I have heard of an apology tour but not a contrition tour to repair reputation. While reading about the travails of JPMorgan which seem to be finally ending after a long period of fines and flashpoints, the article spoke of how the CEO, Jamie Dimon, had “embarked on a tour of contrition that featured Mr. Dimon holding town-hall-style meetings with regulators.” I can’t imagine anything more uncomfortable but teachable. This penance brought to mind a post I had just read by Jeff Stibel on LinkedIn about his company’s failure wall, a great successes he says. One of his lessons about the failure wall that they instituted at his company where people write down how they have failed for all to see is that over time the failure fades. This lesson came to life because the Sharpie-written failure they post fades over time. Stibel wrote: “This physical property of the Failure Wall mimics how failure works in the mind: as long as you acknowledge failure, it slips away both in your own memory and in the memories of those around you. Unacknowledged, it tends to fester. Getting it out is the only way to go.” Contrition tours and failure walls probably lead to the same endpoint — showing vulnerability and learning to learn from it. Reputation repentance.
How do women build reputations that get them to the top? What’s the secret sauce or what’s the recipe for getting there? (Enjoyed using those cooking metaphors). On a near annual basis, we investigate top conferences for CEOs and other senior executives. For this year’s study, the firm examined speaking engagements, board memberships and honors of the most powerful women in business, based on Fortune’s 50 Most Powerful Women (MPW) U.S. list.
One of the ways to get to be a successful businessperson in the U.S. is by proactively connecting with external audiences. We are finding that speaking engagements are increasingly important and we are not the only ones who have noticed. If you read this article that appeared on the booming conference business, you will agree that the podium is the new LIVE MEDIA channel.
In our research and as you can see in this infographic, we found that the majority of women (72%) on the list spoke at one or more conferences in 2012, and, on average, had 2.1 speaking engagements during the year. The leading speaking forums in 2012 for these most powerful women included Fortune’s Most Powerful Women Summit*, The Wall Street Journal’s Women in the Economy, MIT Sloan Women in Management, Catalyst Awards Dinner, Fortune Brainstorm TECH and the World Economic Forum in Davos. A categorization of all of the conferences found that, by far, these women spoke at more industry-focused events than other event types. (*Not every woman who makes Fortune’s Most Powerful Women in Business list has a speaking role at its annual conference.)
Weber Shandwick’s research also shows that these executives are being acknowledged for their roles as leaders. On average, these female business leaders sat on 2.6 boards, the most prevalent type being industry/professional. Six in 10 women received an award or a place on a rankings or “best of” list. Of the honors bestowed upon the most powerful women in business, most (72 percent) were rankings compared to awards.
My colleague and friend Carol Ballock who runs our conference business had this to say: “Conferences, rankings and awards are essential for company storytelling. Women business leaders are leveraging these tools to communicate their companies’ messages and reinforce their company brands.”
Not a surprise. Today I read that maybe we need more CEOs like the new CEO of Citicorp who has a very low public profile. He is practically nameless according to the article. Barely noticed in the trendiest restaurant where banking moguls hang out for lunch. I probably could have predicted this. The headline reads, “Quiet Boss at Citigroup Setting Tone for Wall Street.” And as predictable, those CEOs who are in the news for good and bad reasons are being shunned for having a public profile when I am sure they’d prefer to under everyone’s radar screens too. The next time around we will be hearing that this low, quiet profile that Citigroup’s CEO now has is what got him into trouble when times get stickier. It seems like it is either too much or too little visibility and nowhere in between when it comes to CEO visibility and presence. Let’s see what the new year brings on this topic of neverending interest when it comes to CEOs. I think the common saying is, “Damned if you do, damned if you don’t”, which according to Wikipedia is described as having “two equally repulsive choices, neither of which results in a positive outcome.” I think that is exactly it — pros and cons and little in between to having any public profile for your company.
