the european chief communications officer
TRANSCRIPT
The European Chief Communications OfficerKorn Ferry’s 2013-2014 survey of pan-european companies
IntroductionEuropean Chief Communications Officers (CCOs) are taking on
expanded and highly strategic roles today, well beyond the traditional
responsibilities of media relations, internal communications, issues/crisis
management, and executive communications. CCOs across Europe are
increasingly involved with corporate advertising and/or branding,
corporate reputation and, more recently, social media. In fact, more
than half of respondents to the 2013-2014 Korn Ferry European Corporate
Communications Officer survey reported that social media strategies
have been added to their mandates in the past 24 months, consuming an
ever-greater amount of time, resources, and attention.
When coupled with similar findings from the 2012 Korn Ferry survey of
CCOs in Fortune 500 companies (our third such survey in the U.S.), a
stronger embrace of social media emerges as a global trend. This
burgeoning channel of communication is being used for much more
than monitoring comments posted by others or to respond in times of
crisis. Today, CCOs are using social media proactively to position their
organizations in a positive light and as a tool of engagement with key
audiences such as media, NGOs, policymakers, consumers, and the public
at large.
The 2013-2014 Korn Ferry European Chief Communications Officer
Survey is the Firm’s first-ever exploration of the responsibilities,
mandates, concerns, and priorities for pan-European CCOs, tapping into
the insights and experiences of CCOs from among the top 300 European
companies in ten European countries.
Country Locations of Pan-European CCOs Surveyed Belgium Netherlands
Finland Spain
France Sweden
Germany Switzerland
Italy United Kingdom
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Executive summary
Amid an increasingly complex environment to manage corporate
reputation, influence consumer acceptance and public opinion, and
communicate with a widening array of engaged and vocal stakeholders,
chief communications officers (CCOs) across Europe are taking on greater
strategic roles, according to the 2013-2014 Korn Ferry European Chief
Communications Officer Survey. CCOs of large organizations with a pan-
European and often global reach reported that an important component of
their roles is to ensure operational excellence as part of the senior
leadership arsenal of talent and strategic skill sets. Reflecting the
importance of this role, the vast majority of CCOs (+70 percent) report to the
CEOs of their organizations. Similarly, according to Korn Ferry research,
top communications executives in the U.S. most commonly report to the
CEO (43 percent), and if not, to someone in the C-suite.
Figure 1European CCOs report to the top
Chief Executive Officer
Chief Operating Officer
Chief Marketing Officer
General Counsel
Head of Strategy
President
Other
3.5%
3.5%
3.5%
71.9%
1.7%
1.7%
14.0%
0% 20% 60%40% 80% 100%
Unique to the European CCO role—and highlighting a competency for global
leaders in this practice—is the ability to foster and support enterprise-wide
corporate culture and values, while bridging diversity across multiple
countries and languages. (One CCO surveyed reported job responsibilities
across 32 countries and 27 languages.) An added complexity is the need to
influence opinion leaders both within a particular country as well as across
the European Union, which requires cultural sensitivity and savvy, as well
as awareness of how business is conducted within one country and across
Europe.
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Figure 2Reporting structure of CCOs in the US (2012)
Chief Executive Officer
Co-Chairman or Vice Chairman
President
Chief Marketing Officer
Chief Human Resources Officer
Chief Administrative Officer
Chief Financial Officer
Chief Operations Officer
General Counsel
Head of Corporate or External Affairs
Other
1.4%
1.4%
7.4%
42.5%
9.5%
12.8%
3.4%
3.4%
6.1%
6.1%
6.1%
0% 20% 60%40% 80% 100%
Korn Ferry’s Global Corporate Affairs Practice conducted the survey of those
leading the communications function at major European firms during
October 2013, to assess the priorities that receive most of their attention and
efforts, and to identify new mandates that have been added to their roles in
the past 24 months.
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A seat at the leadership table
More than ever, CCOs across Europe, like their counterparts in the U.S., are
taking a seat at the leadership table, as corporate officers and/or part of the
senior leadership team.
Figure 3Are you a corporate officer?
Yes38.6%
No8.7%
No, but partof Senior Leadership Team52.6%
Leadership skills have taken on more significance for CCOs over the past few
years, primary among them understanding the business (identified by 73
percent of respondents)—in other words, business acumen, functional/
technical skills, and technical learning. As one senior CCO observed, the
distinct skill sets for which these leaders were hired in the past, although
still important, take second place to the “managerial maturity” required to
build and run a business function tasked with handling “many of the more
confusing items on the CEO’s to-do list.” As CCOs become advisers and
strategists, their roles have never been as important, and their ability to
influence and impact leadership teams has never been as great.
