Communication Director - The game changer - 01/2019 by Quadriga Media Berlin GmbH

COMMUNICATION DIRECTOR I S S UE 1 / 2 0 19

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THE MAGAZINE FOR CORPORATE COMMUNICATIONS AND PUBLIC RELATIONS

The game changer Communications as a catalyst for organisational success

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The new rules of the game Effective organisational communication may be more important than ever before, but it is also a more difficult game to master. Communicators and their leadership teams are increasingly working with a new rulebook, one that promises to unlock the power of strategic communication in building the organisation of the future. However, the playing field is much more complex, with intersectional reputation risks, more demanding audiences, higher expectations to show leadership and a more urgent t need to prove value through measurable data. The new rules must be learned if communications leaders are to deal with a more demanding operating environment. However, this evolving corporate communication rules book raises several questions. How should communication functions be better set up to drive success and help shape the future of the organisation? How are leading firms not only prepared for the future but also shaping it through new approaches to stakeholder engagement and reputation management? In this issue of Communication Director Magazine, we explore the role of corporate communication as a catalyst for success, with particular focus on those three pillars of communications management: reputation, leadership and measurement. We look at the by now familiar model of ‘communications leader as trusted advisor’ as an executive-level catalyst, and how the corporate communications function can meet the future demands of leadership. We take a deep dive into reputation and risk management within a landscape of shifting reputations, radical transparency and business uncertainty. In addition, we ask how more sophisticated measurement and analysis will help position tomorrow’s chief communications officer. Finally, with our focus firmly on the future, we ask how algorithms create an entire new world of reputation risk for the organisations whose business and decisions increasingly depend on algorithmic technology.

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COMMUNICATION DIRECTOR 1/2019

CONTENTS

CORPORATE ACTIVISM

Fighting fraud with change communications

How an award-winning campaign drew on cross-border communications in taking a stance against fraud

Corporate activism in the age of radical uncertainty What are the risks involved in corporate activism, and how should communicators enable this dialogue?

18 INTERNAL

Making an impact with internal communication

LEADERSHIP AND STRATEGY

Interview with Anna Soellner The director of communications at “the front page of the internet”, Reddit, on female leadership, techlashes, and why you shouldn’t be a candyass

The rise of the agile comms function During times of budget cuts and efficiency measures, communications professionals are forced to think and act differently

22 CHANGE

50 per cent of CEOs have performance issues because of loneliness: communicators can help them by keeping them in touch with a sense of purpose

In a process of change, choose gamification to build a new community based on corporate values

More than fun and games

A leadership agenda for staying ahead of the trends that will shape business over the next decade

In a merger or acquisition, it doesn’t have to be only the purchaser who gets to spin a positive message

A preview of the challenges and talking points in the upcoming European Parliament elections

In a world of increasing data, how do we measure the impact of our internal communications effectively?

It’s lonely at the top

Winning the ‘20s

A word from the candidates

EUROPEAN ELECTIONS

Sold out

COMMUNICATION DIRECTOR 1/2019

WRITING AND EDITING

Omit needless words When it comes to global communications in English, basic is best

CONTENTS

ISSUE FOCUS THE GAME CHANGER – COMMUNICATIONS AS A C ATA LY S T F O R O R G A N I S AT I O N A L S U C C E S S

Risk or reward?

The CCO change catalyst.

The CEO and the future communications adviser

The next move?

Reputation and accountability in the age of algorithms

REGULARS

News and views from the world of communications

New and upcoming titles for the communicator’s bookshelf

…championing your ideas

Facts and Figures

Agenda Setter Recent eye-catching communications campaigns

Communications reader

5 tips for …

Association Latest developments in the European Association of Communication Directors

COMMUNICATION DIRECTOR 1/2019

FACTS AND FIGURES

T RUST

Divided by trust Edelman’s Trust Barometer is an annual global trust survey that measures attitudes about the state of trust in business, government, NGOs and the media. The 2019 Barometer finds “a return to record highs of trust inequality”, with a 16-point gap between the more trusting informed public and the far-more-sceptical mass population. However, despite this divergence, the Barometer finds a shared urgent desire for change among respondents. “Only one in five feels that the system is working for them, with nearly half of the mass population believing that the system is failing them,” states the Barometer’s report. The Barometer also reveals that “people have shifted their trust to the relationships within their control”, most notably their employers. Globally, 75 per cent of people trust “my employer” to do what is right, significantly more than NGOs (57 per cent), business (56 per cent) and media (47 per cent).

READ ALL ABOUT IT: BOOKS ABOUT THE MEDIA Which books do communications professionals reach for when they want an insight into the complicated, multi-faceted and disrupted institution that is the Media? From media relations to journalist biographies, here are just a few books recommend by our readers Understanding Media: The Extensions of Man by Marshall McLuhan and Amusing Ourselves to Death: Public Discourse in the Age of Show

To find out more, visit www.edelman.com/trust-barometer

Business, by Neil Postman “There are two books on media that I con-

Trust Inequality Returns to Record Highs

sider ‘book ends’ in understanding the media

#TrustBarometer

from a communicators perspective. The first 65

is Understanding Media: The Extensions of Man by Marshall McLuhan; reissued for its 30th anniversary, it gives the reader a

good foundation of the media, how it has

evolved and how we communicate within that space. The second book looks at how 48

2017

the media shape our lives, and how we can in turn, shape the media.”

Marietjie Groenewald, Director, 2018

2019

Source: survey Edelman

Distrust Neutral Trust

MieksWorx The First Casualty by Philip Knightley “No hesitation here: the best book ever on war journalism” Elisabeth Tanguy, Communications

M&A – A broad impact From management and shareholders to customers, suppliers, media and public authorities: merger or acquisiton has a far-reaching impact. How can a company that is being acquired by a larger competitor manage to communicate a positive, winwin message to these far-reaching audiences? See our article Sold Out, on pages 44-47.

Director Europe, Ball

Public players Communities

Media

Public Authorities

Don’t Think of an Elephant by George Lakoff “A must-read book. Though initially written

Close collaborators Customers

Creditors

to help frame your message for the political Suppliers

debate, I find it very useful in my work as communications professional in working with the media and a diverse audience.”

Core business Management Shareholders Employees

Irene van Luijken, Director of Communications, Cefic Too big to Fail FT editor on the future of financial journalism, by Lionel Barber “Not a book per se, but I recommend reading the transcript of Financial Times editor

COMMUNICATION DIRECTOR 1/2019

FACTS AND FIGURES

Lionel Barber’s speech given for the annual James Cameron Memorial Lecture on November 22 2018 at City University, London: www.ft.com/content/d2a3e50e-ef07-11e889c8-d36339d835c0 It is fascinating to observe the evolution of financial journalism

COMMUNICATION DIRECTOR ON CAMERA

and the increasing recognition of PR. Communications professionals have an important role to play in maintaining an honest dialogue with business reporters.” Josy Soussan, Head of Communications

EACD F O R UM 2 0 18

C HAN G I N G E X PE C TATI O N S OF

& Public Affairs, NL, Funding Circle

Corporate activism in an age of radical uncertainty

C O MPAN I E S ’ S O C I AL R OLE

How To Be A Spin Doctor by Paul Richards “Media relations on a page – It distils, distils and distils. Concise to the point of elegant simplicity.” Roger Baker, Head of Communications & Marketing, West Yorkshire Combined Authorithy, Leeds City Region Enterprise Partnership In the Line of Fire by Jerry Weissman “I have definitely one recommendation for everyone: “In the line of fire” by Jerry Weissman. It helps to prepare any executive to be ready when she or he is being confronted with media and being interviewed. Read it, train it and apply this in your day-to-day practice.” Ger Peerboom, Vice President Global Communications/Senior Advisor Corporate Communications, Borogue Trust Me, I’m Lying: Confessions of a Media Manipulator by Ryan Holiday “This is an uncomfortable read, but provides

On 15 November 2018, the Forum, the annual

So much change is

anniversary event of

happening so quickly

the European associa-

today, many people are

tion of Communication

having trouble keeping

Directors (EACD), met in Paris to debate

up: the challenges of

corporate activism in an age of radical

globalisation, technological change, immi-

uncertainty. Taking its cue from research

gration issues, the rise of populism, to name

by Phil Riggins (founder of the Brand and

a few. There is talk of fake news and loss of

Reputation Collective) and the EACD, the

trust in institutions and business. Politics,

discussion took a critical look at corporate

business, work, civil society, family life – all

activism, corporate culture and how the

are impacted by unpredictable forces in

individual comms professional can effect

new and challenging ways. How are these

change in his or her work. Alongside Phil

changes changing people’s expectations

Riggins, the Forum’s speakers included An-

about the social roles of companies? What

thony Gooch, director of public affairs and

role does organisational culture play when

communications at The Organisation for

facing change? Marco Bardazzi, executive

Economic Co-operation and Development,

vice president and communications di-

Céline Schillinger, founder and CEO at

rector at ENI, shared his views on these

change management consultancy We Need

issues at the EACD Milan Debate 2018 (see

Social, Elisa Niemtzow, managing director

our review in issue 04/2018): we took the

at Business for Social Responsibility. Turn

opportunity to ask him some follow-up

to page 86 for our full report.

questions on Camera. For updates on future debates, regional events, workshops and

an important insight into the darker side of online journalism and the 21st century media ecosystem.”

Watch our review of the Forum at

other EACD events across Europe, visit the online calendar at www.eacd-online. eu/activities.

James Foster, Manager, External ComPhotos: (c) Pedroferreira | Dreamstime.com; Private

“They want us to have purpose with proof”

munications Europe, FedEx Express Watch our interview with Marco Bardazzi online at

Editor’s pick: Breaking News: The Remaking of Journalism and Why It Matters Now by Alan Rusbridger A rueful look back on a career that witnessed perhaps the biggest revolutions in media: from Murdoch’s breaking up of Fleet Street’s hegemony to the migration to online, paywalls, “churnalism” and more.

COMMUNICATION DIRECTOR 1/2019

FACTS AND FIGURES

S U STA I N A B I L I T Y CO M M U NI CATO RS O N THE E X E C UTI VE B OARD

“It’s important that we don’t start from the point that everyone should be to the leadership team”

Does business really care about the SDGs? The Sustainable Development Goals (SDGs) have broken into the mainstream of business reporting: 72 per cent now mention the goals in their annual corporate or

Is it truly necessary to

sustainability report, while 50 per cent of companies have identified priority SDGs.

have a communications

So finds SDG Reporting Challenge 2018, published by multinational professional

leader in the C-suite?

services network PwC in November last year.

Does combining mar-

Yet, although the SDGs are mentioned in reports, putting the SDGs in the

keting and commuta-

heart of business strategy continues to be a challenge for business, with 5only

tions always a win for the organisation?

19 per cent of companies mentioning the Goals in CEO or Chair statements.

And why do communications leaders have

Furthermore, the quality of reporting has a long way to go: the average score for

to wear two hats in their job? European

reporting quality for those companies that had prioritised SDGs was 2.71 out of

Communication Summit 2018 panellist

five, and only 23 per cent of companies disclosed meaningful key performance

Helena Norrman, until January this year

indicators and targets related to the SDGs.

chief communication officer at Ericsson, tells us what it takes to earn a seat on the

To find out more, visit www.pwc.com/gx/en/services/sustainability/sustainable-development-goals/sdg-reporting-challenge-2018.html

executive board and why marketing and corporate communications can go hand in hand. The European Communication Summit is the largest gathering of in-house

Where are the SDGs mentioned? Sustainibility report

communication professionals in Europe:

60 %

the 2019 edition take space on May 23 and 24: find out more at www.communi-

Anywhere else in the front end of the main annual report

cation-summit.eu Hear more from Helena in our interview here:

40 % CEO/Chair statement 19 % Other 18 % Seperate integrated report 16 %

Photo: Per Myrehed

Source: PwC, SDG Reporting Challenge 2018. Base: Companies that mentioned the SDGs (524)

COMMUNICATION DIRECTOR 1/2019

DELIVERING WHAT MATTERS

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AGENDA SETTER

On the march First held on the day after the inauguration of President Donald Trump, the Women’s March found a new focus on January 19 this year, with a record number of women entering US Congress in 2019. An estimated 80 events across 31 international cities protested against violence against women and the impact of policies of austerity. Corporate sponsors including Johnnie Walker, Ben and Jerry’s and German marketing firm Echte Liebe proved the event’s successful growth; in the US, however, accusations of antisemitism within the organisation has thrown the future of the movement in doubt. Marches were held as far afield as Buenos Aires, Johannesburg, Beijing and Berlin (pictured): see more at www.womensmarchglobal.org. Photograph by Jana Legler, www.jana-legler.com

COMMUNICATION DIRECTOR 1/2019

AGENDA SETTER

COMMUNICATION DIRECTOR 1/2019

AGENDA SETTER

COMMUNICATION DIRECTOR 1/2019

AGENDA SETTER

For the benefit of the many When the European Commission’s European Development Days wanted to generate conversations about its 2018 focus on women at the forefront of sustainable development, it created She is We, a campaign to make explicit the link between female empowerment and community development; or, in the campaign’s own words, “when women are empowered, protected, trusted, there are benefits for all of us.” An inbuilt tagline generator and short video content encouraged easy endorsement and social sharing, resulting in a five-fold increase in impressions compared with the previous year’s European Development Days. Find out more at www.eudevdays.eu/sheiswe

COMMUNICATION DIRECTOR 1/2019

CORPORATE ACTIVISM

CORPORATE ACTIVISM IN THE AGE OF RADICAL UNCERTAINTY The need for strong leadership has never been more urgent than in today’s age of radical uncertainty: increasingly, corporations – particularly their CEOs – are stepping up to meet this leadership challenge. But how radical is the concept of corporate purpose, what are the risks involved in corporate activism, and how should communicators enable this dialogue? BY ANT HON Y G OOC H

hen I first heard the term

Against this backdrop, communicators can-

radical uncertainty, my

not conceive the future as a linear journey.

mind immediately turned to the work of Hyman

Minsky, a relatively unknown economist back in the 1950s, who spent his life trying to understand financial crises. He was uneasy with the predominant thinking at the time, which viewed the market economy as stable, and efficient and only vulnerable to external shocks such as the rise of oil prices, war etc. Minsky was convinced that economic booms ultimately sowed the seeds for economic crashes because of the mounting complacency

“It is no longer possible to view your economic activity in a social vacuum.”

All of us here are in the same boat – we cannot afford to be complacent. As Victor Hugo wrote in his Actes et Paroles (1876), “everything that augments our freedom augments our responsibility”. Radical uncertainty pushes us to do things differently. To equip ourselves to survive and, who knows, thrive in this new normal, we need to carve out a clear and unwavering purpose, re-establishing our social license to operate. We also need to adjust our mindsets and find new ways to create deeper and

shown by banks, firms and other economic

more emotional connections with the people

actors during the good times. In other words:

we serve. Be it in a company, an NGO, a me-

“stability was destabilizing”. Sound familiar?

dia organisation, as an elected representative or public official.

This resonated with old school “influencers” such as Paul Krugman, who, follow-

models based on market equilibrium as the

ing the 2008 crash, urged people to (re-)read

national state of affairs.

Minsky, finally granting him his moment of

Just as it took the cataclysm of 2008

fame (unfortunately for him 13 years after

to remind us that we live in a world of rad-

his death).

ical economic uncertainty, so since 2016, we

Why are we talking about CEO activism now?

This seems relevant at a time when we

have witnessed a series of political explosions,

have been looking back on 10 years since the

raw not liberal democracy and the success of

global financial crisis1, with the political pay-

populist political offers and parties. This can-

The OECD’s mission is Better Policies for Bet-

back that began in 2016 fresh in our minds.

not be dissociated from the alarming erosion

ter Lives – and at the moment if I’m frank,

We might have heeded Minsky’s warning ear-

of public trust in traditional institutions driven

we’re asking ourselves some serious questions

lier, but 2008 was certainly a wakeup call for

in large part by increasing inequalities and di-

about our ability to deliver on this in the cur-

my organisation, the OECD, and others, still

vides in our societies that we can trace back

rent environment. We are facing the potential

consumed with the comforting notions of a

to the years prior to the global financial crisis.

unravelling of international norms and stan-

world based on the Utopian idea of “Homo

What is unquestionably new is the

dards developed over decades, and in some cases

Economicus”, eminently rational human be-

digital and technological turbo charge that

by the very countries that were their biggest

ings working to equally rational economic

has revolutionised information and commu-

advocates and architects building from the

nications contributing to this greater sense

ashes of World War Two. From the moment

of uncertainty.

I joined in 2008, governments knew it was

1 www.oecd.org/naec/lessons-from-the-crisis

COMMUNICATION DIRECTOR 1/2019

CORPORATE ACTIVISM

misguided to think that we can achieve our goals working with governments alone. Policy shapers are as influential as traditional policy makers in delivering public policy and more importantly in ensuring the policies are implemented to have impact. But who might we turn to as a societal compass? Is this the right moment to make “corporate activism” the new normal? In reaction to this new normal, I detected a movement growing in the US in the first half of 2017, now termed “CEO activism”2. This has blossomed in recent years. Moving well beyond traditional forms of corporate social responsibility, and responsible business conduct, a number of prominent CEOs are speaking out on social issues, often beyond the areas of their core business.

• Arne Sorenson of Marriott noted that a more political role for chief executives today is “unavoidable and essential”. He said “you can say it shouldn't exist, or try to hide from it, but neither approach works. There is enormous anxiety right now among our guests and our community all over the world. They want to hear a voice that is welcoming and affirming.”

• Rediscovering its rebellions origins, Nike made the deliberate decision to feature and lead support to Colin Kaepernick, the NFL quarterback who first knelt during the national anthem to highlight racial injustice.

• Marc Benioff at Salesforce decided to spend $6 million dollars of company money to close the gender pay gap at his company,

Benetton’s “Hearts” campaign (1996) and Nike's work with Colin Kaepernick in 2018 are examples of businesses taking a stand through their advertising / Photos: Benetton/DPR

Salesforce, over a two-year period.

• Speaking from her position as president

Twenty years ago, it was rare to see businesses

mainstream. But rather like the concept of

of Ariel Investments with over $12 billion

taking a public stand on emotionally charged

“post truth”, it leads us to ask just how novel

under management, Mellody Hobson ad-

social issues. Our relationship with brands

is CEO activism?

vocates for more inclusive corporate lead-

was different then. Geography constrained our

Already back in 1943 Robert Wood

ership, given that only 6.4 per cent of the

choices and without the internet, our way of

Johnson, former chairman and a member of

chief executives of Fortune 500 companies

sourcing information was more limited than it

Johnson & Johnson’s founding family, under-

are women.

is today. In other words, our knowledge about

stood that corporate activism “is more than

brands resulted more from our physical prox-

just a moral compass. We believe it’s a recipe

imity to it or our experience using the product.

for business success”.

Lyft – backed the #TimetoVote campaign,

Benetton were first movers in this respect,

man and philanthropist, Joseph Rowntree, was

making a big push to increase voter turnout.

with campaigns to raise awareness on HIV

demonstrating his commitment to creating a

dating back to 1993 and an anti-racism cam-

better society. He built New Earswick, a village

paign in 1996. Today, this type of “shockver-

in York, for people on low incomes, including

tising” would be less surprising to many of

staff who worked in his factory, giving them

us as corporate activism has become more

access to decent homes at affordable rents.

• Ahead of the recent midterm elections in the US, a coalition of major companies – including Walmart, Patagonia and

2 www.hbr.org/2018/01/the-new-ceo-activists

And over 50 years before that, business-

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CORPORATE ACTIVISM

Why is this the era of corporate purpose?

government and, dare I say it, the State? Marc Benioff summarises it well: “today CEOs need to stand up not just for their shareholders, but their employees, their customers, their partners, the community, the environment, schools, everybody.”

