Getting a Seat at the Table - Think Tank 3, Rodney Gray

8/6/2019 Getting a Seat at the Table - Think Tank 3, Rodney Gray

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“Getting a seat at the table”

Rodney Gray

Employee Communication & Surveys

IABC International Conference 2006

Think Tank 3, Monday 5 June, 7.15am2

IABC + PR News research

Sent online survey to

members of IABC andsubscribers to PR News

Lots of qualitative aswell as quantitativesurvey items

3

Sample mostly North American

490x PR chiefs respondedfrom 37 countries

69% from USA

18% from Canada

1% from United Kingdom

5% from the Continent

2% from Australia

16% have over 10 staff 15% have 6-1069% have 1-5

4

How many do have a

seat at the top table?

41% report directly tothe CEO; 59% don’t

41% are members of top management team

30% meet weekly

6% meet fortnightly

22% meet monthly

42% meet less often

5

Most CEOs are not too bad

81% of CEOsunderstand theimportance of communication,not just when thereis an issue or crisis

11% don’t

6

Most CEOs regard PR well

70% see PR as aninvestment in thefuture not just a cost

13% don’t



7

PR chiefs say CEOs think

they understand business

75% of PR chiefs say

their CEO “would sayI understand thebusiness”

Only 5% say not

8

Do CEOs accept PR advice?

67% of PR chiefs say

their CEO usuallyaccepts theirrecommendations

But 10% don’t

9

Do CEOs ask for PR advice on

the future of the business?

Only 50% of PR chiefssaid their CEOs askedfor their opinion aboutPR implications of future directions of thebusiness

27% said they didn’t

10

Valued PR chiefs are consulted

on many broad business issues

High level strategy long-term

Strategic advocacy globally

Growth plans, acquisitions

New products, services; ROI

Sales & marketing strategy

Current affairs: now, future

Business reputation, branding

Stakeholder relations (all)

Employee engagement, culture

11

Under-valued PR chiefs are

consulted on a few issues

CEO presentations, events

Media relations, strategy

Communication tactics

Publications, speeches

Newsletters, websites

Analyst relationships

Last minute surprises

His golf game

Crises 12

A research study in the UK

Focus was “todetermine whatCEOs perceive tobe the value of public relations”



13

Interviews with top CEOs

This is a summary of

interviews with 14CEOs and chairmenconducted in the UK in mid-2004 (e.g.

Vauxhall, HiltonGroup, Oxfam GB,Sainsbury, Xstrata,Thomas Cook UK)

14

PR is intuitively “of value”

As was the case in the IABC-PR News study,some CEOs said they “intuitively” value PR and don’t necessarily need to measure value:

Is an essential cost of doing business

Is “mission critical” to business performance

Is long-term, iterative in effect (avoid surprises)

Is not amenable to precise measurement

No great need to demonstrate ROI on PR

But some PR people do need more confidencein the use of available measures

15

CEOs want help with reputation

All CEOs say they “own” reputation personally It depends on what organization DOES, not says

Reputation depends on CEO’s values, beliefs

Correlation corporate + CEO’s personal reputation

Communication or PR cannot own reputation But they can advise, coach, rehearse, support

CEO’s communication performance is a primarydriver of reputation So PR and communication support is critical

16

What CEOs see as PR’s benefits

Developing both profile and positioning

Being proactive and reactive (“no surprises”)

Looking out for risks to reputation, position

Especially re media relations, communication

Influencing behavior in key relationships

Clarity of communication – advisory serviceIncreasingly helping CEOs align and inspire

employees

17

What CEOs say PR’s role is

Some said role includes organization strategyCertainly influencing strategy in the context of

managing key relationships with stakeholders(but not business models, corporate structure)

Most distinguish PR from communication PR is mostly media relations (fear of “spin”)

Communication is the total process of org. com.

