pr for ceo's: strategy and tips

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the ceo as a pr weapon

25/04/2013

FINN Public Relations

kristien vermoesenmanaging partner

[email protected]: @kris10vermoesenFB: facebook.com/FINNPR

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finnthe ceo as a pr weapon

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what do ceos expect from pr?

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“we can afford to lose a lot of moNey. we cannot afford to lose even a shred of reputatIoN.”

beRkshIRe hathaway letteR to shaReholdeRs, 2010


“satIsFactIoN, coRPoRate cRedIbIlIty, ceo RePutatIoN aNd leadeRshIP eFFects oN PublIc RelatIoNshIPs”, JouRNal oF taRgetINg, MeasuReMeNt aNd aNalysIs FoR MaRketINg (2011) 19

Is cRedIted wIth PlayINg a MaJoR Role IN geNeRatINg market capitalization FoR a coMPaNy, aNd MaNy aRgue that It should be tReated as Its most important long-term asset.”

reputatIoN


“there is a stroNg (aNd poteNtIally daNgerous) lINk between the reputation of the organisation and the person who heads it.

one ceo went so far as to say that the reputation of the company and the reputation of the ceo are one and the same thing.”

“ceos’ vIews oN RePutatIoN MaNageMeNt,” JouRNal oF coMMuNIcatIoN MaNageMeNt vol. 9


httP://www.eNgadget.coM/2013/02/14/adobe-ceo-dodges-PRIcINg-questIoNs/


“Maybe you Feel lIke you actually owN the soFtwaRe thIs way, aNd I uNdeRstaNd that. Maybe you doN’t tRust adobe FoR vaRIous ReasoNs including the shady, dodgy way that the ceo avoids talking about real issues. I get that too. “

httP://FstoPPeRs.coM/obJectIvely-aNalyzINg-the-adobe-cReatIve-cloud-should-you-waNt-It


coNclusIoN: the ceo PeRsoNal bRaNd Is not a vanity project:

“stakeholdeRs PRoJect a PeRsoNal bRaNd oNto the ceo IN aNy eveNt aNd unless this is actively managed, a False aNd detRIMeNtal IMage caN eMeRge. IN soMe cases, the IMPact oN PeRsoNal aNd coRPoRate RePutatIoN caN be PRoFouNd.”


how does the press look at ceos?

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how does PRess wRIte about ceos?

“RePoRteRs choose to Focus oN a RelatIvely sMall set oF winners and losers wheN castINg busINess coveRage IN teRMs oF ceos.”

“the top 5 ceos, howeveR, accouNted FoR 48% of the stories MeN-tIoNINg the chIeF executIves oF these FIRMs.“MedIa coveRage oF ceos: who? what? wheRe? wheN? why?”, JaMes t. haMIltoN (duke), RIchaRd zeckhauseR (haRvaRd uNIveRsIty), 2004,


finn research shows the: same picture in belgium. ceo “stars”


we call this the “matthew eFFect”

httP://www.FINN.be/blogs/how-JouRNalIsts-choose-exPeRts-Matthew-eFFect


yes, but we’Re too sMall to be a “staR”

wrong. “theRe aRe Not a coNsIsteNt set oF chaRacteRIstIcs that PRedIct whIch coMPaNIes wIll have chIeF executIves tReated as celebRIty ceos by MaJoR PaPeRs.”

“MedIa coveRage oF ceos: who? what? wheRe? wheN? why?”, JaMes t. haMIltoN (duke), RIchaRd zeckhauseR (haRvaRd uNIveRsIty), 2004,

great! let’s make our ceo Famous!!

finn



Not so Fast


“IN soMe cases the PuRsuIt oF celebRIty levels oF coveRage May coMe at the expense of shareholder interests, as a ceo uses coMPaNy ResouRces FoR PublIcIty aNd devotes less tIMe to FIRM busINess. IN cases wheRe ceo RePutatIoN buIldINg adds lIttle to a FIRM’s FoRtuNes but buIlds the exteRNal RePutatIoN oF aN executIve, PublIcIty caN PRoMote a ceo’s MobIlIty aNd ultIMately leave the coMPaNy wIth MoRe tRaININg costs to beaR wheN the executIve Moves oN.”