It seems that a fundamental realignment is

CEO activism on an international stage

taking place in the balance of power between corporations and customers. From the 1950s and 60s, corporations became the central actor and focus of the marketplace. For the most part, information and influence travelled in one direction, from businesses to shop-

Salesforce CEO Marc Benioff puts his money where his mouth is on issues such as gender pay equality / Photo: World Economic Forum/swiss-image.ch/ Moritz Hager

I was interested to learn that the Marshall Plan that created the OECD was pushed

pers, whose self-worth was tied to what they

strongest by businesses, despite the fact that

bought and how much of it they owned: the

many Americans were against it at the time.

age of negative consumerism and consumer

Many business leaders are becoming increas-

culture. The 1990s were defined in large part

ingly engaged on international issues. Uni-

by self-interested “celebrity” corporate lead-

lever CEO Paul Polman has famously pio-

ers. Its negative apogee was perhaps reached

neered a shift away from quarterly reporting

with Gordon Gekko’s “greed is good”. 2008

and short-termism more broadly. He has also

changed all that for good.

been a high-profile figure advocating for re-

Today, information and influence are

porting on the advancement of the Sustain-

not unidirectional. It is more of a two-way street. Brands no longer dictate the terms, and this has made it more important for them to draw in consumers by talking to them per-

able Development Goals. Mellody Hobson, president of Ariel Investments, advocates for more inclusive corporate leadership Photo: Joi Ito/Flickr

Michael Bloomberg, founder, CEO, and owner of Bloomberg L.P., famously offered to fill the budgetary hole of $15 million

sonally, earning their trust, and seeking that

following the United States’ departure from

all elusive authenticity.

the COP21 Agreement.

The day when NGOs were lone con-

In fact, former US Secretary of Com-

sciences are over. There is a clear demand

merce and CEO of Kellogg’s, Carlos Gutierrez,

from current and prospective employees and

has argued that business leaders should be

consumers, from elected officials, and from

encouraged to develop and execute their own

the media, who want to know where compa-

“foreign policies” as well as to engage more

nies stand on the big questions shaping our

actively with their “home" governments to

society. As a business leader, it is no longer

build support for their interests, including

possible to view your economic activity in a social vacuum. Consumers can instantly inform themselves about your social position and “compromises” and weigh up whether or

maintaining an open, rules-based trading sysPaul Polman has pioneered a more sustainable vision of business leadership / Photo: Sebastian Derungs

not they align with their values.

tem. This in practice means translating their international strategy at the domestic level. During the Paris Peace Forum convened by President Emmanuel Macron in

Research by Weber Shandwick and

“millennials want their work to have a pur-

November last year, the OECD announced

KRC finds that large percentages of millen-

pose, to contribute something to the world

a new Business for Inclusive Growth initi-

nials believe that CEOs have a responsibili-

and they want to be proud of their employer.”

ative6, together with Emmanuel Faber, CEO

ty to speak out on political and social issues.

This also holds true for institutional

of Danone. During the event, he noted that

They say that CEO activism is a factor in their

investors. A 2017 report by Edelman5 found that

purchasing decisions.3

76 per cent of investors expect companies to

This is also becoming an increasing-

take a stand on social issues, such as the en-

ly important consideration when people are

vironment, gender equality, diversity and glo-

choosing where to work. Whereas baby boom-

balization. They have an expectation that CEOs

ers sought out workplaces that offered sta-

take a stand on issues beyond making money

bility and high pay, millennials have new

and creating jobs. Are they are looking to the

priorities. According to the PwC report Mil-

big societal actors in the business community

lennials at Work – Reshaping the Workplace4,

to fill the void left by the implosion of trust in

COMMUNICATION DIRECTOR 1/2019

3 CEO Activism in 2017: High Noon in the C-Suite. (n.d.). Retrieved August 26, 2018, from www.webershandwick.com/uploads/news/files/ceo-activismin-2017-high-noon-in-the-c-suite.pdf 4 www.pwc.de/de/prozessoptimierung/assets/millennials-at-work-2011.pdf 5 www.slideshare.net/EdelmanInsights/2017-edelman-trust-barometer-special-report-investor-trust-executive-summary-94933412 6 www.oecd.org/industry/oecd-bsr-and-danone-launch-3-year-initiative-to-strengthen-inclusive-growth-through-public-private-collaboration.htm

CORPORATE ACTIVISM

“In an era of uncertainty, we need to create a deeper connection with the people we serve.”

of inaction. The risk of inaction can in fact be

remains the preserve of a small group of

far higher than the risk of engaging in politi-

western chief executives on the Davos cir-

cal or social advocacy. If you decide not to take

cuit, it will fall short”. So we must be mind-

a stand on an issue, you run the risk of your

ful that in order for CEO activism to play a

position being decided for you in the public

transformative role, it must be long-term,

eye, becoming complicit in actions that are

sustained and systemic.

deemed socially and societally unacceptable. It will be necessary for companies to establish clear criteria and processes for deciding on which issues to be vocal on. Given the fast-paced nature of many current events, communications directors should be given this responsibility of judgement.

Limitations of the personalised approach It is evident that that the role of corporate

“Business has a pivotal role to play in shap-

leader is evolving in the current context, but

ing a new model of economic growth that

to what extent is it sustainable to rely so ex-

fosters social justice – a model that is more

tensively on a single individual to represent

inclusive and therefore more resilient”.

a company’s social values?

Therefore, companies are now not a mil-

In October last year, I was struck by the

lion miles away from organisations such as

high profile departure of Sacha Romanovitch,

the OECD. In fact, you might say that they

the first woman to run a big City accountan-

stand at the crossroads between standard

cy firm, who stepped down as chief executive

setting and implementation.

of Grant Thornton. Her departure was the re-

CEO activism is not without its risks

her of pursuing a "socialist agenda" and "misdirecting" the firm, which it said was "out of control" and had "no focus on profitability". In responding to these accusations, she said

Whereas more socially active CEOs might

that some would find it hard to accept deci-

be music to many people’s ears, as always,

sions that will depress profits in the short term

beauty is in the eye of the beholder. CEOs

but will help profits in the long term. She ar-

need to think about the risks and how their

gued, "If profits get unhinged from purpose

statements and actions will be received in a

it might not hurt you now, but it will come

politically polarized atmosphere. There are

back and bite you on the bum."8

also some clear no-go zones.

Photo: Michael Dean

sult of an anonymous memo, which accused

This raises important questions about

According to a 2016 Global Strategy

the degree to which values promoted by CEO

Group report7, when companies are associ-

advocates are truly assimilated by the organ-

ated with political issues, customers tend

isations as a whole and the potential risks

to view this connection through the lens of

for sustainability where this is not the case.

their party affiliation. For example, Demo-

Furthermore, as Andrew Edge-

crats were twice as likely to view Howard

cliffe-Johnson warns, “if corporate purpose

Schultz’s Race Together campaign positively, and Republicans were three times as likely to view it unfavourably. The decision to engage in activism also needs to be weighed-up against the cost

7 www.globalstrategygroup.com/wp-content/ uploads/2016/01/GSG-2016-Business-and-Politics-Study_1-27-16-002.pdf 8 www.theguardian.com/business/2018/ oct/15/sacha-romanovitch-leave-accountancy-firm-grant-thornton

COMMUNICATION DIRECTOR 1/2019

Conclusion Perhaps radical uncertainty is the new normal, but let us not forget the lessons from Minsky: activism will be as necessary during the good times as the bad. Just as in economics we talk of the importance of fixing the roof while the sun is shining, we need to stay engaged with purpose well beyond the blips of crisis. In the words of Albert Einstein, “the world is a dangerous place to live; not because of the people who are evil, but because of the people who don't do anything about it.” In an era of uncertainty, we need to create a deeper connection with the people we ultimately serve – appealing to the heart as much as to the brain. We will need to reach out beyond our comfort zone. This means listening more, going beyond aggre-

gates, using language people understand, reaching beyond “people like us”.

A N T H O NY G O O C H DIRECTOR OF PUBLIC AFFAIRS AND COMMUNICATIONS OECD

Before being appointed his current role at the Organisation for Economic Development (OECD) in 2008, Anthony Gooch was head of the European Commission’s media and public diplomacy operations in the UK. Between 2003 and 2006, he was based in Washington DC, heading the Commission’s media and public diplomacy operations in the US. From 2002 to 2003, he was the EU’s visiting fellow to the University of Southern California Los Angeles.

INTERVIEW

“Social listening is more important than ever.” As director of communications at Reddit, Anna Soellner communicates to and on behalf of 300 million active users spread across 138,000 different communities. Recorded live at The European Communications Summit 2018 for the Role Models Podcast, Anna shares her personal journey from working in governance alongside Sheryl Sandberg and US senator Dianne Feinstein all the way up to her current position overseeing communications at “the front page of the internet”. I N T E RV I E W BY DAV I D N O Ë L

Anna Soellner (right) interviewed by David Nöel on stage at the European Communication Summit, 14 June 2018 Photograph: Laurin Schmid

COMMUNICATION DIRECTOR 1/2019

INTERVIEW

Is the job you have today different or the same as the job that you wanted when you were growing up? My initial background when I was launching my career was in politics. I first worked for a United States senator, Dianne Feinstein from California, which is where I grew up, and then in Hong Kong for the pro-democracy movement. What I learned there has served me extraordinarily well at Reddit, which is effectively a network of communities that encompasses millions of people who all have different interests. I did not imagine, back in my youth, that I would be running communications for an organisation like Reddit, but I always had an interest in governance, and effectively Reddit is this incredible incubator for how humans communicate and interact with one another online. That in many ways makes it my dream job. You told me that Dianne Feinstein had an old-

“It was another formative experience, having very prominent female role models in a very maledominated government agency.”

school approach to female leadership. Can you describe what that means? I say an old-school approach because she always felt like she had to prove something being a woman in the room. It was very formative for me to see someone with an extraordinary amount of discipline and how well that discipline served

After I worked for Senator Feinstein in the Sen-

her. She always got the question which women

ate, I had the good fortune of going over to the

generally and women leaders often get, which is

United States Treasury Department. It was an

“how do you balance work and family?” to which

amazing time to work there because there were

she would simply answer “discipline” and move

a number of people who would go on to real-

on. You find that question happening a lot less,

ly incredible careers, including Sheryl Sandberg,

or men are also getting asked that question, but

who's now COO of Facebook, Marne Levine, now

that's something that I think was always part of

COO of Instagram, Michelle Andrews who runs

her experience. That's why she had her tight an-

communications for the Federal Reserve, and

swer and she was ready to talk about substance.

a number of other people who have powerful roles, particularly in technology and communica-

If there is an old-school approach, is there a new

tions. It was another formative experience, hav-

school approach?

ing very prominent female role models in a very

The new school approach is evolving, right? One

male-dominated government agency.

of the things that has been talked about a lot in the United States is maternity and paterni-

What did you learn from female leaders in this

ty leave, and something I'm very proud of is that

male environment?

Reddit is at the cutting edge in terms of grant-

What was interesting about Sheryl Sandberg as

ing mothers and fathers the same amount of

Chief of Staff at the Treasury was that she was in

leave when they have a new child. It's one of those

her early to mid 30s at the time and yet was at the

small but very important points, because if both

table with a number of different leaders of finance,

men and women are granted the same amount

CEOs, and so on, as a woman but as a young-

of leave and share responsibilities in their house-

er woman. She is extraordinarily intelligent and

hold, the burden is not only on the mother or the

so was able to do that with aplomb. So, again, by

parent who is the primary caregiver.

making sure she did her homework and showed up knowing what she was going to say and having a

You met other women while you were at US Treas-

point of view and making that heard were ways in

ury who also had a great influence on you.

which she modelled leadership.

COMMUNICATION DIRECTOR 1/2019

INTERVIEW

How would you describe the differences and simi-

So you can really delve in and better under-

larities between advising and influencing a politi-

stand what your customers are talking about,

cal leader with an executive in the tech industry?

both positively and negatively. I would recom-

There’s been a shift in terms of how the technol-

mend communicators think carefully about

ogy industry is thinking about communications.

their social listening strategy and how that can

The tech industry is actually having a communias a “techLash”. There's a real recognition within the industry that they need to do a much better job communicating their point of view, what they're trying to accomplish, how they're going to be receptive to various audiences and their concerns related to a whole slew of issues. A fascinating carryover from what I learned in the political sphere into technology is that, in politics, communications professionals are very close to the executive at all times. They are constantly serving an advisory role. For a long time that was not necessarily the case in technology. The other aspect is the real value add of us as communicators, namely that we’re always scanning the horizon trying to figure out what the next potential problem might be. That is a value add that was not necessarily embedded in some of the tech companies. Some of the larger ones certainly had this, but even they, as we have seen over the last year, did not really truly integrate that into decision-making, into how they organise themselves as companies. That has been a lesson learned from politics, where the communications director role is there to remind their executive of who the various players are – members of the media, community leaders, NGO leaders and so on. What tips can you share with people who are in a similar positions to yours on navigating this highly fragmented media landscape? Social listening is more important than ever, and by social listening, I mean across different social media platforms. If you really want to know what’s going on you have to listen to what people are talking about – if you're representing a brand or you're representing an interest, listen to how people are talking about you on Reddit, because typically the Reddit community is very ‘in the weeds’ as it were on different policy issues, especially relating to the Internet. Reddit is an open platform, it's not like Facebook where you don't understand what other people are talking about in different parts of the ecosystem, it is

help inform not only their own communications roadmap but potentially the roadmap for other

ANNA SOELLNER

parts of the organisation in terms of product in-

DIRECTOR OF COMMUNICATIONS REDDIT

Anna Soellner leads communications for Reddit, the home of community and conversation online. Previously, she was VP for corporate communications at the Motion Picture Association of America where she worked on major news events like the Sony hack, gun violence in media and 1st Amendment issues. She also led communications at the Center for American Progress (CAP), the progressive think tank. Anna was among the first employees at CAP, building to an organization of over 250. Anna was as a Luce Scholar in Hong Kong and worked for Martin Lee, a leader of the pro-democracy moment there. In 2016 she co-founded a GOTV (get out the vote) effort called My Ride To Vote which funded ride-sharing to the polls for underrepresented communities. She is on the board of Internews, a NGO that develops independent media around the world and was founding member of Generation Conservation of Conservation International.

novations that could address the needs of your customers. What is it like to communicate to 300 million Reddit users?

searchable on Google, it's searchable on the site itself, and it's organised according to community.

COMMUNICATION DIRECTOR 1/2019

It is as important to us as any of our external communications, because our users are there not because they need to be there but because they want to be there. That means it is our job to make sure that we're communicating appropriately to them, which means we are in constant touch with our users. Every product update we make is communicated to our users. Every quarter our CEO does a Reddit Ask Me Anything with the community and in that he is held accountable. He talks about things that we are rolling out, he talks about things we got right, things we maybe didn't get right. Then he gets feedback from the community, and, believe me, we get a lot of feedback, they feel very empowered to share their point of view. This has actually made Reddit very resilient over the years because our community feel like they have direct access to the leadership of the company and feel like their voices can be heard.

“There’s been a shift in terms of how the technology industry is thinking about communications.” Photos: Private

cations challenge of late – in the US, it is dubbed

INTERVIEW

What are some of the skills that you adopted early

“Don't be a candyass. And by that I mean don't be afraid to raise the question that you don’t think anybody's asking.”

on in your career that you use every day today? One of the most important qualities that I had to learn very early on is making sure you understand how your executive absorbs information. Everybody has a different style. Some people are better having a conversation and working on messaging orally, some are much better digesting things on paper. Understanding how your executives ingest information is essential because it doesn't matter how great your talking points are if you are not communicating them to who you're working with in the right way in which they process information, it won’t matter. What are your predictions for the next two to three years when it comes to communications? The way in which we think about communications is continuing to fracture. That's why I think it's so important to be comfortable in allowing a lot of people to represent your voice – and that may be your employee base, that may be people that you designate a spokespersons within your organisation. But I also think it's really important to think about surrogates, third parties – maybe groups that you work with, or other companies – who also are encouraged to speak about why you're differentiated in the market. That is incredibly powerful because word of mouth is still a phenomenon in a fractured media landscape. If people have a good experience, if they have a bad experience, that is something that will be conveyed. So think about not only your home team who speak on behalf of you but also think about

DAV I D N O Ë L

CO-FOUNDER ROLE MODELS

David Noël co-founded Role Models in 2015 with Isabelle Sonnenfeld. He is also founding partner of leadership boutique consultancy firms ForChiefs and Founding Partner of Nöel & Co. Previously, David was vice president community and communications director at SoundCloud. As one of the company’s earliest employees, he held several roles in the music streaming company. As a consultant, he works with start-ups, small, and large companies in the areas of communication, culture development, leadership, management and community building.

that they know that you're going to tell them real authentic feedback. The ‘special sauce’ of being a true communications partner is if they feel like they can trust you with their insecurities and that you can help them be a better individual and a better executive What’s the best piece of career advice you’ve ever received? Don't be a candyass. And by that I mean don't be afraid to raise the question that you don’t think

other people in the ecosystem that could be great

anybody's asking. There's always going to be that

surrogates.

question that's going to throw somebody in an interview or in a discussion, so don't be afraid, even

What top three skills would you recommend to a

if it's really uncomfortable or potentially person-

young person to master that are portable over the

al, to be willing to ask those kinds of questions.

course of their career?

And don't be afraid to voice what you think is

Staying curious. Don't just read what you think

part of a potential concern because if people al-

the people around you are reading. To be a re-

ready are aware of something that's going to come

ally good communicator, you need to be able to

up they are less likely to be thrown by it.

connect dots that don't seem obvious, so be an

omnivore when it comes to what you're reading. Number two is discipline. And that is message discipline, that is discipline in your personal life. You always have to be that adviser, you need to know what's happening in the broader world so staying up to date and having that discipline to keep apprised of what's going on in the landscape is essential. And number three is establish-

This interview was recorded live at the 2018 European Communication Summit for Role Models, a podcast by David Noël and Isa Sonnenfeld that captures and share stories from women we look up to: www.rolemodels.co/ podcast. Read their blog at medium.com/ @rolemodels.

ing trust with whomever you're working with so

COMMUNICATION DIRECTOR 1/2019

LEADERSHIP AND STRATEGY

IT’S LONELY AT THE TOP Why do successful chief executive officers experience loneliness, what effect can this have on their performance and that of their organisation – and what should the communication director do about it? BY N A N N E BOS

Arrested for violating Japanese financial law in November 2018, Carlos Ghosn, chairman of the Renault-Nissan alliance, is the latest executive to fall victim to his own isolated unaccountability. “Hubris is an ever-present risk for high-flying executives”, noted a Financial Times headline; “Carlos Ghosn: l’Homo Hubris”, wrote France Culture / Photo: Thesupermat/Wikicommons

he stereotype of lonely people is that they are less socially skilled, less achieving and less competent than the general population. None

Loneliness versus solitude

of these characteristics seem typical of chief

Loneliness is a universal human experience

executives. Yet loneliness troubles many

that can affect anyone. It is a painful, profound

successful top executives: a recent study by

emotion, and it harms the individual’s men-

Harvard Business Review found that 50 per

tal and physical health, as well as their rela-

cent of CEOs have performance issues because

tionships in general.

of loneliness.

However, it should be noted that lone-

Top executives face significant chal-

liness is not the same thing as isolation, alone-

lenges such as time pressure (the average

ness and solitude. How people experience

CEO tenure has decreased from 10 years in

and react to being alone can vary considera-

2000 to less than half that in 2017) and are

bly, all the way from an 'oceanic' feeling to a

under tremendous pressure to deliver re-

feeling of sadness.

sults. This makes it very difficult for CEOs

Leadership requires independence and

to take the time to get closer to their people

vision, necessitating the opportunity for ex-

and stakeholders.

ecutives to be alone with their thoughts. Soli-

“50 per cent of CEOs have performance issues because of loneliness.”

Communications directors are the

tude allows executives to reflect on all aspects

This leads to the question of what happens

trusted advisor of the CEO. Gaining a better

of the organisation and its challenges. Many

to individuals when they climb the ladder of

understanding of the phenomenon of execu-

philosophers have emphasised solitude as

success? Is loneliness of command caused by

tive loneliness will help the communications

something positive (for example, Nietzsche

the executive’s personality, or is it triggered

advisor better support the executive to cope

in Why I Am So Wise): a privileged space of

by role-related, organisational and contextu-

with it, and ultimately improve the performan-

reflection in which one can get particularly

al factors? Let us examine each contributing

ce of both the executive and the organisation.

close to the truth.

factor in turn.

