by Oliver Aust, CEO and founder of Eo Ipso Communications
Today, mastering communications is not simply a matter of adding another string to your bow. Communications has become a fundamental or hard skill not just for communicators, but also for CEOs, executives and anyone with ambition. Without excellent communication, it is almost impossible to succeed in the 2020s.
This has a profound impact on the way in-house or external communications advisors interact with their CEOs or clients. We need to show convincingly that the bar – and the stakes – are now much higher in executive communications, and that CEOs should raise their game accordingly.
What caused communications to shift from soft to hard skill?
In short, automation and artificial intelligence are revolutionising our lives and workplaces. Everything that can be automated or digitalised will be over the course of the next few decades. This need not be a cause for despair; on the contrary, it is an opportunity to focus more on what humans do best.
Communications is one of the key differentiators between humans and machines. For the foreseeable future, computers will not be able to deliver inspiring speeches or provide the right words to show empathy in a crisis. And developments in technology have not reached the point where bots can apply the critical thinking necessary to build a great company culture. Therefore, it is crucial that executives master the art of communications if we are going to stand out from bots, peers and competitors. With a comprehensive grasp of communications, humans will still be able to rise to the challenge of leading an organisation into the future. As bestselling author and communications expert, Carmine Gallo writes: “Become a great communicator by mastering the art and science of persuasion and you’ll thrive in the modern world.”
So why does this trend impact CEOs?
There are three main reasons and they are all the result of new or emerging trends.
1) Communications is increasingly driving the bottom line
Without a strong brand, a business is merely a commodity that competes on price. Eighty-five percent of members in the IPSOS Reputation Council agree that a company’s reputation affects financial results. Reputation depends, above all else, on the ability to effectively communicate an organisation’s value and purpose to customers, employees and shareholders. As the leading ambassador of the brand, the CEO now plays the key role in this effort. Research by L.E.K. Consulting attributes nearly half (48%) of the company’s reputation to that of the CEO, and this is expected to increase significantly in the next few years.
2) The advent of the social CEO
Our understanding of the role of the CEO is undergoing a profound transformation. Individual voices are now being favoured over standard corporate communications which, as a result, has catapulted the CEO to the centre of a company’s reputation. In the BRANDfog CEO, Social Media and Leadership Survey, 82% of respondents said they are much more likely to trust the brand when its leadership and CEO use social media. Customers are not the only ones who demand more visibility from the CEOs – employees want it too. In the New Times, New Leaders study by PR360, 89% of employees said that regular communication from the head of the company was good for morale and productivity, yet strikingly 44% of employees stated that their CEO is not visible to staff and discourages people from dropping into their office.
3) When CEOs and other C-level executives are forced out, it is now mostly because of reputational issues
In an eye-opening study Perception beats Performance by the management consultancy Roland Berger, it was revealed that in 71% of cases in which top managers left prematurely, the reason was reputational. In the 1990s, performance mattered most and reputation was secondary. Similarly, research by consultancy Weber Shandwick found that executives estimate that a staggering 44% of their company’s market value is attributable to the reputation of their CEO.
Weber Shandwick’s Chief Reputation Strategist Leslie Gaines-Ross pointed out that purchasing “decisions are now increasingly based on additional factors such as the company behind the brand, what the company stands for and even the standing of its senior leaders.” Therefore, CEOs need to carefully craft their reputation to earn customer trust and pay particular attention to their online image. CEOs who support a controversial cause or say something overtly offensive risk losing current – as well as future – customers because news travels fast.
Building reputations in the digital age
The upshot of these developments: Only by mastering the fundamentals of communications will CEOs be able to succeed in the 2020s. No entrepreneur or executive can afford to ignore reputation management, or even perform it half-heartedly. In my view, this is a point senior communicators increasingly need to get across to the leaders of their organisations.
I make specific reference to the 2020s because although some aspects of communications are timeless, such as storytelling and public speaking, others have emerged only recently. The pressure for CEOs to communicate using digital tools, and to reckon with concepts such as digital thought-leadership and search engine optimisation are only recent developments.
And we, as the core force of the world of communications, have to recognise this reality and start building new strategies. Focusing our approach on building a solid reputation for CEOs and high profile executives is not only smart thinking, it is a necessity for the survival of the business.
OLIVER AUST is the CEO and founder of Eo Ipso Communications and the author of two books on CEO communications. Oliver helps high-profile individuals and organisations bring their reputation to the next level so that they can build future-proof businesses. Throughout his career, he has frequently been at the frontline of some of the most high-profile reputational challenges in Europe. His latest book, Mastering Communications, is now available on Amazon in paperback and on Kindle.
For more info on Oliver Aust visit www.oliveraust.com or follow him on LinkedIn, Twitter or Instagram @oliveraust_