A new study is out that shows that companies that engage in socially responsible behavior are also more likely to engage in socially irresponsible behavior. And the research found this to be fairly common among Fortune 500 company CEOs who work hard at setting a highly moral image and identity. How could that be? The paper, “License to Ill: The Effects of Corporate Social Responsibility and CEO Moral Identity on Corporate Irresponsibility,” was co-written by professors at London Business School and University of California, Riverside School of Business Administration. The author-researchers found that for approximately every five positive actions that a firm takes, it gives them license to commit one negative action. As one of the co-authors says, “These findings show that CEOs should be aware of this tendency so that they can prevent their companies from slipping into this pattern. Additionally, corporate boards can’t allow CEOs to rest on their laurels. They need to be vigilant in monitoring CEOs.” Good advice. They held up BP and Enron as examples of companies that proclaimed high corporate social responsibility (i.e., beyond petroleum and all the philanthropy engaged in by Enron’s Ken Lay) and yet transgressed.
You might be scratching your head. It is hard to understand how this could be. The research which is pretty impressive found that leaders who direct their company’s CSR strategy end up with “moral credits.” These moral credits blind them to irresponsible behavior and being less vigilant about how they manage stakeholder needs. And this goes for employees too who also tend to internalize the prior ethical CSR image of their employers and feel that they too are untouchable when committing unethical behavior.
The best part of the article or at least one of the many best parts is how they use the term CSiR for corporate social irresponsibility. It’s a new term to me and one I will use again and again.
Someone recently said something to me that had me thinking. They were describing a CEO and said that they were amazed how willing he was to show his vulnerabilities. Leadership humility is very attractive these days because so many CEOs and leaders are being cut down to size as events careen out of control around them. A recent article in the Guardian echoed this same sentiment although the writer, Lynnette McIntire, referred to this trait as “humanity,” not humility. She says: “But the most persuasive CEOs are those who show how their personalities, histories, values and feelings are aligned with company culture. I have been charmed and disarmed when CEOs talk about what they’ve learned from their children, how a mentor changed their lives, how a hard lesson from life knocked them into gear or how a frank comment by an employee reset a decision.” McIntire struck a chord with the examples she gave. One was about Tom’s Shoes which has a business model of “buy one, give one” whereby a free pair is given to children in need when a customer buys a pair. She pointed out how the CEO, Blake Mycoskie, spoke about how unprepared he was for the criticism the company received about providing free shoes. People were criticizing how this policy was hurting local shoe producers. Tom’s Shoes is now committing to having a proportion of these giving shoes made in Haiti. She also wrote: “Now, Tom’s giveaway programs have a shoe replacement component, dispelling the in-and-out charitable giving image. For many children having black shoes – a school uniform requirement – means their education is not interrupted when their feet grow.” All very interesting to me because I did not realize that Tom’s Shoes’ reputation was being bruised by these criticisms. But also how the CEO listened, learned and began reshaping policy. And how the entire lesson made the CEO appear more human,vulnerable and teachable.
[I should add that I also was pleased that they quoted our research on CEO reputation.]
CEO reputation is still incredibly important. As I have always said, it’s nice to say that it should not be so important or to say that it is should be more about the company than the CEO, but ultimately the CEO sets the tone, style and destiny of a company. A recent survey of top communications officres in Europe confirms the uber-importance of the CEO to a company’s success. What I found most interesting, however, were the findings on CEOs and communications. Considering that these are communications officers, the study has some good inside info on CEO activity:
- 83% said that their communications teams are working on positioning their CEO
- 67% are working on the CEO’s profile (probably online) and a CEO-focused communications strategy
One of the more interesting articles I have read recently describes how the conference business is surging and providing better outlets for CEOs and other executives to speak. All this “live media” or “live journalism” (what it is now being called since you can repurpose it, livestream it, twitter it, YouTube it, etc) is perfect for positioning CEOs (reflecting the findings above) and other top executives you want to shine a light on. Weber Shandwick has a thriving business run by Carol Ballock helping CEOs and top executives find the right platforms to speak at and helping shape content. Our research on the best conferences has finally put some metrics behind this burgeoning phenomenon. Here are a few examples if you don’t believe me. The Huffington Post is hosting three conferences of Arianna Huffington’s marvelous Third Metric idea, Atlantic Media now does over 200 events per year including exclusive dinners and week long conferences. The New York Times is convening 16 conferences in 2013, up from one last year. The Wall Street Journal is hosting its 6th CEO Council. Tina Brown left the Daily Beast to get into the conference business. Many of these conferences, including Fortune’s Most Powerful Women in Business, are expanding overseas too. Digital media companies are also hosting live events that help position executives, pundits and influencers. It is a gold rush. As the New York Times says, “Live events promote their brand” and “..conference centers are considered just another social platform with Twitter, Facebook and online video.”