COMMUNICATION DIRECTOR 1/2019

LEADERSHIP AND STRATEGY

Personality-related factors

Others argue that excessive narcissism is one

The degree to which a top executive is im-

of self-construction and this bring the risk

pacted by loneliness is highly dependent on

of becoming isolated from reality and falling

his or her personality. Personality is achieved

victim to the cycle of grandiosity. In order to

through a complex process of psychological

deal effectively with these type of personali-

and physical development. According to a re-

ty traits, it is vital that the communications

cent study by Korn Ferry, the average age for

director be able to remain independent: stay-

CEOs is 58. This means that, by the time the

ing outside the bubble, and confronting the

executive reaches the top, he or she has gone

leader with a realistic outside-in perspective,

through a long process of development in per-

is paramount.

of the causes of executive loneliness, as it fuels the leader’s isolation. Indeed, narcissists seem to view social relationships as a vital element

sonhood, emotionally, intellectually, physically and in terms of relationships. Key personality traits in this context include:

3. Yearning: for a top executive to exercise power, he or she must feel secure in terms of individuality, sense of self and sense of purpose. This plays a major role both in fuelling

“Keeping in touch with a sense of purpose helps executives to better navigate their loneliness.”

1. Introverts vs. extroverts: CEOs face in-

a sense of loneliness and in dealing with it.

creased expectations to engage with employ-

That is to say, maintaining the delicate bal-

ees and stakeholders in order to advance the

ance between individual independence and

organisation. These expectations tend to fa-

oneself as a member of the corporate group

vour extraverts in leadership roles. Extraver-

is essential to one’s ability to perform lead-

sion is characterised by excitability, sociabili-

ership and management tasks. Executive in-

ty, talkativeness, assertiveness and significant

terviews as research for this article confirmed

emotional expressiveness. Highly extraverted

that they are required to remain independent

they too want keep some distance, further in-

people are outgoing and tend to be energised

and make decisions that are in the best inter-

creasing the risk of isolation.

by social situations, while introverted people

ests of the organisation. Keeping in touch with

Acting as a CEO of a stock-listed com-

tend to be more reserved and have to expend

that sense of purpose helps executives to bet-

pany brings with it exposure to a high level

energy in social settings. People often assume

ter navigate their loneliness.

of attention from both external and internal

that executives who rate high on extraversion are less likely to be lonely. Yet being well-connected and highly sociable does not preclude loneliness. Equally, executives who score low

stakeholders. To maintain public confidence,

Role-related factors

CEOs may create the illusion that they need no one and reinforce this image by projecting competence, control and confidence in the fu-

on extraversion might be perceived as lone-

As soon as an executive is appointed as CEO,

ture. These factors may pressure the executive

ly, but may actually feel less lonely as they

the social network of mutual dependencies in-

to question whether he or she wants and can

have a stronger preference for solitude. For a

cluding peers and subordinates changes drasti-

live up to these expectations. As the good of

communications director it is key to under-

cally. To facilitate ‘neutrality’ in decision-mak-

the company is usually put first, these dynam-

stand this personal trait of the CEO, as intro-

ing, relationships need to be redefined and

ics can evoke a sense of alienation or self-es-

verted and extraverted leaders face different

distance must be kept. While executives may

trangement from aspects of their personali-

communication challenges and require dif-

be able to temporarily satisfy their followers’

ty, triggering a feeling of loneliness.

ferent approaches.

dependency needs, they have to cope with the

Within the organisation, the image of

frustration of their own needs. These dynam-

the perfect leader can also have an insidious

2. Narcissism: a healthy dose of narcissism

ics can further fuel and perpetuate loneliness.

effect, as the executive may become the target

is essential for human functioning, and

The executive’s appointment and sub-

of his or her employees’ projections. For exam-

leadership and narcissism are strongly con-

sequent change in the social system may also

ple, employees may start to idealize the CEO to

nected. Narcissism is defined by grandiosi-

cause close peers and colleagues to become re-

recreate the sense of security and importance

ty, interpersonal exploitation, empathic dif-

luctant to share relevant information about

they felt in childhood when they were cared

ficulties and a sense of entitlement. Some

what is really going on in the organisation. In

for by omnipotent parents. As a result, they al-

argue that these times require narcissistic

the back of their minds, they are aware that,

low the CEO to operate in isolation, which can

leaders who are skilled orators and creative

from that point on, the top executive has de-

eventually lead executives to lose the ability

strategists, and who have a great ability to in-

cision-making power over them: their promo-

to distinguish fact from fantasy – splitting

spire followers (the so-called ‘superstar CEOs’).

tions, salary increases, and so on. As a result,

their world in those who are ‘with’ them and

COMMUNICATION DIRECTOR 1/2019

LEADERSHIP AND STRATEGY

Get close As a trusted advisor of the CEO, the communications director necessarily has a close relationship with the CEO. Having a deep understanding of both the personal desires and characteristics of the CEO is key to protect the executive from isolation and help the executive communicate more effectively with its stakeholders.

those ‘against’ them, and surrounding them-

to our own. The tension between individu-

selves with people who reinforce this fantasy.

ality and sense of purpose on the one hand

This transference onto the leader adds to his

and one’s position as a member of the group

or her stress and eventual isolation.

on the other increases feelings of loneliness.

Organisational factors

Contextual factors

Any organisation has its own culture, language

and all interests aligned, executive loneliness

and rules. It provides the role of the CEO but

does not manifest itself too often. It surfaces

also the expectations that come with the job.

when there is increased tension between the or-

The system influences, helps and limits the

ganisational system and the contextual factors.

CEO in his or her endeavours. The rules and

The context is the environment within

Communication directors should help create the mental space necessary for the CEO to develop his or her vision. Moreover, communication directors play a crucial role in communication the strategic vision to internal and external audiences. Understanding the yearning of the CEO and using his/ her personal purpose makes for more powerful connections with a broader audience.

cultural patterns, both conscious and uncon-

which an organisation operates. This environ-

scious, of the organisation plays an important

ment includes the physical, political, economic,

role in the pushes and pulls to which the CEO

social, international and emotional context. It

is subject. The experience of being in an or-

is the context that often triggers a crisis: think

ganisational system creates tension between

about mergers, acquisitions, restructurings or

personal needs and desires and those of oth-

public pressure. In those situations, where trust

ers, and this plays a major role in the experi-

levels are low and fellow board members tend

ence of executive loneliness.

to focus on individual interests, pressure on the

Connect

works emerge. In particular, relationships with

The director of communications is tasked with building relationships within and outside the business. As peers and former colleagues can be reluctant to share information about what is really going on in the organisation with their CEO, it is the task of the communication director to stay connected to the informal flow of information and senior management layers.

fellow executive and non-executive board mem-

Mastering executive loneliness is about

bers play an important role in increasing or re-

maintaining the delicate equilibrium between

ducing executive loneliness. Clearly, a healthy

the context, system, role and self. It can only

balance between the respective powers of the

be achieved by the finding the right combina-

CEO and executive and non-executive board

tion between power, vulnerability, trust, inde-

members ensures effective company perfor-

pendence and connection.

Tap into the power and vision

Coach and manage A communication director can only be effective if he or she has the full trust of the CEO. The more the CEO will trust the communications director, the less lonely he or she will become. As the CEO learns to trust their comms director enough to share his or her doubts, the comms director takes on the role of coach and can help to improve the performance of the CEO.

Independence Every CEO runs the risk of becoming isolated from reality and falling victim to grandiosity. It is key for the communication director to stay out of this cycle. For this the communication director needs to remain independent and observe the CEO (both from personal and role perspective) within the wider context and system. Getting personally close to the CEO can potentially compromise the neutrality of advice and as a result make the relationship dysfunctional.

Once the CEO is appointed, new net-

CEO to remain independent can dramatically increase the sense of loneliness.

mance. But what is a healthy balance, and how does this impact the CEO’s sense of loneliness? The non-executive board members have two conflicting tasks with respect to the CEO. The first is to monitor the CEO’s mana-

NA NN E B O S HEAD, GLOBAL BRAND MANAGEMENT ING

gerial activities and to protect ownership interests, which may be impaired by the CEO’s pursuit of self interests. The second is to provide counsel to the executive. The combination of these tasks often leads to an uneasy but more coequal alliance. While the role of board members in corporate governance have attracted much academic attention, less attention has been given to the psychodynamic perspective. As members of the human species, we have no choice but to be part of a group or groups. This creates a paradox: we each need to retain and express our feelings of separateness, individuality and independence, while at the same time we need to feel ourselves an accepted member of the group. But the group’s needs, attitudes and feelings often run contrary

As long as the organisation’s results are strong

COMMUNICATION DIRECTOR 1/2019

Nanne Bos leads the Global Brand Management team at ING Group in Amsterdam. In that position, he is responsible for defining and executing the global strategy and the growth of the ING brand which stretches across 40 countries. This article is based A phenomenological study into the psychodynamic effects of executive loneliness, solitude and isolation that was part of his master’s degree programme in Change at INSEAD. You can reach him at nanne.bos@insead.edu.

Photo: Geneviève Chassé Portraits

SIX IMPLICATIONS FOR COMMUNICATIONS DIRECTORS WORKING WITH CEOS

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LEADERSHIP & STRATEGY

WINNING THE ’20S: A LEADERSHIP AGENDA FOR THE NEXT DECADE Time flies: the 2020s are almost upon us. Here are five imperatives to help leaders get ahead of the trends that will reshape business in the next decade. BY R IC H L ES S E R , MA RT I N R E E V E S A N D K E V I N W H I TA K E R

Given the relentlessness of change on multiple

shifted markedly in the last

dimensions, the keys to success are likely to

• Artificial intelligence is rapidly advancing,

decade. When the 2010s began,

be just as different in 10 years’ time. What will

and pioneers are advancing beyond spot ap-

the world’s 10 most valuable

it take to win in the 2020s?

public companies by market capitalisation were based in five countries, only two of them were in the tech sector, and none was worth more than $400 billion. Today, all of the top 10 are in the US and China, the majority are

Emerging challenges will reshape business

tech companies, and some at least temporarily

The future competitive environment will

have surpassed $1 trillion in value.1

likely be shaped by multiple trends that are

COMMUNICATION DIRECTOR 1/2019

already unfolding today:

plications to implement AI at scale.

• Businesses are increasingly organised into multi-company “ecosystems” that defy traditional industry boundaries and blur the distinction between competitors and collaborators, and producers and consumers. 1 Based on market capitalization at the end of 2018 Q3.

Photo: gettyimages.com

he winners in business have

LEADERSHIP & STRATEGY

• Technology is beginning to redefine the na-

Master the new logic of competition. In-

ture of work, as well as the relationship be-

ternet and mobile technology ushered in the

tween the company and the individual, as

information age and profoundly affected

both employee and customer.

• The rise of China is challenging the global economic order and the institutions and rules that have defined it.

• Long-term global growth projections have been falling, driven in part by an ongoing deceleration in working-age population growth across major economies.

• Society is increasingly scrutinizing the social impact of technology and the sustainability and broader contribution of business.

• Investor activism and the role of private capital are rising in many parts of the world.

• The combination of these forces is producing multidimensional uncertainty, which confounds traditional forecasting and planning-based approaches for harnessing the future. To stay ahead of these trends, leaders need to question their current assumptions and retool their companies for the coming decade.

“How should you prepare your company to avoid being left behind in the coming decade and emerge as a winner in a rapidly evolving landscape?”

technology-intensive and consumer-facing industries such as electronics, communications, entertainment, and retail. But the emerging wave of technology – including sensors, the Internet of Things, and artificial intelligence – will turn every business into an information business. The combination of an exponential increase in data, better tools to mine insights from that data, and a fast-changing business environment means that companies will increasingly need to, and be able to, compete on the rate of learning. Scale will take on a new significance in the learning economy. Instead of the “economies of scale” that today’s leaders grew up with – based on a predictable reduction of marginal production costs across a relatively uniform offering – tomorrow’s leaders will pursue “economies of learning,” based on identifying and fulfilling each customer’s changing needs by leveraging data and technology. The arenas of competition will also

This goes for both traditional incumbents and

look different in the 2020s, requiring new per-

younger digital giants, who will face very dif-

spectives and capabilities. The familiar picture

ferent but equally critical challenges in the

of a small number of companies producing

2020s – and would do well to learn from each

a common end product and competing

other’s strengths.

within well-defined industry boundaries will

Many of today’s leading tech compa-

be replaced by one where competition and

nies have succeeded by building highly scal-

collaboration occur within and between eco-

able digital platforms. But as purely digital

systems. Because ecosystems are fluid and

opportunities are depleted (especially the op-

dynamic, and not perfectly controllable even

portunity to dominate broad, consumer-ori-

by the orchestrator, companies will need to

ented digital ecosystems), new opportunities

be much more externally oriented, to deploy

will come increasingly from combining digi-

they do today – they will have evolved their

influence indirectly through platforms and

tal technology with existing physical assets.

businesses to harness new technologies and

marketplaces, and to coevolve with ecosys-

To succeed, digital natives will need to em-

reshaped their external relationships, organ-

tem partners.

brace the messier world of specialised as-

isations and approaches accordingly.

Orchestrators of ecosystems can lever-

sets and industrial customers. They will also

So, how should you prepare your com-

age the assets of other participants, and eco-

need to “come of age” by managing leader-

pany to avoid being left behind in the com-

system-based competition tends to have a win-

ship transitions, avoiding the bureaucracy

ing decade and emerge as a winner in a rap-

ner-take-all nature. These factors are already

and inertia that generally come with greater

idly evolving landscape?

causing rapidly rising valuations relative to

size and a longer history, and developing new strategies to preserve trust among users and society at large – challenges that traditional companies have considerably more experience with.

A leadership agenda to win the ’20s

tangible assets for the top companies, as well as an increasing gap between the profitability of high and low performers. But there is not yet any playbook for how to harness this premium: practice is racing ahead of theory,

Meanwhile, a new era of competition

While many aspects of the agenda will vary

and pioneers who can crack the code on eco-

will provide an opportunity for the resurgence

by industry and region, we see five powerful

systems will be greatly advantaged.

of some incumbents. But the ones that suc-

emerging imperatives that will cut across in-

ceed in the 2020s will look very different than

dustries and geographies.

COMMUNICATION DIRECTOR 1/2019

Finally, companies will increasingly compete on resilience. Accelerating techno-

LEADERSHIP & STRATEGY

logical change, political gridlock, a shifting

ing processes and structures generally yields

and procedures to orchestrating flexible and

geopolitical power map, the increased scruti-

only incremental gains. To unlock the learn-

dynamic systems.

ny of business and the polarisation of socie-

ing potential of new technologies, leaders need

ty all point to an era of protracted uncertain-

to reinvent the enterprise as a next-genera-

Apply the science of organisational change.

ty, in which corporate life cycles are likely to

tion learning organisation.

Reinventing organisations to compete in the

continue shrinking. Companies will therefore

Merely applying AI to individual pro-

2020s will not be a trivial task. Whether be-

need to worry not only about the competitive-

cess steps is not enough: to increase the abili-

cause of risk aversion or complacency stem-

ness of their immediate game but also about

ty of organisations to learn in aggregate, they

ming from today’s increasingly concentrat-

the durability of that game and their abili-

must build integrated learning loops that gath-

ed industries and elevated profitability levels,

ty to weather unanticipated shocks. Most of

er information from data ecosystems, contin-

leading companies may be understandably

today’s incumbents – designed for relatively

uously derive insights using machine learn-

reluctant to unleash fundamental change

stable, classical business environments – are

ing, and act on those insights autonomously,

pre-emptively. But our research shows that

not well adapted for this more dynamic en-

all at the speed of algorithms rather than the

the single biggest factor influencing the suc-

vironment. Therefore, today’s leaders need to

speed of human hierarchies.

cess of major change programmes is how early

fundamentally reinvent the organisational

But organisations must not learn only

they are initiated. It is therefore critical to

on algorithmic timescales – they must also

create a sense of urgency within the organi-

better understand and position themselves

sation to ensure that everyone truly under-

Design the organisation of the future. Big

for the slow-moving forces, such as social and

stands the need for change.

data and deep learning have transformed

political shifts, that are increasingly trans-

our ability to learn, and the next generation

forming business.

model in order to become future winners.

Even for companies that are committed to such transformation, it can be a risky

of technologies will undoubtedly bring even

To learn on multiple timescales, lead-

endeavour: our research shows that most

more possibilities. History has shown, how-

ers will need to design organisations that syn-

large-scale change efforts fail. Therefore, lead-

ever, that applying new technologies to exist-

ergistically combine humans and machines.

ers need to employ evidence-based transfor-

Algorithms should be trusted to recognise

mation – understanding empirically what

patterns in data and act on them autono-

works and why, rather than relying on plau-

mously, while humans should focus on high-

sible assertions and rules of thumb. In an era

er-order tasks like validating algorithms, im-

when many powerful forces are revolutionis-

agining new possibilities, and designing and

ing how organisations function, building re-

updating the hybrid “human + machine” or-

peatable transformation capabilities will be

ganisation itself. This division of labour also

more important than ever.

“It is critical to create a sense of urgency within the organisation to ensure that everyone truly understands the need for change.”

requires rethinking human-machine interfac-

Leaders also need to de-average and dif-

es so that humans can trust and productive-

ferentiate their approaches to change. Large-

ly interact with machines. Collectively, these

scale transformation programs comprise mul-

imperatives demand a massive evolution of

tiple change challenges, from exploring new

organisational capabilities and the creation

fields and approaches, to adaptively refin-

of new “learning contracts” between employ-

ing new models, to implementing structured

ees and enterprises.

change with clear objectives and means. Lead-

Many of these principles are already

ers will need to diversify their approaches to

being implemented in isolated domains, such

change accordingly, moving beyond the mon-

as the operations of digital marketplaces.

olithic programs centred only on PMOs and

But to win the ’20s, the same principles must

Gantt charts. By adopting continuous change

be applied to all parts of the organisation

as the default, episodic change programs will

in order to create a “self-tuning enterprise”

give way to change as an ongoing operating

that constantly learns and adapts to the en-

imperative.

vironment. Such organisations must be designed with flexible backbone systems, evolv-

Achieve innovation and resilience through

ing business models, and, above all, a new

diversity. Diversity is not only a moral im-

model of management – one based on bio-

perative – it can also make businesses more

logical principles such as experimentation

effective in the long run. Our study of more

and co-evolution, rather than traditional

than 1,700 companies around the world

top-down decision making and slow cycle

shows that diversity increases the capaci-

planning. Management needs to shift its em-

ty for innovation by expanding the range

phasis from designing hardwired structures

of a company’s ideas and options. And as

COMMUNICATION DIRECTOR 1/2019

LEADERSHIP & STRATEGY

tive externalities are increasingly visible, automation is sparking fear about the future of

“To keep the game of business going, business needs to be part of the solution.”

work, trust in technology is falling, inequality has risen markedly within many countries,

RI C H L E S SE R CHIEF EXECUTIVE OFFICER THE BOSTON CONSULTING GROUP

and the most successful companies are becoming larger, more visible and more powerful. As a result, the role of business in society is coming under question, risking the sustainability of the current model of corporate capitalism. Political institutions are not likely to address these concerns effectively in the foreseeable future. Demographics that portend lower global growth, massive public debts that limit investment, tensions resulting from international migration, and a so-

Rich Lesser is the president and CEO of Boston Consulting Group (BCG) since January 2013. Previously, Rich was the chairman of BCG North and South America and head of BCG’s New York Metro office system.

cial media landscape that amplifies extreme voices are all likely to continue fuelling divisive, populist politics. The rise of China, and the growing US response, challenge the stability of multinational institutions that busithe speed of change accelerates, innovation

nesses rely on. In an era characterised by po-

and reinvention are increasingly necessary

larization, everything in business will likely

to stay on top.

become “political.”

