an arthur w. page society report

AN ARTHUR W. PAGE SOCIETY REPORT

VISIONThe Arthur W. Page Society is committed to the belief thatpublic relations as a function of executive management iscentral to the success of the corporation. The membershipof the Society will embrace those individuals who epitomizethe highest standards of public relations practice, as exemplified by the Page Principles.

MISSIONTo strengthen the management policy role of the corporatepublic relations officer by providing a continuous learningforum and by emphasizing the highest professional standards.

This report consists of two parts, which reinforce each other. First, we present anArthur W. Page Society white paper called “The Authentic Enterprise,” which examinesthe drivers and implications of a rapidly changing context for 21st century business.Second, we report the results of a survey of chief executive officers on the evolving role of the chief communications officer in light of these dramatic changes.

Together, these documents reach a number of important conclusions, which all corporate executives and leaders of public institutions ought to consider. Our objective is to stimulate dialogue – within companies, among leaders across a range of industries, and more broadly with influencers and stakeholders who care about therole of corporations. We hope such a dialogue will help all organizations – vast globalenterprises and smaller local ones – to be more authentic.

Our report is prompted by our desire to advance the Arthur W. Page Society Visionand Mission, which are printed on the opposite page. Strong chief communicationsofficers who live by the Page Principles (see page 59) are well positioned to help theircompanies succeed in the vastly different environment in which businesses must oper-ate today. But as the report notes in its call to action, the specific roles these leadersare required to play in this new era are significantly different and more challenging.

This has been a collaborative effort of many individuals who share the desire to see the Page Society take a leadership role in helping corporations respond to the challenges posed by the changes rapidly reshaping our world.

Roger Bolton, PresidentArthur W. Page Society

FOREWORD

Copyright © 2007 by Arthur W. Page Society. All rights reserved. No part of this publicationmay be reproduced in any form without the prior written permission of the publisher.

The Arthur W. Page Society gratefully acknowledges Chevron Corporation for generously sponsoringthe printing of this report.

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CONTENTS • T H E AU T H E N T I C E N T E R P R I S E

Part One The Authentic Enterprise: Relationships, Values & The Evolution of Corporate Communications

6 Executive Summary

8 Task Force Members

9 Introduction: The CEO’s Challenge

11 I. Drivers and Implications of Change

15 II. The Authentic Enterprise

19 III. Evolution of the Profession

24 IV. Foundations of a 21st Century Profession: Professionalize and Revolutionize

27 V. The Challenge of Trust

29 VI. The New Chief Communications Officer: A Call to Action

31 Appendix: Evolution of Other Corporate Staff Professions

(continued)

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CONTENTS • T H E AU T H E N T I C E N T E R P R I S E

Part Two The CEO View: Opportunities & Challenges for the Senior Communications Executive

38 Introduction

39 Objectives

39 Methodology

40 Executive Summary

42 The CEO Mindset

44 The Ideal Communications Chief

46 Titles for Communications Chiefs

47 Messaging Imperatives

48 The Arc of Communications Work

50 Getting to the Table and Staying There

51 Conclusion

52 Appendix A: Sample Profile

54 Appendix B: Sub-Sample Variations

55 Appendix C: Discussion Guide

58 Arthur W. Page Society Board of Trustees and Staff

59 Page Philosophy & Page Principles

AN ARTHUR W. PAGE SOCIETY REPORT

RELATIONSHIPS, VALUES& THE EVOLUTION OF

CORPORATECOMMUNICATIONS

A R T H U R W. PA G E S O C I E T Y • T H E A U T H E N T I C E N T E R P R I S E

A task force of the Arthur W. Page Society set outto examine the evolving role of the senior com-munications executive in 21st century business. Asour team pursued its mission, we found ourselvesconfronting phenomena that go far beyond thefuture of public relations. The relevance of thesephenomena was confirmed in a new study, com-missioned for this report, in which we surveyedchief executive officers on their perceptions of how their own jobs are being reshaped.

Businesses and institutions today are facing a rapidly changing landscape:

• the emergence of a new digital informationcommons;

• the reality of a global economy; and • the appearance and empowerment of myriad

new stakeholders.

Together, these forces have created a global play-ing field of unprecedented transparency and radi-cally democratized access to information produc-tion, dissemination and consumption. They areoverturning the corporation’s traditional ability tosegment audiences and messages and to managehow it wishes to be perceived. Today the corpora-tion’s relationship with one constituency is readilyvisible to all constituencies, who are multiplyingin number and growing in sophistication. Further,some of these new players are not legitimatestakeholders at all, but rather simply adversarialor even malicious. At the same time, powerfulnew possibilities are being opened up for the corporation to reach genuine stakeholders, toadvance its policy interests, to build its brand and enhance its reputation.

In such an environment, the corporation thatwants to establish a distinctive brand and achievelong-term success must, more than ever before,be grounded in a sure sense of what defines it --why it exists, what it stands for and what differen-tiates it in a marketplace of customers, investorsand workers. Those definitions – call them values,

principles, beliefs, mission, purpose or valueproposition – must dictate consistent behaviorand actions.

In a word, authenticity will be the coin of therealm for successful corporations and for thosewho lead them. But when we describe the emerg-ing business model as “the authentic enterprise,”two important caveats are necessary.

The first is that we are not suggesting that busi-nesses of the past were somehow inauthentic.Rather, it is the general arena of judgment anddifferentiation that has changed – and changedfundamentally. That in turn requires a correspon-ding change in how the corporation operates. Itsactions and reputation, which used to be safe-guarded by a cadre of professionalized functions,are now the responsibility of everyone in theenterprise. What used to be controlled within thecompany’s “four walls” is now spread across multi-ple partners, communities and individuals aroundthe globe.

This implies that companies must think in differ-ent ways about the roles of senior managementand the responsibilities of all employees. In ourstudy, CEOs described the need for their compa-nies to capitalize on the new realities. Many ofthe changes required involve stakeholder relation-ships and public perceptions, so CEOs are look-ing for their Chief Communications Officers totake a more strategic and interactive role withinthe senior leadership of the company. Andbecause the authentic enterprise requires a highlycoordinated approach across marketing, humanresources, legal, finance and other corporate func-tions, as well as line management, more than ever,leaders will need to hone their collaboration skills.

EXECUTIVE SUMMARY

In a word, authenticity will be the coin of the realm for successful corporations and for those who lead them.

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The second caveat is that not all enterprises,groups or individuals will seek this kind ofauthenticity. Indeed, the very forces creating somuch new opportunity are opening it up to every-one – including those who have no interest inbuilding institutions, but only in short-term gains.The proliferation of ways to play today’s radicallyfluid and open financial markets – from arbitrage,to hedge funds, to short-selling, to outright fraudof many stripes – is only expanding.

Some enterprises will choose to retreat from thisconundrum entirely. The growth of private equitytoday may be testament to that. But for thosecorporations that remain public and that aspire tobuild trusted brands, sustainable marketplace suc-cess and community reputation, the imperative ofauthenticity will inevitably grow in importance.

In this report, we draw on original researchamong CEOs, our own experience and a broadrange of studies and perspectives to support anumber of core conclusions:• The communications function has evolved

significantly over the past three decades, and is achieving increased stature within thecorporation.

• The converging forces of technology, globalintegration, multiplying stakeholders and the resulting greater need for transparencyare the most important communicationschallenges facing 21st century companies.

T H E A U T H E N T I C E N T E R P R I S E : R E L AT I O N S H I P S , VA L U E S A N D T H E E V O L U T I O N O F C O R P O R AT E C O M M U N I C AT I O N S

• We are no longer in control of our traditionalspheres of professional activity. Indeed, allbusiness functions are at the dawn of an eraof radical de-professionalization.

• Communicators are uniquely positioned tobecome experts on the new art and science of organizational trust.

At the end of our report, we lay out four new priorities and skills for which the ChiefCommunications Officer must now assume a leadership role:1. Leadership in defining and instilling company

values; 2. Leadership in building and managing multi-

stakeholder relationships;3. Leadership in enabling the enterprise with

“new media” skills and tools; and4. Leadership in building and managing trust,

in all its dimensions.

We believe that our profession is in a strong position to succeed in the 21st century. None ofthe new roles we have described is currently theresponsibility of an existing department, and our evolution as a function has prepared us wellto take them on. Although success will requirenew approaches, deeper business knowledge andnew skills and measurements, we are ready forthis moment.


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Co-Chairs:Valerie Di Maria, SVP and Group Marketing and Communications Director, Willis GroupHoldings, Ltd.Jon Iwata, SVP, Communications, IBM Corporation

Team Members:Paul A. Argenti, Professor of CorporateCommunication, Tuck School of Business at DartmouthMark Bain, President, upper 90 consultingKristen M. Bihary, President, Vyll CorporationSteve Cody, Managing Partner, PeppercomStrategic CommunicationsPeter D. Debreceny, former VP, CorporateRelations, Allstate Insurance CompanyDavid Demarest, Jr., VP, Public Affairs, Stanford UniversityStephen K. Dishart, Managing Director,Corporate Communications, Americas, Swiss Re America Holding CorporationSteven Harris, VP, Global Communications,General Motors Corporation

George Jamison, Consultant, Spencer StuartRichard S. Marshall, Senior Client Partner,Korn/Ferry InternationalFrank Ovaitt, President and CEO, Institute forPublic RelationsMike Paul, President & Senior Counselor, MGP & Associates Public RelationsDavid A. Samson, GM, Chevron CorporationJohanna Schneider, Executive Director, ExternalRelations, Business RoundtableKirk Stewart, EVP, Corporate CommunicationsPractice, APCO WorldwidePeter W. Thonis, Chief Communications Officer, Verizon

Ex-officioRoger Bolton, Senior Counselor, APCOWorldwideTom Nicholson, Executive Director, Arthur W.Page SocietyPaul Basista, former Executive Director, ArthurW. Page Society

TASK FORCE MEMBERS

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INTRODUCTION: THE CEO’S CHALLENGE

New models of and possibilities for the corporation are taking shape.Because of that, our profession today finds itself at a historic inflection point.We know this from our own experience, and a new study commissioned bythe Arthur W. Page Society among CEOs (see Part 2) confirms and deepensthat understanding. The leaders of our companies are facing new challenges,which they are looking to us to help them solve.

How we react to this moment could well determine the future of our profession, and the careers of the women and men who comprise it. Moreimportantly, our actions could have a material effect on our companies’ ability to adapt to and thrive in a radically new economic and societal environment – to become examples of what we call the authentic enterprise.

There is broad consensus among the chief executives we surveyed that the past several years have witnessed a profound shift in the public’s andgovernment’s view of corporations. Demands for transparency are at an all-time high, and give no sign of ebbing. This is blurring the lines betweencompanies’ “inside” and “outside” behaviors and communications. At thesame time, in a world where the tools and relationships of reputation andinfluence are available to all – the irresponsible as well as the responsible,friends as well as foes – the identity and definition of an enterprise or institu-tion is subject to far less control than in the past. In many ways today,businesses – but also communities, individuals and nations – are in an acute and high-stakes battle for their identities and global reputations.

The source of this disruptive shift is the convergence of three major forces –the digital network revolution, the reality of globalization and the empower-ment of myriad new stakeholders – and it is changing the context for businessand society. The stakes could not be higher for our companies. Our leaders



believe that we are at one of those inflection points in business history when new technologies combine with new economic and societal conditionsto change the game in fundamental ways. They see that accepted beliefs,long-standing institutions and highly successful enterprises are subject to rapid redefinition – for good or for ill. This presents both major threats and major opportunities for the corporation.

CEOs are looking to us for leadership in understanding and responding tothis new reality. As a result, CCOs have the opportunity to take on a largerrole within the enterprise and to provide greater value to it and its growingnetwork of constituencies. If we choose this path, we can transform our pro-fession, open up new and meaningful kinds of responsibility and learning,and create exciting new career paths for communications professionals.Alternately, we could circle the wagons and defend our familiar ways ofbehaving and operating. If we choose that path, we risk being marginalized.

The modern multinational corporation, whichemerged during the 20th century, was far morecomplex structurally and operationally than thebusiness organizations that had preceded it, andwas subject to many more external and internalpressures. As a result, it developed the adminis-trative and strategic functions that came to definecontemporary business management, such aspublic relations, personnel, finance, legal, adver-tising, data processing and other “staff” functions.

As these functions developed, they becameincreasingly professionalized – manifest in theshifts from Personnel to Human Resources; fromData Processing to Management InformationSystems and then to a Chief Information Officer;from Advertising to Marketing; and so on. (See the Appendix for summaries of research on these fields.)

However, at the same time that the multinationaland its management systems were taking ever-clearer and more defined shape, three counter-vailing trends were arising that have revolution-ized the environment in which businesses operate: the digital network revolution, globalintegration and stakeholder empowerment.Together, they call into question many basicassumptions of the 20th century corporate model.

The digital network revolution: The Internetand information technology are proliferating and democratizing the world’s channels of communication. The Net provides interlinked,low-cost (even free) and easy-to-use ways to communicate, to work and to organize peoplewith common interests.

