“Tackling Problems That Keep Your CEO Awake At Night”
Good morning. Thanks for joining me amidst all of this morning's presentations and programs. Once again, IABC has put together a terrific menu for its members. I'd like to congratulate them, and you, for getting this conference off to such a great start.
My task today is to take a look at communications at the highest level of a company. This is where some of the most difficult, and exciting challenges reside - in the office of the chief executive officer. My premise is that public relations at its most effective deals with the issues that keep the CEO awake at night. What we're going to do this morning is try to understand those issues and discuss the role and impact of communications in dealing with them.
More than ever, public relations officers provide a breadth of strategic advice to CEOs - and CEOs are listening. This is because public relations managers are uniquely positioned in the organization. We have - or should have - an unparalleled perspective, encompassing the interests and concerns of all key stakeholders.
Like the CEO, the chief public relations or public affairs officer is in the eye of the storm. While marketing or advertising managers are focused on selling products or services, the public relations manager keeps track of the full range of issues that have an impact on the reputation of the company and its brands. They should have the perspective on every issue and how it affects the various stakeholder groups. Such insight is invaluable to the CEO's decision making.
That is why public relations in the '90s is far more than just cranking out news releases or staging events. It is steering the leadership of a company through the countless hazards of our media-driven world. As business communicators, we're more than just cheerleaders and messengers - we are also watchdogs, pollsters, pundits, and, in some cases, institutional psychiatrists.
With this in mind, I'd like to conclude with a list of public relations imperatives - the seven key roles of business communicators: as a chief scout, navigator, firefighter, interpreter, advocate, evaluator and educator. By performing these functions, we can ensure the CEO the kind of counsel and service that brings peace of mind and a restful night.
The first role is that of chief scout. We are the eyes and ears of the company, with a view fixed far off into the horizon. Because of our unique position and access, we can see critical trends as they unfold. We are an invaluable source of intelligence on governmental affairs and regulation, consumer lifestyles, interest group dynamics, communications technology, corporate governance, as well as industry and market trends. Looking inward, we can help the CEO understand and manage the attitudes of employees, the agenda of labor leaders and the expectations of investors.
To be a good chief scout, you have to be a valued and trusted member of the organization. Bill Margaritis, vice president, corporate communications at Federal Express, told me you get there by thoroughly understanding the business of the company, by having a global perspective, strategic mindset and the political sensitivity to know how to move through the organization. "By aligning the public relations function with the goals and objectives of the company, you'll get your seat at the table," says Margaritis.
Speaking from my own experience, I can tell you that no CEO can possibly know everything that is going on in the entire company 24 hours a day. You need to set the tone through leadership and behavior. Then you have to trust in your culture. You need a watchdog to alert you to smoldering problems in any part of the world. Research is an essential tool for public relations in this area. It gives the CEO a more accurate depiction of trends and attitudes, while also providing a benchmark for public relations programs.
Armed with this knowledge, we can perform the second key role - as navigator, particularly through the troubled waters of issues management. Rather than a passive observer, public relations managers should help the CEO anticipate problems and advise a course of action. What should the company do to avoid shareholder lawsuits or public proxy battles? What are the risks of product tampering or safety issues? What should management do now to prevent labor unrest during the next contract negotiations? What new government regulation or deregulation is on the horizon that could unsettle the status quo?
The challenges are many and varied and they touch upon every aspect of the organization. The public relations officer is responsible for anticipating these challenges and helping the CEO formulate effective responses. That requires exceptionally broad acquaintance with issues and trends that extend beyond your particular industry. In this regard, an effective business communicator must be a business leader with special expertise in communications.
Another role is to be the firefighter. When a crisis occurs and the company is besieged by media, the public relations manager is the front line of defense. We are also the strong right hand of the CEO. We shape the company's messages, gather ongoing intelligence, and provide controlled opportunities for the CEO to present the company's viewpoint. Extinguishing a crisis takes steady nerves and a terrific sense of balance. There's nothing like a bubbling issue or full-blown crisis to bring out the CEO's appreciation of the public relations function.
If crises are the exception, daily communication of the CEOs vision is the rule. In this regard, the business communicator has the invaluable role of interpreter. And the process works both ways. The CEO needs someone to translate the company vision to all of the key audiences. At the same time, the CEO needs someone to gather feedback from all of the audiences and communications channels and present that back to the CEO. Without this process, the chief executive becomes isolated and loses touch with reality. He or she issues directives without any certainty that they are received and internalized - until it is too late.