The most obvious sources of diversity,

To keep the game of business going,

such as gender, ethnicity, and sexual orien-

business needs to be part of the solution. All

tation, are indeed important in driving in-

stakeholders increasingly expect companies

novation, but variety of work experience

to play a more prominent role in addressing

and educational background is also mean-

social challenges, which will be reinforced as

ingful. Importantly, these factors are most-

newly adopted metrics and standards make

ly additive, so companies that are diverse

their efforts and impacts more transparent.

on multiple dimensions are even more

Leaders need to focus on their companies’

innovative. Structural diversity alone, how-

total societal impact – in other words, they

ever, is insufficient. Organisations also need

need to make sure that their businesses cre-

an environment conducive to embracing new

ate social as well as economic value. Not only

ideas, and they must install open commu-

can this increase financial performance in the

nication practices, participative leadership,

long run, but it can strengthen the social con-

commitment to building diversity in top

tract between business and society, ensuring

management, openness to testing multiple

that the relationship is able to endure. Lead-

ideas, and other measures to unlock the full

ers will need to master the art of corporate

potential of diversity.

statesmanship, proactively shaping the criti-

Diversity also increases resilience. Like

Photos: Judith Stenneken; Private (2x)

biological communities and organisms, com-

cal societal issues that will increasingly change the game of businesses.

panies that encompass more heterogeneity

Winning the present is challenging

are likely to withstand unanticipated chang-

enough, but the more essential task of leader-

es better. Enterprises that embrace diverse tal-

ship is winning the future. The fast-changing

ent, ideas, and sources of growth will have an

world will test our status quo assumptions,

advantage in understanding and adapting to

and it is critical to look forward in develop-

external shocks – which increasingly threaten

ing an agenda for the next decade. Here we’ve

the survival of individual businesses.

offered a starting point for that journey, presenting themes that we will further elaborate

Optimise for both social and business value.

in subsequent publications. We invite all lead-

Several trends are fuelling resentment toward

ers who aim to win the ’20s to join the con-

business. The climate crisis and other nega-

versation.

COMMUNICATION DIRECTOR 1/2019

M A RT I N RE E V E S SENIOR PARTNER AND MANAGING DIRECTOR BCG HENDERSON INSTITUTE

Martin Reeves is a senior partner and managing director in BCG’s New York office and leads the BCG Henderson Institute, BCG’s internal strategy think tank. He is co-author of Your Strategy Needs a Strategy (HBR Press) and a prolific speaker on business strategy. Follow him on Twitter @MartinKReeves.

K E V I N W H I TA K E R ECONOMIST BCG HENDERSON INSTITUTE

Kevin Whitaker works at the BCG Henderson Institute, where he is part of a team developing thought leadership and publications on the future of corporate strategy.

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INTERNAL

MAKING AN IMPACT WITH INTERNAL COMMUNICATION In a world of increasing data, how do we ensure that we measure the impact of our internal communications effectively? How do we justify the value of what we do to our business leaders and boards? An overview of internal communication measurement in theory and practice. BY R AC HEL R OYA L L

organisations listening to their employees

ommunication is the sister

and adapting how they do business

of leadership, yet in many organisations and across our profession, we fail to

demonstrate the impact of effective internal communication. Working in a communications role in

the UK’s National Health Service NHS) right now is one of the best and most challenging roles in our industry. The NHS is one of the most trusted brands in the world, with 98 per cent brand recognition. There is a constant backdrop of media crisis and decreasing public trust, and how we practice communications is fundamentally changing. The internal communication challenge is huge as we have

“We need to be data smart, positioning communication as the sister of leadership.”

2. Powerful human stories: communication is about relationships and people that invoke action and keep things real, stories can help simplify the complex and make a real connection and; 3. Engaged leadership: Communications supports those in charge to be visible and accessible We no longer need to make the case that the lines between internal and external communication have merged. You only need to show your chief executive the reviews on public facing websites like glassdoor.com for them to un-

one of the largest and most diverse workforces

derstand that great internal communication

in the world, with over 1.3 million employees.

will affect their external reputation. Boards

Across the NHS, we have a huge

know that external reputation influences the

challenge ahead of us in the future, and

bottom line and if you cannot recruit talented

communication is at the heart of it. We need

people, you cannot deliver great services.

to create a culture of trust, engagement and

Internal engagement and external reputation

innovation. But how do we demonstrate

are intrinsically linked.

the impact and contribution that internal communications can make in our organisations or to our clients? If leaders and managers want to

What is the value of communication?

In light of future communication trends, this integration is only going to become more developed, as corporations adopt communication tools and technologies that we are

achieve their potential, they need to embrace

As the lines between internal and external com-

more familiar with in our private lives. How

the power of effective communication on

munication blur, communicators can help their

long before Alexa is playing our ‘team brief’?

organisational culture and performance.

leaders and managers understand the value of

So why measure internal communication? To

Therefore, we as professional communicators

communication with three overriding themes:

cite a familiar quote by American management guru Peter Drucker, “what gets meas-

need to demonstrate our worth. We need to evaluate our own performance and we need

1. The power of conversations: when prac-

to be data smart, positioning communication

ticed well, public relations and internal

In addition to chief executives and

as the sister of leadership.

communication is two-way. It involves

Boards there are many beneficiaries of

COMMUNICATION DIRECTOR 1/2019

ured gets managed”.

INTERNAL

evaluation, and any evaluation report – like

• Measurable: You should be able to meas-

any piece of great communication – needs to

ure whether you are meeting the objectives

be tailored to the audience. The important thing is to ensure that evaluation reports are designed to drive improvement and conversa-

or not.

• Achievable: Are the objectives you set, achievable and attainable?

tion, not to justify any pre formed conclusion.

• Realistic: Can you realistically achieve the

Theory: models of internal communications evaluation

• Timely: When do you want to achieve the

What about the theory? Great internal com-

stated, and it is equally important to measure

munications evaluation starts with an effec-

against them. Strong teams plan and execute

tive planning process. At the NHS, I use an

internal communications based on real intel-

approach developed in government commu-

ligence – about the business, about the mood

nication based on a cyclical process of scope,

of employees and, most importantly, about

develop, implement and evaluate.

the behavioural changes that are prompted

During the ‘scope’ phase of the plan-

objectives with the resources you have? set objectives?

A commitment to measurement and evaluation is a real hallmark of a great internal communication team. The importance of setting clear, meaningful objectives cannot be over-

or influenced by their activities.

“Ask people what they think, call them, speak to them – have a conversation.”

• Measuring inputs and outputs is important: for example, how many stories are

ning process, setting clear and meaningful ob-

However, research does not have to

on your intranet? However, communi-

jectives is a critical part of internal communi-

cost the earth. A huge amount is achievable

cation measurement should not stop

cations planning. It is the basis for ensuring

on a shoestring budget. Work with other ar-

there and sometimes it is difficult to

that you achieve the right results and are able

eas of your business to gain insight into your

move on from simply measuring outputs.

to demonstrate your progress and where you

workforce for example, understand feedback

We need to find various ways to

need to work to improve.

from your customers and look at how your

evaluate the “outtakes” – what people have

The starting point should always be

workforce are using social media. Look for

actually understood from your internal

the aims and objectives of the organisation

ways to piggyback off existing research like

communications. Have you moved their

itself – what is its purpose, vision, mission,

the annual employee survey and get into the

knowledge and understanding of a subject?

strategy, values and focus? Weave the busi-

habit of running focus groups and conduct-

Look at what they say on social channels,

ness objectives into a clear articulation of

ing quick-fire ‘pulse surveys’.

are more people searching for a particular

what outcomes – particularly changes in be-

The Evaluation Council of the UK’s

topic on your intranet? Ask people what

haviour – you want to achieve and what com-

Government Communication Service has de-

they think, call them, speak to them –

munication objectives are going to help you

veloped an evaluation framework for all its

have a conversation. Test whether or not

achieve them. Undertake a proper situation

services, including the NHS. This new frame-

the communication has been received and

analysis – conduct some research at the outset

work supports a more consistent approach to

what has been understood

to understand what your audience is currently

evaluation across government communication

• We then have to think about how to eval-

thinking, feeling, doing or saying.

– it is a tool that helps practitioners align out-

uate the “outcomes”: what is the impact

This enables you to know what needs

comes to objectives. It covers valid metrics for

for the organisation? Has trust in leader-

to change and, therefore, what your commu-

media, marketing, digital, stakeholder engage-

ship improved? Have you created greater

nication needs to achieve. As communication

ment and internal communications.

advocacy amongst colleagues? What is the

is increasingly fragmented, it is also important

Communicators are provided with a

to understand the external environment and

handy desk-drop framework as a quick, easy

impact of your communications. You work-

reference tool to ensure we measure what mat-

• Think about the organisational impact

force will undoubtedly be using social media,

ters. It reflects the needs of a modern com-

first: what do you want people to ‘think’,

so understanding how they consume and use

munications team and promotes an integrat-

‘feel’ or ‘do’ as a result of internal commu-

external media is also important.

ed communications approach where all areas

nications.

behaviour you hoped to change and has it shifted?

within communications have a part to play. Most importantly, ensure your communication objectives are smart:

• Specific: Objectives should specify what they want to achieve.

This model takes you through inputs,

Organisations who do not invest in good inter-

outputs, out-takes and outcomes – to eventu-

nal communications expertise will not achieve

ally demonstrate the organisational impact of

the successes they could, in relation to culture,

internal communication.

engagement and performance.

COMMUNICATION DIRECTOR 1/2019

INTERNAL

Government Communication Service Evaluation Framework model Organisation or policy objectives Campaign evaluation and further insight to inform future planning

Communication objectives

Stages

Ongoing insight to inform delivery and future planning Inputs Things you need to do or achieve

Outputs

Outtakes

Outcomes

Organisational Impact

What you do before and during the activity

What is delivered or what target audiences are reached

What the target audience think, feel or do to make a decision.

The result of your activity on the target audience.

The quantifiable impact on the organisational goals and key performance indicators.

For example, do: • planning • preparation • pre-testing • production

Looked at: • distribution • exposure • reach

Look at: • awareness • understanding • interest • engagemnet • preference • support

For example, examine: • impact • influence • effect on attitude • effect on behaviour

For example, look at: • revenue • cost reduction • attitude or behaviour change • retention • reputation.

Metrics and milestones

Select the right metrics from the framework to help measure and evaluate the performance of your integrated communications activitiess

Methods

Use a mix of qualitative and quantitative methods (for example, surveys, interview feedback, focus groups, social media analytics, and tracking).

Theory in practice: evaluation rhythm In every organisation I have worked in, I have

Select the right key performance indicators to track the performance of your integrated communication activities against organisational goals.

• to ensure all staff had a better understand-

Incident reporting across some of the five qual-

ing of their role in managing and prevent-

ity concerns increased, particularly in ‘Falls’,

ing clinical incidents

where reporting increased by 28 per cent in

• to empower the management team to identify patient safety issues

developed a performance dashboard for in-

the month the campaign focussed upon this issue. Incident reporting across the Trust has increased: over the initial six months of the

ternal communications. Not only do I think

The Good Governance Institute in collabora-

programme, Near Miss reporting increased

about the audience for my communication

tion with Barking, Havering and Redbridge

from an average of six to 96 near misses in

evaluation, but I also think about the rhythm

University Hospitals (BHRUT) and digital

December 2015.

of my evaluation, on a daily, weekly, monthly

survey company Sentiment 360 have devel-

basis. This is the backstop, the regular rhythm.

oped a unique and innovative patient safety

What made the Pride with a Smile campaign

You may want to create an organi-

campaign to increase staff engagement and

unique is that:

sational dashboard or one for specific campaigns. Let us look at two campaign examples.

quality improvement at BHRUT. Over a period of six months, a commu-

1. Staff from the Trust were selected to act

nications campaign was developed around five

as the face of the patient safety theme

First example: in 2014, the Care Quality Com-

quality issues identified by the Trust (“Duty of

2. The campaign was widely distributed to

mission inspected the Trust and upon comple-

Candour”, “Speaking up”, “Falls”, “Medicines

all staff members to reaffirm that patient

tion placed it in special measures. A re-inspec-

management” and “Patient records”). Feedback

safety is the concern of every staff mem-

tion in 2015 found little improvement against

was gathered throughout BHRUT via a live

previous recommendations.

language recognition survey tool which uses

3. The patient safety memos were distribut-

In light of this, a communications cam-

AI technology and natural language process-

ed across all hospital sites and throughout

paign was developed in close alignment with

ing. The campaign engaged staff of all disci-

the day to ensure maximum engagement

the Trust's existing communications and en-

plines and at all levels. Areas of patient safety

4. Feedback was analysed using Natural Lan-

gagement strategy, Pride with a Smile, with

in which staff had the greatest knowledge

guage Processing and presented in real-time

two core aims:

were identified and key problems highlighted.

5. Through the use of Sentiment 360 staff

COMMUNICATION DIRECTOR 1/2019

ber at BHRUT

INTERNAL

Communicators can make an impact with internal communications. Through understand-

Child Protection – Information Sharing

ing the business and coaching colleagues in the tools, techniques and channels available to them, they can demonstrate how communications can affect trust, engagement and innovation. They can demonstrate case studies of where it has worked well and not so well. Internal communication is no longer

Do you have the complete picture?

the post room for the chief executive. It is a powerful and strategic management function

www.digital.nhs.uk/cpis

with the ability to build advocacy and drive an organisation to adapt, improve and to do

0136-CPIS-Tiles-PRINT.indd 2

22/02/2019 10:01

An image from the Do You Have The Complete Picture? campaign /Image: NHS

great work. Implementing high quality evaluation frameworks, like the ones illustrated above, is key to helping organisations realise

were able to feedback 24 hours a day via

ically sent to a child’s social worker if they at-

the potential and value of internal commu-

a unique portal on the Trust website or

tend any NHS unscheduled care settings (such

nication and engagement.

via a smartphone app

as A&E or a walk in centre), could have made all the difference. It has the potential to save

Second example: in autumn 2017 we launched

lives by giving those caring for children the com-

a campaign aimed at dramatically increasing

plete picture, but relies on the whole country

uptake across the NHS and local authorities

being linked up to it to be a truly national ser-

of our Child Protection – Information Shar-

vice. We needed to accelerate the rate at which

ing initiative (CP-IS).

it was being implemented across the system, so

Too often when tragic cases of deaths

launched a visual Do You Have The Complete

of abused children occur, serious case reviews

Picture? campaign, utilising case studies and

point to missed opportunities to intervene

voices of frontline staff who had already gone

and a lack of joined up communication be-

live and were seeing the benefits.

tween agencies. For example, in 2014 a young child Ayeesha Jane Smith, not yet two years old, died from injuries described as those normally seen after a car crash. Her mother was jailed for her murder. The subsequent serious case review found she had been seen multiple times at various NHS settings in the months

• Know your audience – who are you providing an evaluation report for and why

hadn’t been aware of all of those visits. It rec-

• Be data smart • Evaluate to improve and get better – not

ommended the urgent implementation of CP-

to exaggerate, don’t fear failure and there-

leading up to her death, and her social care

IS across the area where Ayeesha lived.

Photo: Private

Top tips for evaluation

fore don’t measure

CP-IS, which links up NHS and local

• Demonstrate reputational and external

authority databases so that an alert is automat-

benefits of great internal communication

Measure

September April Percentage 2017 2018 increase

Number of children whose data is included in CP-IS

85967

126,720

47%

Live local authorities

71 (47%)

106 (70%)

49%

Live healthcare organisations

68 (26%)

167 (62%)

146%

Live individual healthcare settings

227 (19%)

628 (56%)

177%

Number of notifications in month

2,306

5,300

130%

COMMUNICATION DIRECTOR 1/2019

RAC H E L ROYA L L DIRECTOR OF COMMUNICATIONS NHS DIGITAL

Rachel Royall is director of communications at NHS Digital in the UK and the leader of their Women’s Network. She has led board level communications for complex organisations including the NHS, HM Revenue and Customs, Cabinet Office, Department of Health and Social Care and local government. Named as one of the Top Ten Director of Communications in the Public Sector in the PRWeek 2018 Power Book, Rachel chairs the UK Health Communication Board and is a member of the Government Communication Service Professional Steering Group and the lead for diversity across the communication profession in the NHS. Rachel is also a university lecturer, judge on industry level awards and active member of the Charter Institute of Public Relations and Chartered Institute of Internal Communication.

INTERNAL

THE RISE OF THE AGILE COMMS FUNCTION During times of budget cuts and efficiency measures, communications professionals are forced to think differently. Faced with a situation of reduced workforce, minimal budget and high expectations, one communications team looked to the power of insourcing to find a new, proactive normal. BY B ERI T F R A MN ES , M E E R A B H AT I A A N D J O R OA L D

Telenor’s “strategy squad” take agility to another level with the Group communications team Photo: Martin Philip Fjellanger

ome might say that the greatest

after all. So you keep yourself busy doing your

enemy to proactivity is the

job and staying in your box.

almighty organisational chart.

However, organisations today, especially

Those lines and boxes may

those in transformation, can no longer afford

keep people organised but they also keep

the luxury of a single person doing a single

us confined, especially in a function like

job as outlined in the organisational chart.

communications, where lines and boxes

That’s why we talk so much about ‘agile work’.

typically separate things like internal versus

When it comes to agile ways of work,

external, or social media versus traditional

communications teams aren’t the usual sus-

media. The organisational chart may give

pects. We’re a support function, after all, not

you a sense of ownership and responsibility,

a project-based team. Try telling a seasoned

but it lacks something significant: where is

spokesperson or savvy social media special-

the incentive to step out of that box and do

ists that “You need to do things that aren’t in

something else? You’re not measured on that,

your official job description”. Who wants to

COMMUNICATION DIRECTOR 1/2019

“Organisations today, especially those in transformation, can no longer afford the luxury of a single person doing a single job as outlined in the organisational chart.”

INTERNAL

Telenor’s headquarters in Fornebu, Norway / Photo: Telenor Group

hear that message? The response you are typ-

that had been conducted. We listed the com-

ically met with is “I’m too busy; I’ve no time

monalities and chose to focus our attention

to do other stuff. My work is too important.”

on those where communications could make

And that’s typically the end of the agile story

a meaningful impact. One commonality we

in communications.

uncovered was the need to create a sense of

But it’s in the midst of a big budget

urgency among employees to stimulate our

crunch, personnel losses and other random

transformation journey, as well as to contin-

crises, that innovation strikes. Maybe it’s the

ue to build on the understanding and accept-

shake-up of all things ‘normal’ that gives you

ance of the company’s strategy. By targeting

the freedom to think differently? Or maybe it’s

these challenges, we could determine our suc-

simply necessity? Whatever it is, it’s about time.

cess (or failure) based on improvement in our

Finding a new (and more efficient) normal

“Once you seek input across the organisation, it becomes clearer which communication initiatives have strategic and business value.”

employee effectiveness survey, regularly conducted across the organisation. With the strategy in our pocket and the challenges top of mind, we looked at some of the key priorities across the business. The idea

homework. As the communications func-

was that these would address a must-win in

tion, we assume that, because we’re always

2019 for the company, wins that would be cru-

at the centre of everything, that we know

In our company, a small group of us were

cial to the fulfilment of the strategy. If com-

everything, and thus, we can simply create

tasked to plan for 2019. We were told to cre-

munications chose to ignore these priorities,

our plan in our communications vacuum.

ate the communications strategy and activ-

we could simply pack up and close shop. To

This approach will inevitably lead to a mis-

ities for the upcoming year. We were told

gain credibility with our executives, we need

match between what we say and what the or-

there’d be even less money, fewer resourc-

to make a very clear link between our pro-

ganisation does, or that great proactive oppor-

es and that we should expect more chang-

active work and the company’s strategic fo-

tunities are missed or overlooked.

es. We were also told to “be more proactive.”

cus for the year.

Easy peasy, right? We started with the company strategy. If we were to get endorsement for our own plan, it had to clearly connect to and support the overall corporate ambitions. We also re-

Look to the organisation for answers

Once you do your research and seek input across the organisation, it becomes clearer which communication initiatives have strategic and business value. For us, we saw a need to provide a greater context for the changes our company was facing, and to build stories

searched across the organisation for key chal-

I believe that one of the mistakes we have

around the company’s initiatives to upskill/re-

lenges faced. We spoke to different units, differ-

made in the past is that we have either out-

skill employees, to offer free online learning

ent markets and looked at the global surveys

sourced this work or we haven’t done our

and explain why specific critical competencies

COMMUNICATION DIRECTOR 1/2019

INTERNAL

Birds-eye view

“This shakeup of all things normal has resulted in a boost in enthusiasm and spiritedness among the team. People are excited again.”