This is driving a shift in the way people interactwith each other and with companies and institu-tions. It changes how dialogue occurs, how per-ceptions are shaped and how relationships areforged. We all must deal with a dramatic increasein the overall volume of communication; markedchanges in the content, tone and purpose of thosecommunications; an exponential increase in the


speed of those communications; and entirely new, low-cost tools and capabilities to search,structure and make sense of all this informationand interaction.

Global integration: Free trade agreements, theInternet and the emergence of highly skilled pop-ulations in developing regions have created a “flatworld.” For business, globalization has long beentransforming markets for capital and labor. Nowit is reshaping the footprint – and even the idea –of the corporation. This institution is shiftingfrom a hierarchical, monolithic, multinationalmodel to one that is horizontal, networked andglobally integrated. Because the operations andresponsibilities of organizations can now be com-ponentized, “virtualized” and distributed over anecosystem of business relationships, work cannow be located wherever it makes sense, drivenby the imperatives of economics, expertise andopen business conditions. Work is increasinglyseparable from the organization. This creates newchallenges for companies to manage their identi-ties and reputations.

When a company is a composite of many busi-nesses and entities spread around the world, whois it that orchestrates the seamless integration ofdiverse employee cultures, governmental regula-tions and financial landscapes? Indeed, who is an“employee”? Who is responsible for a company’sbrand? Who is accountable for what the corpora-tion creates and delivers – and for how it behaves?The globally integrated enterprise locates opera-tions and work wherever it makes sense aroundthe world, and any company today can access tal-ent and expertise from anywhere on the planet.What are the cultural, regulatory and financialimplications of this truly global context?

I. DRIVERS AND IMPLICATIONS OF CHANGE

Together, the digital network revolution, global integration andstakeholder empowerment call intoquestion many basic assumptions ofthe 20th century corporate model.

Stakeholder empowerment: In addition to thefamiliar intermediaries and constituencies withwhom corporations have interacted in the past –such as investors, media, analysts and regulatorybodies – there is now a diverse array of communi-ties, interests, nongovernmental organizations(e.g., environmental, human rights or consumeraffairs) and individuals – all far more able to collaborate among themselves around sharedinterests and to reach large audiences. At thesame time, companies and institutions themselvesare seeking similar kinds of engagement withmultiple constituencies.

Hence, the coinage a few years ago of the term“stakeholder” – and even the suggestion of a newcategory of “stakeholder rights.” Our companiesthemselves have growing stakes in other enter-prises’ success or failure, in their strategies,brands, and even values. Our leaders are seekinginfluence and even decision-making power in agrowing array of interests and activities, becauseour companies’ fortunes depend more and moreupon the success of partners, suppliers, clients,national economies, the global economy, universi-ty curricula and the health of our communities.

Public opinion surveys demonstrate that many of these new stakeholders are held in high esteem.At the same time, we have witnessed a markeddecline in public respect for institutions in general,and business in particular. This, in turn, has led toheightened regulatory scrutiny (e.g., Sarbanes-Oxley) and new demands for transparency in corporate performance and behavior. Such scrutinyis certainly challenging – but it is just one of theproblems businesses face. These new capabilitiesare also empowering many bad actors – from out-right criminals and malicious hackers, to fringegroups and narrowly focused zealots with neithervalues nor authenticity, and scant regard for truth,fairness or dialogue. Today, access to the tools andorganizing power of social media is free for all.

Together, these shifts put new pressures on ourcompanies, but they also open up new avenues todevelop deeper and more extensive relationships– relationships that can unlock new kinds of valuefor the enterprise through collaboration across

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complex business ecosystems. As a result, thechief communications executive and the commu-nications function of a 21st century corporationwill increasingly be responsible not only for thereputation of their single company, but also forunderstanding, communicating and even helpingto shape the reputations of its ecosystem partners– such as clients, partners, government agencies,nongovernmental organizations and other influencers.

We also need to collaborate much more often and more intimately with sister functions insidethe company, such as human resources, marketing,legal and finance. And the business desperatelyneeds that. The situation of most companiestoday is like the parable of six blind men and theelephant: Each specialized discipline has its owndeep knowledge and set of constituencies, but nofunction today looks across the full spectrum.

All three of these drivers – technology, globaliza-tion and the empowerment of new stakeholders –are generating an extraordinary fragmentation ofa company’s marketplace and environment. Andthis creates entirely new expectations for thosecorporations to fulfill.

Consider:

• A decade after the Netscape IPO, more thana billion people have access to the Internet.By 2011, it is estimated that the Internet willreach two billion people – nearly one-third ofthe world’s population.

• Every one of these individuals, as well asevery connected business and institution, canliterally become a global publisher for free ina few minutes. If the first phase of the Webwas about the democratization of informa-tion consumption, the next phase – what somecall Web 2.0 – is about the democratization of information production.

• The number of bloggers is doubling every fivemonths. As of October 2007, the blogsearchsite Technorati was tracking 108 million

blogs, increasing at a rate of 175,000 newblogs every day. They are updated at a rate of18 posts per second – or 1.6 million daily.

• Nearly every major U.S. newspaper sufferedcirculation declines in 2006. As readers flockto the Web and other outlets for news, aver-age daily circulation of the 770 newspapersreporting results to the Audit Bureau ofCirculation dropped 2.8 percent on a year-to-year basis during the six monthsended September 30, 2006 – following adecline of 2.5 percent during the reportingperiod ended March 31 of this year and a 2.6percent decline in the year-earlier period.

• The same “crowdsourcing” (a.k.a. opensource) phenomenon that created Linux andthat made the online encyclopedia Wikipediaa serious challenger to conventional encyclo-pedias and reference works is now beingapplied to journalism – manifest in the pio-neering Korean “citizen journalist” newspaperOhMyNews (http://english.ohmynews.com/ )and the March 2007 launch of Assignment Zero(http://zero.newassignment.net/).

• More than 300 million camera phones wereshipped in 2005. They are now the mostwidespread image-capture devices in theworld. At current growth rates, there could be one billion camera phones in use world-wide by 2008. That means nearly one personin six is a potential photojournalist – or, with the spread of video capabilities, documentary filmmaker.

• Teens in the U.S. – the consumers of todayand the employees, shareholders, voters andleaders of tomorrow – spend 60 percent lesstime watching TV than their parents, and600 percent more time online, interactingwith, influencing and being influenced not by institutions, marketers or professionalcommunicators, but by their peers.

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• Globalization is advancing rapidly. Initially,this has been driven by the imperatives ofeconomics. By one estimate, between 2000and 2003 alone, foreign firms built 60,000manufacturing plants in China, where laborcosts are one-tenth those of the developedworld. The flow of work in a globalizing econ-omy is not being driven by economics alone,but also by the need to tap premium skillsand expertise. For instance, IBM’s annual survey of foreign direct investment trends inmanufacturing, services and R&D found thatEurope regained its position as number onein 2005 – attracting 39 percent of all projects, vs. Asia’s 31 percent.

• Both global integration and technologicalprogress are being accelerated by radicallyopen approaches to innovation – from open-source software, to componentized businessprocesses, to distributed business models.P&G, for example, “imports” 50 percent of its new ideas from outsiders. And Eli Lilly hascreated an open R&D marketplace calledInnocentive to match problems needing solutions with independent researchers who can solve them.

• Strangers with common views can find eachother and create new communities of interestwith the power to affect established institu-tions. Experts on typewriter fonts used theblogosphere to question the authenticity ofdocuments cited by CBS News, leading to the departure of news anchor Dan Rather.Howard Dean’s run for the 2004 Democraticpresidential nomination was a grassroots phe-nomenon, built on Web-based fundraising,organizing and “meet-ups.” A disgruntledretiree founded the Association of BellTelRetirees and attracted 100,000 members virtually overnight. And environmentalgroups hired investment bankers to negotiateenvironmental concessions from the privateequity buyer of TXU.


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• CEOs’ jobs are themselves undergoing pro-found change. As Procter & Gamble CEOA.G. Lafley puts it, “Like it or not, we are in a global political world. I've concluded I’m init, anyway, and I might as well deal with it.”

Put all this together, and it is clear that companiesare operating in a different context. The rippleeffect of information is dramatically faster andbroader, new stakeholders are arising and inter-acting with each other in ways that create publicopinion and regulatory challenges, and enterprisesare increasingly diffused and virtualized, makingit harder for them to respond. And, of course, it is not only people commenting on or advocatingwith regard to the company who are beingempowered. The same is happening among allthose who interact with or act upon the companyin any way – whether financial, or legal, or com-petitive, or in terms of its supply chain, hiring,workforce practices or myriad other aspects of itsoperations. The effect of that, in terms of the com-pany’s exposure and relationships, is exponential.

All of this makes the 21st century enterprise vul-nerable at a wholly new level to unexpected devel-opments that can damage the brand, negativelyaffect employee commitment, undercut outsiderelationships and destabilize management,including the CEO and other corporate officersand Board members. This, in turn, means that the stakes are much higher for what corporatecommunicators do.

The CEOs surveyed for this reportunderscored these converging forces –technology, global integration, multi-plying stakeholders and the resultinggreater need for transparency – as the most important communicationschallenges facing their companies.

We are witnessing today nothing less than theemergence of a new global information commons– interlinked, lightweight, low-cost (even free) andeasy for anyone to use. Blogs, wikis, content syn-dication and social networking are not merelyadjuncts to the mainstream media. What theopen source movement did to the world of soft-ware development, these “Web 2.0” capabilitiesare doing to the arena for public discourse and influence.

They are not only creating a democratized “bullypulpit,” but enabling instant fact-checking of anycompany’s, government’s or NGO’s communica-tions, performed by the collective eyes of theentire networked world. They are not onlyempowering a billion new communicators – citizen journalists, publishers, broadcasters, filmmakers, photographers, etc. – but are buildingan exponentially more intelligent distributionnetwork, based on the “wisdom of crowds.” Thatis, not only can anyone now create any kind ofmedia, but if it is valuable to people, it will beinstantaneously spread globally.

The quality of the company’s products and services(or lack thereof) is apparent to all customers andpotential customers. Its treatment of employeesand retirees is visible across the corporation andto potential employees and public interest groups.Its citizenship, environmental behavior, corporategovernance standards, executive compensationpractices and public policy recommendations aretransparent to all.

The impact of the Web on a brand’s authenticityhas begun to be discussed within the marketingcommunity, as reported in the May 2007 issue ofFast Company (“Who Do You Love? The appeal –and risks – of authenticity,” by Bill Breen). Andthe consequences could not be more profound for corporate communicators.

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The simple reality is that, like the journalists, analysts and managers who have been our mainfocus, we no longer have a privileged position inthe areas that used to define our function.

• We used to control messages about our company.Today, they are created, exchanged and modified by a vast, distributed ecosystem ofemployees, customers, partners, communities,interest groups and “observers.”

• We used to segment communications carefully totargeted audiences. In an open informationcommons, everyone can see (and, increasingly,modify) any public communication, no mat-ter to whom it is targeted.

• We used to have distinct expertise in and controlover the channels of communication. Today, chan-nels are exploding in number, are easy to use,and as a result now “belong” to everyone.

Each of these challenges is daunting – but eachalso presents an opportunity. To seize theseopportunities, we must adopt very differentbehaviors and develop new skill sets. Again, ourCEO study supports this. In our research, CEOsidentified two overarching criteria for communi-cations – both internal and external:

II. THE AUTHENTIC ENTERPRISE

1. Conforming to fact and therefore worthyof trust, reliance, or belief: an authenticaccount by an eyewitness.

2. Having a claimed and verifiable origin or authorship; not counterfeit or copied:an authentic medieval sword.

3. Law Executed with due process:an authentic deed.- American Heritage Dictionary

au·then·tic, adj.


1. Message “segmentation” is no longer practicalor desirable. Despite the proliferation ofdiverse stakeholders, all are now on a levelplaying field.

2. Values are the fundamental basis for enterprise communications.

This isn’t just about ensuring that we tell the samestory to all audiences, but about how decisionsare made across the organization. In a market-place where access and institutional authority canno longer be controlled, expertise and authenticitybecome more crucial than ever before. Everyenterprise must be grounded in a clear sense ofitself. Indeed, an enterprise or institution that issure of its purpose, mission and values – and thattakes those bedrock definitions seriously – iseffectively compelled to behave in ways that areconsistent with its core values.

What kind of definitions are we talking about? A business must be able to answer such questionsas: What business are we in? What markets do weserve? What differentiates us as an employer, aninvestment, a partner, a neighbor? What do wedeeply believe in? What will endure? What do wevalue? And once we have answered these ques-tions and have a good sense of who we are andwhat we believe, how can we ensure that every-one associated with the far-flung enterpriseunderstands and acts in accordance with our mission, values, goals and operating principles?