Making all leaders better communicators

Early warning intelligence re risks, decisions But reservations about reliability, quality of this 18

How do CEOs rate PR (in UK)

Very complex, transparent environment todayThe best PR people have vast experience and: Acute understanding of all stakeholders’ needs

(perspectives and prejudices of various publics)

Know the business model, KPIs, and environment(are close to the “heart” of the business)

Confidence and ability to challenge all leaders(“look them in the eye”)

Be objective re perceptions likely to be created bydecisions, actions and messages



19

Other tips from CEO research (UK)

PR people need “better training + preparation

to argue the value of the business and thecontribution they can make” (= > confidence)

“Good PR initiated through listening andreporting back – can act as the conscience of the organisation and inform top managementdecision-making”….”mission critical”

CEOs “worry that they do not have a goodenough ‘radar’ for emerging issues”

20

Jim Shaffer interviewed CEOs

CEOs said most communication functions: Are media managers, glorified public information

bureaus - town criers Are focused on “getting the message out” versus

getting business results

Focus on history and dead information -information people can’t manage

Are slow; they can’t get information to peoplewhen they need it

Can’t show the value they add

Don’t understand the business of the business

21

Many CEOs don’t think much of

the communication function

Aren’t they the folks who put out the employee newspaper?

I need help getting my leadership team on the same page. But they don’t seem qualified to help me with this.

They don’t understand our business.

A lot of the time, quite frankly, they’re just in the way.

They don’t worry about what I worry about. Why would I go to them for advice when our interests are so different?

22

Deadlines, intranets, newsletters

I’m worried about the business; they’re worried about deadlines.

I want to take communication off the table as a barrier to company performance. They wouldn’t have the slightest idea how to help me with that. My guess is that they’d want to start another intranet or newsletter.

23

Improving people performance

I want them coming to me and suggesting new ideas for improving people

performance - helping me get people on board and committed.I’m not looking for a media solution.

24

Integrated communication

approach to drive results

I’m looking for a systemic, integrated communication approach that will drive results. When I’ve tried to tell them what I want, I just get vacant stares.They act like deer caught in headlights.



25

Based on his research

Shaffer says work on…

Improving business

performance - solvingreal business problems

Focusing people onthings that are critical towinning

Making sure people haveinformation they need -when they need it - tomake the right decisions

26

Support managers with high-

level strategic communication

Coordinating communication

strategies, plans, tacticstrusted sources, content

most cost-effective media

Managing relationships

for trust of all stakeholders

train executives, managers

Ensuring common purpose

leaders are good role models

understanding of objectives

27

Support managers with high-

level strategic communication

Cross-functional issuese.g. communication flows

Negotiations, mediae.g. coaching, counselling

Coordinating major changeCEO, executives face-to-face

Reputation, brand impacte.g. internal branding, values

Measuring outcomese.g. managers’ adequacy,

customer + public feedback 28

Personal role and expertise of

PR or communication chief

Must be, and be seen tobe, the true expert inmanagement of all typesof relationships (i.e.relations with all publics)

Not just someone who

coordinates craft-basedmedia solutions

29

The new imperative: speak the

lingua franca of business

Lester Potter asks whethercommunicators wouldunderstand all the issues once they took their seat at the executive table…

business knowledge is thecommunicator’s new imperative

30

Business management for

organizational communicators

Potter says we should understand:

Strategic planning

Marketing theory andpractice

Organizational theoryand design

Organizational andindividual behavior

Accounting basics

Business law

Managerial economics

Ethics

Quantitative analysis

Finance

(with Computing these arethe basic elements of most MBA programs)



31

David Pincus Ph.D, professor of

communication + MBA program director

At the University of Arkansas, the gap

between the business and communication school buildings is no more than 10 yards.Yet when I arrived there as MBA director,I found the faculties were complete strangers to one another – the buildings could be in different countries.

32

Not many on the board or exec

team of top FTSE companies

FTSE 100 companies with

Communication Directoron:

board = 3% (3)

exec team = 23% (23)

FTSE 250 companies withCommunication Directoron:

board = 9% (23)

exec team = 14% (35)

33

UK study of 15 corporate affairs /

PR / communication chiefs

What are the personal skills / attributes that allow aparticular individual to progress to a seniorstrategic communications position?