When planning the campaigns we knew we ran the risk of creating more boxes and lines.

B E RI T F RA M NE S VICE PRESIDENT, HEAD OF ENGAGEMENT TELENOR GROUP

We also had key demands to create reputation boosting initiatives. We need someone to have a birds-eye, outside view on our work and to support in the creative deliverables. We needed an agency or consultant. With no budget to be found, we decided to insource. We gathered four internal employees who have a diverse mix of experience and nationalities, several with agency background, who had all worked on creative,

Berit Framnes has spent her career doing communications for tech companies. She has been at Telenor since 2010, and currently works as vice president, head of engagement.

reputation-building campaigns in the past. In addition, they were employees who had a birds-eye view on many of the activities already ongoing across the company, which proved to be helpful in ensuring consistency and exploring synergies with the campaigns and other activities. Together, this group of four formed an in-house agency that services

M E E RA B H AT I A VICE PRESIDENT, FINANCIAL COMMUNICATIONS/ACTING HEAD OF MEDIA RELATIONS TELENOR GROUP

the reputation projects as well as maintains a holistic view of all the proactive work in the department. Their remit is simple: service the company in the professional manincluding pitching, concept development all the way to content development and execution. And they do all of this in addition to their day jobs.

are key to our future. We also defined a need to talk about the future of our business, how technology is changing and how IoT, 5G and

The power of insourcing

personalisation of services will play a criti-

Our aspiring agile organisation said ‘yes’ to

cal role in meeting the needs of our B2B and

this experiment and we are now in its infan-

B2C customers.

cy. But one thing is already clear, and that’s

All of this resulted in the formation of

the power of motivation. This shake-up of all

four strategic communications campaigns for

things normal has resulted in a boost in en-

2019. They would be yearlong initiatives, filled

thusiasm and spiritedness among the team.

with both internal and external communi-

People are excited again. They see the oppor-

cations activities, run primarily by commu-

tunities and they are looking forward to de-

nications team members, with support from

ploying their creative skills towards new tasks

across the organisation. The catch with this

and challenges.

approach is that you are placed in a team that

The organisational charts and job

does not reflect the organisational chart and

descriptions are still there if you search for

you will be given a role that is not in your job

them… but they are less important now. What

description. It may not be an agile way of work

is important is the goal, and now we’re all

in the strictest sense, but it’s certainly chang-

working proactively towards it, “agile-ish”,

ing our way of work. Comfort zone be damned.

together.

COMMUNICATION DIRECTOR 1/2019

Meera Bhatia is a former Bloomberg journalist that entered the world of corporate communications in 2012, when she joined Telenor. She currently works as vice president and head of financial communications and media relations.

J O ROA L D VICE PRESIDENT, CEO OFFICE TELENOR GROUP

Jo Roald’s career in communications began on the agency side where he first met the client Telenor. He officially joined the company in 2010 working for Telenor’s former operation in India. He moved back to Norway and now works as Telenor’s vice president and head of CEO agenda.

Photos: Private

ner of an external communications agency,

Make better hiring choices www.communication-director.com/jobs

CHANGE

MORE THAN FUN AND GAMES Change can be a fun opportunity to collaborate better. Faced with bringing together three diverse business units under the same roof, one company used gamification to build a new community based on corporate values and to fight natural resistance to the upheaval. BY MA ŁG OR ZATA D O B O S Z

“Start with the question ‘what do I want to teach them?’ and not ‘what kind of games should we plan?’” To increase cooperation during a restructuring, reward employees with networking activities / Photo: Skansa Poland

n recent years, gamification has become

It played out well. To be honest – it played

and know how to use it. Know what strategic

a trendy tool that many believe to mirac-

out brilliantly! Based on this, I believe gami-

goals you want to achieve with it. Start with

ulously solve any communication prob-

fication can enable your organisation to facil-

the question “what do I want to teach them?” and not “what kind of games should we plan?”

lems faced by a company. I do not believe

itate change and manage change communi-

in miracles, but rather work hard (in corporate

cation. Based on our learnings, I present five

In our case, we set the following targets:

communications specially) to achieve results.

to do’s to be taken into consideration when

fully informing people about the move, help-

So I used to approach the subject of gamifi-

deciding if gamification is the right tool in

ing them get acquainted with the new space

cation with mixture of curiosity and caution.

your specific case.

and office rules, integrating employees repre-

At Skanska Poland, we have used gamification to help with a significant change process: moving five of our companies – each one representing different market segments and

senting different units, and elevating satisfac-

Do choose wisely, based on what you aim to achieve.

Don’t treat gamification as a self-perpetuating

products and with extremely different finan-

power engine. It is just a tool like webcasts,

cial standings – from three locations to one

newsletters, intranet, social media and many

common office in Warsaw.

others. It is your responsibility to have a plan

COMMUNICATION DIRECTOR 1/2019

tion (employer branding) by living our values.

Do make your values the foundation of gamification.

Use the tool to teach people through your values and culture; then, for whatever purpose you

CHANGE

“Use the tool to teach people through your values and culture.” The #BetterTogether game was available to play on desktop and mobile / Images: Skanska Poland

use gamification for, it becomes a true showcase of your company. Through different activities, for both

Do have fun. Even though it is not the main goal,

fun is what people will expect, right? We learn

individuals and teams, we built up people en-

so much better through games and fun and

gagement in the Warsaw office and through-

that is why gamification works when well-

out the company. We improved employer

planned. So don’t forget to have fun prepar-

branding by aligning the gamification tasks

ing it. Playing is fun, but planning it should

with our core values (safety, sustainability,

be even more fun.

cooperation and client focus).

M A ŁG O RZ ATA D O B O S Z HEAD OF COMMUNICATIONS SKANSKA POLAND

Do remember: awards are

Do prepare well. After following the first “do” you al-

important.

You have your end targets carefully planned;

ready know which targets stand behind the

however, most people will take part for the

game. Do not take up gamification for its own

chance to win something that they care for.

sake: it is so much more effective when you

They will not compete (and so will not fulfill

give it careful thought. Always ask questions

your goals) for the sake of just any old gift.

when you plan: exactly what kind of tasks

On the other hand, you do not want to give

will support your targets and values? When

away extensive gifts, as in most companies

should they be scheduled, and how can the

such gifts do not correspond with values. Of-

most amount of employees be encouraged to

fer rewards that are valuable but not expen-

take part in the games, even those predisposed

sive, that support your messaging and cor-

against competitive events? And how should

porate values.

the official kick-off of the games be managed

We very much connected to wellbeing

– after all, that’s when most people are likely

and cooperation and the main team award

to enroll? Good preparation is crucial – oth-

was a healthy dinner with all presidents of

erwise it will be just fun and games.

Skanska companies in Warsaw.

We kept it as consistent as possible – Photo: Private

started first communication already two years before the move and gamification was a natu-

Małgorzata Dobosz is an experienced communication professional in both internal and external communications. After several years as a television journalist, she switched to public relations and communication, and for the past 13 years she has been contributing to multinational construction and development company Skanska. Małgorzata has worked for all Skanska business units in Poland, including construction, commercial development and residential, managing communication and marketing. Now she serves as head of communications for the construction unit alone.

ral component of the bigger picture.

COMMUNICATION DIRECTOR 1/2019

CHANGE

SOLD OUT Financial communication likes its winners. In mergers and acquisitions, it is all about superlatives for the purchaser side: bigger, better, faster, stronger… but what happens when you are on the purchased side? BY LO U I S D E S C HORL E M E R A N D GO N T R A N D E D O RLO D OT

ergers and acquisitions (M&A)

involved parties, corporate transformation

are generally understood to

can no longer be thought of as a special tool

bring about an improved market position, an increased

corporate footprint or superior product offering. Before an M&A is completed, shareholders, analysts, employees and managers are bombarded with bold promises and superlative messages; these promises continue to pop up repeatedly in M&A communications. The purchaser is perceived as dominating the deal and running the game. Therefore, the purchased party must be the opposite: a loser, correct?

“If the purchaser benefits from the acquisition, so does the purchased.”

that’s only brandished once the wheels start falling off – it is an ongoing process that can deliver enormous benefits to your company,”1 explains management consultancy Roland Berger. In other words, a sale can be an opportunity for a company to put itself in the driving seat and optimise the performance of its operations. In 2006, the Harvard Business Review2 recommends companies to only carry assets that maximise value and to regularly “monitor whether there are buyers willing to pay a meaningful premium over the esti-

Not necessarily. The purchased side

mated cash flow value to the company for its

can manage its own M&A communications

business units, brands, real estate, and other

just as positively as the purchaser side. There

detachable assets”.

is a way to counter the all-too frequent sub-

Announcing a divestiture is like tell-

missive position of the seller and to credibly

ing your spouse “I love you, but we had bet-

convey confidence in a better future, and it

ter break up in order for you to be happier

all starts by thinking that it is possible and

with somebody else.” While the purchaser is likely to be in an

making the necessary mind shift. Here is the

almost euphoric state, their “target” will feel

story of a good sale.

Staying upbeat about downsizing

disappointed, submissive, even lost. There is a fundamental belief that the purchaser alone dictates the new rules of the future. The collective and individual self-esteem of the puroption for its financial or social benefits.

chased party is affected when the purchaser,

At some stage, we have all heard a colleague,

This is exactly what makes it so difficult to

sometimes a long-term competitor, takes over.

friend or relative talk about buying a larger

have a divestiture come across positively in

Switching status from competitor to colleague

home with a bigger garden, or buying a new

the corporate world.

is a challenge, and well-performing teams

car with greater performance. Perhaps we

Freeing up greater strategic power and

have to demonstrate their capabilities all over

even envy them and are overwhelmed by

increased financial resources for other activi-

again to a new boss. Anger and frustration

their flowery vocabulary.

ties or refocusing priorities with new strategic

Our semantic value system pro-

priorities can all be relevant reasons for a di-

vides negative connotations with moving

vestiture. “Mainly due to changing financ-

into a smaller home or with buying a small-

ing environments, complex coordination

er car, even if that is the rationally better

issues and dramatically rising numbers of

COMMUNICATION DIRECTOR 1/2019

1 www.rolandberger.com/en/Expertise/BusinessFunctions/Restructuring-Corporate-Performance/ 2 www.hbr.org/2006/09/ten-ways-to-createshareholder-value

CHANGE

M&A has a broad impact

Public players

Communities

Media

Public Authorities

Close collaborators

Customers

Creditors

Suppliers

Core business

Management

Shareholders

Employees

“Communicators on the purchased side of the deal have a responsibility to manage their approach and get into the driver’s seat.”

at senior management are generated when

finds that, within a group of employees going

for the preliminary exploration study. By

a divestiture is received as a major break of

through M&A with significant impact on their

the time we arrived, over 80 employees had

trust. When the purchased party is a healthy

job, the percentage of highly engaged employ-

already signed a non-disclosure agreement

performer or if there is a challenging social

ees is cut in half. “By contrast, more employ-

(NDA). As no further context had been pro-

climate, some adversity among the purchased

ees appear to become highly engaged when

vided, rumours about a potential sale spread

will be home-grown.

their company makes an acquisition that has

like wildfire, the company was approached by

Because of the emotional shock gen-

no impact on their job. The data also suggest

several interested parties, including a direct

erated by the announcement of a divestiture,

that acquiring another organisation is easi-

competitor, and customers started to worry.

most employees will experience fear for the fu-

er on employees than being acquired. Thus,

We advised that the NDA should be lifted and

ture. To be purchased is frequently associated

it appears it’s not just the M&A activity that

the announcement made that the project was

with synergies, another term for restructur-

influences engagement, but rather the extent

off the table for the time being. This lessened

ing, dismissals and other cost-cutting meas-

to which the M&A impacts an individual’s job

the pressure about the story and enabled the

ures. Across all the files we have worked on,

and whether one works for the acquiring or-

management team to explore more options

job security has been the number one con-

ganisation or for the acquired.”

with less interferences, ultimately generat-

cern for employees, regardless of the seniori-

Merely the rumour of a potential di-

ty level or collar colour. A research paper3 by

vestiture can have disastrous effects. In one

Whatever size of the business, merg-

human resources consultancy AOM Hewitt

of our files, the senior management of a larg-

ers and acquisitions constitute a major mo-

er industrial group had decided to explore the

ment in the history of an organisation and

potential sale of a regional business as just one

often leave profound stigmas among those

of several options to turn around the activity.

affected. The impact on management and op-

Therefore, they reached out to their organi-

erations is significant as the potential change

sation and asked the teams to compile data

affects all existing structures, processes and

3 www.aon.com/attachments/human-capital-consulting/ 2013_Managing_Engagement_During_Times_of_ Change_White_Paper.pdf

COMMUNICATION DIRECTOR 1/2019

ing greater value.

CHANGE

Impact of different types of corporate change on employee engagement

MONEY MAKERS

Percent of employees

25%

10 %

The biggest European M&A deals by value in 2018 were ••

Innogy SE (Germany) purchased by E.On SE (Germany): transaction value 34 billion euros

••

vertis (Spain) purchased A by Atlantia (Italy) and Grupo ACS (Spain): transaction value 18 billion euro

••

L iberty Global (Germany and eastern Europe units) purchased by Vodafone Group (UK): transaction value 18.4 billion euro

19 % Restructuring with signifacant impact on job

10 % 19 % Business/Strategy transformation with significant impact on job

5% 21 % Acquired with significant impact on job

7% 18 % Made acquisition with significant impact on job

13 % 11 %

Fear and anxiety do not stop at the hierarchical ladder As usual, senior leaders set the pace. The

Made acquisition with no significant impact on job

greater their confidence in the future, the greater the chances that this confidence will

11 %

spread throughout the organisation. Repeat-

16%

edly, in turbulent times we have witnessed highly visible leaders inspire serenity across

Acquired with no significant impact on job

the workforce. They demonstrate that there Highly engaged

Baseline

Actively Disengaged

Baseline

is nothing to hide, that there are no grounds for fear. Their presence provides opportunities for small and larger interactions, and each of these interactions helps to build or maintain trust. That is why we always start working with the top executives to help them prepare their outreach.

people. On the purchased side, major deci-

to, among others, shareholders, customers,

On another large file with a multina-

sions on investments, people or customers

suppliers, potentially employee representa-

tional selling one of its business units, only

risk being put on hold until the new organi-

tives, local communities, and trade associ-

a very small group of individuals at corpo-

sation can stand alone, thereby affecting the

ations, potentially even future candidates

rate level had been involved in order to main-

regular course of activities.

or investors, banks, authorities and so on.

tain confidentiality. Several members of the

Furthermore, new tasks relating to the

On the purchased side, the role of the

management team only found out about the

future carve-out or integration will be allo-

communicator is equally critical as on the

plan when the news about the potential di-

cated to individuals who already have plenty

purchaser side, but the scope is different. The

vestment broke in the press. This generated

of responsibilities to deal with. A merger or

top priority in a divestiture is to maintain

an awkward situation between those in the

acquisition comes on top of regular busi-

stakeholder engagement. It is about main-

know and those who had not been made

ness and represents a significant, often un-

taining faith in the business while manag-

aware and who felt left out. The situation

derestimated, workload. The changes affect

ing with great uncertainty. The earlier the

had put the established, trusted relation-

many other internal and external stakehold-

communicator is brought into the loop, the

ships of the team under great strain, putting

ers, beyond employees or media. We refer

smoother the process can be managed.

the retention of key people at serious risk.

COMMUNICATION DIRECTOR 1/2019

CHANGE

“Divestiture communications can use a sober win-win tone of voice. If the purchaser benefits from the acquisition, so does the purchased.”

One way forward: make “bad” news just “news”

LO U I S D E SC H O RL E M E R MANAGING PARTNER CORPORATE DIPLOMAT

Against the odds, communications in a divestiture can use a sober win-win tone of voice. If the purchaser benefits from the acquisition, so does the purchased. Normally, a buyer is at least interested in one of the target’s assets: the people, the footprint, the know-how, the technology, the customer book, the reputation, the good-will, the future prospects and so on. Turning this around means that the “target” has actually done the job to be in such an enviable position. The target will find a better home, a stronger market position, additional funding to finance growth and more. There is no loser. As already mentioned, the announce-

Louis de Schorlemer set up Corporate Diplomat, a consultancy dedicated to managing stakeholder engagement during M&A, in 2017. He serves on the supervisory board of Villeroy & Boch and was on the board of directors of Gault & Millau. Throughout his career, he held senior international communication roles with Sibelco, Cargill and Gallup. Since 2006, he cochairs the Stakeholder Insights and Analysis Working Group of the European Association of Communication Directors.

ment of a divestiture will generate a lot of emotion and uncertainty. As much as possible, the communicator should convey reassuring messages. But more importantly, the target will show how much it respects its employees by sharing as much informa-

G O N T RA N D E D O RLO D OT PROJECT MANAGER CORPORATE DIPLOMAT

tion as possible upfront. Any proactive initiative putting senior executives in face-toface situations or in direct interaction (via multiple online channels) with employees Therefore, before we could dive into the

will help balance attitudes. According to

preparations for the transaction, we worked

the Edelman Trust Barometer, 71 per cent of

out a plan with the business leader to rebuild

the public interviewed across 28 nations be-

the emotional connection with the entire

lieve that employees are more credible that

management team and get it back on board.

the company’s CEO4. With that in mind, the

Communicators have a key responsi-

significance of internal communications be-

bility in helping senior managers tackle their

comes obvious. Talking to people normally,

concerns. Because over-confident executives

dropping corporate slang and paraphrasing

may struggle with credibly conveying trust, it

legal lingua as much as acceptable are may-

is fine for an executive to say that she or he

be the only pieces of advice that we can give.

is also worried. What make the difference is

The rest can be summarised in a sentence:

how that person deals with uncertainty and

whatever the stakeholder, treat them as you

how she or he brings that capability over as a

would want to be treated.

skill to manage fear. While there are signifi-

What we have set out to demonstrate

cant tactical or legal constraints, it is fear that

in this article is that communicators on the

makes managers make mistakes when com-

purchased side of the deal have a responsi-

municating bad news to their team.

bility to manage their approach and get into

Gontran de Dorlodot joined Corporate Diplomat after returning from Vietnam, where he led business development for Belgo, a Belgian-style micro-brewery based in Saigon. He holds a master’s degree of business economics in accounting and financial management from the Catholic University of Leuven. In his thesis, Gontran explored the macroeconomic effects of major financial changes and he is bringing this expertise to a corporate level in the context of mergers and acquisitions.

Photos: Private (2x)

the driver’s seat. And far from being apologetic or passive, being acquired is an opportunity for proactive, positive and engaging 4 www.edelman.com/sites/g/files/aatuss191/files/2018-10/ Edelman_Trust_Barometer_Employee_Experience_ 2018_0.pdf

communications that strengthens the position of the purchased party.

COMMUNICATION DIRECTOR 1/2019

CHANGE

FIGHTING FRAUD WITH CHANGE COMMUNICATIONS Cigarette smuggling... counterfeiting of euro coins... evasion of import duties on shoes and clothes... subsidies for growing oranges on farms that don't exist – all are examples of fraud that cost European taxpayers money. One award-winning national campaign has taken a stance against fraud, and set an example to cross-border communications on the subject.

raud can be found in many aspects

European Commission developed the Euro-

enforcement authorities and non-governmental

of daily life. Too often, it becomes

pean Anti-Fraud Office Communicators Net-

actors have came together to fight fraud and

part of our everyday routine and

work (OAFCN) with the involvement of experts

educate Latvian society with the anti-fraud movement #FraudOff! (#Atkrāpies!).

passes by without much notice,

from different EU Member States. OAFCN

perhaps because national and EU budgets

was an initiator of the plan to communicate

seem to be abstract in comparison with our

and highlight fraud prevention. Each coun-

personal assets. However, fraud has a direct

try had an opportunity to evaluate and brain-

impact on our economy and so each one of

storm different ideas.