Discovering the answers to such questions andembedding them in real and lasting ways into thefabric of an organization is non-trivial. Indeed, itmay be the hardest challenge any organizationfaces in the course of its lifetime. And increasing-ly, that definitional challenge comes not just fromwithin, but also from the outside. When thecapacity to influence and shape reputation isavailable to all, the identity and brand of an enter-prise or institution is subject to far less controlthan in the past.

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Is your company a world-leading innovator, or aprofit-mongering exploiter of the poor? Is it pro-gressive, innovative and adjusting to new realities,or is it abandoning its core values and puttingprofits ahead of people? This competitive war ofdefinition affects all businesses today – and mostdaunting of all, it is asymmetrical: Greaterresources no longer provide a significant competi-tive advantage. Further, it applies not only to cor-porations, but also to the individuals who makeup its workforce. After all, not only the companyas a whole, but each of its people is a global actornow, with exposure to the same exciting possibili-ties and sobering vulnerabilities.

So, to be an effective communications function inthe authentic enterprise: 1. We must not only position our companies,

but also help define them. While expertiseand authenticity are essential, communica-tors’ counsel to the corporation must now encompass its fundamental business model, brand, culture, policies and, most importantly, values.

2. We must not only develop channels formessaging but also networks of relation-ships. In a business ecosystem of proliferat-ing constituencies, communicators must leadthe development of social networks and thetools and skills of relationship building andcollaborative influence – both to seize newopportunities and to respond to new threats.

3. We must shift from changing perceptionsto changing realities. In a world of radicaltransparency, 21st century communicationsfunctions must lead in shaping behavior –inside and out – to make the company’s valuesa reality.


Further, we must not only change what we do, butalso how we do it. We must work in ways that arefar more interactive – even collaborative – than in the past. Although our work has been called“communications,” in truth it has mostly beenone-way. We must now make the radical depar-ture of becoming facilitators of two-way andmulti-directional conversations. Corporate com-municators must not only speak to, but learnfrom, all of the company’s populations in new anddeeper ways. We can and must influence them,and build relationships of partnership, trust andmutual self-interest. They are stakeholders in us,and we in them. And we must work to ensure that the world’s diversity – of experience, thought and culture – is reflected by the people serving in our profession.

This was confirmed in our survey of CEOs. Theyview their communications leaders as functioningin three ways:• Reactive communications leaders prioritize

incoming inquiries, manage the press andpublic events, serve as spokespersons, monitor reputation and engage in crisis management.

• Proactive communications leaders develop ideasand campaigns, shape messaging, monitorreputation across multiple stakeholders andeducate employees.

• Interactive communications leaders collaboratewith key stakeholders, employees and thepublic at large; clarify and disseminate thecompany’s values; operate as shapers of thecompany’s strategic direction; and measureresults in concrete, business-worthy ways.

Across the board, the CEOs regarded reactiveapproaches as inadequate. Even the “proactive”approaches that have strengthened during thepast couple of decades, while valuable, are nolonger sufficient. Our leaders recognize the needfor their enterprises to engage in fully interactiveways with all their important constituencies. Atthe same time, they believe their organizationsmust respond to the asymmetrical assaults of Web-

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enabled adversaries by playing offense, not justdefense. That is, companies must leverage the new tools of social media to “fight fire with fire.”

CEOs acknowledge that these new forms of inter-active communications are in an early, largely aspi-rational stage today. But they expect their chiefcommunications officer to take on this newresponsibility.

Finally, we must respond to both the threats andthe opportunities of this new environment at adramatically faster pace. The notion of “futureshock” has become a cliché over the past threedecades – but nowhere is its reality felt moreacutely than in the arena of global communica-tions. Indeed, one of the distinctive challenges forpublic relations professionals today is to brokerthe tensions among (a) the yearly or quarterlytimeframes of corporate strategy; (b) the daily,often minute-by-minute timeframes of the media,the grapevine and the blogosphere; and (c) thelong-term timeframes of the company’s historicalevolution and mission.

The work before us is at once more interesting,valuable and challenging than the work we havebeen asked to do in the past. This kind of enter-prise authenticity is difficult to achieve, but italso holds vast potential for growth, innovationand inspiration. The role of communicationsleadership – within our organizations, and acrossour profession – is to rise to that challenge andseize that opportunity.

In doing so, we can be guided by the core princi-ples laid down by Arthur Page years ago, whichare as relevant to the world into which we’re moving as they were in the business world inwhich they were created. Indeed, these principles,taken together, provide an excellent definition ofwhat it means to be an authentic enterprise:• Tell the truth. Let the public know what’s hap-

pening and provide an accurate picture of thecompany’s character, ideals and practices.



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• Prove it with action. Public perception of anorganization is determined 90 percent by whatit does and 10 percent by talking about it.

• Listen to the customer. To serve the companywell, understand what the public wants andneeds. Keep top decision makers and otheremployees informed about public reaction to company products, policies and practices.

• Manage for tomorrow. Anticipate public reac-tion and eliminate practices that create diffi-culties. Generate goodwill.

• Conduct public relations as if the whole companydepends on it. Corporate relations is a manage-ment function. No corporate strategy shouldbe implemented without considering itsimpact on the public. The public relationsprofessional is a policymaker capable of han-dling a wide range of corporate communica-tions activities.

• Realize a company’s true character is expressed byits people. The strongest opinions – good orbad – about a company are shaped by thewords and deeds of its employees. As a result,every employee – active or retired – isinvolved with public relations. It is theresponsibility of corporate communicationsto support each employee’s capability anddesire to be an honest, knowledgeable ambas-sador to customers, friends, shareowners andpublic officials.

• Remain calm, patient and good-humored. Lay thegroundwork for public relations miracles withconsistent, calm and reasoned attention toinformation and contacts. When a crisis arises,remember that cool heads communicate best.

The state of the public relations function todayrepresents a significant advance over its status,scope and skills in prior generations. Most corpo-rate communications organizations today areresponsible for key aspects of their companies’reputations. This is managed through relation-ships with the press, employees and analysts, andthrough communications guidance and supportof the company’s senior executives. In some cases,corporate communications is also responsible forrelations with government, NGOs, foundationsand the like. These are the familiar disciplines ofcorporate communications.

Arguably, of course, despite the relatively recentvintage of the business discipline of public rela-tions, aspects of its work were being performedbefore there were public corporations. What wetoday call PR helped the British East IndiaCompany and Dutch East India Company toraise the necessary capital to finance their over-seas initiatives and to motivate the local citizenryto establish lives in the then New World.

As Prof. Paul Argenti argues in his textbookCorporate Communication, the profession has comea long way from “the ‘flack’ era of public rela-tions.” It achieved an important new sense of mis-sion in the 1930s with the efforts of Paul Garrettat General Motors and Arthur Page with AT&Tto move corporate public relations into the direc-tion of serious communication about the totalityof the business.

As Scott Cutlip, Allen Center and Glen Broompoint out in their book Effective Public Relations,Garrett and Page not only helped GM and AT&Tcommunicate but also were given voices in com-pany policy. Page was noted for suggesting a com-pany’s public reputation would be determined byorganizational performance. He summed up hisphilosophy thus:

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All business in a democratic country begins with publicpermission and exists by public approval. If that betrue, it follows that business should be cheerfully willing to tell the public what its policies are, what it is doing and what it hopes to do. This seems practicallya duty.1

The deepening of corporate public relations fromold-fashioned publicity to strategic enterprisecommunications continued in the post-WW IIera among other companies such as Ford, Johnson& Johnson, and JD Searle, and through practi-tioners of proactive communications such asHerb Schmertz at Mobil. Following in the foot-steps of pioneers like Page, Garrett, EdwardBernays, Ivy Lee and Harold Burson, these lead-ers developed new forms of strategic public rela-tions that redefined the profession and brought it into the age of the modern multinational.

During the 1960s, the role of corporate commu-nications in shaping and explaining corporatesocial responsibility, as we know it today, acquireda new level of urgency – spurred in America, for instance, by such initiatives as the Civil Rights Act of 1965, and the establishment of the Environmental Protection Agency, theOccupational Safety and Health Administration(OSHA) and the Consumer Protection Agency.As public relations practitioners adapted to thesenew legal and regulatory requirements, two relat-ed developments had a significant impact on thethrust of corporate communications:

• The emergence of nongovernment organiza-tions, or NGOs, as self-appointed representa-tives of the public interest.

• The proliferation of media and their moreaggressive coverage of business. The appear-ance of 24-hour cable networks devotedexclusively to business and their ability tomove news around the world at the speed ofsound required a new response mechanismthat has continued to be challenging even tothe largest corporations.

III. EVOLUTION OF THE PROFESSION

1 From George Griswold, Jr., “How AT&T Public RelationsPolicies Developed,” Public Relations Quarterly (Vol. 12, Fall1967, p.13).


As contemporary corporate communicationsfunctions have continued to evolve, they havewrestled with questions such as how to groundcommunications goals in the needs and criteria of the business; whether to centralize or decen-tralize; where the function reports; and whatskills are needed to shift from a passive to anactive stance (e.g., shaping coverage rather thanreacting to it; building, rather than just defending,brand and reputation; and changing internal culture, vs. “corporate journalism” and message dissemination).

These issues remain alive today – but on balance,there is a general consensus across the professionabout how to address them. Public relations haslearned and institutionalized the lessons of the’60s, ’70s and ’80s – the so-called InformationAge – for organizational communications.

Today, we aim not merely to react to press cover-age, but to engage in a more active dialogue withreporters and create communications that proac-tively build support for our products, brands andpolicy objectives. Within our companies, we haveadvanced past “corporate journalism” and simplemessage dissemination, and are now engaged intrue culture change. In place of traditionalspeechwriting and wordsmithing, we play anincreasingly strategic role in company policy and positioning.

As the corporate function in touch with thebroadest range of constituencies – from employ-ees, investors, media and industry analysts, tolocal communities, NGOs and government officials -- we function as the company’s “eyes andears,” bringing objective, third-party opinions andpriorities to the attention of senior management.We can also act as a key integrator within thecompany – across other functions such as humanresources, legal, finance, marketing and IT --helping to develop comprehensive strategies,responses and solutions.

Our bosses have noticed. The Page Society’s CEOstudy showed that chief executives see senior

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communications leaders as being more influentialtoday than ever before. Although practices varywhen it comes to including senior communica-tions executives in all levels of decision making,the trend is toward greater integration into theformation of strategy. When we have combinedour traditional skills of creating messaging andcommunications programs with external andinternal integration roles and business and indus-try expertise, public relations professionals haveplayed a lead role with the C-suite in determiningenterprise policies and actions. According to arecent survey by PR Week, 45.6 percent of seniorcommunications leaders today report directly tothe CEO, with the rest reporting to marketing,human resources, legal and other senior operating officers.

This is no longer about the basics of the commu-nications craft. Those are now taken for granted.Most of the CEOs surveyed expect their seniorcommunications leaders also to possess strongbusiness expertise – knowledge of both the com-pany’s industry and of business strategy in general.They expect comprehensive knowledge of themultiple constituencies with which a businesstoday must interact – and in a global context, thismeans people, cultures and economies that spanthe planet.

They also say that the emphasis of communica-tions work must shift significantly toward inter-nal communications, as they seek to transformtheir organizations’ culture and workforce skills –not just to make them more efficient and produc-tive, but to embed the kind of pervasive trans-parency, personal responsibility and values-baseddecision making that enterprise-scale authenticityrequires. Finally, CEOs increasingly look to theircommunications executives to be educators, ableto teach other executives how to communicateabout the company.

If the nature of audiences, channels and contentin the 21st century were to remain unchanged, our profession and the role of its leaders woulddoubtless continue on their current course and



speed. However, the reality is that the old statusquo, even that from as recent a time as the mid-1990s, no longer prevails. The broader com-munications environment across the planet isundergoing its most profound change in decades,arguably centuries. Hence, our profession is con-fronting an upheaval just as fundamental. It ischaracterized by:

1. New audiences: Our audiences are no longerrestricted to employees, managers, analystsand the press – and the definitions of thoseaudiences are themselves shifting in basicways. Who, for instance, is an “employee” of a virtual corporation – one that entrusts manyof its processes and functions to partners?What changes are underway in the natureand role of the company’s board of directors,given the increasing prominence of gover-nance and disclosure issues? What happenswhen analysts and media – once necessaryaggregators if a business wanted to reachmass audiences – lose their unique ability to reach those audiences or to legitimize the company’s message? And what do you do when those channels are, at the very least,augmented (if not obviated) by multiple newcommunities of interest, expertise and per-spective? Indeed, what do you do in a worldwhere infinite “audience segmentations” are possible?