“...headed the statue oF lIberty renovation, joined a congressional commIssIoN on budget reduction and wrote a second book, a syndicated newspaper columN, bought an italian vIlla where he started bottling his own wINe and olIve oIl .... critics contend it all distracted him, and was a root cause of chrysler’s current problems .... it’s clear that being a folk hero is a demanding sideline.”

wall stReet JouRNal oN lee Iacocca (as quoted IN “good to gReat”)


celebRIty caN be distractive, aNd eveN woRse:


“the greater the percentage of stories about the ceo, the more likely the firm was to be involved in scaNdal in 2001-2002. (...)”

“ceos who give interviews and search out soft news coverage are more likely to be the ones that abuse the principal-agent relationship in ways that result IN theIr INdIctmeNt or resIgNatIoN later”.



being a “star” communicator is not the same as becoming a celebrIty. it’s about using the ceo in a way that helps the reputation of the company


ceo branding and communication is Not easy. it requires skill, attention and moderation, but it is Necessary.


addItIoNally, coMMuNIcatIoN Is a two-way PRocess. by eNgagINg stakeholdeRs IN a dIalogue, the ceo/oRgaNIzatIoN caN show eMPathy aNd closeNess to the coMMuNIty. coMMuNIcatIoN Is also IMPoRtaNt to gaIN INsIghts FRoM the coMMuNIty oF stakeholdeRs:

“the ceo has aN IMPoRtaNt Role IN the cReatIoN oF a listening organi-zation”“ceos’ vIews oN RePutatIoN MaNageMeNt,” JouRNal oF coMMuNIcatIoN MaNageMeNt vol. 9


“the modern day business leader must be like the samuraI - able to master the martial arts of business combat, but also able to learn the skills of the poet or philosopher”

“MaNagINg coRPoRate coMMuNIcatIoNs”, Rosella gaMbettI (ed.)

some case studies:

finn


sIx lessons of steve jobs:

1. pr is mission crItIcal2. exclusive interviews3. product launches4. a powerful brand5. the ceo is a brand, too6. push back in crisis

httP://www.FINN.be/eN/blogs/6-PR-lessoNs-steve-Jobs


“delIverINg happINess”

toNy hsIeh (zappos)


toNy hsIeh (zaPPos, sold to aMazoN.coM FoR $ 1.2 bN)

“delIveRINg happiness” book“delIveRINg haPPINess” bus touR (!)

thought leadeRshIPcoMMuNIcate about values


7 PR laws oF wouter torfs:

1. don’t be afraid oF the Me-dIa

2. be avaIlable, honest aNd RelevaNt

3. wRIte a book!4. doN’t coMMuNIcate wheN

you have NothINg to say5. It’s okay to have oPINIoNs6. keeP youR ego uNdeR coN-

tRol7. experiment!


wouter torfs (2011)

httP://www.FINN.be/sItes/deFault/FIles/text_IMages/FINN_auxIPRess_ceo_MedIa_RaNkINg_2011.PdF


duco sickinghe (2011)

httP://www.FINN.be/sItes/deFault/FIles/text_IMages/FINN_auxIPRess_ceo_MedIa_RaNkINg_2011.PdF


didier bellens (2011)


“PublIc RelatIoNs PRactItIoNeRs woRkINg wIth oRgaNIzatIoNs that have ceos with positive tonality may find opportunities to gener-ate positive media coverage, esPecIally IF they INvolve the ceos IN the stoRIes.”“MedIa coveRage oF ceos: who? what? wheRe? wheN? why?”, JaMes t. haMIltoN (duke), RIchaRd zeckhauseR (haRvaRd uNIveRsIty), 2004,


you should also look FuRtheR thaN traditional media:


leveson inquiry: murdoch = “backroom deals”, “lack of transparency”, “master of puppets”, “no accountability”

murdoch on twitter = “hey, here i am, ask me anything.” voice, personality, “humility”

wheN & how is ceo communication useful and effective?