Change is in the air

Research shows that the perception

According to a 2017 study by marketing and

Cooperation and networking brings ef-

of fraud demanded immediate action in Lat-

public opinion research centre SKDS, 66

fective results in various fields, which is why

via. Therefore, in 2017 public institutions, law-

per cent of Latvians indicate a high level of

us should take some responsibility.

COMMUNICATION DIRECTOR 1/2019

Photo: Ministry of Finance of the Republic of Latvia

BY LEL D E G R Ī N VA L D E A N D O LGA K A Z A K A

CHANGE

unfairness in the country, with more than half of the population exposed to some kind of unfair practice over the last three years. For example, it is estimated that counterfeit

Fraudulent fashions

products cost the Latvian economy 141 million

In many ways, social campaigns that aim to

euros each year. So called “envelope wages”,

change the behaviour of an audience are the

double accountancy, sales of counterfeit goods

most paying attention, showing interest and un-

and small everyday actions such as renting

derstanding, taking a decision to act, taking ac-

apartments without a contract or payments

tion, and evaluating the accuracy of the choice.

to a hairdresser in cash without a bill creates an unlisted part of the economy.

THE INTERNATIONAL FRAUD LANDSCAPE ••

According to PwC’s 2018 Global Economic Crime and Fraud Survey, 49% of global organisations say they have experienced economic crime in the past two years. 52% of all frauds are perpetrated by people inside the organisation

••

According to the 2018 Fraud Survey by multinational professional services firm Ernst & Young, the propensity of respondents who would justify fraud to meet financial targets has increased on a global level since 2016. EY finds that 12% of respondents would justify extending the monthly reporting period, 7% would backdate a contract and 7% would book revenues earlier than they should be meet financial targets.

••

The Corruption Perceptions Index 2017 ranks 180 countries and territories by their perceived levels of public sector corruption, using a scale of 0 to 100, where 0 is highly corrupt and 100 is very clean. This year, the index found that more than two-thirds of countries score below 50, with an average score of 43. The average score for the EU countries is 65.

••

The EU Intellectual Property Office Observatory offers a complete picture of intellectual property infringement by assessing the economic impact of counterfeiting, across different sectors and geographical areas. Trade in counterfeit and pirated goods reaches 85 billion euros (5% of total EU imports). Lost public revenues: 15 billion euros of government revenues.

The long-term nature of the campaign and the diversity of fraud inspired us to

Sections of our society see tax pay-

develop not just a campaign but an entire

ments as abstract money for abstract aims;

movement against fraud. In order to disrupt

furthermore, some believe that the shadow

society’s historical comfort with adopting

economy is a normal part of any society. That

fraud, provocation was chosen as our strategy

is why we need to use not only controlling and

to attract attention.

punitive methods, but also complex and innovative solutions to change social attitude towards fraud and the shadow economy. Motivating people to live and work lawfully is one of the most important tasks. However, the situation is complicated by the fact that the attitude of Latvians towards fraud is not wholly negative. The purchase of counterfeit goods or tax avoidance tends to be perceived as an act that is not an occasion for condemnation, but rather worthy of boasting. Twenty per cent of respondents in a 2018 SKDS study said that fraud is

Social media influencer Maija Armaneva was featured in the first wave of the #FraudOff! Campaign / Photo: Ministry of Finance of the Republic of Latvia

not always blameworthy or criminal. Nineteen

After searching for a single word that would

per cent thought that not doing unfair things

contain both the variety of unfair practices

oneself is sufficient, and that there is no need

and a negative attitude towards all types of

to report other people. Thirteen per cent even

fraud, we created a neologism: #FraudOff! (in

declared that reporting fraud is bad practice.

Latvian, #Atkrāpies!). The new word was also

Nevertheless, a significant section of

given a definition: to resist and express opin-

the population has higher ethical values –

ion against fraud. It is also used as a provoca-

responsibility, honesty and courage. The 2017

tion: if you are not honest, Fraud Off!

study shows that approximately 21 per cent of

To attract attention, we began the cam-

respondents are more likely to choose prod-

paign with a social experiment focused on a

ucts and services from a seller with publi-

specific theme. In 2017, the focus was coun-

cally-confirmed honesty. (The number has

terfeit consumer goods. Latvian celebrities at-

grown to 25 per cent after the first year of the

tended public events in clothes that had visi-

#FraudOff! campaign).

ble price tags, indicating that the items were

These results confirmed that there was

counterfeit. The celebrities posted about their

a powerful need for strong communications

fraudulent fashions on their social media

against fraud. We chose to focus our commu-

channels and generated considerable buzz.

As soon as sufficient attention had been at-

nication on the audience who had already ex-

In 2018, the campaign was devoted to the

tracted, work began on the other stages. To

pressed themselves to be ready to confront

ethics of work- to raise public awareness

get people to commit to acting, we used the

different manifestations of fraud, as well as

among 16-24 year olds of key considerations

Self-Persuasion Theory, which states that plac-

its influence on their daily life and the econ-

when establishing a working relationship with

ing people in situations where they are moti-

omy, as well as on those who had expressed

a potential employer. Here, a teenage social

vated to change their own attitudes or behav-

a lack of knowledge and experience. Change

media influencer engaged her online follow-

iour is more effective than direct persuasion

was in the air. We just needed to embrace it.

ers with experiences in the job search field.

with arguments proposed by the organisation.

COMMUNICATION DIRECTOR 1/2019

CHANGE

reporting and whistle-blowing are highly recCAMPAIGN MESSAGES The second “#FraudOff!” campaign was launched in March 2018 and consisted of five key messages for young people to take into account when establishing a relationship with their first, or a new, employer: 1.

If you think the employer is engaged in unfair practices, then he is probably cheating in other areas too – so it is just a matter of time before the employer will cheat on you too. Take a stand by simply saying: "Fraud Off!”

Do not agree to receive pay in "envelopes" as it can often disappear or decrease and in these cases, it is difficult to prove that this was the wage you had originally agreed on.

Request a written employment contract; do not rely on or believe verbal promises. Before signing the contract, make sure that all the information provided is accurate as fraudsters are brilliant storytellers.

The employer must teach you how to work safely – ask the employer if you do not understand something. Never pretend to be a hero; never be reckless. Check if the employer pays your social taxes and is fulfilling their promises. It is possible to check whether the employer is paying your social taxes on smartphones. Resist and express your opinion against fraud! Take a stand and say: if you’re not honest, #FraudOff!

ognised topic of an ongoing ethical debate.

“You can get great results for a small amount of financial investment if you work together.”

Our research confirms the importance of informing and encouraging the public to act when you see or experience fraud. At the same time, we have a great challenge ahead – to ensure that the negative connotation of whistle blowing is not empowering our story

about reporting fraud as a smart and responsible thing to do for every one of us.

L E L D E G RĪ NVA L D E DEPUTY DIRECTOR OF COMMUNICATION DEPARTMENT MINISTRY OF FINANCE, LATVIA

We understood that, after the first action, audience will evaluate the accuracy of the choice and will decide whether to repeat the actions or abstain from them. Therefore, we took special care to create long-term and integrated communications involving all the organisations supporting the movement. That helped to create a permanent flow of information about the topic and actions. A survey conducted almost a year after the launch demonstrates the changes in attitudes of society: from a general support of

Lelde Grīnvalde is a deputy director of the communication department in the Ministry of Finance of Latvia. She is responsible for planning, developing and executing the ministry's external and internal communications, as well as campaigns and events. Lelde is also one of the communications coordinators of the #FraudOff!/ #Atkrāpies! anti-fraud movement

low-level fraud to naming it a big problem. Our movement has proven that networking is a key to a successful communication. The European Commission see the #FraudOff! project as a pilot and an example for other countries. It

O LGA K A Z A K A PARTNER A.W.OLSEN & PARTNERS

has also shown that you can get great results for a small amount of financial investment if you work together. The brand is now used by more than 35 public sector organisations whenorganisations do not need to develop a new

volved in our campaign individually formu-

brand each year: instead, they communicate

lated precisely why fraud is an unacceptable

under one “umbrella” brand, not competing,

practice and demonstrated their condemna-

but supporting each other in communication.

tion of cheating using our visual materials: branded T-shirts and hoodies, door stickers, posters and banners. For example, companies put stickers on the doorway demonstrating

What’s next?

their rejection of cheating and promising to

We are currently working on the third year

their clients and partners to be honest.

of the #FraudOff! campaign and we see that

COMMUNICATION DIRECTOR 1/2019

Olga Kazaka is a doctor in communication science, a partner at award-winning communication agency A.W.Olsen & Partners and a docent at the University of Latvia. She has 20 years’ experience in corporate communications, consulting local and international brands, governmental institutions and nongovernmental organisations.

Photos: Private; Maris Kiselov, MARIMOart.lv

ever they communicate about fraud. Partner Celebrities, influencers and organisations in-

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Interested in advertising? Please contact: Communication Director Magazine • Helge Schlüter • +49 (0) 30 84 85 91 24 • helge.schlueter@communication-director.com

www.communication-director.com

EUROPEAN ELECTIONS

An attendee of the Political Campaign Festival (Berlin, 30 January 2019) snaps (left to right) Dara Murphy, moderator Professor Mario Voigt, and Utta Tuttlies during their session at the Festival, on which the following comments are transcribed / Photo: Jana Legler

A WORD FROM THE CANDIDATES The European Parliament elections in May this year promise to be decisive for Europe, with forecasts suggesting that anti-EU populist political parties will challenge the incumbent mainstream parties. Dara Murphy and Utta Tuttlies are at the forefront of two of the largest parties in the European Parliament: here they outline some of the challenges and talking points of their election campaigns.

Utta Tuttlies

The first is a political challenge. We are see-

much more. However, we also see, with Ma-

ing concrete threats to the European idea, to

cron and others, that it is not so easy to be

The main challenge we face is to make peo-

the European project, that we have not seen

a strong personality and create a new party

ple understand that these elections matter,

since the first direct elections to the European

in a short time. So maybe we can talk about

including people who do not study politics

Parliament in 1979. In Germany, the AfD par-

the complexity of democracy and the need

or read the political columnists in the news-

ty has come up with the idea of Dexit, other

for compromise, which is often not recog-

papers. The Brexit vote clearly shows what

parties have announced that their idea is

nised by populists who see the world in very

can happen when people are misinformed.

to destroy Europe and get it back to the na-

simple terms, and want to sell this in very

The European elections are a historic

tion-states. We have many more parties like

simple terms.

chance for people all across Europe. If we get

that in many European countries, as well as

The third challenge is the technologi-

that wrong, if either too few people vote or too

from outside Europe. We know that Steve

cal challenge, and the influence of social me-

many are influenced by fake news – and we

Bannon and his friends are trying to influence

dia. For people working in these European

know that disinformation influence into the

from outside, to destroy the European project

elections, it is crucial to a) get the message

campaign is now a big topic – we will have a

and we see with Brexit for the first time that

across online and b) be aware and take action

serious problem. So that I think, is the main

disintegration can become a concrete reality.

within the legal framework to fight against

challenge: a) getting people to vote and b) get-

The second challenge are the structural and

fake news.

ting the message across.

societal changes. We see many more parties

This brings me to the fourth chal-

being established; trust in traditional par-

lenge, the political content of our campaignt:

ties going down, and personalities mattering

we need to talk to people about why they do

In today’s world, the challenges for traditional parties is manifold.

COMMUNICATION DIRECTOR 1/2019

EUROPEAN ELECTIONS

not believe in Europe, or why they want to

we can bring a further evolution to Europe-

vote for parties that aim at leaving the Eu-

an politics compared to what we had in 2014.

ropean Union. The S&D Group will stand up

In 2014, many of the political families agreed

for Europe, but we also say we want a differ-

to the new concept of a Spitzenkandidat, a

ent Europe. We want a Europe that works

lead candidate. We are strongly supportive

for the people, which leaves nobody behind,

of this because we believe it's a strong step in

and thus we have to work on the root caus-

continuing democratic legitimacy for people

es of why we have the political crisis today.

on the continent. When Frans Timmermans

Alongside our digital and traditional me-

and Manfred Weber travel around the con-

dia work, we have launched direct engage-

tinent, listening, engaging and debating with

ment tools and our #EuropeTogether initia-

people, they are also laying a platform before

tive, going to the streets, going to the people,

the people of this continent that they will be

going not only to the capitals, going to the

held accountable to if either of them is suc-

small cities, to the local level – that is what

cessful in leading the next Commission. And

we need to do. In addition, I know that our

this is a new normal in how politics work.

lead candidate Frans Timmermans, will run

There are examples right across the demo-

a positive campaign against the fear of the

cratic world where a politician and a polit-

extremists, nationalists; and he will run a

ical party – or political family of parties, in

campaign of optimism.

our case – lays out their vision for the continent, has that vision debated and then consequently is accountable for what they've

Dara Murphy

said. It is semidetached still in the European Union, and detractors of the Spitzenkandiate may well say that it's not a perfect politi-

When the EPP talks about what we commu-

cal configuration; and I don't believe it is, but

nicate, how we communicate, when we com-

it is a step in the right direction, since in the

municate and even where we communicate,

past we have had a situation where only 28

we always have in mind the electoral system

heads of state and government – democrati-

that we have in Europe. With the exception

cally elected, yes, that is true, and though with

of where the lead candidates are on lists, peo-

the best of intentions – sat in a room together

ple who vote in the European elections will

and picked the next leader of the European

vote for member parties in the first instance.

Commission. Today, there is a direct link with

However, all of our research is showing that

people, with the voters.

the gap between what used to be called ‘sec-

We see two distinct elements to our

ond order elections’ is starting to close. This

campaign. You will see a very robust campaign

means there is more relevance for Europe-

from us in calling out the populists and ex-

ans now in these upcoming European elec-

tremists, to not just point out what they don't

tions than was the case in 2014. And while

like about European politics and the failings

Social Democrats or the EPP could clap our-

that we all acknowledge there have been and

selves on the back and take some comfort

the improvements that we can make – but

from that, the reality is that the challenges

to tell us exactly how they believe they could

and issues that people are facing are driving

do it better. Because to call for leaving - and

them towards looking at whether European

there is a fairly glaring example to the east

leaders can provide solutions for the challeng-

of my own country – where simply walking

es which I think they instinctively believe re-

away without a strategy, is a very, very shal-

quire more cooperation to solve.

low and a very dangerous strategy to be ap-

So whether it is in respect to climate,

proached by any political party. But equally

whether it is in respect to challenges around

we will run a positive campaign with the

security, whether challenges around migration

Socialists where we will debate how and where,

or economic challenges, we want to show that

within the context of our European Union, we

our political family, and Manfred Weber, can

have a difference of opinion on policy with

deliver a European campaign on the issues that

the Socialists and with the Liberals and with

concern people most. We want to show how

the Greens.

U T TA T U T T L I E S HEAD OF DEPARTMENT PRESS AND COMMUNICATIONS & SPOKESPERSON SOCIALISTS & DEMOCRATS GROUP

Utta Tuttlies joined the S&D Group in 2011. The S&D press and communications department is an interdisciplinary, multinational and multilingual team that covers different activities ranging from media relations, to audio-visual production, events and publications as well as online and new media communication. Furthermore, Utta is responsible for the S&D Group´s #EuropeTogether initiative, which was launched after the Brexit referendum, and aims at engaging citizens in the upcoming European elections.

DA RA M U RPH Y CAMPAIGN DIRECTOR SOCIALISTS & EUROPEAN PEOPLE'S PARTY

Dara Murphy is an Irish member of parliament and a member of Ireland's government Party, Fine Gael. He was first elected to the National Parliament in 2011, and from 2014-2017 served as minister of state with responsibility for European Affairs in the Irish government. He also had responsibility for Data Protection and the Digital Single Market. He was elected in 2015 as vice-president for the European People's Party and was recently appointed to the position of EPP campaign director for the 2019 European elections.

COMMUNICATION DIRECTOR 1/2019

WRITING AND EDITING

OMIT NEEDLESS WORDS When it comes to global communications in English, basic is best BY JO N AT HA N G R A H A M

re you a global communicator?

And, believe it or not, I am frequently asked

Meaning: are you occupying a

what I think is most important in communi-

communications position in a multi-national company?

Does your company have production sites, or offices, or individual colleagues working in different regions around the world? If only one of these applies to you, you should consider yourself a global communicator. Sounds like a very responsible occupation. And, well, yes, it is. But what is required on the job? Sure, great communication, planning and organizational skills are key to succeed. But let’s start basic. Let’s talk basic English. The company I work for, TE Connectivity, is a truly multinational company. We

“Communicators must work harder to find ways to be clear and understandable.”

cations. My reply is straightforward, but oftentimes underestimated: use basic English. As English is the common, if not official language of large multinational companies, communicators must work harder to find ways to be clear and understandable. While “basic English” sounds easy, it is challenging. Let’s do a quick self-assessment: As an international communicator, you have a high level of English vocabulary. You probably have a university degree and great academic writing skills. You most likely also are inclined to use words to illuminate your text. You love to write. You love to talk. And you

develop and provide sensors and connectors

probably also love perfect texts. Now, here’s the

for pretty much every aspect of life. We pro-

thing: this is all great. But it is not sufficient.

duce in various countries, on four continents.

You will exceed in your role when you

And we employ highly skilled staff. Hence,

manage to write in a concise, compelling, and

in my role as senior manager communica-

understandable way. So, even if your writing

tions for TE Connectivity Industrial, I am a

is grammatically correct, it could be perceived

global communicator.

as highly academic, not useful, or verbose.

COMMUNICATION DIRECTOR 1/2019

WRITING AND EDITING

Less is more; or: omit needless words. Let’s go back in time. Exactly 100 years ago, in 1918, William Strunk Jr published his nonfictional masterpiece called The Elements of Style. In this book, he lies out some very basic, yet important rules of English language. “Omit needless words” is one of them. The 1918 recommendation from Strunk still holds true today: "Vigorous writing is concise. A sentence should contain no unnecessary words, a paragraph no unnecessary sentences, for the same reason that a drawing should have no unnecessary lines and a machine no unnecessary parts. This requires not that the writer make all his sentences short, or avoid all detail and treat subjects only in outline, but make every word tell."

“You will exceed in your role when you manage to write in a concise, compelling, and understandable way.”

(“Elementary Principles of Composition”, The Elements of Style).

THE BEST GUIDES TO THE BEST STYLE ••

Kachru, B.B. (1985). Standards, codification and sociolinguistic realism: The English language in the outer circle. InR. Quirk and H. Widdowson (Eds.), English in the world: Teaching and learning the language and literatures. Cambridge: Cambridge University Press, 11-36.

••

eeley, Tsedal (2012). N "Global Business Speaks English: Why You Need a Language Strategy Now." Harvard Business Review 90, no. 5: 116–124.

••

ffice of Investor Education O and Assistance (1998). A Plain English Handbook: How to create clear SEC disclosure documents. U.S. Securities and Exchange Commission.

••

akir, A. (1999). Connecting P with English in the context of internationalism. TESOL Quarterly, 33(1): 103-113.

••

trunk, William (1918). The S Elements of Style. Ithaca, N.Y.: Priv. print. [Geneva, N.Y.:

Fun fact: the 1959 edition of The Elements of Style is rated as the number one book in the 100 best and most influential books written in English since 1923. Here are some examples of concise writing from the book: he is a man who

in a hasty manner

hastily

this is a subject which

this subject

his story is a strange

his story is strange

one The book is available online (for example, it is available at Project Gutenberg in various formats) and is a short read that can immediate-

Photos: gettyimages.com; Private

ly improve your basic English style.

• Long sentences • Passive voice • Weak verbs • Superfluous words • Legal and financial jargon • Numerous defined terms • Abstract words • Unnecessary details • Unreadable design and layout

J O NAT H A N G RA H A M SENIOR MANAGER GLOBAL COMMUNICATIONS TE CONNECTIVITY INDUSTRIAL

What to do with this: work the basics.