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Mission Liaison of the Strategic planner of Shepherd of enterpriseenterprise enterprise positioning reputation and authenticity

Roles and Build and maintain Drive coverage; influence Create and influence ecosystemresponsibilities relationships with the media; external criteria; change of advocates; steward company’s

corporate journalism; internal culture; influence strategy values, brand and reputation;events; speechwriting and policy shape culture and behaviors;

create the new, blended physical/virtual work environ-ment; empower employees as communicators

Yesterday: Today: Corporate TomorrowPublic Relations Communications (2008 - ?)(ca. 1945 – 1995) (1995 – 2007)

The Evolution of the Public Relations Profession

Continued on page 23


2. New channels and new kinds of content:Communication channels are proliferating innumber and nature. They are changing thanksto shifts in technology, cost, access and usage.The most important inflection point for thisshift was the transformation of the Internetinto a popular medium, with the appearanceof the World Wide Web. This new era beganon August 9, 1995, the date of the NetscapeIPO. And after a decade, the Web has evolvedbeyond a global platform for publication intoa global platform for work. With the develop-ment of “Web 2.0” capabilities such as blogs,wikis, podcasts, content syndication andimmersive virtual worlds, it is literally the casethat any literate person today can become aglobal publisher for free in five minutes,drawing on a richer array of communicationscapabilities than William Randolph Hearst,Henry Luce or William S. Paley ever daredimagine. Content about your enterprise is notproduced and distributed globally just by thecorporation, or Communications or the pressnow, but by your employees, your partners,your communities—and your adversaries.

3. New measurements: Logically enough, themeasures we use to gauge our success areshifting as well. Previously, most were activity-based – column inches and readership

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22


Audiences Media, employees, Media, employees, shareholders, Media, employees, shareholders,shareholders, general public senior management, analysts; senior management, analysts; in

in some cases government, some cases government, NGOs, NGOs, foundations foundations, boards of directors

and a billion global “publishers” with the means to be heard by mass audiences and to organize quickly

Channels Print, broadcast, “house Print, broadcast, events, Web Print, broadcast, interactive organs,” events 1.0 (e.g., intranets) partnerships, town halls and

Web 2.0 (enabling employees, partners, clients, influencers—a billion “publishers”)

Content Content controlled by PR: Some content controlled by Content is created by everyone,external announcements Communications, some by HR influenced by Communications:(products, business actions, and marketing, some by defining values, strategy, brand;etc.); internal news, messaging stakeholders; the latter includes collaboratively shaped publicand morale-building; executive employee feedback, ecosystem- policy; new academic curricula speeches created ideas and perspectives

on company

Measurement Activity-based: e.g., volume Attitude-based: e.g., corporate Impact-based: e.g., changes inof Value and nature of press coverage, reputation surveys; measures policy, behavior (internal and

readership of employee of employee commitment external); increased revenue,publications growth; recruitment; social

network analysis

Functional Media relations, employee Media, analyst and investor Influencer relations andDisciplines publications, speechwriting relations, internal and analytics; workforce enablement;

executive communications values and brand experience;social networking/new media; corporate affairs; CSR

Skills Writing, design, managing the Driving coverage, organizational Building collaborative businesspress, message management, culture change, shaping strategic ecosystems -- engaged, enabled,event planning agendas supportive populations

Talent Pool Former reporters, freelance Reporters, writers and web Reporters, writers, Web experts, writers, graphic designers, experts, information managers information managers, policy PR agencies (e.g., library science, opinion wonks, learning and organization

research) development professionals, MBAs and business strategists

Leadership VP of Public Relations: reports SVP of Corporate Chief Communicationsto Marketing, HR, COO or Communications: nearly Officer: reports to CEO Public Affairs half report to CEO

Yesterday: Today: Corporate TomorrowPublic Relations Communications (2008 - ?)(ca. 1945 – 1995) (1995 – 2007)

The Evolution of the Public Relations Profession, cont.

23



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In stepping up to the challenges and seizing theopportunities arising from the phenomena we’veobserved – the challenges and opportunities ofthe authentic enterprise – the greatest danger corporate communications faces, ironically, maylie in our very success over the past two decades,if that success blinds us to the new demands thatlie ahead.

Without question, our profession today is farstronger, with deeper skills, broader scope andgreater status than ever before. Ours is an impres-sive record of change and growth. Today, however,we confront a very different reality. Fundamentalchange is occurring across message creation,channels and audiences simultaneously. Thischange is taking many forms, but there is oneinescapable reality across all of them:

We are no longer in control.

surveys. Today, we set for ourselves morestrategically ambitious goals. We measure theimpact of the company’s brand and reputa-tion, and we use measurements of employeecommitment. And as we start to apply theanalysis of social networks to business, webegin to see the promise of far more sophisti-cated analytics for the establishment andspread of influence and the development ofrelationships (e.g., “six degrees of separa-tion”). This is fortunate, since our bossesincreasingly demand rigorous measurementof success in communications – just as theyexpect from all other corporate functions.

In addition to audiences, channels, content andmeasurements, most other aspects of moderncorporate communications have also undergoneanalogous changes over the years – and will con-tinue to do so in the decades ahead.


A company’s reputation is the product of twothings, its own actions and behaviors, and theperceptions of its key constituencies. The tradi-tional role of corporate communications has beento provide counsel to the corporation on how to characterize that intersection in the mostadvantageous way.

The argument of this paper is that the future ofthe profession – and the challenge that will definethe emerging role of the chief communicationsexecutive – is to guide the corporation in influ-encing and transforming not just perceptions, but the company's behaviors, as well as the self-conceptions and actions of those external con-stituencies themselves. Going forward, it will notbe sufficient to shape perceptions within narrowlydefined contexts. It will be necessary to demon-strate authenticity in radically open environments.

As we have shown, instead of “putting a messageout” to influencers or into a channel, we mustunderstand the diverse backgrounds and mindsetsof our stakeholders and facilitate communicationsamong audiences. Our job is no longer simplymaking “them” think well of us, nor is it evenabout building two-way dialogue. Now, it’s aboutnurturing relationships among others – includingrelationships that don’t necessarily directlyinvolve our own company. Today, we’re growing a multi-faceted, networked ecosystem, and we’reseeking to influence its priorities and actions tobenefit our enterprise.

Fortunately, today we have communications plat-forms that are not only superior carriers of tradi-tional content from the corporation, but that alsoenable people to create their own content, refineit and build on it. This has been growing over thepast decade within companies, through intranets,instant messaging, online forums and the like.More recently, the emergence of blogs, wikis,podcasts, content syndication, mashups and otherWeb 2.0 capabilities has significantly deepened

and broadened this democratizing empowermentof employees and all constituencies. (See theAppendix.) One key role of our profession in the decades ahead will be to master the skillsand dynamics of these new media.

If the new opportunities were not sufficientmotive to do so, the new threats would surely be. We can be confident that our companies’adversaries – from competitors, to political opponents, to identity-theft criminals (indeed,even terrorists) – are already mastering these newtools and skills. After all, the authentic enterpriseis not the only form of economic or social organi-zation or activity that this new world is spawning.Large opportunity also attracts large numbers of opportunists.

Of course, this impacts not only corporatecommunications but every function of the enter-prise. Consider, for example, how finance, legaland investor relations functions will need tochange in order to deal with the vast growth ofarbitrage and hedge funds. At the same time, theincrease in private equity is being driven, at leastin part, by the desire to escape from the short-term pressures of this new marketplace. But in aglobalizing world of increasing transparency, suchapproaches will not provide lasting solutions.

All of this may seem daunting, but our functionmay actually be in a stronger position to seizeupon this historic moment than are many of oursister functions. Corporate communications has,from its inception, taken responsibility for amulti-audience view, working via channels it does-n’t control and achieving meaningful results onmodest budgets. In addition, the communicationsfunction has often played an integrator role –understandably, since a corporation must ulti-mately speak with one voice to all constituencies.In a world where traditional audience segmenta-tion is no longer possible, that integrating capa-bility will become more valuable than ever before.

IV. FOUNDATIONS OF A 21ST CENTURY PROFESSION:PROFESSIONALIZE AND REVOLUTIONIZE

It may be for these reasons that CEOs are nowlooking to corporate communications to take thelead on many of these new challenges.

In contrast, consider the situation of the market-ing profession. Marketing, like communications,emerged and took shape during the rise of theInformation Age multinational. It has focused on control of channels (including expensive oneslike mass-market advertising), on detailed audi-ence segmentation and on the large budgets thatwere required to operate those systems. For mar-keting, the broad shift to a more user-driven andcollaborative information environment is pro-foundly challenging.

Analogous phenomena are occurring in academia– where the controls previously exercised by atenured professorial elite are under siege – andalso in the world of technology and software –where, for instance, mashups enable people with-out training or degrees in computer science tocreate new programs and new functionality. Butthis shift is nowhere more visible than in how people communicate.

Nonprofessionals and people of modest meanstoday can engage in activities that used to havehigh barriers to entry. You no longer need a jour-nalism degree, advanced writing skills or a lot ofcapital. Communicating to the world – via anymedium – no longer requires a large organizationor extensive physical plant. And the compositionand definitions of many professions are changingas a result. For instance, a recent Pew study indi-cated that 34 percent of the 12 million people nowblogging in the U.S. regard themselves as practic-ing a form of journalism. Professional journalistsmay sniff at this, but people are voting with theireyeballs. The same Pew study indicates that 57million people in the U.S. read blogs.

Obviously, much of this content is not of highquality by traditional standards. But much of it is,and some is far better than anything being pro-duced by the “mainstream media.” People withdeep expertise in a particular subject area can

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now publish to the world, vs. only journalists, whoare typically generalists. In other words, deep (ifnarrow) subject-matter expertise is being elevatedin importance over stylistic or general fact-findingexpertise, and often that depth is more valuable.

Further, many more eyes result in much morerapid error correction. Consider the case ofWikipedia. In many ways, it has replaced not justone or two authoritative publications, but jour-nalism itself as “the first rough draft of history.”As the New York Times reported on April 23, 2007:

Imagine a newspaper with more than 2,000 writers,researchers and copy editors, yet no supervisors or managers to speak of. No deadlines; no meetings toplan coverage; no decisions handed down through a chain of command; no getting up on a desk to lead a toast after a job well done.

It doesn’t sound like any news operation that any journalist would recognize. Yet that seemingly chaoticnonstructure best describes the scene at Wikipedia, theonline encyclopedia, which, for a few days last week,served as an essential news source for hundreds of thousands of people on the Internet trying to under-stand the shootings at Virginia Tech University.

From the contributions of 2,074 editors, at last count,the site created a polished, detailed article on the massacre, with more than 140 separate footnotes, aswell as sidebars that profiled the shooter, Seung-HuiCho, and gave a timeline of the attacks.

According to the foundation that runs the variousWikipedias around the world, there were more than750,000 visits to the main article on the shootings in its first two days, an average of four visits a second.Even The Roanoke Times, which is published nearBlacksburg, Va., where the university is located, notedon Thursday that Wikipedia “has emerged as the clearinghouse for detailed information on the event.”

Recently, Wikipedia had been the object of much controversy over the reliability of its articles, and thefrequent anonymity of its contributors. But during some recent critical events, like the Virginia Tech


killings, the Southeast Asian tsunami in 2004, andthe London bombings in 2005, the site has been trans-formed from an ever-growing reference book into aever-updating news source — albeit one with scantoriginal reporting. (Wikipedia’s policy precludes original research.)

Clearly, major challenges remain for communica-tions professionals, as well as for our corporate-staff brethren. The demands and opportunities of 21st century business require that leaders do

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two things simultaneously that are usually contra-dictory – professionalize (i.e., establish an ortho-doxy and standards for the function) and revolu-tionize (i.e., overturn established orthodoxies andstandards). The new imperatives of businesstoday, and the diversity of forces acting upon it,are presenting deep challenges to bureaucratic structures, including those that have developedwithin existing HR, IT, legal and finance functions. One could, in fact, see this as the dawn of an era of radical de-professionalization.



V. THE CHALLENGE OF TRUST

New business models and a rapidly changing eco-nomic context – shaped by the forces described inthis report – are placing unfamiliar demands onbusiness. Of all the challenges facing corporatecommunications in the emerging “authenticenterprise,” perhaps the most fundamental arethose surrounding the issue of trust.

At the level of the individual, how can we main-tain and even strengthen our trust in one another– including trust of people with diverse ways ofthinking, and of strangers we've never met andnever will meet? At the level of the enterprise,how does a business sustain trust in increasinglydistributed models, and respond to the demandsof increasingly diverse and empowered stakehold-ers? And at the broader societal level, how doesany organization achieve global integration andtransparency while operating within multiplelegal and regulatory regimes, cultures and political environments?

These are far-reaching challenges. They touch on an organization’s standards of governance, itsfinancial management systems, how it maintainstransparency, how it protects privacy, its systemsand rules for security, the quality of the productsand services it creates and delivers to the public,and the way it interacts with its communities andwith global society at large. All those systems andstandards need to be maintained, even when acompany’s products and operations are handledby a dozen or more organizations in a dozencountries. You no longer have control—but ultimately you still have responsibility.

Compounding the dilemma are the attitudes andvalues of today’s workforce, and the imperative of innovation.

The people a business needs to attract today – as employees, clients or partners – will not acceptold-fashioned, hierarchical cultures and manage-ment approaches. In place of “the voice ofauthority,” they demand proof of authenticity.And as a strictly operational matter, it is becom-ing increasingly difficult to achieve the speed andflexibility to run a successful business by stickingwith traditional command-and-control systems.