Worth taking a look at NYC mayor-elect Bill De Blasio’s transition web site. It is very transparent and user-friendly. You can apply for jobs, review who the transition team is, send an idea. volunteer, or read blog postings. It is a great idea that matches with what he promised in the run off. Nice fit. Transitions are important times to set the tone and style of the incoming individual or executive. The large photo on the home page with De Blasio reaching out to constitutents sends the right message that he aims to be a man of the people (I think he said “we all rise together”). How it turns out will be another story but for a start, it’s a good one. CEOs should consider this transition site as a good way to mark their first 100 days internally.
Glassdoor just released their most popular CEOs list for 2013. They selected CEOs who had at least 100 ratings from 2/15/12 to 2/24/13 and at least 40 ratings from the year before. Mark Zuckerberg of Facebook had the highest rating with a 99% approval rating. He was basically tied with the duo SAP CEOs –nBill McDermott and Jim Hagemann Snabe. Of the top 50 CEOs, only one woman made this year’s list — Victoria Secret’s Sharen Turney. Of course, you had to have at least 100 employees rating you so that defined whether you were considered or not but 49 men made the list. Last year, Glassdoor listed the top 25 most popular CEOs among employees and only one woman made the list, Meg Whitman of HP. Let’s hope that next year we see some more women being nominated (two?) but considering how few female CEOs there are, that’s a hard ask.
When I travel to speak in different countries , I spend a good deal of time investigating the reputation of the country I am traveling to and any recent reputational problems they are experiencing. I always want to know what the biggest business scandal, best example of a reputation recovery and what were the most widely covered social media assaults on a business. I usually get asked to comment on these types of questions one way or another during a media interview or in a Q&A session and I like to be prepared.
On my last trip, I was all prepared to talk about Turkey’s issues with the protests in Gezi Park. But everywhere I turned, I was also asked what I thought about the reputation of the United States in light of the government shutdown? Did I think its reputation was being harmed? I have to say that I was somewhat startled by the question because I am always so focused on the country that I am visiting that I forget that it goes both ways. But this time, I realized without any doubt that the reputation of America was being seriously damaged abroad by the incivility and absurdity of the standoff. It felt awful.
This week, we saw something I have posted about before….how companies are increasingly becoming involved in political issues, sometimes against their own will. And this week we saw first hand another form of Starbucks Diplomacy. The CEO of Starbucks, Howard Schultz, posted a note on his company website deploring the shutdown — “Please join me in pleading for civility and a respectful, honest discourse among politicians to bring a solution to the current stalemate.” And today, another note about Americans coming together for the collective good and signing a petition demanding that Congress put an end to the shutdown. Since I really want to get our reputation back on track, I’m all for this.
I was delighted to learn yesterday that The Holmes Report included me in its list of 25 Top PR Innovators. This new listing, the In2 Innovator 25, calls attention to the importance of innovation and ideas in the public relations field. The 25 of us were honored for breaking boundaries, challenging the industry and pushing PR onto the wider stage that it so deserves. Not bad.
One of the questions Holmes asked in a mini-survey of the Innovators was “Who most influences a brand’s PR/marketing innovations?” The top influences were CMO, receiving 10 votes, and CEO, which received 6 votes. I answered CEO. In my world, the CEO sets the guardrails for and shapes the corporate culture that allows ideas and experimentation to ferment and that also allows fear of failure to fade away. Without such a culture, imagination and risk-taking would never have enough air to breath so as to grow and flourish.
During my career I have benefited from just such an expanse of breathing space. My former agency CEO Chris Komisarjevsky encouraged me to ideate when I began one of my first research projects on CEO reputation. Today at Weber Shandwick, I have had the full support and encouragement of our CEO, Andy Polansky. Without Andy’s support, without the amazingly collaborative culture that he has fostered, I would have found it nearly impossible to think divergently and follow my instincts. I am fortunate and grateful that my boss and my colleagues have created an accepting, nurturing environment for ideas. My thanks to you all.