Another round of basic English

Intriguing? Or nothing new? I would like to en-

In 1998, another guide to basic English came

Now, look at the overall composition and start

from the United States Securities and Exchange

working on a plain English version. Try to re-

Commission (SEC) as a need to have a simple,

write the document by working on less words

understandable approach to disclosure docu-

and making the text simple. This is a good start

ments. This booklet is a good resource for cor-

to reach beyond your advanced language skills

porate communications as the financial ex-

to create a basic English text. With a little bit of

amples are relevant to your work. Here is the

practice, anyone can produce clean and concise

SEC’s list of common problem discovered in fi-

written communications that makes itself un-

nancial documents:

derstood around the globe.

courage you to go back and review a recent press release from your company. Ideally, one that contains critical technical and business terminology.

Jonathan Graham manages both external and internal communications as well as product communications for TE Connectivity, the sensor and connectivity solutions provider based in Darmstadt, Germany. In his role, he. Jonathan has been working in the industry for more than 25 years, serving in various communications roles for HP and Heidelberger Druckmaschinen, among others.

COMMUNICATION DIRECTOR 1/2019

EUROPE'S COMMUNICATION Keynote The value of humour in communications

Insight Being human in the digital age — practising mindfulness

Keynote Digital alter egos as weapons in the disinformation battle

Andrew Tarvin Author and Comedian

Mounira Latrache Founder & CEO Connected Business

Randy Waltzman Debuty Chief Rand Corporation

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Chatbots

1 Community

ISSUE FOCUS

The game changer Communications as a catalyst for organisational success

COMMUNICATION DIRECTOR 1/2019

ISSUE FOCUS

Risk or reward?

The CEO and the future adviser

In a world of shifting reputations, radical transparency and business uncertainty, corporations are held to a higher account. A glimpse into enhanced strategic reputation and risk management. BY D E NN I S L A RS E N A N D D R. K E RST I N L I E H RG O B B E RS

The CCO change catalyst When it comes to reputation risk management, communicators are uniquely placed to help course-correct the organisation: first-hand insights into keeping reputation risk on the agenda I N T E RV I E W W I T H H Ă&#x2026; KO N M AG E L I

More than ever, the CEO is perceived not only as the voice of the organisation but also as its face, its identity and its embodiment. This calls for a deeper understanding of the adviser role. BY G I T T E G RAV E NGA A R D , A ND E RS M O N RA D RE NDTO RF F A N D K R I ST I A N E I B E RG

The next move? How does the communication leader use facts and figures to advance their function, their work (and themselves) in their organisation and throughout their career? BY CAT H RI N E TO RP

Reputation and accountability in the age of algorithms If algorithms are the game changer affecting all industries, communicators need to learn how the game is played, and what are the new reputational challenges involved. BY A L E X A N D E R B U H M A N N

COMMUNICATION DIRECTOR 1/2019

ISSUE FOCUS

Risk or reward? In a world of shifting reputations, radical transparency and business uncertainty, corporations are held to a higher account. To live up to these expectations, they need to embrace strategic reputation risk management as a proactive essential manageÂment activity and help build better organisations. BY D E N N I S L A R S E N AND D R. K E RST I N L I E H R- G O B B E RS

COMMUNICATION DIRECTOR 1/2019

ISSUE FOCUS

Reputation risk has long been explored for by academics, practitioners and professional bodies alike. In the last few years, senior leadership attention for the topic has increased significantly. Perhaps driven by value destroying scandals and failures of governance and the quest for greater purpose in the ‘age of radical transparency’ (see “Creating a culture of purpose” by Phil Riggins in Communication Director 04/2018), leaders are starting to wake up both to the potential of reputation to build superior sustainable financial value and the risk posed by reputation effects to the bottom line when there is a mis-match of expectations and factual experience among stakeholders. Various CEO and leadership surveys conducted by McKinsey, PWC, Deloitte and KPMG have already pointed to the importance of reputation risk for business success. In addition to uncovering leaders’ recognition that reputation risk is important, these surveys agree that there is no clarity on how to measure and manage it. Therefore, in partnership with the European Association of Communication Directors Working Group on Regulatory and Reputation Risk under the stewardship of Médard Schoenmaekers of Credit Suisse, we have built further on the understanding of reputation risk and explore what corporate communicators can do in the area. We looked into previous reports, conducted over 30 in depth interviews with leading communicators and a handful of risk experts and leaders, ran a survey securing input from about 160 communicators across Europe. The emerging results were debated at a series of workshops in Berlin, Paris and Oslo. The current topline emerging themes and exploration areas are summarised below: 1. Risk classification • Assess reputation component of all operational risks • Quantify and visualise reputation as stand alone risk area

2. Internal versus external risks • Fill internal blind spots: internal sources of reputation risk are often the most important • Assess internal risk mitigation readiness 3. Reputation intelligence • Apply advanced reputation intelligence to understand future threats and opportunities • Assess reputational impacts of current operations and future strategy 4. Risk governance • Cross functional partnerships: early warning and early response • Integrate reputation risk into operational risk procedures 5. Culture • Build reputation risk awareness across workforce • Embed reputation risk components in learning and development and internal programmes 6. Leadership • Ensure it is always on the agenda as natural component of strategy discussions • Build more awareness and capability at the top: they have the ultimate responsibility For simplification purposes, we limited ourselves to these ‘building blocks’ of effective reputation risk management, fully realising that there will be other areas that may fall between the cracks or require their own focus. Also, some of these topics related to reputation risk will merit much more detailed attention for an individual organisation than others, all depending on where the greatest opportunities for enhancement lie. Let’s discuss each area briefly in turn.

1. Risk classification Any organisation’s reputation is constantly at risk. Even if a company enjoys a stellar reputation for the things that matter most to its stakeholders and they are behaving in a manner that is amenable to and positively impacting future success, reputation risk management should be an integral part of running

COMMUNICATION DIRECTOR 1/2019

ISSUE FOCUS

I think that many risks might always have a reputation dimension – people managing risk need to always put the reputation prism over it. More and more everything tends to have a reputation angle.” Terhi Kivinen, Global Director Digital and Functional Communications, Royal DSM

the organisation. The sources of potential disruption and reputation damage are rife, and the business impacts of not properly managing these risks can be severe. The media is awash with examples of seemingly reputable companies that have turned out to have systemic governance failures or compliance issues, or that have failed to react to changes in the external landscape. Our research shows that although reputation risk management is important and gaining leadership attention, there is a persistent lack of clarity around what should be defined as a reputation risk, and what successful reputation risk management entails. Although only 46 per cent of respondents’ companies assess reputation risk as a standalone risk, consensus seems to be emerging that reputation risk is both a separate risk category and a ‘risk of risks’ that will merit sufficient attention.

organisations to focus not only on external issues and threats but to address internal aspects such as compliance, risk governance, culture and capability. • The largest portion of respondents (43 per cent)

believe that most reputation risks emanate from inside an organisation • The top three reputation factors that contribute to a robust reputa tion are considered to be: good governance and compliance procedures (64 per cent), ethical business practices (56 per cent) and communication with stakeholders (54 per cent)

For us important reputation risk areas are connected to issues that have a potential damaging effect on our business. Being as diversified as we are presents both many sources of potential risk to stay on top of but also means that the potential overall group damage associated with risks around a single product or category can be contained.” Håkon Mageli, Group Director Corporate Communication and Corporate Affairs, Orkla

2. Internal and external

3. Reputation intelligence

One of our dominant findings is that there is a lot to be gained from exploring internal sources of reputation risk. Clearly the way employees behave, internal culture and management styles all have a massive impact on an organisation’s potential for risky conduct, with potentially damaging reputation and business ramifications. The way in which issues and crises are handled can have a potential dampening or amplifying effect on reputation. This points to the need for

Early in our research it became apparent that ongoing monitoring and intelligence gathering is becoming an increasingly important part of reputation risk management. Having sufficient expertise to analyse and interpret this data was also viewed as essential. This is moving beyond simple tracking of one’s reputation among publics and selected audiences towards integrated analysis across various studies and datasets to understand what will drive future behaviour, the issues that stakeholders will care about

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Having a process in place for identification and early warning management is key. We need to measure it on an ongoing basis, in order to find evolving issues.â&#x20AC;? Ger Peerboom, Corporate Communications Leadership

in future, and what they expect from individual companies in addressing these topics. Reputation risk intelligence is rapidly becoming a business-critical factor in making better business decisions for the short, medium and long-term.

4. Risk governance The research showed that having the appropriate governance structures and processes in place to manage and communicate reputation risk on an ongoing basis is essential. What this looks like in practice will be different for every organisation, but there are a number of principles that are universally applicable. These can include: treating risk management as an extension of the overall strategy, establishing who is responsible for managing reputation risk, ensuring adequate oversight of reputation among boards and executives, and laying out how reputation is governed both integrated with and alongside other risks within the business, such as strategic, operational and financial. Continued on page 66

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The CCO change catalyst: keeping reputation risk on the agenda INTERVIEW WITH H Å KO N M AG E L I BY D E NN I S L A R S E N

Håkon, what is reputation risk to you? HÅKON MAGELI: For us, important reputation risk areas are connected to issues that can have a potential damaging effect on our business. Being as diversified as we are presents both many sources of potential risk but also means that the potential overall group damage associated with individual risks around a single product or category can be contained. Given our presence in the food sector, we take particular care of food safety given the potential risk any issue around this topic can pose to our consumers, our customers, our immediate business performance and longer-term reputation. All Orkla companies that produce food and beverages comply with the Orkla Food Safety Standard (OFSS). This standard was introduced in 2004 and is based on the internationally recognised British Retail Consortium Global Standard for Food Safety. Safe products, in fact, are a cornerstone of our approach across our businesses. We take our reputation for quality and safety extremely seriously as we rely on the continued trust our consumers and customers put in us. 64

How do you embed reputation risk into business processes? Given the inherent reputation risk associated with any failures in our production processes, we make sure we continuously improve and apply high standards and have auditors regularly check our factories and supply chain. Here operational risk reducing tactics are essential and we recognise the potential follow through to short- and long-term reputation damage if we don’t keep doing this well. We also work systematically on our supply chain embedding conscious decisions around where and who we source our raw materials from sustainably and ethically. Our customers and other stakeholders expect this. Are there reputation risks associated with raw materials like palm oil and cocoa? Palm oil is a chapter in its own right. In Norway and the rest of Scandinavia there has been a great deal of attention on saturated fat and the environmental issues surrounding palm oil. We have been

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early in addressing this have worked very hard to find alternatives so that most of our grocery products in the Nordic grocery market are now palm oil free. Where we do use it, we source from suppliers with improvement programs on the ground and we are converting to certified raw materials. Across our supply chain our goal is to source 100% of our raw materials from sustainable sources.

we know about our stakeholders and their concerns into language that leaders understand. Reputation and reputation risk is everyone’s responsibility but as communicators we are uniquely placed to help course correct our businesses if what they are doing can have a damaging impact.

Is it about compliance or culture? We do need to set strong standards and adhere How do you manage reputation risks connected to them, but I am a firm believer of building a culture to changes in your production facilities? in which people identify with the business and engage The most important thing is to be open with responsibly with colleagues and stakeholders. That stakeholders about the plans you have from the is more important than controls and compliance. beginning. Through open dialogue and consulta- It starts with good leadership. I believe the Orkla tion around production changes including factory culture helps minimise behaviour that would put closures, we are able to retain trust and manage our reputation at risk. our reputation with our stakeholders including Reputation thinking has always been part of our colleagues, local communities and authorities good business practices. If you look back at managearound potentially disrupting changes. ment textbooks from the 1950s, there was already this notion of considering whether a business decision Does reputation risk feature on the executive has a positive impact on direct stakeholders, society and board agendas? and the environment- the same concepts repackaged Yes, in various ways. It is addressed through more recently as reputation management or sustainspecific issues requiring leadership attention, for ability. This has always been built into our business instance palm oil and food safety. As leaders we are ethos and we continue to adopt enhancements to all concerned with the potential reputational impact our approach every day. of our business decisions. There is also a broader interest among leaders H Å KO N M AG E L I about how we can further build our reputation and GROUP DIRECTOR CORPORATE COMMUNICATION AND CORPORATE AFFAIRS continue to be an authentic company and how we ORKLA can lead new developments in sustainability for instance.

What is the specific role of your role and your function in reputation risk management? Given that the corporate communication function is best positioned to understand corporate stakeholders and the future issues landscape, it would be a business risk if we were not involved early in the decision-making process and around our large change programmes. We bring the reputation risk and opportunity components into the strategic discussions. To do that we have to translate everything

Håkon Mageli is group director corporate communication and corporate affairs at Orkla, a leading supplier of branded consumer goods to the grocery, out-of home, specialised retail, pharmacy and bakery sectors. His responsibilities include internal and external communications, crisis communications, food safety, nutrition and health, trade policy and governmental affairs, as well as social responsibility. He is an internationally recognised contributor to the field of corporate relations and plays an active role in various professional bodies including an advisory role on the Arthur Page Society’s International Exchange Advisory Committee.

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It is also important to establish where reputation risk management sits from a business function perspective. The corporate communication or corporate relations function may be the natural steward for all things related to reputation, but co-operation with other relevant functional areas such as compliance, human resources, marketing & sales, IT and operations is imperative for success. Our survey found that while 58 per cent of respondents said there was a process in place for collaboration between communications and other functions on reputational risk, 26 per cent said there wasn’t, and 15 per cent couldn’t say for sure. So, some room for improvement abound for a more collaborative approach.

Reputation risk is a shared responsibility for all … That said, the chief executive is ultimately accountable for the vitality of the reputation and the behaviours and attitudes that support it. I don’t think that this can be delegated to others. For me, it would certainly be a red flag to delegate the management of reputation to the head of comms.”

Reputation is owned by everyone – it can’t be boxed off. It is built on an ongoing basis – a person in a contact centre, and those on the frontline are key. Employee ambassadorship is important – whether everyone understands that they own it is a different thing.” Raj Kumar, Global Director, Corproate Reputation and Brand Governance, Aviva

into account in decision making and helping protect corporate reputation from harm in all interactions with stakeholders externally and internally.

6. Leadership

In our study, 22 per cent of respondents identified strong senior leadership as one of the top 3 factors in contributing to a robust reputation. However, in our conversations it became clear that leadership is of paramount importance to setting the tone and guiding appropriate decisions that take potential David Bowerin, Independent Consultant, previously Head of Strategic Marketing for reputation ramifications into account a priori. Citigroup’s Global Corporate Bank. Other studies have shown that leaders themselves are increasingly aware of the importance of reputation management for their ability to generate a successful future for their businesses, but that they are hampered somewhat by their lack of knowledge and capability around how to do this effectively. The Although there will be specific individuals within research shows that there is a clear role for heads of a company for whom reputation management or corporate communication to play a role in building risk management is their prime responsibility, our awareness and reputation acumen amongst leaders, research shows that there is a huge opportunity to especially now that they require it more than ever. involve the broader employee base and tap into a greater sense of collective responsibility. Unquestionably, reputation risk is minimised by building a stronger sense of employee identification around core reputation drivers and empowering teams to take If there is one overarching thing this project has taught responsibility for both taking reputation implications us so far, it is to embrace risk. Perhaps justifiably so,

5. Culture

Embrace risk

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Personally, I don’t think the comms person is directly responsible for reputation risk management – it needs to be the collective responsibility of the company leadership, and also the wider employee base.”

D E N N I S L A RSE N

MANAGING PARTNER REPUTATIONINC

Leslie Kimball, Foundation for Advancing Alcohol Responsibility

we’ve been focussed in the past few decades (practically and academically) on making the business case for investing in reputation management and building a positive reputation as an intangible asset and as a source of competitive advantage. The thinking has been that we need to get the attention of leaders to show the upside of building a strong position for the company in the minds of its stakeholders and prove our added value. Getting a seat at the table. Nothing wrong with that in principle, and we have the evidence coming out of our ears that reputation management and corporate communication has a business benefit, if only leaders would listen. But what’s the value of having a seat at this table if the table itself is disintegrating and corporate communication is left picking up the pieces? Company after company, senior leader after senior leader fall into scandals, unforeseen gaps and unmitigated risk areas. As the proverbial eyes and ears of the business, communicators’ main role must be to look around corners and both help prepare for and influence future operating environments – topic by topic, stakeholder by stakeholder. We must lead the way in mapping out, understanding, mitigating and managing future reputation risks for our businesses, starting with embedding a culture and mindset that takes these risks into account. We hope these initial insights will give some food for thought for embracing strategic reputation risk management as a proactive essential management activity and help build better organisations that are held to a higher standard of account. The

Dennis has been a reputation management consultant for over two decades and is managing partner of ReputationInc’s international operations. He is based in Oslo and London and serves clients across the globe. Dennis has been involved in academic and client based research on corporate reputation, corporate responsibility and financial communications, leading to publications and conference presentations. Dennis is also managing director and senior consultant at Acuity Insight Ltd., and part-time lecturer in corporate communications and reputation at BI Norwegian Business School in Oslo. He has consulted at both Reputation Institute and the Rotterdam School of Management at Erasmus University, Amsterdam.

D R. K E RST I N L I E H R- G O B B E RS ASSOCIATE PARTNER REPUTATIONINC

As associate partner at ReputationInc, Dr. Kerstin Liehr-Gobbers advises multinational clients in the areas of brand and reputation strategy, stakeholder research, alignment and engagement and communication performance management. Her expertise comprises pharma, logistics, technology, financial services, media, telecommunications, the public sector and FMCG. Prior to joining ReputationInc, Kerstin was instrumental in establishing the reputation practice of a leading strategic communications consultancy in Germany. Before that, she set up the public relations arm of a European foundation, worked as an analyst for an M&A firm and as a research fellow at a Center for Applied Economic Research.

road ahead can be complex, but it can also be as simple as applying a dummy simple litmus test for corporate decisions: are we making a difference and addressing the issues that future generations will expect corporations to have solved? Acceptable versus irresponsible business risk taking lies in the balance of sacrificing future societal and environmental gains for immediate short-term returns– the hygiene factor of the future could be the reputation risk area that destroys your business today.

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The CEO and the future adviser More than ever, the CEO is perceived not only as the voice of the organisation, but also as its face, its identity and its embodiment. This calls for a deeper understanding of CEO communication, the what nature of communications advice needed by CEOs â&#x20AC;&#x201C; and the characteristics essential for future communications advisers working with top management. BY G I TT E GR AV E N GA A R D, A N D E R S M O N RA D RE NDTO RF F AND K RI ST I A N E I B E RG

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The CEO is the organisation’s centre of attention. Internally, the CEO must set a clear direction and enable optimum engagement at a time when most companies and organisations are experiencing radical transformation. Externally, the CEO needs to navigate the increasing demands of social responsibility and corporate transparency, and meet the growing requirements of stakeholders and media. The rise of digitization and the proliferation of platforms and channels have enabled a variety of stakeholder groups to be more active and engaged, both internally and externally. Despite this, the area of CEO communication is characterised by a lack of knowledge. Although research has found CEO communication to be extremely important, the collaboration between CEO and adviser is not a well-established field of research, and very little empirical study has been carried out in this field. In addition, much of the remaining literature written in this field is anecdotal, based on experienced advisers’ professional practice with a predominantly ‘how to’ perspective. Moreover, the focus is often directed towards management and business consultancy and not on communication consultancy specifically. Faced with this, we have launched a multi-year research project into CEO communications advisers. We have interviewed trusted communications advisers and top managers (CEOs or equivalent); in this article, we will focus on the perspectives of communications advisers. We have interviewed 37 experienced advisers with an average of 15 years’ experience in advising top managers on matters of communication. The preliminary analysis sheds light on the practice of CEO communication and the working relationship between C-level executives and their trusted communications advisers. Three meta-themes have emerged: they encapsulate essential perspectives that the communications professionals have put forward in the interviews.

