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Transcript of LEADERSHIP COMMUNICATIONS And the New Model Roger Bolton, President Arthur W. Page Society...
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LEADERSHIP COMMUNICATIONSAnd the New Model
Roger Bolton , PresidentArthur W. Page SocietyGeorgetown UniversitySeptember 5, 2013
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Three things to think about
What is the role of the CCO in leading within the enterprise?
How can leaders shape an organization worthy of trust?
Can leadership communications convert stakeholders into advocates?
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Arthur W. Page
AT&T VP of PR, ’27 – ’46 Corporate officer Member of board Adviser to Presidents
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ARTHUR W. PAGE SOCIETY
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“All business in a democratic society begins with public permission and exists by public approval.”
- Arthur W. Page
“All business in a democratic society begins with public permission and exists by public approval.”
- Arthur W. Page
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“Real success, both for big business and the public, lies in large enterprise conducting itself in the public interest and in such a way that the public will give it sufficient freedom to serve effectively.”
- Arthur W. Page
“Real success, both for big business and the public, lies in large enterprise conducting itself in the public interest and in such a way that the public will give it sufficient freedom to serve effectively.”
- Arthur W. Page
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Tell the truth.
Prove it with action.
Listen to the customer.
Manage for tomorrow.
Realize a company’s true character is expressed by its people.
Conduct public relations as if the whole company depends on it.
Remain calm, patient and good-humored.
The Page Principles
ARTHUR W. PAGE SOCIETY
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ARTHUR W. PAGE SOCIETY
To strengthen the enterprise leadership role of the chief communications officer by embracing the highest professional standards; by advancing the way communications is understood, practiced and taught; and by providing a collegial and dynamic learning environment.
Mission
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ARTHUR W. PAGE SOCIETY
To strengthen the enterprise leadership role of the chief communications officer by embracing the highest professional standards; by advancing the way communications is understood, practiced and taught; and by providing a collegial and dynamic learning environment.
Mission
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ARTHUR W. PAGE SOCIETY
To strengthen the enterprise leadership role of the chief communications officer by embracing the highest professional standards; by advancing the way communications is understood, practiced and taught; and by providing a collegial and dynamic learning environment.
Mission
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DRIVERS OF CHANGE
Stakeholder Empowerment
Globalization
DigitalNetwork
Revolution
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GLOBALIZATIONInternational Corporation
Multinational Corporation
Globally Integrated Enterprise
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THE SOCIAL MEDIA REVOLUTION
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STAKEHOLDER EMPOWERMENTHighly influential new stakeholders
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STAKEHOLDER EMPOWERMENT
COMPANY
EMPLOYEES
ACADEMICCOMMUNITY
GOVERNMENT MEDIA
INVESTORS CUSTOMERS
LOCALCOMMUNITY
NGOs
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STAKEHOLDER EMPOWERMENT
COMPANY
EMPLOYEES
ACADEMICCOMMUNITY
GOVERNMENT MEDIA
INVESTORS CUSTOMERS
LOCALCOMMUNITY
NGOs
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DRIVERS OF CHANGE
Stakeholder Empowerment
Globalization
Social Media
Revolution
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Hyper-connectedRadically transparent
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Implications for enterprises:
Threats … Influential new stakeholdersDemands for transparency, responsibility, accountability
Risks to brand and reputation
THE AUTHENTIC ENTERPRISE
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Implications for enterprises:
And opportunities … To reach stakeholders To advance policy interests To build brand To enhance reputation
THE AUTHENTIC ENTERPRISE
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The answer? Authenticity.
The enterprise must be grounded in a sure sense of what defines and differentiates it.
And those definitions must dictate consistent behavior and actions.
THE AUTHENTIC ENTERPRISE
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TRUST REPORT
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WHY TRUST MATTERS
Edelman Trust Barometer 2009
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WHY TRUST MATTERS
“Trust always affects two measurable outcomes – speed and cost. When trust goes down, speed goes down and cost goes up. When trust goes
up, speed goes up and cost goes down.”
Stephen M.R. Covey,In Chief Executive, June 1, 2007
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WHY TRUST MATTERS
“To make the McLane deal, I had a single meeting with … Wal-Mart’s CFO, and we then shook hands. ... Twenty-nine days
later Wal-Mart had its money. We did no ‘due diligence.’ We knew everything would be exactly as Wal-Mart said it would be –
and it was.”Warren Buffett,
Berkshire Hathaway 2003 Annual Report
Chairman’s Letter
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Trust Safeguards
– Legal compliance mechanisms
Balance of Power
– Risks and opportunities are shared
Mutuality
– Based upon shared values or interests
The Three Core Dynamics
DEFINING TRUST
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1890 – Sherman Act 1970 – OSHA, EPA
1897 – ICC 1972 – CPSC
1906 – FDA 2002 – SOX
1914 – Clayton Act 2010 – Dodd-Frank
1934 – SEC, FCC
PUBLIC TRUST IN BUSINESS
A century of regulation
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An ongoing debate
1889 – Carnegie –
“Gospel of Wealth”
1931 – Berle and Dodd – Harvard Law Review
1960 – Packard – “A contribution to society”
1970 – Friedman – “Profits”
PUBLIC TRUST IN BUSINESS
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An ongoing debate
1981 – Welch – Shareholder value
1984 – Freeman – Stakeholder theory
1987 – Gekko – “Greed is good.”