In dynamic societies and economies, such as welive in today – where new approaches, new ideas,new behaviors and new institutional forms arebeing created constantly, and where multiplestakeholders have unprecedented levels of impactand influence – more open, flexible, empoweringand values-based management systems arerequired. And for those to work, trust is bothmore essential than ever, and harder than ever to achieve.

Where does responsibility for this overarchingstewardship of the corporation’s reputationreside? Today, no traditional function owns it, norcan any deliver it. Corporate communications hasthe opportunity to assume a leadership role instepping up to this challenge. As the corporatefunction with the deepest experience in buildingrelationships across multiple constituencies, weare uniquely positioned to become experts on thenew art and science of organizational trust. Butthis will involve far more ambitious approachesthan most people have thought of as part of“communications” or “public relations.”

For example, this is not about more rapid, organized or clever dissemination of messages to the workforce. We will need to help the organization empower and enable our peopleto communicate with one another, to make decisions and to act on their own ideas andopportunities. We will need to help our companies

Of all the challenges facing corporatecommunications in the emerging“authentic enterprise,” perhaps themost fundamental are those surround-ing the issue of trust.

In place of “the voice of authority,”they demand proof of authenticity.

learn how to push decision-making authority outand down, to eliminate layers of management andprocedure and to welcome diversity of thought.

We will also need to help the organization and its leaders understand that there is no single standard of trust. Rather, there are multiple criteria, which are functions of multiple relation-ships. Trust is inherently about relationships ofinterdependency – vs. rules, procedures and laws.The challenge facing our companies today isn’t a question simply of a “loss of public trust” in some generic sense, but of strengthening specific relationships between the company and diverse stakeholders – and among those stakeholders themselves.

Finally, corporate communications leaders willalso need to draw on our understanding of andexperience in changing corporate culture. Inorder to foster innovation, people need to feelhopeful and competent. They need to feel thattheir ideas and opinions have been heard, andtheir feelings acknowledged. They need to feelbelieved in and trusted, in all dimensions of theword. In that sense, trust is inherent in authentic-ity, and vice-versa. And you cannot build trust byenforcing compliance. Accountability is necessary,but not sufficient. Indeed, a single-minded focuson accountability can ultimately debilitate trustin systemic and long-lasting ways.

This is, clearly, much more than advocacy or “getting the word out.” It requires imagining andactually building the systems that make new management models possible. This implies verydifferent forms of “internal communications” –and an increasing recognition of their impor-tance. The growing significance of internal com-munication was one of the key findings of ourCEO survey.

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Among the new kinds of expertise required is the ability to lead in the infusion of sophisticatedsoftware into the company’s processes, and thecreation of appropriate policy innovations to gov-ern its uses – creating pervasive internal commu-nications platforms that both ensure transparencyand enable individuals to have much more controlover their information, their work and their rela-tionships. And it points, again, to the centrality of the company’s core values.

This is, in the end, the most challenging and high-est-impact work that communicators can tackle,and the opportunities far outweigh the chal-lenges. The networked global economy and thenew worldwide communications platform presenta historically unprecedented opportunity toengage directly with all the publics and con-stituencies that shape a company's success andidentity. Now, we must take the radical step ofadopting approaches that emphasize definitionand influence and of becoming truly multi-directional in our engagements.

Communicators can and must not only speak to,but learn from, all of the company’s populationsin wholly new and much deeper ways. We can andmust influence them similarly, and build relation-ships of partnership and mutual self-interest thatgo far beyond traditional public relations. And wecan and must step up to the need for reputationstewardship at a deeper level – encompassing theenterprise’s brand, culture and core values.



VI. THE NEW CHIEF COMMUNICATIONS OFFICER: A CALL TO ACTION

The Arthur W. Page Society views the role of corporate communications and of its senior executive as the leader in defining and enablingthe authentic enterprise – often acting as an integrator, working across other functions such as human resources, legal, finance, marketing and information technology to develop comprehensivestrategies and solutions. Within that overarchingmission, we call on communications departmentsand Chief Communications Officers to step forward and assume four new and essential formsof leadership, for which no existing enterprisefunction currently has responsibility:

1. The CCO must assert leadership in defin-ing and activating values. Values have alwaysbeen the bedrock of enterprise authenticity –but they play a different role today. Valuesnow are the basis for very new kinds of man-agement systems, tuned to succeed withinradically changing marketplace realities. Inearlier eras, a company’s principles, credos orbeliefs – like its strategies and processes –were typically dictated from the top.However, we now live in a world of distrib-uted, dynamic enterprises and shifting work-force attitudes and expectations. A manage-ment system based on values allows a compa-ny to respond faster to opportunities byincreasing delegation and empowerment,while maintaining consistency of its brand,customer relationships, public reputation andday-to-day operations. Values can be the“glue” shaping behavior and uniting goals –but building such a management system is adaunting challenge. Understanding what thecompany and its people truly value and turn-ing that into pervasive behavior demand newkinds of leadership, tools and skills.

2. The CCO must assert leadership in build-ing and managing multi-stakeholder rela-tionships. Constituent relationships havealways been important for enterprises, butthe proliferation of new kinds of empowered

stakeholders and demands for transparencyhave profoundly altered the landscape. First,in a radically more transparent world, ourorganizations can no longer be differentthings to different constituencies; the enter-prise must be one thing across its entireecosystem. Second, broad knowledge of thatecosystem – both its opportunities and itsthreats – is necessary. However, that knowl-edge is not consistently managed today. It isincumbent upon the communications func-tion to do so. Finally, while working to ensurethat the diverse perspectives and needs of alllegitimate and responsible stakeholders areacknowledged and addressed in respectfuland substantive ways, communications lead-ership is needed in defending the company, itsprinciples and its reputation against malign ormisguided attacks. Key to both of theseefforts will be building support among multi-ple stakeholders and across civil society atlarge. This places a premium on the CCO’scollaborative skills and ability to build andexecute integrated strategies.

3. The CCO must assert leadership inenabling the enterprise with “new media”skills and tools. Our surveyed CEOs identi-fied a highly permeable membrane todaybetween what is “internal” and “external” to a corporation. It is in the corporation’s bestinterests to empower more and more of itsworkforce with new collaborative tools, training, know-how – and trust – so they canresponsibly and strategically interact with the external world. Corporate communica-tions must acquire and spread mastery ofthese capabilities, while at the same timehelping the corporation to develop the appro-priate policies and guidelines to ensureresponsible use of social media. CCOs mustalso embrace new tools for measurement – in order to extract insight from the unprece-dented amount and depth of information thatsocial media make available.

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4. The CCO must assert leadership in build-ing and managing trust in all its dimen-sions. Trust is no longer a function only ofcompliance with the law and business ethics.With the emergence of empowered and tech-nology-enabled new stakeholders and distrib-uted enterprises, the challenge of buildingtrust is more acute than ever. It is a complexequation involving everything from employ-er/employee relations, financial management

and corporate governance to the quality of acompany’s goods and services and its respon-siveness to societal issues. Corporate commu-nications must play an integrating role indeveloping and measuring the success of thecorporation’s trust strategy, and helping itoperate successfully in the public interest.

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APPENDIX: EVOLUTION OF OTHER CORPORATE STAFF PROFESSIONS

Mission Automation Integration Transform CIO mission from technology to innovation

Roles and Systems management and Business process enablement Integrate business and technology;responsibilities infrastructure development and transformation drive business model innovation;

business transformation; create and deliver business value; align IT priorities with those of the business; foster collaboration, culture and change

Audiences Internal Internal Internal; other business leaders; the board of directors

Measurement Maintain IT infrastructure; Maintain IT strategy and Influence shareholder value; of Value throughput; availability infrastructure costs; Total lead innovation and profitable

Cost of Ownership; Return growth initiatives; drive broadon Investment adoption of strategic investments;

increase the number of CIOs serving on the executive teams/governing committees and on boards of directors for other companies

Skills Technology proficiency Managing process Business fluency and acumentransformation and to demonstrate the economicleadership of innovation value of IT; greater influence

and impact as business leaders; ability to collaborate and influence internal and external audiences

Talent Pool IT and operations professionals IT and operations professionals Business experts with ITwith basic business background functional competency

Leadership VP, Computing CIO: reports to CFO Chief Innovation Officer: reports to CEO

Yesterday Today Tomorrow(ca. 1945 – 1995) (1995 – 2007) (2008 - ?)

Chief Information Officer (CIO)


Evolution of the CIO:CIOs have historically been regarded as the overseers of infrastructure and costs, minders ofservers and guardians of phone service. However,the CIO profession has reached an inflectionpoint. The forces of globalization and commoditi-zation, the rise of new markets in every region ofthe world and the accelerating advance of tech-nology are reshaping the business landscape.There is more opportunity for CIOs to elevatetheir role, exert greater influence as business lead-ers and define the future of the CIO profession.

In the past, many organizations defined theCIO’s priorities by what had to be done – takingcost out, ensuring the continuity of the business,maintaining the integrity and security of data, etc.– as well as keeping pace with the changingdemands of the business. Today, CIOs’ roles andresponsibilities are expanding to include businessfunctions beyond technology. The way individualsbecome CIOs is also changing with increasingnumbers of executives entering the job from non-IT backgrounds.

32


The CIO role continues to evolve and extends farbeyond technologies and continuous improve-ment of the IT asset base, to providing strategicdirection and new ways to align IT and businessvalue. Many CIOs believe that the number onebarrier preventing them from having greaterinfluence as business leaders is misperceptionsabout their role. Next generation CIOs muststrengthen their business skills and competencies.They must develop the capabilities and relation-ships – with CEOs, other business leaders and theboard of directors – that will enable them to leadinnovation and profitable growth initiatives forthe organization, and have greater influence andimpact as business leaders.

Next generation CIOs also prefer to be measuredless on cost control and IT operations and moreon innovation and growth, and how they managetheir teams and ecosystem.


Mission Personnel, employee relations, Strategist and steward; employee Globalization; manage change; employee champion advocate; human capital business leadership; strategic

developer partner

Roles and Change agent; transaction-based; Functional expert; strategic Talent strategist; counselorresponsibilities executive compensation; talent partner; compliance and and leadership developer;

development; employee relations; government regulator; HR change management;industrial relations; compliance service delivery owner; organizational structure and

organizational performance work environment architect; conductor; define and execute performance and rewards program HR policies and procedures architect; regulatory HR generalist

and risk manager; corporate governance advisor

Audiences Internal Internal, External Internal, External

Measurement Number of labor strikes, Attraction, retention, and Expertise on business strategy of Value work stoppages and union development of top talent;

campaigns avoided; retention address and supportand turnover business issues


SVP, Human Resources



33

Skills Administrative and tactical; Strategy implementation; Strategy development; create internal transaction processing cultivate leaders; reporting work environment that helps

and analytics people perform their best; drive business performance and manage change; business savvy and operational excellence; build an organization fromthe ground up to be impactful

Talent Pool Professionals from a variety HR function experts Leaders who are HR and of functions business experts

Leadership Reports to VP of Administration, Reports to CEO Reports to CEO Finance, Business, or Operations


SVP, Human Resources, Cont.

Evolution of Human Resources:Over the past few decades, the human resourcesprofessional has evolved from being transaction-based and administrative to being a strategic partner and member of senior management.

During the 1960s, 1970s and 1980s, HR profes-sionals were recognized for personnel andemployee relations. They built staffing, training,compensation and other programs and policiesthat were employee-focused and regulatory-compliant. During the late 1980s, there wereincreased efforts to align HR’s work with businessstrategy. The idea of HR as a strategic partneremerged in the 1990s, and the HR leader roleevolved to execute strategy as a function, not a silo. HR leaders developed new structures,delivery models and competencies grounded in an understanding of the business and external environment, and built on stronger relationshipswith senior management.

Key issues with which HR leaders will grapple in the next 5-10 years will include the impact ofglobalization, outsourcing and the need for newkinds of change management. The percentage ofa company’s employees based outside of its coun-try of origin will continue to increase, presentinga challenge to HR to build an organization withimpact in other parts of the world. In addition,the growth of outsourcing and the emergence of“virtual” enterprises create new sorts of “employ-ment” relationships. Finally, managing constantchange within an organization – mergers, divesti-tures, new systems, new operating processes, newregulations and new business models – is also acritical element of success and is emerging as a sub-profession within HR.


