J could have looked at the tremendous expense of withdrawing products, opening itself to lawsuits and shifting blame to some “crazy person”. Instead, it looked to its Credo and the first statement that the company had responsibility to earn and keep the trust of the doctors, nurses, mothers and fathers who buy and use its prodcuts. The CEO, Jim Burke,Larry Foster, and the rest of the executive team there at the time recognized that if they were to be true to the Credo, which in reality is their statement of value or principles, the product had to be withdrawn and they had to be open, honest and quick with their response. The fact that Tylenol’s market share was regained in less than 6-months after the incident is remarkable. This is a demonstration of trust. Many had written the obituary for Tylenol. And, the fact that J&J used its Credo to help it through its most severe crisis, should be more a a focus in case studies.
Juxtapose J&J’s handling of Tylenol against that of Mattel when it faced problems of lead in toys manufactured in China. Mattel has statement of values on its website that speak to its responsibility to the parents who buy their products. Yet, when faced with their test, they failed. They did not meet the 24-hour required reporting to the Consumer Products Safety Commission, leading to a fine by the CPSC more than $1 million. Furthermore, it took the company about 6-weeks to file its complete report and longer to withdraw products. The CEO then went on TV and blamed the Chinese for poor manufacturing, not understanding that one can outsource manufacturing, but one cannot outsource reputation.
So, values are the foundation of what separate the great from the also rans and I think it is high time that our profession steps in to help lead this effort since the outcomes of values are so important to the overall trust and reputation of the organization.
By Elliot Schreiber on May, 16 2008
Member Comment:
Great comments, Elliot. I’m glad you brought up JNJ and Larry Foster. As I’m sure you’re aware, Larry founded the Arthur W. Page Center http://www.comm.psu.edu/pagecenter/ (which is friendly with but not officially connected to the Arthur W. Page Society) at Penn State to promote ethics and responsibility in corporate communication.
The Page Center is sponsoring research grants to determine how company credos and codes of ethics affect corporate behavior. The Page Center wants to know: Do credos and codes of ethics positively influence the way that some corporations respond to ethical dilemmas or matters of public importance? If so, why? Are they largely window dressing for other companies? Why? What accounts for the differences, and what are the implications?
By Roger Bolton on May, 16 2008





Comment:
Roger: I’ve circulated The Authentic Enterprise to staff and clients alike. It’s superlative.
I wanted to post a related thought and was curious as to your opinions. We recently conducted a co-branded survey with PR News of 500 communications exectuives asking their number one digital PR pain point. Respondents uniformly complained about a lack of interest in, and understanding of, digital on tne part of the C-suite.
I believe there are a few smart ways to engage the C-suite in a “relevance of digital” discussion: a) present case studies showing digital’s impact on the bottom line (granted, these are few and far between) b) present a competitive audit showing what others in the space are doing and c) present missed “thought leadership” opportunities that could have been achieved by blogging, podcasting, engaging in social media discussions, etc.
The obvious stumbling blocks are fear and loss of control. Why do you think so few CEOs and C-suite members “get” digital?
By steven cody on May, 08 2008