2011 – Porter – Shared value
PUBLIC TRUST IN BUSINESS
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Emerging “social contract”
Quality products and services at reasonable prices
Steady employment in a healthy and safe environment
Support for community institutions
PUBLIC TRUST IN BUSINESS
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WorldCom TYCO Enron HealthSouth HP MSO UnitedHealt
h
– Bernie Ebbers
– Dennis Kozlowski
– Lay, Skilling & Fastow
– Richard Scrushy
– Patricia Dunn
– Martha Stewart
– Bill McGuire
Breaking the contract
PUBLIC TRUST IN BUSINESS
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2000s – Aggressive pursuit of high-risk financial instruments.
“Trust no one.”-- The Wall Street Journal, September 2008
Breaking the contract
PUBLIC TRUST IN BUSINESS
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He’s back!
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Goldman Sachs
MF Global
Olympus
Rajat Gupta
Breaking the contract
PUBLIC TRUST IN BUSINESS
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COMPANIES INTERVIEWED
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Corporate Character
What makes us unique: Our Beliefs
Our Values Our Purpose Our Actions
CORPORATE CHARACTER AND AUTHENTIC ADVOCACY
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CORPORATE CHARACTER
Corporate Character
What makes us unique: Our Beliefs
Our Values Our PurposeOur Actions
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““Character is like a tree, Character is like a tree, reputation is like its reputation is like its shadow. The shadow is shadow. The shadow is what we think of it. The what we think of it. The tree is the real thing.”tree is the real thing.”
– – Abraham LincolnAbraham Lincoln
““Character is like a tree, Character is like a tree, reputation is like its reputation is like its shadow. The shadow is shadow. The shadow is what we think of it. The what we think of it. The tree is the real thing.”tree is the real thing.”
– – Abraham LincolnAbraham Lincoln
Corporate Character refers
to the enterprise’s
unique, differentiating
identity:
MissionPurposeValuesCulture
StrategyBusiness model
Brand
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“Taking on the world’s toughest challenges.”
CORPORATE CHARACTER
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“Let’s build a smarter planet.”
CORPORATE CHARACTER
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CORPORATE CHARACTER
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CORPORATE CHARACTER
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Defining
Ensure CEO commitment.
Create collaboration at the top.
Build on the best of existing values and culture.
Assess the needs and values of all stakeholders.
Include the entire team, from leadership to the rank and file.
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CORPORATE CHARACTER
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Activating
Develop a set of “valued behaviors” that demonstrate how executives and employees can live the values.
Tell the story through consistent and far-reaching communications.
Create a series of actions and initiatives that reinforce and reward the desired behaviors.
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CORPORATE CHARACTER
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Aligning
Work with the C-Suite team to develop mechanisms and processes to incorporate the values into the company’s business model and strategies.
Wherever possible, develop appropriate internal and external measurements of the impact on values on the company’s business strategies and results.
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AUTHENTIC ADVOCACY
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AUTHENTIC ADVOCACYMany to many more
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The HMO Model
Preventive health care Coordination of care Networks of physicians
− Wholesale vs. retail
THE AETNA CASE
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Aetna believes physicians …
•Practice defensive medicine.
•Give patients what they want.
•Make dangerous and costly medical errors.
•Game the system to get paid more.
•Commit fraud.
BUILDING SHARED BELIEF
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Customers and shareholders firstFROM:PCP = care coordinator
TO:PCP = gatekeeperHMO bureaucrats
– Referrals– Pre-authorizations– Denials
THE AETNA CASE
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THE AETNA CASE
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Aetna believes physicians …
•Want to do the right thing.
•Care about keeping patients healthy.
•Want to practice evidence-based medicine.
•Want to deliver care efficiently and effectively.
•Will respond if given information and data.
BUILDING SHARED BELIEF
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THE AETNA CASE
Mission
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Genetic testing Disparities in health care Care at the end of life Depression management
THE AETNA CASE
Aetna Chairman’s Initiatives
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Genetic Testing Commitment Pay for tests Never discriminate on coverage
or rates
Campaign for:
• Industry standards
• Government regulations
THE AETNA CASE
Aetna Chairman’s Initiatives
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THE AETNA CASE
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5757
Mission Values Strategy
Cost-effective, high-quality health care
Information sharing with physicians
Consumer directed health plans
THE AETNA CASE
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5858
Strategy New Brand Positioning
We provide information and helpful resources to help you make better-informed decisions for your health and financial well-being.
“We Want You to Know”
THE AETNA CASE
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5959
Brand Products
MedQuery Aetna HealthFund Aetna Navigator “Plan for Your Health”
THE AETNA CASE
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THE AETNA CASE
46
87
48
6570
79 7982 83
84
57 56
68 6974
78
2002 2003 2004 2005 2006 2007 2008 2009
Practice The Aetna Way (Values)
Proud to Work for Aetna
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“The once notoriously stingy and fiercely unpopular company is now frequently cast as the country's most physician-friendly insurer.”
Jan. 4, 2006
By Jessi Hempel and Diane Brady
THE AETNA CASE
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THE AETNA CASE
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Leadership Communications Lessons
•Articulate a clear long-term vision
•Be open and honest about the scope of the challenge
•Don’t over-promise
•Take decisive action
•Lead by example
•Grace under pressure
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How Communicators Lead in the C-Suite
Successful CCOs must have:
A clue Guts Woo
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Three things to think about
What is the role of the CCO in leading within the enterprise?
How can leaders shape an organization worthy of trust?
Can leadership communications convert stakeholders into advocates?
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LEADERSHIP COMMUNICATIONSAnd the New Model
Roger Bolton , PresidentArthur W. Page SocietyGeorgetown UniversitySeptember 5, 2013