Mission Financial statements and Business analysis; business Business partner and strategistcapital structure planning; value to customers; to general management

appropriate return to investors; responsible environment for employees and communities

Roles and Financial statement presentation; Work with CEO to design and Corporate governance compliance; responsibilities cash flow management; number oversee strategy, operations and assume responsibility for

crunching performance; internal and corporate financial results toexternal communications with ensure public trust; influenceall stakeholders; regular revision decision making; communicateof company’s portfolio of to and help manage the Board;businesses; direct involvement performance management in formulating business plans and operational strategy; M&A

Audiences Internal, External Internal, External Internal, External

Measurement Accurate reporting Performance management; Change agents; value creation of Value commercial and financial

evaluation of major projects;business risk assessment and management; disasterrecovery

Skills Accounting and reporting Leadership; experience in Strong communicator; operations evaluating functionality and experience; talent managementcosts of finance systems; abilityto communicate financials andbusiness plans to a rangeof internal and external audiences; strong technical skills

Talent Pool Accountants MBAs MBAs; finance experts with operations experience

Leadership Reports to CEO Reports to CEO Reports to CEO


Chief Financial Officer

34



Evolution of the Chief Financial Officer:The Chief Financial Officer (CFO) role hassteadily evolved and expanded over the last few decades. No longer narrowly focused on the mechanics of finance, today’s CFO is a member of the senior management team, serving as the CEO’s business partner and involved indesigning and overseeing strategy, operations and performance.

In the past, CFOs spent most of their timefocused on recording and reporting, monitoringfinancial statements and capital structures, andother highly transaction-intensive roles.

Today, the CFO profession encompasses nearlyevery facet of corporate activity: designing and

implementing their organizations’ business models, tying their firms’ business strategies toshareholder value, performance management,taking line management responsibility in operat-ing businesses, and creating finance organizationswith employees who are proficient in nontradi-tional skills and areas.

In addition to demonstrating competence in theirtraditional financial control and reporting fields,today’s CFOs must also be excellent communica-tors, with the ability to build confidence and trustamong internal and external constituencies.

35


Mission Brand image building Brand image building, demand Driving business innovation, generation, web/e-commerce brand image, security (online management and information), e-commerce

development

Roles and Creation of brand image Creation of brand image efforts, Identification of marketplaceresponsibilities advertising efforts, development management of direct marketing opportunities and strategies to

of brochures and collateral functions, management and drive new business, product pieces, management of adver- coordination of web presence development. Creation of brandtising agencies, support and e-commerce support, image efforts, managementfor the sales function collateral creation, management of direct marketing functions,

of all marketing communications management and coordination agencies of web presence and e-commerce

support, collateral creation,management of all marketing communications agencies

Audiences External Internal, External Internal, External

Measurement Brand awareness measurements, Brand awareness and brand New business revenue, brand of Value word-of-mouth response value measurements, awareness and value, consideration

to creative executions, consideration and preference and preference measurements, advertising awards measurements, lead tracking lead tracking and pipeline

and pipeline measurements measurements, ROI measurements

Skills Advertising background Agency management, direct Sales, business developmentmarketing, pipeline management, e-commerce


Chief Marketing Officer



36



Talent Pool Agencies Marketing department, Business development,external agencies strategic consulting

Leadership Report to Sales or COO Reports to CEO Reports to CEO


Chief Marketing Officer, Cont.

Evolution of the Chief Marketing Officer:In the past, the Chief Marketing Officer’s (CMO)role was largely tactical – to create markets for acompany’s products and services and to shapeperceptions. Marketers have been regarded asmore functional than strategic with limited influence outside the profession.

The CMO role has since evolved beyond tradi-tional advertising, marketing and branding.Today’s CMO has assumed a more transformativerole, which includes driving business innovation,

seeking revenue generating opportunities, influencing product development, and shapingthe sales coverage model. CMOs have also transformed the function from a cost center to a strategic business partner, while establishingstrong relationships and trust with the CEO and other C-suite executives.

THE CEO VIEW:OPPORTUNITIES& CHALLENGESFOR THE SENIOR

THE CEO VIEW:OPPORTUNITIES& CHALLENGESFOR THE FUTURE CCO

THE CEO VIEW:

IMPACTS THEM,THEIR COMPANIES,AND THE FUTUREOF THE CCO

HOW COMMUNICATIONS

COMMUNICATIONS

EXECUTIVE

THE CEO VIEW:OPPORTUNITIES& CHALLENGESFOR THE SENIOR COMMUNICATIONS EXECUTIVE


INTRODUCTION

The Arthur W. Page Society Board of Trustees established the PageMission Task Force to examine the evolving role of the senior communications executive in 21st century business. As a part of thateffort, the task force commissioned a survey of corporate Chief ExecutiveOfficers on their perceptions and expectations of the chief communica-tions officer’s changing role in the corporation. To conduct the survey,the task force engaged Financial Dynamics Business Communications,one of the world’s most sought-after business and financial communica-tions consulting services. This report was prepared for the Page Society

by Financial Dynamics, which stands behind its methodologyand conclusions. The Page Society gratefully acknowledgesFinancial Dynamics for generously contributing its expertiseand support on a largely pro bono basis.


We conducted in-depth interviews with theCEOs of 31 US and international companies thathave more than $2 billion in revenue. Twenty-oneof these companies currently have Page Societymembers in senior communications executivepositions; and ten do not currently have a Pagemember in their organization. CEOs were chosenat random from both samples, and represent arange of industries, tenure as CEO, revenue andFortune rankings.

The interviews were conducted from December4, 2006 through March 6, 2007. Interviews werescheduled at the convenience of CEO participants,lasted 10-15 minutes in length, and were conductedover the phone.

All CEOs were promised complete confidentialityas an express condition of their participation. Thenames of CEOs and their company names willnot be used to identify participants for any pur-pose. Additionally, CEOs’ comments and insightsare presented in aggregate form only.

In return for their participation, the CEOs wereoffered the following: • Executive summary of findings; and • Charitable Contribution – As a token of appre-

ciation to the participants, $400 contributionsare being made on the CEOs’ behalf to thecharities of their choice.

See Appendix A for the sample profile of participants.

See Appendix B for a description of sub-sample variations.

See Appendix C for the in-depth interview discussion guide.

METHODOLOGY

The purpose of this research program was to assessCEOs’ current perceptions and expectations ofcommunications chiefs, as well as provide anunderstanding of what CEOs view as the futurerole for communications chiefs in the world’sleading companies.

This report will focus on the following key issues:1. An overview of the perceived changes in the

role of communications chiefs and the expec-tations CEOs have for them in light of recentchanges in the business world as a whole.

2. An analysis of the current positioning of communications chiefs within the world’sleading companies.

3. Strategic recommendations for the best waysfor communications chiefs to redefine theirrole in the context of CEOs’ vision for thefuture of communications and how they conduct their businesses.

OBJECTIVES

T H E C E O V I E W : O P P O R T U N I T I E S & C H A L L E N G E S F O R T H E S E N I O R C O M M U N I C AT I O N S E X E C U T I V E


Big Changes• Overall Change – CEOs feel that in the last

three to five years, a seismic shift has occurredin how the public – and by extension the government – sees corporations, and a corre-sponding rise in demands for transparency ineverything from financial disclosure to mergersand acquisitions to personal information.

Key drivers include: - Sarbanes-Oxley; - The decentralization of media (e.g., blogs,

YouTube, non-U.S.); - Corporate scandals (e.g., Enron,

Worldcom); and - Changing employment patterns. (shorter

average term).

• Blurred lines – CEOs suggest that in the pastthere were clearer lines between their compa-nies’ inside and outside, and they were relativelyseparate from each other. Managers talked toshareholders and employees, and the publicrelations team managed the press.

• Diminished traditional roles – Today, themedia reports semi-arcane internal details,employees blog about their experiences, andshareholders are increasingly aggressive.Managing these elements, they feel, demandsboth specialized expertise and broad businessknowledge.

CEOs feel that communicating their companies’ values has become morecomplex at the exact time that it hasbecome absolutely essential.

The Evolving Role of CommunicationsExecutives• CEOs see their top communications executives

as more valuable than ever, and they see theimportance of communications for their com-panies as highly likely to increase in the future.

• The skills and attributes that CEOs are lookingfor in their top communications executiveshave expanded. Experience in communicationsis taken for granted, and not considered enoughanymore.

- CEOs want communications executiveswho are business savvy, with a deep under-standing of their companies from top tobottom.

- CEOs also want communications chiefs tobe proficient in three key modes of opera-tion – reactive, proactive and interactive.

- Reactive communications exhibit the tradi-tional role of playing defense – protecting the company's reputation and respondingeffectively to crises and other unexpecteddevelopments.

- Proactive communications involve the moreadvanced skills required to play offense –seeking new opportunities to enhance thecompany's reputation.

- Interactive communications represent thefuture of the profession – the emergingimperative to build values-based relations and two-way collaboration with diverse constituencies.

• CEOs see their communications chief as a critical part of their team, and across the board,there are categories of decision making inwhich CEOs would consider it grossly negligentNOT to have that individual at the table.

EXECUTIVE SUMMARY

“You want the head of your communications staff to be strongerthan you’ve been willing to deal within the past: more experienced, higherquality thinking process, being able to see around the corners, broaderexperience base. All those things.”

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The Future of the Role• While there is a clear trend toward more

and higher-level corporate communicationsinvolvement across the board, CEO opinionsvary widely as to whether or not decisions out-side the function’s traditional sphere (e.g.,mergers and acquisitions, new markets, newproducts) demand a corporate communicationspresence at the table.

• The case for C-suite representation is buildingand is, in fact, accepted by many CEOs, but significant pockets of skepticism remain.

Sub-group Variations• While CEOs are unanimous on recent

changes in the overall business climate, as well as the increased importance of their top communications executives, their viewsvary with regard to:

- Receptivity to C-suite status; and - The degree to which the top communica-

tions executive is at the table when key corporate decisions are made.

• Key differences in CEO perceptions existamong the following types of company profiles:

- Consumer vs. non-consumer; - Global vs. domestic; and- Direct report to CEO vs. non-direct report.

• Upon sub-sample analysis, we found no materialdifferences between CEOs who currently havePage members in the top corporate communi-cations position and those who do not havePage representation. We found no measurabledifferences between these two groups in:

- Observable attitudes toward the role of corporate communications in their companies;

- The organizational status and titles of topcommunications executives; or

- The reported belief that communications is an integral strategic function versus itbeing a tactical function.

“I see the execution and impact ofwhat they do adding more and morevalue. For us it was somewhat of aspecial initiative two or three yearsago to really ramp this up, and nowit’s more of an institutionalization ofthat process.”


Against a broad background of significant recentchange, CEOs’ perceptions of the role of corpo-rate communications for their companies arebeing shaped by a number of key drivers:

• It’s personal – CEOs feel an acute personalsense of exposure to the public sphere in gener-al and the media in particular. Whether it’ssomething they say in Shanghai turning up on ablog out of Ann Arbor, or the now-routine pub-lic discussion of their compensation packages,CEOs feel that how they handle themselvespersonally affects their company’s reputationmore directly than in the past. They alsoincreasingly believe that poor communicationsskills can literally cost them their jobs.- Because downside communications risk feels

so personal, they often want to have (and dohave) a close relationship with their communi-cations head, regardless of org-chart protocol.

• The media are everywhere – CEOs areamazed by the proliferation and the increasinginfluence of nontraditional media sources, andwhile they acknowledge that this presentsunique challenges, many also feel that, if man-aged properly, this changing media portfoliorepresents more of an opportunity than a threat.

• Reputation is more valuable now – CEOs feelthere is a distinct dividing line between “good”guys and “bad” guys in a rapidly expandingrange of categories. Apart from the traditionalP&L measures, they see social responsibility,the environment, philanthropy and employeecommunications as dramatically more impor-tant in the last three to five years. They now seethese issues as having a material impact on the bottom line.

• Employees are harder to reach – The sheersize of companies, their often expansive geographic coverage, and employees’ shorteraverage tenure requires CEOs to work in more sophisticated ways to communicate their company’s values and their vision.

• A crack team is essential – The model of the isolated, dictatorial CEO, if it ever reallyexisted, is no longer relevant among CEOs.Important decisions are the result of extensivecollaboration. People outside the company areoften part of the conversation to some degree,including regulators, NGOs, labor leaders, envi-ronmental groups and other public interestgroups, depending on the industry.

THE CEO MINDSET

“In this company, [the communica-tions head] is linked at the hip withme. I take it as my job to be a commu-nications person for both the industryand the company. This individual is mysenior staff person who does most ofthe heavy lifting.”

“The weight of the job between external and internal communicationshas shifted. And I think internal com-munications is just more important than it ever used to be.”

“With all the information out there,they have a huge responsibility formanaging the perception and reputa-tion of the CEO as well. In today’senvironment, CEOs are constantlyunder attack.”

“There’s very little difference thesedays between internal and externalcommunication. Whatever you sayinternally can show up in the mediaalmost immediately.”


• If you can’t measure it, you can’t manage it –This is a cliché of the business world, but thisbelief underlies much of what CEOs say abouthow they evaluate their staff. They feel them-selves to be judged based on tangible results,and they are extremely comfortable judgingothers that way.

• Everyone thinks globally – CEOs acknowledgethat even companies based in the U.S. have to be sensitive to foreign perceptions.Outsourcing is one reason, as is the fact thatonce a product or service matures in the U.S.,the most obvious place to expand is overseas.The net effect is that CEOs feel they must con-duct themselves and their businesses as if theywere global, even if that’s not technically true.