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caReFul wIth highly paid executives (& bonuses): Issue caN be toxIc - esPecIally touchy subJects lIke cRIsIs:

“these FINdINgs aRe coNsIsteNt wIth FINdINgs FRoM the adveRtIsINg FIeld that FRoNtlINe eMPloyees aRe MoRe eFFectIve thaN ceos wheN coMMuNIcatINg about toPIcs Related” to custoMeR exPeRIeNce (ste-PheNs & FaRaNda, 1993).”

research



coke “scaRe” (1999), oPeN letteR to belgIaN coNsuMeRs FRoM douglas IvesteR: “who Is thIs stRaNge guy?” (huMo: “deaR doug”)


“...a celebrity ceo can be enormously helpful. where would beN & Jerry’s be without ben cohen and jerry greenfield? they made ben & jerry’s the brand it is today”.

al & lauRa RIes, “the Fall oF adveRtIsINg aNd the RIse oF PR”, P. 137


FoR ceos oF sMall aNd MedIuM sIzed coMPaNIes, theRe Is almost no downside to beINg the Face oF the coMPaNy. FoR laRgeR coMPaNIes wIth multiple and/or international stakeholders (uNIoNs, shaRe-holdeRs, couNtRIes aNd goveRNMeNts...) the sItuatIoN Is MoRe coM-Plex.


“I caN’t MeasuRe It exactly, but we’ve had a veRy good yeaR - MoRe thaN 5% IN a cRIsIs yeaR.

I thINk ouR pr has helped us, es-PecIally IF you get coNsIsteNtly PosItIve MedIa coveRage.

I’M quIte coNFIdeNt that It helPs IF PeoPle know and trust your brand wheN the MoMeNt coMes to choose wheRe to sPeNd theIR MoNey.”

toRFs shoes


product coMMuNIcatIoN Is, howeveR, Not the best way to use the ceo IN coMMuNIcatIoN:


“the toNe oF PRoduct-Related coveRage had the lowest coRRela-tIoN wIth ceo toNe, whIch suggests that a ceo’s media image is not closely tied to how the media cover a company’s products. because oF thIs, PublIc RelatIoNs PRactItIoNeRs woRkINg wIth a ceo who has a NegatIve IMage May wIsh to hIghlIght theIR coMPaNy’s PRoducts Rath-eR thaN otheR oRgaNIzatIoN News.”

research



"INcReasINgly PublIc RelatIoNs Is seeN to beNeFIt ceos IN helPINg theM to align and inspire employees. agaIN, these aRe extReMely IMPoRtaNt Issues FoR coMMuNIcatIoNs dIRectoRs to Focus oN."


humaN resources & corporate culture


the IMPoRtaNce oF coRPoRate cul-tuRe IN 2013:

“generation y Is Really lookINg FoR a leader who shares their val-ues, a staNdaRd beaRed that they caN follow.” PRoF. PedRo debRuyckeRe


“Most oF the ReadeRs vIew the ceo as a coRPoRate sPokesPeRsoN ReP-ReseNtINg coMPaNy’s values aNd aRe eager to listen to the ‘master’s voice ‘

the sPecIFIc aRea oF csR Is coNsIsteNt wIth ReseaRch doNe oN usINg ceos as sPokesPeoPle IN csR RePoRts (FeRNs et al., 2008).”

corporate socIal respoNsIbIlIty


strategy/busINess/publIc aFFaIrs:

“thought leadershIp”


“should ceo’s blog? bloggINg Is a must For corporate ceos today”

“MaNagINg coRPoRate coMMuNIcatIoNs”, Rosella gaMbettI (ed.)

the ceo is kINg in crisis

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wheN aNd how should the ceo commuNIcate?


toNy hayward, ceo >>>bp

2010:“I waNt my lIFe back”


tony haywardex-ceo bp//2011: “i should have surrounded myself with a more senior media team”


cuRReNt thINkINg: the ceo should coMMu-NIcate:

•at the start oF the cRIsIs (show eMPathy)•wheN a change IN coMMuNIcatIoN Is

NecessaRy•at the end oF the cRIsIs (RetuRN NoRMal-

cy)

the ceo Is the “king” IN the chess Play. caN be cRucIal, but Must be PRotected aNd NeveR “sacRIFIced”

(thIs Is the shoRt veRsIoN)


Newsrooms: “who haveN’t we heard about thIs?”

“hamlet eNds by a lack oF players”


communication by the ceo will often end the issue - this tendency can be used to proactIvely end it. (FINN research)

this is a hIgh rIsk strategy. be sure that no more skeletons are hiding in the closet


phIlIppe muyters INreyers laat:

<<<<<<<<emotIoN“I gave up too much to resIgN Now”

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