Some CEOs we've worked with blithely assumed their employees hung on their every word. Objective communications audits revealed that the messages weren't getting through. Either the workers resented management or they were indifferent to its pronouncements. New messages and new channels of communication - two-way communication - were in order. Naturally, the more international the company, the greater the need for interpretation to ensure consistent, borderless and credible communication. To do this, an effective public relations manager must have an extensive network, and tap into many different parts of the organization. You can't tie yourself exclusively to the CEO's office. If you become insular, the value of your counsel will diminish greatly. You must have a seat at many tables.
Of course, the public relations officer must be more than a conduit for moving information back and forth. Along with being an interpreter, he must also play the role of advocate. A CEOs vision is a cry in the wilderness unless there is someone to present it to people in a direct and meaningful way. That is our job as communicators. Reinforcing the company's vision takes persistence and creativity. It often involves bringing the CEO out of the office and putting him or her face to face with stakeholders. This might be done live, or via written materials or even through the marvels of interactive media. The methods and the messages are up to you. The goal is a compelling vision, faithfully and effectively delivered.
This doesn't mean that the business communicator is just a "Yes-person." I was talking about this with one of our clients, Dave Samson of Levi Strauss & Co., and he offered a telling insight. He said that public relations managers must have a tough skin and be willing, on occasion, to tell the CEO things that he or she does not want to hear. We should even be prepared to put our job on the line in order to challenge our company to honor the brand promises it makes to its stakeholders. We can't sit on the sidelines. Dave said "We must seize the opportunity to influence and shape business decisions, holding ourselves fully accountable for the consequences of those actions." That is bold - even scary - advice, but I think its wisdom is undeniable. Dave is a wise practitioner.
The next role for the public relations manager is as evaluator. The CEO needs to know all this effort is generating measurable results. Research is essential to effective communications. It allows us to set up a baseline of attitudes and to track how different stakeholders have responded to the CEO's messages. This goes far beyond compiling media clip books or counting media impressions. It means delineating people's beliefs and establishing each audience's threshold of credibility. And it means measuring the impact of the CEOs words and actions on the behavior of employees, investors, consumers and other stakeholders.
Throughout all of this, the business communicator has an overriding role and that final one is as educator. Many CEO's have good intentions, but they are not familiar with the complexities of the communications process. You need to guide them through that process and demonstrate the true value of the public relations function in achieving the company's objectives. Valerie DiMaria, vice president, corporate public relations and advertising at GE Capital, says you "need to share information on how the media works, why we need to adapt specific messages, when we should say what and why." As you perform your communications functions, you have an excellent opportunity to enlighten the CEO and senior management in the methods and purposes of public relations.
For example, one of our clients asks us to do periodic media and crisis management training sessions for the company's managers at the corporate and factory level. During the course of their instruction, the managers get a first-hand exposure to the public relations process. They gain a greater appreciation of the role of communications and the critical importance of clear, consistent messaging. That's a very good start. Ultimately you want to help the CEO develop an instinct for communications that influences the formulation and conduct of company strategies and policy.
To summarize, the CEO depends on public relations professionals for many things these days. That's why the public relations function is more vital, and I believe more appreciated, than ever. As a scout, a navigator, a firefighter, an interpreter, an advocate, an evaluator and an educator, the effective public relations leader advances the CEO's vision and protects the vital interests of the company. This reinforces the credibility of the company's leadership and the value of its brands.
Your CEO's success in many cases depends on what you can deliver and how well you do it. Jack Bergen, the senior vice president at CBS Corporation, says that much of this rests on the relationship you have with the CEO and your ability to deliver knowledgeable advice and counsel to help the CEO shape policies and then communicate them.
This morning we've seen that the CEO is in the center of a maelstrom that involves disparate and often competing interests. The things that keep the CEO up at night involve balancing these interests in order to protect the reputation of the company, its brands and its management. At the same time, the CEO must inspire his or her employees with a clear vision and instill a passion for performance and for change.
Clear, consistent and credible communications are essential for achieving these goals in the '90s. They are the tools by which the CEO - assisted by an able public relations team - can pursue a vision of growth and win the confidence of stakeholders around the world. And that all adds up to a good night's sleep for all of our CEOs and all of us.