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Leadership characteristics that have become more important to European CCOs
Understanding the Business 73%
Making Complex Decisions 51%
Character and Ethics 47%
Creating the New & Different 42%
Being Organizationally Savvy 38%
Courage 36%
Inspiring and motivating teams and direct reports 36%
Results focus 35%
Developing talent and leadership in direct reports 35%
Managing Up 27%
Managing teams, delegating work, evaluating people 22%
European CCOs identified strategic characteristics that are shared with
other C-level executives such as chief marketing officers (CMOs), chief
financial officers (CFOs), and chief human resources officers (CHROs). Thus,
for CCOs in Europe, as well as their U.S.-based counterparts, leadership
skills that enhance decision making, innovation, and the courage to take a
stand and handle conflict allow them to be drawn increasingly into
leadership’s “inner circle.” As we have seen in our work with organizations
across industries, global CEOs tend to be “agnostic” about where strategic
input comes from, whether a CCO, a CMO, or other senior executives. More
important is the person’s ability to provide a 360-degree perspective of the
landscape, an attitude and skill set that uniquely positions the savvy CCO
within the leadership circle—acting more like a “chief collaboration officer.”
More important is the person’s
ability to provide a 360-degree
perspective of the landscape, an
attitude and skill set that
uniquely positions the savvy
CCO within the leadership
circle—acting more like a “chief
collaboration officer.”
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Responsibilities that receive more attention from European CCOs today
Providing leadership on reputation, values and culture across the enterprise 98%
Designing systems, such as an enterprise-wide social media strategy 91%
Defining and activating corporate character 78%
Developing and publishing content for external stakeholders 67%
Understanding behavioral science to inform stakeholder engagement 55%
Other 42%
Social media
As part of the senior leadership team, highly skilled European CCOs, like
their U.S. counterparts, contribute significantly to the organization’s ability
to take on the social media challenge. Although social media channels are
used by other functions, such as marketing, CCOs are uniquely positioned
to devise, implement, and manage an overarching strategy that
encompasses all stakeholders —particularly when the leadership team
has a limited grasp of new channels of communication and its impact
on the business. As one CCO commented, “There is very little C-suite
understanding of these [channels]. People on the team are not capable
of managing the new world of online and social media” in the broader
business environment.
Critical challenges facing pan-European CCOs today:
• Personally ensuring that functional leaders are able to influence,
challenge, and advise to the degree necessary, to influence outcomes
internally and externally.
• Mobilizing employees at all levels of the organization, attracting and
retaining talent, developing trust and confidence in an interactive
communication world.
• Linking brand strategy to corporate strategy and ensuring the
corporate message is aligned enterprise-wide.
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The reality for many European CCOs, as respondents noted, is that
organizations are not fully capturing the potential of social media,
particularly the opportunity to enhance and manage the corporate
reputation using this and other online channels. Moreover, social media
strategies go far beyond the defensive role of crisis communication and
monitoring/influencing reports about the organization. Indeed, CCOs are in
a position to use the extensive and still largely untapped reach of social
media to generate and distribute content that positively, and proactively,
influences a variety of stakeholders including consumers, the media, the
public at large, and policymakers.
Beyond its importance, social media is emblematic of a shifting business
landscape, with greater fragmentation among stakeholders and channels
with which to reach them. Inherent in the new communications terrain is
“noise fog”; this makes it challenging for a company and its message to be
heard and to distinguish what important voices are saying. “Add to that the
loss of trust in institutions and the attendant loss of authority of those
institutions, and it becomes more difficult to focus on what’s most
relevant and important in a company’s narrative,” a CCO observed.
On the minds of pan-European CCOs:
• The speed of information and the change in how stakeholders
gather it through various media channels
• Conflicting demands of different and increasing number
of stakeholders
• Leveraging social media (offensively and defensively) and the
risks associated with it
Although social media channels
are used by other functions,
CCOs are uniquely positioned to
devise, implement, and manage
an overarching strategy that
encompasses all stakeholders.
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Social media
Advertising and/or branding
Other marketing activities
Corporate communications
CSR/Corporate philanthropy/foundation
Corporate reputation
Event management (e.g. trad...)
Marketing (CMO)
Community relations
Public policy
56.5%
21.7%
21.7%
17.3%
17.3%
13.0%
8.7%
4.3%
4.3%
4.3%
0% 20% 60%40% 80% 100%
Figure 4New mandates for European CCOsHave any of these areas been added to your mandate just in the last 24 months?