How CEOs Make DecisionsMost of the CEOs we spoke with makedecisions by first separating any issue into one of two categories: strategic or tactical. • Strategic – Strategic refers to the most vital

decisions of a company. These decisionsdemand a significant degree of vision into thefuture, and include mergers, partnerships, newproducts, new markets, financial and risk man-agement, and broad positioning. These types ofdecisions enter the collaborative (e.g., conversa-tion-based) decision framework, and strategictalent is most highly valued by CEOs.

- The CEO’s forum for discussing anddeciding these issues is generally his or herdirect reports, sometimes branching out tospecialist executives outside the inner circle.

• Tactical – Tactical refers to matters relating tothe practical execution of the company’s strategy.While CEOs highly respect tactical talent and see it as a key way for executives to provethemselves, tactical work is nevertheless seen as a less valuable skill than strategic thinking.

- Tactical decisions are most often immedi-ately delegated, and CEOs depend on theirline staff to take care of anything that fallsinto this category.“Most companies, even if they aren’t

global, certainly act in a much moreglobal environment.”

“I believe the traditional head ofCorporate Communications hasmoved from a tactical to a strategicrole in a very real sense because of theprevalence of the media and the 24/7nature of it.”

“[The communications head] doesn’tinfluence business decisions. Whatthis person does is make sure thatwe understand how to appropriatelycommunicate decisions and how toget information out.”



CEOs look for the following key attributes in anideal communications chief:

• Detailed knowledge of the business – This is far and away the most critical quality for a topcommunications executive. All CEOs believethat their businesses are large and complexentities, and that their companies cannot becommunicated well if their top communica-tions executives do not intimately understandthem. CEOs also feel this hurdle is where somecommunications professionals fall short –where their knowledge is limited to communi-cations, and does not include knowledge ofbusiness in general and the details of their company’s business in particular.

• Extensive communications background –Experience and extensive relationships are tosome extent taken for granted, although CEOsin different industries see nuances in the kindof background a given executive has. CEOs inhighly regulated industries, for instance, arelikely to put a particular premium on govern-ment and/or political experience. CEOs are clear,though, that while a strong communicationsbackground is necessary, it is not sufficient.

• A crystal ball – CEOs say in today’s businesscontext, a communications chief ’s ability to “see around corners” and anticipate how differ-ent audiences will react to different events,messages and channels is critical. CEOs recog-nize that the proliferation of media and audi-ences means that the communications head’sjob is extremely demanding, but in their minds,that’s the price of success.

• C-suite credibility – While CEOs acknowledgethat credibility is subjective, they feel across theboard that it’s crucial for the communicationshead to be accepted at the highest levels. Oneparticularly strong credential is experience inrunning a business or major division, whether at their present company or elsewhere.

• Extensive internal relationships – CEOs wanttheir communications head to have his or herfinger on the pulse of the company, whichmeans to them that this executive knowsemployees at every level of the operation.

THE IDEAL COMMUNICATIONS CHIEF

“You can’t just be at a high level ofthe company; you have to have fullknowledge of the company and theorganization.”

“Where some communications execu-tives have fallen down is in having toknow the business cold. They reallyhave to understand the intimacies ofthe business, because otherwise youcan’t represent the company to theoutside world.”

“They need to be able to anticipatethe reactions of governments, privateinterest groups, shareholder factionsand so forth, in real time.”

“Obviously, if you have someone whois relatively inexperienced in businessand is simply a communications/PRexpert, that doesn’t work.”

“I expect everyone on my senior teamto have a functional role, but I alsoexpect them to be business savvy.”

“They have to be good enough toearn their way to the key decisiontable.”


• Team player – A CEO’s key decisions are gen-erally made on a collaborative basis through aseries of conversations with groups of peopleover time. Any serious player in these talksmust have strong relationships with colleaguesand the respect of the CEO’s inner circle.

• Educator – CEOs increasingly see the need forthe communications head to educate the rest of the company on communications skills ingeneral, as well as to generate strategies forcommunicating the company’s values specifically.They also see building the internal network as a key asset for their communications head.

“The communications folks have to be extremely close to the troops. Theyhave to have different contacts withinthe organization, whether it's in thefactory, the sales force or the logisticschain.”

“You can’t just be the buddy of theCEO and be successful these days.You have to have the ability to be a key member of the team.”



• The titles held by the top communications executives are a mixed bag, including ChiefCommunications Officer, Executive Vice President, Senior Vice President and Vice President.

• Many CEOs say the title of Chief CommunicationsOfficer is novel, and it has both supporters anddetractors. Respondents who are less receptiveto the CCO title express concern that a title ofthat magnitude was likely to have unpredictableripple effects inside the C-suite.

• CEOs whose communications chiefs havedirect-report status are highly amenable to theChief Communications Officer title, even iftheir own communications chief has a differenttitle (e.g., Executive or Senior Vice President).

What It Means• Making the case for the integral nature of

communications is, in effect, also to make the case for direct-report status and for “ChiefCommunications Officer” as the standard titlefor the top communications executive.

• Making the communications case to the CEOis obviously critical, but equally important ismaking the case to the CEO’s inner circle, whoCEOs feel may be unsettled by a sense of “dilution” of their title or access.

TITLES FOR COMMUNICATIONS CHIEFS

“I like a title that says that she is theChief Communications Officer. I like to know what a person does by his or her title; it saves 10 minutes ofconversation at the front end.”

“It’s a good question why we don’tcall them a CCO. I don’t think it’s aterm that has been used frequently.”

“I think the two reasons the top communications executive doesn’treport to the CEO are: the CEO isn’tsufficiently thoughtful about the com-munications aspect of his or her work,and the quality of the communicationsexecutive isn’t high enough.”


CEOs believe that the news cycle and the generalramping-up of media focus on corporations –which have driven the growing importance of therole of communications executives – have funda-mentally changed the way messages must be conceived and communicated, and their impactmeasured.

The following messaging imperatives drive CEOs’expectations for how their top communicationsexecutives get the job done:• All stakeholders are the same – While

message segmentation may have had a role inthe past, CEOs no longer see it as a realistic ordesirable strategy, and believe it may, in fact, be a significant liability. CEOs across the boardwant to see a consistent, value-driven messageplatform that can be used among all stakeholders.

- CEOs feel a well-designed message platformmeans that all employees, shareholders andeven the public at-large become potentialbrand ambassadors.

- Messaging must be profound enough, simple enough, and flexible enough to beeffective for all audiences at the same time.

• Values are key – CEOs feel that communicat-ing their company’s values is the fundamentalbasis for message platforms and, increasingly, at the heart of ALL business decisions. WhileCEOs feel they have an intuitive grasp of theircompany’s values, they look to their communi-cations chiefs to help in the definition processand then to refine, systematize and particularizethe overall message.

- Communicating values is not about indi-vidual messages or sound bites, but ratherthe basic corporate principles underlyingthe messages.

• Distribution is a major challenge – Figuringout how to reach all stakeholders effectively is a significant challenge posed by the increasingnumber of stakeholder groups, as well as theirvast dispersion.

• Measurement is needed – CEOs are interestedin a systematic, fact-based way to measureprogress on both internal and external messagepenetration and retention.

- CEOs feel if they can measure it, they canmanage it. Just as importantly from theirperspective, they believe measurement helpsthem make a stronger case within the C-suite for communications as an added value.

MESSAGING IMPERATIVES

“Communicating the values is crucial.When values are understood properlyand expressed well, they become tools.”

“Before, PR was mostly generatingstories, but today a big part of the jobis enlisting your own employees andassociates to buy into and help drivethe strategy of the company. Nowwe’re trying to make sure 70,000 people know the plan and help us get there.”

“Most importantly, they ought to have a full understanding of a strategyand know whether it is understoodand grasped among stakeholders and employees.”


According to CEOs, there are three key modes of operation for communications chiefs: 1. Reactive;2. Proactive; and 3. Interactive.While it is necessary to always be prepared to react to situations as they arise, being solelyreactive is seen as insubstantial in today’s context.Being proactive is now seen as necessary, and progressively more difficult, as the business worldbecomes increasingly complex. Interactive com-munications are what CEOs hope to achieve, andare the realm of the more sophisticated commu-nications executives that CEOs now seek fortheir companies.

ReactiveCEOs acknowledge that a substantial part of thejob is managing the unexpected. They feel thatpreparation – e.g., understanding the company’sbusiness intimately, knowing the media channelscold and having done the values-based message-frame homework – is the best defense in emergencies.

The most common functions of reactive communications include: • Prioritizing incoming requests for information,

interviews, statements• Issuing press releases• Managing the press• Serving as the quoted spokesperson• Managing public/media events• Monitoring external reputation• Crisis management

ProactiveAccording to CEOs, this is a common and highlyrespected mode of communications. Proactivecommunications chiefs approach communica-tions to all stakeholders comprehensively. Theseexecutives “know the business,” and have a

sophisticated level of preparation and consistency,often operating ahead of major issues and trends.

The most common functions of proactive communications include: • Serving as the point person on all

communications-specific issues• Generating positive press coverage

for the company• Shaping both short- and long-term messaging • Developing CEO-specific messaging for

speeches, events or media engagements directly with the CEO

• Monitoring reputation across stakeholder groups

• Communicating to and educating employees

InteractiveThe interactive approach to communications iscomprehensive, highly integrated, and representsthe most strategic and synthesized level of think-ing about communications. It is viewed by CEOsas truly aspirational, as it embodies what CEOshope to see for the future of their communica-tions chiefs and their companies as a whole.

CEOs believe that the general public has increas-ingly become a part of the corporate ecosystemand that their top communications executivesmust effectively engage and incorporate the public into the fold of values-based messaging.

They are looking for new thinking along two key dimensions: 1. How to collaborate with the public

and internal audiences; and2. How to clarify and disseminate

the company’s values. The most sought-after functions of interactivecommunications include: • Synthesis of values – This involves bringing

company principles together in a clear and concise framework that addresses all

THE ARC OF COMMUNICATIONS WORK


stakeholders. At this level of communications,the communications chief is responsible for the collaborative process of shaping corporatereputation.

• Measuring external/internal message impact –CEOs seek to quantify reputation and messaging impact.

• Identifying and engaging nontraditionalstakeholders – CEOs see effective values-basedmessaging as enabling them to build coalitionsof supporters in nontraditional spheres. Theyalso see the need for some degree of manage-ment and/or servicing of niche players – as opposed to focusing solely on the “big” categories such as the mainstream media, shareholders and employees.

• Moving outside the traditional sphere ofcommunications – Due to the interconnected-ness of the interactive model, communicationschiefs achieve a higher level of involvement instrategic decisions, including those outside thetraditional communications portfolio (e.g.,finance, mergers and acquisitions,expansion/contraction).

• Identifying the future of the company – Theinteractive communications chief is responsiblefor initiating deep thinking on the long-termfuture of the brand and thought leadership.



CEOs identify personal credibility, unique infor-mation and long-term vision as the key drivers(apart from communications skills, which theytake for granted) for a given communicationschief ’s proving him- or herself at the company’sstrategic decision-making level.

Personal Credibility CEOs emphasize personal qualities more thantraining in describing what it takes for communi-cations heads to succeed at the highest levels.While this concept is highly subjective, CEOsidentify the following as key elements of credibility:• Intimate and detailed knowledge

of the company;• Strong business knowledge (e.g., theory and

practice of finance, supply chain management);• Leadership experience; and • Breadth and depth of internal and external

relationships.

Unique Information There is a strong push among CEOs for communications chiefs to bridge the perceivedgap between the “soft skills” of communicationsand the numbers-based performance idioms ofthe boardroom. Strategic planning requiresunique, fact-based perspectives including:• Internal and external reputation tracking;• Analyses of company performance before

and after events that impact reputation; and• Reputation comparables or case studies.

Long-term Vision While CEOs do not yet see communications as a primary driver (as opposed to an adjunct or contributor) of long-term strategy, the strongCEO belief in the strategic nature of companyvalues suggests that communications chiefs havean important role in initiating and collaboratingwith other internal leaders to establish the company’s long-term vision.

Since vision is highly abstract, CEOs are responsiveto highly concrete manifestations of it in:• Values-based messaging for all divisions;• Short-, medium-, and long-term

positioning plans; • Developing and implementing strategies for

managing and leveraging new media; and• Demonstrating how company values can drive

the concrete elements of traditional businessstrategy (e.g., new products, markets, materials,mergers and acquisitions, policies).

GETTING TO THE TABLE AND STAYING THERE


• The communications chief’s role at major com-panies has expanded dramatically over the lastthree to five years. Both the function in generaland the role of its leader are likely to continuegrowing in complexity, scope and perceivedimportance within the C-suite.