Most importantLinking communication and organization objectives

Demonstrating business value

Medium importance Ability to communicate, understanding & use of tools

Organization understands the importance of comms Also importantSound commercial understanding; GM skills

34

UK survey of communication chiefs at

FTSE 250 “most admired” companies

Summary - seven tenets of best practice:

Acceptance by and membership of the exec team

Involvement in the early stages of businessplanning and development discussions

Regular contact with the CEO

Proactive planning process throughout the year

Communication plans that support business plans

An excellent understanding of the sector thatallows rapid and accurate reactivity

In-house teams that are regularly supported byretained consultancies

35

“Top Team” PR directors re

competencies of top communicators

Strategy and action (being well-informed)Takes a strategic / long-term view – plans ahead

Makes decisions and acts (even if unpopular)

People skills (challenges + values others)

Understands others: open-minded, empathetic

Leads and supports, provides direction / insight

Personal communication skills, networks

Personal characteristics (tough on self)

Takes responsibility for high standards, values

Maintains positive outlook; deals with ambiguity36

David Clutterbuck’s research

found four elements of success

Communication competence isnot about what communication

professionals do…..

Consistently, success was

shown to come from what the

business does…..

clarity of purpose

effective interfaces

effective information sharing

leadership communication



37

Exactly what should good

communicators be doing?

Whoever gave communicators the idea that

they should be doing the communicating?

As a corporate “staff” function PR/Communicationshould not do the work of executives, managers, others

Everyone is responsible forcommunication

38

Support CEO and top team with…

Professional expertise

Communicatorsshould work on thosethings that requiretheir professionalexpertise

39


Economies of scale

Communicatorsshould work onthings that theycan coordinate toproduce economiesof scale

40


Control, audit, policing

Communicators shouldwork on those thingsthat require consistency,control, regulation of standards

41

Earning executives’ trust

To earn the trust of the CEO and otherexecutives you needto work on what theyare concerned about

They are interested inthe performance of the business overall

42

Don’t just give what they want

CEOs and other executiveswant your support on PR andcommunication aspects tohelp drive the business

This will earn their trust

And, although they may notknow it, they will need yourhelp with their personalcommunication efforts

You will need their trust for this



43

To be a high-flyer you’ll need to be

Strategic business genius

External boundary-riderLong-term future oriented

Credible communicator

Leadership role-model

Fearless in giving advice

Expert in people: all types

Learner and clear thinker

Effective decision-maker44

You’ll need to read, understand

and be able to argue about…

Built to Last and Good to Great, Jim Collins

Books on top companies: e.g. Southwest AirlinesBooks by CEOs: Welch, Bossidy, Bethune, etc.

Books on contemporary communication issues:

e.g.The Tipping Point, Blink, Malcolm Gladwell;The Wisdom of Crowds, James Surowiecki

As well as all major aspects of communication:

D’Aprix, Holtz, Quirke, Shaffer, Smythe, etc.

45

References

Slides 2-11: Getting a seat at the CEO table may take a PR reupholstering job, PR News, Issue 18,

Vol.61, May 4, 2005 (but scales in tables arereversed) and CEOs seem to be listening, RodneyGray, p.27, Communication World (IABC), July-

August 2005

Slides 12-19: Murray, K. & White, J. (2004). CEO views on reputation management . London: ChimeCommunications + Henley Management CollegeCentre for Reputation. Report available from:http://www.insightmkt.com/ceo_pr_briefing/

46

References

Slides 20-28: James Shaffer, Connecting the dots…linking people to strategy, IABC Conference,1999. For his extremely useful model see The Leadership Solution , McGraw-Hill, 2000

Slides 29-30: Lester Potter,The new imperative,Strategic Communication Management (SCM),

August/September 1999

Slide 31: David Pincus, Everything’s Changed…But What’s Really Different? , Communication World,September 1999

47

References

Slides 32-33: Peter Christopherson, Echo Research,Maximising Strategic Impact, The CommunicationDirectors’ Forum [UK], Oriana, 8-11 June 2005

Slides 34-35: Anne Gregory, Public Relations Management among Britain’s ‘Most Admired’ Companies, Leeds Business School Centre forPublic Relations Studies

Slide 36: Does communication competence contribute to business success? David Clutterbuck,IABC International Conference, Vancouver, 2000

Slide 37: quote from unknown author in SCM 48

Contact details

Rodney GrayEmployee Communication

& Surveys

Suite 217, 40 Yeo Street,

Neutral Bay, NSW, 2089,

(Sydney) Australia

+61 2 9909 2900

[email protected]

www.employee-communication.com.au

Getting a Seat at the Table - Think Tank 3, Rodney Gray

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