The talent challenges
The multiple and highly complex demands on the CCO raise a talent
challenge. People with digital/social-media backgrounds tend to be younger
and lack in-depth leadership experience. At the same time, today’s CCO, as
an “integrator and collaborator” working across functions, shoulders far more
than the “traditional PR” responsibilities of the past. As we see in our work
with clients across industries and geographies, the successful CCO role
requires a unique combination of skills: a strategic orientation with many
years of experience (often 20+); deep and highly nuanced skills such as
critical judgment, high emotional quotient (EQ), courage to push back/make
tough decisions, and business sensibility; cultural dexterity, strong
relationship building/diplomacy skills, and a proven track record on
complicated issues such as corporate reputation and building relationships
with stakeholders; and the ability to learn new approaches that can be put
into a broader business context.
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Social media strategy
Community relations
Corporate social responsibility
Corporate philanthropy
Corporate advertising/branding
Event management
Government Relations
Public policy
Marketing
Investor relations
Corporate strategy
67.3%
57.1%
57.1%
55.8%
43.5%
38.8%
24.5%
20.4%
18.4%
12.9%
10.2%
0% 20% 60%40% 80% 100%
Figure 5New mandates for Fortune 500 CCOsHave any of these areas been added to your mandate just in the last 24 months?
This balance of tried-and-true functional experience, leadership, and
judgment, with knowledge of cutting-edge technology and techniques
highlights the importance of learning agility as a leadership trait.
Korn Ferry defines learning agility as the ability and willingness to
learn from experience, and subsequently apply that learning to perform
successfully under new or first-time conditions. High-potential, learning
agile executives are curious, creative, and resourceful; thrive in new,
complex, and ambiguous situations; get to the essence of any problem;
and inspire others to embrace change and achieve results. Moreover,
learning agility is among the growth capacity traits of leaders that translate
into higher corporate profit margins (Lewis, May 2013).
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The ‘bridge’ to crucial audiences
As their jobs expand, European CCOs (like those in the U.S.) are uniquely
qualified to provide feedback from the broadest variety of audiences—
consumers, NGOs, policymakers, board members, partners/vendors,
employees, and others. In addition, new and emerging areas such as social
media are blurring the lines between the CCO function and other areas,
such as marketing or strategy.
That’s not to say that CCOs are taking the place of or infringing upon their
senior leadership counterparts; rather, it points to the need for a unified,
collaborative, and coordinated approach to manage new or emerging
initiatives such as social media that don’t have a clearly defined owner
within the organization. Within that team, the CCO often takes the
leadership role, pulling others together to work collaboratively for
greater effectiveness and impact.
Key comments from CCOs:
• Manage corporate reputation; make sure the company is seen
externally and internally as a “good” citizen, as well as “effective”
• Internal communications is increasingly important, especially as
employees have/are using social media tools
• Need to get closer to NGOs and policy influencers (playing offense
and defense)
• Describe what the company does in a way that connects both inside
and outside the company—not only using data, but also stories to
communicate
• Ensure global alignment on priorities, desired impact, and key
performance indicators
The global elite CCOs
Among CCOs, there is a distinct group who form a “global elite,” working
for some of the most significant organizations in Europe and the U.S. These
distinguished CCOs, who often come from strategic policymaking roles
(including government), are deeply embedded in their organizations as
strategists and advisers to the CEO. Their purview extends beyond the pure
communications mandate, encompassing broad oversight and responsibility
for areas such as corporate social responsibility, consumer relations,
strategy, corporate marketing, and public policy, government relations, and
investor relations. Typically, these elite CCOs occupy a high-impact “inner
circle” role, but with a very low profile in the public eye, which calls to mind
a political adviser/strategist to a top governmental leader. Having a high
degree of savvy, responsibility, influence, and discretion earns them
lucrative compensation packages on par with the elite/highest-paid
executives in their organizations.
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These top-notch strategists/advisers are not found in every company.
However, they may be a harbinger of changes to come even among more
traditional CCOs who are taking on responsibilities and duties of greater
influence and impact, or who may be well positioned to step up to a larger,
yet-to-be defined role in their organizations. As one CCO commented about
C-suite expectations for the role: “Does [the enterprise] have sufficient
quality of people globally to execute a more sophisticated and challenging
agenda? Do we have the right level of involvement and engagement…in
order to address some of the public policy issues we face, [and] prioritisation
and focus on the right issues and desired outcomes as an industry?”
CCOs who possess the right skill sets and learning agility will be in demand
as advisers who can (and will) carve out bigger roles for themselves. Those
who can step up to the challenge, add value, and earn the trust and
confidence of the CEO are charting their own courses across what is
becoming an open field of opportunity as roles morph and change.