• CEOs have outlined the following nontraditionalskills that will be increasingly valuable for communications heads in the near future (if not now):

- Detailed company/industry knowledge- Wide business competence- Broad and deep internal relationship

network- Quantifiable long-term vision

• CEOs are looking for new ideas on establishingonce and for all, in the language of the board-room, the quantifiable value of communicationsto their companies. Because communicationschiefs are relatively new to the table, CEOs feelthe burden rests with them to make the casedefinitively.

• Every company is different, and the range ofCEO opinions on the scope of communicationsis significant. Tactics for making or consolidatingthe case for the scope of communications will,accordingly, vary.

• The biggest conceptual challenge for communi-cations heads will be adapting the traditionallysubjective strengths of communications to themore objective, numbers-based idioms of theboardroom.- On a company performance level – “How

is communications adding tangible value on a company-wide basis?”

- On a personal performance level – “How hasthe communications chief fulfilled his/her rolein the company?”

• Mastering and demonstrating these skills, andproducing concrete answers to these questions, are key to establishing and consolidating the roleof communications heads in the world’s top cor-porations.

CONCLUSION


APPENDIX A: SAMPLE PROFILE

Category Number of Interviews Completed

Member StatusPage 21Non-Page 10

IndustryBeverages 2Chemicals 1Commercial Banks 1Diversified Financials 1Electronics, Electrical Equipment 3Energy 1Insurance: Property & Casualty 1Insurance: Life, Health 2Internet Services and Retailing 1Mail, Package, Freight Delivery 1Motor Vehicles and Parts 2Packaging, Containers 1Pharmaceuticals 4Publishing, Printing 1Securities 2Specialty Retailers 1Telecommunications 2Utilities: Gas & Electric 1Wholesalers: Diversified 1Wholesalers: Healthcare 2

Revenue$2B-$25B 21$26B-50B 4$50B+ 6


APPENDIX A: SAMPLE PROFILE (CONTINUED)

Category Number of Interviews Completed

Global Rank1-250 8251-500 7

US Rank1-250 17251-500 7501-1000 3

CEO TenureLess than 2 years 32-4 years 135-7 years 98-10 years 310+ years 3

CEO AgeLess than 45 145-50 651-55 856-60 1061-65 566-70 1

RegionUS-Northeast 9US-Midwest 9US-South 6US-West 4Europe 3


Consumer vs. Non-ConsumerCEOs of companies that are more directlyexposed to the consumer market than B2B companies differ along the following dimensions:• C-suite status for communications heads is more

common among CEOs with companies involvedwith direct connections to consumers.

• Direct-to-consumer CEOs report more of animpact of the proliferation and nontraditionalmedia channels on their companies than B2Bcompanies.

• The CEOs of direct-to-consumer companies notonly feel that consumers have taken a new andmore in-depth interest in corporations, but thatthis has substantially increased the importance ofreputation and strategic reputation managementfor their companies.

Global vs. DomesticCEOs of companies that are actually global (asopposed to simply “thinking globally”) differ fromtheir domestic CEO counterparts in that:• Global companies show greater receptivity to

communications as a driver of strategy, attributingthe need for cohesive communications due to thecomplicated elements of foreign operations andcultural issues.

Direct Report to CEO vs.Non-direct ReportThere is a strong connection between reportingstatus and the overall perception of the strategicrole of corporate communications, as well as thelikelihood of use of the CCO title:• Companies in which the communications head

reports directly to the CEO are inclined to reporta stronger emphasis on the strategic role of communications for their companies.

• Direct report companies are also more likely to utilize the Chief Communications Officer title rather than some variation on Vice President,which is more common in companies where thetop communications executive does not report to the CEO.

What It Means• The communications case for companies with

limited consumer exposure has yet to be made.Since, across the board, CEOs see their busi-nesses as tending toward global representation,emphasizing communications’ role in gainingproductive access to foreign markets helpsadvance the positioning of the communica-tions chief.

• For companies with consumer and/or globalexposure that have not yet adopted the CCOtitle, making the case based on comparable companies adopting CCO status is lookingincreasingly possible.

• Direct report status is likely to depend on the CEO’s perception of:

- The strategic nature of communications within the company; and

- The perceived quality of the executive.

APPENDIX B: SUB-SAMPLE VARIATIONS


Interview ProtocolPurpose/Sponsor of study Thank you again for taking time out of your busy schedule to speak with me today. The survey should take no more than 15-20 minutes of your time, and is sponsored by the Arthur W.Page Society.

The Arthur W. Page Society is a select member-ship organization for senior public relations andcorporate communications executives. Since itsincorporation in December 1983, the Society hassought to bring together senior communicationsexecutives representing a wide spectrum of indus-tries who are interested in helping each other andperpetuating the high professional standards setby Arthur W. Page.

The survey is being conducted exclusively withCEOs from Fortune 500 companies in order tohelp the Arthur W. Page Society and the commu-nications profession at large better understandthe changing strategic needs of their CEOs andmore effectively address their company’s needs.

I represent the Business Consulting practice at Financial Dynamics. Our firm specializes inconducting elite research with senior executivesin the United States, Europe, Latin America, andAsia. We’ve been retained by the Arthur W. PageSociety to design the survey, conduct the inter-views, and interpret the findings.

ConfidentialityI would appreciate your candid opinions, andwould like to assure you that all of your responseswill be used only for research purposes and keptcompletely confidential. Your name will not beused on our reports, and no remarks or opinionsyou express will be directly attributed to you oryour company. Comments and insights from theinterviews will be presented in aggregate formonly, and will not be disclosed to Page Societymembers or your individual communicationsexecutive.

IncentivesIn appreciation of your time and cooperation, we will be providing you with: • An exclusive summary of the research findings;

as well as • $400 to the charity of your choice.

Discussion TopicsAs you know, the role of the CEO in a Fortune500 company has changed over the last few yearsin response to a rapidly changing and dynamicbusiness environment. In this context, some haveargued that the role of senior communicationsprofessionals, particularly the [CCO/senior com-munications executive], has also shifted signifi-cantly over the past several years.

The Evolution of the Role1. How do you think that the role of the

[CCO/senior communications executive] incompanies like yours has changed, if at all,over the past several years? - Have they become more/less influential in

business decisions outside the traditionalpurview of the communications function –decisions that affect broader corporatebehavior and strategy? Why/why not?

- In which kinds of these broader corporatedecisions has the [CCO/senior communica-tions executive] become more influential?Less influential? Why? [PROBE: corporatereputation; sales; product development;merger/acquisition; labor relations; organi-zational change/restructuring initiatives;CRM; employee relations; crisis manage-ment; government/public affairs; investorrelations; corporate social responsibility;outsourcing; developing corporate princi-ples/values; cultural change; new mediachannels]

APPENDIX C: DISCUSSION GUIDE


2. Looking ahead, how do you think the role ofthe [CCO/senior communications executive]should change over the next few years to bet-ter address your needs and the needs of yourcompany? - Which kinds of business decisions outside

the traditional purview of the communica-tions function should they play a role in?Which ones should they not be involved in?Why? [PROBE: corporate reputation; sales;product development; merger/acquisition;labor relations; organizational change/restructuring initiatives; CRM; employeerelations; crisis management; government/public affairs; investor relations; corporatesocial responsibility; outsourcing; develop-ing corporate principles/values; culturalchange; new media channels]

3. What do you think are the most serious chal-lenges a [CCO/senior communications execu-tive] at your company is likely to face over thenext few years? [PROBE: global integration;fast-paced technological changes; hostile business media; new stakeholders; activistconstituencies/shareholders]

4. What kind of [CCO/senior communicationsexecutive] would be in the best position toeffectively address these challenges and takeon these new responsibilities? [PROBE, AS NEEDED:] - What kind of person should they be?

[PROBE: Introvert/extrovert; detail-oriented; team-player; creative; leader]

- What kind of background/experience wouldthey have? [PROBE: skills; previous jobs;areas of expertise; international expertise]

- What should their primary focus be?[PROBE: Which stakeholders should they be most focused on? What issues should they concentrate on?]

- What would be their relative position insidethe senior executive suite? What kind ofrelationship would they have with other senior executives/C-suite executives? Whatkind of relationship would they have withthe Board?

- What would be their level of interactionwith/relationship to the CEO?

- What would be their title? Is the best titlefor this person CCO; CPRO; or some othertitle? Why?

APPENDIX C: DISCUSSION GUIDE (CONTINUED)


Wrap UpWe hope this discussion has been interesting for you. It’s been very useful for us. Moving forward, if you think of anything else you’d like to add, please do not hesitate to contact me with any furthercomments or ideas.

Please know that all of your responses will be used only for research purposes and kept completely confidential. Comments and insights from the interviews will be presented in aggregate form only, and will be used to help the Arthur W. Page Society and the communications profession at-large better understand the changing strategic needs of their CEOs and more effectively address their company’s needs.

As discussed, in order to show our appreciation for your time, we will send you a summary of our findings when the study is complete. To do so, I just need the following information:

RESPONDENT NAME:

COMPANY:

ADDRESS/EMAIL:

Also, to make a donation to a charity of your choice, I need the following information:

CHARITY:

ADDRESS:

USE NAME/ANONYMOUS:

Thank you for your time. Good day/night.

APPENDIX C: DISCUSSION GUIDE (CONTINUED)

Trustees*Paul A. Argenti, Tuck School of Business at DartmouthCatherine V. Babington, AbbottAnn H. Barkelew, Fleishman-Hillard, Inc. (Retired)Roger Bolton, APCO WorldwideAngela A. Buonocore, ITT CorporationPaul Capelli, StaplesPeter D. Debreceny, Allstate Insurance Company (Retired)Robert DeFillippo, Prudential Financial, Inc. Valerie Di Maria, Willis Group Holdings LimitedGregory Elliott, International Truck and Engine CorporationMatthew P. Gonring, Gagen MacDonaldKimberley Crews Goode, Visteon CorporationHarvey W. Greisman, MasterCard WorldwideNancy A. Hobor, GraingerAedhmar Hynes, Text 100Jon C. Iwata, IBM CorporationRichard D. Jernstedt, Fleishman-Hillard, Inc.Raymond L. Kotcher, KetchumThomas J. Kowaleski, actk2 Communication ConsultingMargery Kraus, APCO WorldwideMaril Gagen MacDonald, Gagen MacDonaldWilliam G. Margaritis, FedEx CorporationThomas R. Martin, College of CharlestonAnne M. McCarthy, Western UnionJames E. Murphy, Murphy & Co.W.D. (Bill) Nielsen, Johnson & Johnson (Retired)James S. O'Rourke IV, Ph.D., University of Notre DameHelen Ostrowski, Porter NovelliKenneth B. Sternad, UPSJessica Stoltenberg, WyethDonald K. Wright, Ph.D., Boston University

* As of January 1, 2008

StaffTom Nicholson, Executive DirectorSusan S. Chin, Executive AssistantDawn Hanson, Communications Director


ARTHUR W. PAGE SOCIETY BOARD OF TRUSTEES AND STAFF

The Page PhilosophyArthur W. Page viewed public relations as the artof developing, understanding and communicatingcharacter—both corporate and individual.

This vision was a natural outgrowth of his belief in humanism and freedom as America’sguiding characteristics and as preconditions forcapitalism.

The successful corporation, Page believed, mustshape its character in concert with the nation’s. It must operate in the public interest, manage forthe long run and make customer satisfaction itsprimary goal. He described the dynamic this way:

“Real success, both for big business and the pub-lic, lies in large enterprise conducting itself in thepublic interest and in such a way that the publicwill give it sufficient freedom to serve effectively.”

The Page Principles• Tell the truth. Let the public know what’s

happening and provide an accurate picture ofthe company’s character, ideals and practices.

• Prove it with action. Public perception of anorganization is determined 90 percent by whatit does and 10 percent by what it says.

• Listen to the customer. To serve the company well,understand what the public wants and needs.Keep top decision makers and other employeesinformed about public reaction to companyproducts, policies and practices.

PAGE PHILOSOPHY AND PAGE PRINCIPLES

• Manage for tomorrow. Anticipate public reaction and eliminate practices that create difficulties. Generate goodwill.

• Conduct public relations as if the whole companydepends on it. Corporate relations is a manage-ment function. No corporate strategy should be implemented without considering its impacton the public. The public relations professionalis a policymaker capable of handling a widerange of corporate communications activities.

• Realize a company’s true character is expressed by its people. The strongest opinions—good orbad—about a company are shaped by the words and deeds of its employees. As a result,every employee—active or retired—is involvedwith public relations. It is the responsibility ofcorporate communications to support eachemployee’s capability and desire to be an hon-est, knowledgeable ambassador to customers,friends, shareowners and public officials.

• Remain calm, patient and good-humored. Lay thegroundwork for public relations miracles withconsistent and reasoned attention to informa-tion and contacts. This may be difficult withtoday’s contentious 24-hour news cycles andendless number of watchdog organizations. But when a crisis arises, remember, cool headscommunicate best.


NOTES


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Arthur W. Page Society

317 Madison Avenue, Suite 2320New York, NY 10017Phone: 212/400-7959

Fax: 212/922-9198www.awpagesociety.com

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