As greater demands are placed on CCOs, the need is for experienced
individuals with not only a depth of expertise in the function, but also
the leadership capabilities to address an increasingly complex and dynamic
business landscape. They must be talented leaders and innovative
communicators (as one CCO described it, “storyteller, charmer, and
relationship-builder”) with well-established contacts in a network that
includes key stakeholder groups. In addition, understanding societal,
economic, political, and leadership trends is key, in order to take ownership
of the corporate narrative internally, externally, and across all channels.
Showcasing their experience, the majority of European CCOs surveyed (63%)
have worked for three to five companies (including their current one).
Current positions range across a number of industries, including banking/
insurance/financial services, consumer/retail, energy/utilities, healthcare/
pharmaceutical, and industrial/manufacturing. Prior industry experience
was dominated by media/entertainment and consumer/retail.
Typically, these elite CCOs occupy
a high-impact “inner circle” role,
but with a very low profile in
the public eye, which calls to
mind a political adviser/strate-
gist to a top governmental
leader.
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Compensation
Base salaries covered a wide range, from €100,000 to more than €600,000,
with the bulk of respondents (80 percent) paid between €150,000 and
€375,000 (2012 salary data). Within that range, nearly half (42 percent of
respondents) received base salaries of between €150,000 and €250,000.
Nearly one-third (31 percent) of respondents reported bonuses that amount-
ed to more than 50 percent of their base salaries, while another 18 percent
received bonuses that were 40 to 50 percent of their base salaries. In total,
they accounted for nearly half of all respondents.
More than three-quarters (78 percent) of respondents said they receive
annual equity as part of their compensation packages. Of those receiving
equity compensation, nearly half (46 percent) said they received a combina-
tion of restricted stock units, stock options, and performance shares. Among
the individual equity components, the most commonly received alone were
performance shares (33 percent of respondents).
100 – 149K
150 – 174K
175 – 199K
200 – 224K
225 – 249K
250 – 274K
275 – 299K
300 – 324K
325 – 349K
350 – 374K
375 – 399K
400 – 424K
425 – 449K
450 – 599K
600 – 625K
14.2%
7.1%
7.1%
5.3%
5.3%
10.7%
10.7%
10.7%
8.9%
5.2%
3.5%
3.5%
1.7%
1.7%
1.7%
0% 20% 60%40% 80% 100%
Figure 6Base compensation (in euros)
The median base salary for CCOs is between €275,000 and €300,000.
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None
Less than 100,000
100,000 to 199,999
200,000 to 299,999
300,000 to 399,999
400,000 to 499,999
500,000 to 599,999
600,000 to 1,199,999
1,200,000 – 1,699,999
1,799,999 and above
9.0%
6.9%
4.6%
4.6%
2.3%
22.7%
25.0%
18.2%
4.6%
2.3%
0% 20% 60%40% 80% 100%
Figure 8Annual equity valuation (in euros)
The median annual equity valuation for CCOs was between €300,000 and €399,999 Euros
References Lewis, James. May 2013. “Proof Point: Leadership That Drives Profits.” Korn Ferry Institute.
No annual bonus
1-19%
11-15%
16-20%
21-25%
26-30%
31-35%
36-39%
40-50%
More than 50%
1.8%
3.6%
12.7%
12.7%
16.3%
30.9%
5.4%
5.4%
10.9%
0% 20% 60%40% 80% 100%
Figure 7Bonus as a percentage of gross annual salary
Nearly 50% of the CCOs had a bonus of 40% or more
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Authors Richard Marshall Managing Director, Global Corporate Affairs Center of Expertise
200 Park Avenue, 33rd Floor
New York, New York 10166
+1 212-973-5816
Philiep Dedrijvere
Senior Client Partner Avenue Louise 489 – 1050
Brussels, Belgium
+1 32 2 645 28 47
Other members of the Global Corporate Affairs Practice
Nels Olson
Global Practice Leader, Government Affairs Practice
1700 K Street, N.W., Suite 700
Washington, D.C. 20006
+1 202-955-0926
Beth Fowler
Senior Client Partner
1700 K Street, N.w., Suite 700
Washington, D.c. 20006
+1 202-955-0938
E-Mail: [email protected]
Megan Shattuck
Client Partner 200 Park Avenue, 33Rd Floor
New York, NY 10166
+1 212 984- 9430
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About the Global Corporate Affairs Practice The Global Corporate Affairs Practice is a dedicated specialty global practice which focuses on corporate communications/public relations, government affairs, and investor relations searches across all industries and geographies. As former practitioners, we are the largest specialty practice of our kind among all major search firms and have teamed with our Korn Ferry colleagues in every industry serving the Global Fortune 500.
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© 2013 The Korn/Ferry Institute