Theme 1: Understanding the business context According to our findings, the trusted communications adviser will only become so if he or she demonstrates a thorough understanding of the business (public or private). Particularly when the relationship is new, an adviser must position him or herself as worthy of trust by demonstrating in practice that he or she understands the business and what the CEO needs. By producing timely and relevant communication deliverables that reflect a profound understanding of what is needed, the communication professional will gradually position him or herself as a trusted adviser or get to the table where strategic decisions are made. Navigate the organisational context: One way for the communications professional to get this far is by demonstrating stakeholder management in practice. It is evident from our interviews that the trusted communications adviser is seldom the only adviser to the CEO. Heads of human resources or business development have equal access to advise the CEO on communication issues, as do executive assistants, PAs or chiefs of staff. In practice, the communication professional must be adept at operating in this organisational context and build coalitions with other advisers. High-paced and complex: According to our findings there is no doubt that CEO communication is business critical and growing in importance. The external communication of the CEO is scrutinised by media, business analysts, customers, citizens, government representatives and numerous stakeholders. This is not new, but according to our findings the pace of CEO communication has increased and the practice has become more complex because of the widespread use of social media. The latter has made the channel mix and communication processes much more dynamic and demanding, which poses new challenges and tasks for the trusted communications adviser.

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Need for clear direction: Internally, the speed and frequency of transformative changes faced by most organisations in both the private and public sector make CEO communication more important than ever. CEO communication plays an important role when setting strategic directions, explaining the implications of change and showing the way for the next level of managers. According to our findings, internal perspectives on CEO communication display significant differences in levels of professional maturity with the advisers we have interviewed.

“You must demonstrate your communication skills. Then you have entered the room. But when you are in, you will fail fast if you are too persistent in your communication dogmatism. You must be pragmatic… The most important skill is business understanding. That you show you really understand what it takes for the company to become a success” Director of Communications, leading Danish public sector organisation

Another perspective is that the pressure from the board on most top executives to deliver results is rising and, perhaps as a result of that, CEO tenure has been dropping significantly over the years. Today, more must be done in a shorter period of time and, from the communications adviser’s point of view, the CEO is in practice a transitional asset. The communications professional must therefore demonstrate the ability to quickly understand the agenda of the CEO and the need to deliver tangible short-term results. Complex stakeholder arena: But there’s more. CEO communication must also address issues outside the borders of the organisation. Corporate responsibility and corporate political activism require that CEOs communicate about new subjects. Assisting these leaders to communicate passionately and authentically about subjects such as inequality, migration or climate change raises the bar for the trusted adviser and adds to the increasing complexity of the role.

Theme 2: Managing the relationship What characterizes the relationship between the CEO and the trusted communications adviser? In short, the relationship is both professional and personal, but not private. The adviser’s license to operate is subject to his or her possession of the required communication capabilities. Working closely over several years through multiple situations where much is at stake eventually results in a close relationship between the CEO and the adviser. It is a relationship built on the need for the CEO to constantly develop his or her communication skills and for the adviser to help the CEO develop this competence in practice. Personality matters: According to our findings, the relationship very often evolves over time to become more personal in character. Shared values – or good personal chemistry – make it easier for both parties to understand each other, communicate

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Photo: Gordian Heindrichs

effectively with little preparation time, and allow for the trusted communications adviser in practice to act on behalf of the CEO. He or she may be the person in the organisation who knows the CEO best and can alert the CEO to oncoming opportunities as well as dangers. Trust and confidence: Trust, honesty and transparency are some of the words that the communication professionals in our study use to characterise their relationship with their CEO. There is, however, a distinction between personal and private that goes beyond semantics. For example, in one of the interviews, the trusted communications adviser explains clearly his conscious consideration of whether or not he should cross this apparently thin line and become friends with his CEO. The relationship between the top manager and the adviser is often – and should be – close. Despite that – or perhaps because of it – the relationship is not managed like other organisational processes. It is in many ways an unmanaged relationship. It is also incident-driven. The CEO reaches out to the adviser when he or she finds him or herself in a situation where communication is critical. Incidents as a driving force: These situations include media interviews, meetings with analysts, the presentation of financial results, the launch of major organisational changes or new strategies, or quarterly town hall meetings where the CEO addresses all employees. These occasions are all excellent opportunities for the trusted communications adviser to demonstrate his or her value to the CEO. According to the findings, these occasions create “defining moments” where the CEO realizes the value of having a trusted communications adviser. Moreover, some of the interviewees describe how they actively attempt to create events in which they can position themselves as valuable advisers.

“(The CEO) asked me how I perceived the company. I asked him if he wanted the diplomatic or the rough version. I told him about the challenges I saw in the company and it was on this occasion that he asked if I would help him with his internal and external communication and the change process… He said, ‘What I like about you is that you dare to disagree with me’.” Head of Communications, Danish-based world-leading building material supplier

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by an absence of measurable goals, plans or strategies for top management communication. Only one of our interviewees demonstrated that she had developed a formal plan with goals, activities and key performance indicators. From our perspective this a particularly interesting in the light of the growing importance of CEO communication for both public and private organisations. It is also in sharp contrast to the widespread practice of performance-based business processes with measurable goals and planned activities. Despite the absence of plans, goals and key performance indicators, the communications professionals we interviewed have a perception that they are successful in their advisory role.

Theme 3: Developing competencies What is required to become a trusted adviser within the field of CEO communication? It is no surprise that communication competencies give the trusted communications adviser a license to operate and access to the table where strategic decisions are made. However, the interviewed advisers emphasize that, in their experience, the requirements for CEO communication go beyond communication skills. The need to understand the business as discussed in Theme 1: competencies in organisational development, business economics and management are a requisite. The communications adviser is expected to join the conversation. Trusted adviser and effective operator: Communication practitioners have for decades discussed the transition from the role of communication producer to that of communications adviser. There is an underlying perception that the latter would be a desired career destination of most communication specialists. Yet our findings strongly challenge this perception and indicate that, on the contrary, many 72

“We are communications professionals and from time to time you have… to be able to contribute differently. (Your) business understanding … should be demonstrated outside (your) own area. If you can do that … if you are capable of saying, ‘We may have to look less at this and more at that because I think it would be valuable in this and this way’, then people listen to you in a different way than if you speak merely from your own professional area.’” Senior Vice President, Communications, listed company at the Danish C25-index

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of the services that the trusted adviser provides for the CEO are very practical in nature. They could include producing a PowerPoint presentation for an internal town hall meeting, writing a speech for an external audience or the Q&A before a media interview. These are all quite ‘low-tech’ deliverables, but they are nevertheless key to building the relationship between the CEO and the adviser; and they can eventually position the adviser in a situation where the CEO reaches out for strategic advice rather than tangible communications tasks. Efficient execution today paves the way for a strategic advisory role tomorrow. Relational skills: Another strong finding is that people skills are essential to the success of an adviser. We have previously discussed the importance to the adviser of understanding the agenda and objectives of the CEO and developing their professional and personal relationship. But what has become apparent in the interviews is that the adviser’s deep understanding of the CEO is in fact a prerequisite to successfully advising him or her. Relational leadership is key here, as advising the CEO often becomes quite personal: getting rid of bad communication habits, training the CEO in new communication skills and emphasizing the need for good communication in tense situations. It is essential for an adviser to know when to insist and when to bend. As we have discovered, a formal plan or strategy does not govern CEO communication. The trusted communication adviser must therefore draw on personal priorities, values and experience to demonstrate resilience in these critical situations. The pressure on CEOs to deliver tangible results fast inevitably spills over onto the adviser. In sum, these three meta-themes tell us that the future top adviser needs to be fluent in businesscontexts, a thorough relationship-builder and, perhaps most importantly, they cannot rely solely on classic communications competences. Are you ready for the challenge?

G I T T E G RAV E N GA A RD

ASSOCIATE PROFESSOR UNIVERSITY OF COPENHAGEN

Gitte Gravengaard’s research areas are communication, research communication, journalism, and internships. She has written several peer-reviewed monographs as well as a large number of peer-reviewed articles, book chapters, and conference papers. Gravengaard is the director of The Advisor of the Future research project – The CEO Communication and The Future Communication Advisor project is a part of this larger research project.

K RI ST I A N E I B E RG

CEO AND PARTNER RELATIONSPEOPLE

Kristian Eiberg has extensive experience in advising executive management teams in companies and organisations. Since 1993 he has served as lecturer at Copenhagen Business School and today he is external lecturer at the Institute for Management, Society and Communication. He has been the editor of and contributor to two Danish books on integrated market communication. Furthermore, Kristina serves as a non-executive director of several boards.

A N D E RS M O NRA D RE NDTO RF F ASSOCIATE PARTNER RELATIONSPEOPLE

In addition to his role at RelationsPeople, Anders Monrad Rendtorff is also the head of communications for VL – The Danish Management Society and a network director in Executive's Global Network. Furthermore Anders is the chairman of the Danish communications community K1. He is an experienced advisor in Danish companies such as Ericsson, Telia, Coloplast and Vestas. Anders is an external lecturer at Copenhagen Business School at the Institute for Management, Society and Communication.

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The next move? In the evolving role of communications, how can the communication leader use data to state their case with peers on the management team? And should the approach differ between public and private firms? A personal journey through KPIs, measurement models, marketing and more. BY CAT H RI N E TO RP

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Is the traditional corporate communication function on the endangered species list? Today, meeting a communication director with a master's degree in strategic management is more common than meeting one with a master in communication. Even engineers venture into our profession; so is it a profession? And if yes, what is the value we bring to the executive manager’s scorecard? I my view the issue is twofold: what exactly do communications deliver that is of value to the company; and how do we need to behave to expand our functional remits and be a full member of an executive management team?

has been driven by metrics and data for many years and, with the development of CRM, they are able to provide ROI (return on investment) as marcoms results are linked directly into the sales funnel. The evolution of digital communication channels and social media (and increasingly cost-effective technologies to measure across multiple dimensions) has given communications functions many new possibilities. I would argue that this is because the communications industry is in a phase of seeking a common standard for measurement. That is why you see lots of players coming up with different models: academia, industry associations, agencies and in-house communications teams are all bringing suggestions to the table. The AMEC framework is an admirable first attempt at bringing the industry together to Ten years ago, I worked for Equinor (at the time reach a standard; but will our business people acStatoil), a company under such public scrutiny that cept it? Explaining the difference between output they were willing to invest in weekly reputation and outcomes can be challenging, so at DNV GL trackers and advanced media coverage analysis and we used a simpler model, starting with defining the paid campaigns. We could see the immediate im- business objectives that communication could help pact of negative press or television campaign on the achieve while differentiating from competitors and perception of the company. We also measured trust strengthening the company position. We did target in leadership. As the State’s oil company, extracting group analysis to end up developing the messaging and commercialising the oil resource of the country, thought the most effective channels. public trust was an obvious must-have. Did the strategy work? Did it influence our Equinor worked with all the tools of marketing, target groups perceptions and behaviours in the communication, brand building, internal communi- way we wanted? To make our results relevant to the cations and so on, all seamlessly orchestrated under business, we measured the impact in a Four R Model, a very astute leader, Reidaer Gjærum. He lifted the function to become an enabler to the company's success and gained a strong position on the executive management board. When I moved to a more commercial company, my role changed. DNV GL also has a strong social mission and the vision of having a global impact for a sustainable future, a vision that employees took to heart and which drove their behaviours and attitudes. The company understood that the division between paid and unpaid channels is counterproductive. Therefore, the communications function was integrated with marketing. Traditional corporate communications have a lot to learn from marketing, as this function

What to deliver

“What exactly do communications deliver that is of value to the company and how do we need to behave to expand our functional remits?”

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thanks to former chief communications officer Stefan Nerpin. We had many KPI-interested communications professionals in DNV GL at that time, and we ended up with a staggering 64 metrics or KPIs to choose from, neatly organised into functions and the four Rs.

“We need our Revenue and EBITA for communications.”

• Reach Broaden the number of people that know us, creating awareness • Reputation Promote trust in our purpose, vision and values, and technology foresight • Relation Create a favorable perception • Revenue enablement Turn stakeholders in advocates and attract prospects to choose DNV GL (Revenue in terms of sales was the target in units with a CMR system)

interest in the contribution of research and a factbased public debate. Communications work towards all stakeholders with internal identity, external branding through the media, conferences, digital marketing, relationship building and research communication. We have a different set of KPIs structured around three parameters: • Knowledge and reach: number of applicants that have heard about our funding mechanisms, the The theory behind the Four Rs is a very old model percentage of the population that is interested in (AIDA: attract Attention, awaken Interest, create research and innovation, and so on. Desire and get Action) developed in 1898. It shows steps in a customer's journey; it is often referred to • Reputation: people’s trust in research, the extent to which our advice is taken onboard, trust in the as the marketing funnel, and explainshow to move RCN and its mechanisms, user experience and audiences from not knowing us at all (where we first readability index score. need to attract attention) to getting interested and Mobilise engagement for scientific methods going deeper into our content, and finally taking • and critical thinking in schools, conversion rates, action, downloading a report, signing up for seminars employee engagement for strategic goals, etc. or sending a request. To conclude, the public sector needs different content in KPIs to be relevant to their organisation, but the method and approach can be the same as for the private sector.

The public sector: a different approach? The mission of my current organisation, the Research Council of Norway (RCN), is to enable research that contributes to a sustainable development and to foster innovation. RCN invests close to one billion euros to fund research and innovation. One of many things that attracted me to the RCN was the fact that communication is organised as a business area, with specific responsibility for part of RCN’s contribution towards our owners (Norwegian governmental departments). RCN also has the societal role of creating understanding and 76

How to behave? I have found that the role communication plays in a company often depends on the attitude of the leadership more than on the qualifications of their communications team. However, there is much that communications leaders can do to influence this. We need to participate in management discussions on a par with our peers; having read the papers in advance, the communicator should act as a leader and not as a support (writing minutes or suggesting

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impulsive communications initiatives). We should deliver context from the outside world, measure the evolving perception of key stakeholders and the drivers for these, and reflect internally the trends that are likely to shape the company's future. Set your own bar for what a communication professional is: compare with your most respected peers, contribute and be visible in peer networks, and drive academia within your field to further develop and validate the role corporate communications and marketing can play. These are some of the features I have observed in successful executives within our field, in addition to delivering tangible and relevant results. Being influential and respected is of course what it all boils down to.

The road ahead Today's businesses are run on data, and the communications function is no exception. Chief executive officers typically come from finance, sales and operations, where they have been reporting and analysing date for much longer. They need to start seeing strategically-relevant KPIs and reports from us communicators. If they continue to be exposed to communications output rather than communications outcomes and impact, it will be hard for us to argue the strategic value of our function. More sophisticated and relevant methods of measurement are driven by communications teams who have long since recognised the need to measure; but they often lack clarity on what to measure, so they measure everything. And if you measure everything you end up with confusing data from which it is difficult to derive meaning. We need our Revenue and EBITA (earnings before interest, taxes, depreciation and amortisation) for communications. We need to be able to demonstrate how a well-crafted position strategy with messages that resonates in the target groups, in paid or unpaid channels can contribute to company's growth and prosperity.

Communications professionals are storytellers. For years, we have been experts at taking data from other parts of our organisations and turning them into engaging stories. We need to take our own medicine on how we present our own data – and ourselves.

E X E C U T I V E S U M M A RY ••

To deliver strategic value, communications need to find relevant KPIs and these needs to directly contribute to the goals of the organisation.

••

The public sector may demand different content in KPIs to win hearts and minds of stakeholders, but the method and approach is the same as for private sector.

••

To expand their remit and influence the executive leadership, communicators need to position themselves; provide insight in management discussions; deliver context from the outside world; measure the evolving perception of key stakeholders, and highlight trends that are likely to shape the company's future.

••

Successful communications leader should engage in peer networks, and drive academia to further develop and validate the function.

CAT H RI N E TO RP

CHIEF COMMUNICATIONS OFFICER RESEARCH COUNSEL OF NORWAY

Cathrine Torp leads communications at Research Counsel of Norway. The Research Council serves as the chief advisory body for the government authorities on research policy issues and distributes over NOK nine billion to research and innovation activities each year. Prior to taking up this position, she held the position of vice president communications director for DNV GL Oil & Gas for five years. She has two decades’ experience from heading up communication for companies such as Statoil, Storebrand, Total Norge, and Aker before joining RCN in 2018.

COMMUNICATION DIRECTOR 1/2019

ISSUE FOCUS

Reputation and accountability in the age of algorithms Increasingly relied on to manage and make decisions, algorithms are changing the game across all industries. Communicators must develop an understanding of how these technologies affect stakeholder relationships. We present the first in a two-part look at the new reputational challenges of algorithmic technologies. BY A L E X A N D E R B U H M A NN

COMMUNICATION DIRECTOR 1/2019

ISSUE FOCUS

Whenever artificial intelligence and algorithms are the topic of conversation among communicators, the focus is usually on how these technologies will take over tactical activities – think of automated reporting, chat bots or big data analytics. This article is not about that. Rather, it is about the revolutionary shifts that these technologies bring to organisations as a whole, and how these shifts create new challenges for communicators. It is about understanding the ways in which these technologies reshape how organisations engage with their stakeholders.

“Communicators are increasingly in charge of managing reputational concerns with algorithms.”

Public unease about algorithms Increasingly, operations, choices and decisions that not long ago fell under the control of human actors are at least partially delegated to computerised algorithms. These systems outperform humans in identifying important relationship patterns across vast and distributed datasets, and have already become instrumental in, for example, online shopping, equity trading, hiring and promotion, or even recommending medical treatments to physicians or sentencing to judges. However, these systems can and do fail. They may reinforce social inequality, encroach on consumer privacy, unethically influence stock and commodity exchange or even election outcomes. In response, there is growing public unease about these technologies and their social ramifications, paired with increasing calls for more transparency. Public concerns about algorithms are central not only for their creators but also for the rapidly growing number of organisations that employ them. As more and more people interact on a constant basis with algorithms, the public perception of organisations increasingly depends upon them. Algorithms not only represent and shape user experiences of the organisation that owns them, but also affect the reputations of organisations that rely on third-party algorithms as part of their value chain. As many organisations interconnect with the

influential algorithms of Amazon, Google, Facebook and the like, their reputations also partly depend upon the algorithmic activities of these large players. Communicators will increasingly be in charge of managing reputational concerns with algorithms. In order to do this effectively, they need to understand the specificities of algorithms and the public’s concerns about them.

Algorithms are quickly reshaping all kinds of decisions Broadly speaking, algorithms are “encoded procedures for transforming input data into a desired output, based on specified calculations”.1 As such, algorithms can, in principle, be performed by humans and can be found in any culture with mathematical procedures. However, as performed by computerised systems, they have quickly proliferated as rational means of everyday decision-making. Within the last two decades,

1 Gillespie, T. (2014). The Relevance of Algorithms. In T. Gillespie, P.J. Boczkowski & K.A. Foot (Eds.), Media Technologies. Essays on Communication, Materiality, and Society, Cambrdi-ge/MA: MIT Press, pp. 167-194.

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ISSUE FOCUS

algorithmic decision-making has been popularised by, for example, Amazon’s product recommendations, Google’s search results and Facebook’s timeline algorithm. Initially the debate about algorithms focused mostly on ‘soft’ decisions, such as the question of how algorithmised recommendations might change the book market or how a ‘filter bubble’ might alter public discourse in the very long run. During the last five years, however, something changed. First, it became obvious that the algorithmic decisions where not so ‘soft’ after all: the Brexit vote or the 2016 American presidential election triggered public debate about the role played by Facebook’s timeline algorithms in preferring extreme political positions, which resulted in several parliamentary hearings with Facebook board members. Second, algorithmic decision-making systems became the object of increased public scrutiny. Two prominent cases are: criminal justice algorithms (CJAs) for risk assessment and predictive policing have been criticised for reproducing existing social differences, as their machine learning process is fed by older cases; and patient assessment systems (PAS) have been considered as ‘uncertified doctors’, ultimately overtaking decisions about life and death in cases where the uncertainty of data does not allow clear, digital yes-or-no decisions. Today, algorithmic decision-making is no longer a topic for technicians and specialists. Algorithms and the proliferation of machine-based decisions are quickly reshaping countless spheres of life.

“As many organisations interconnect with the algorithms of Amazon, Google and Facebook, their reputations also partly depend upon the algorithmic activities of these large players.”

Evidence concerns can surface on three levels. First, decision-making algorithms can be criticised because they may give inconclusive evidence by producing probable outcomes. Their calculations allow for “best guesses” based on probabilities but never for certain results. Second, these algorithms may give inscrutable evidence when knowledge about input data and their use is limited. Finally, they may give misguided evidence when their conclusions rely on inadequate inputs, in other words “garbage in, garbage out”. Evidence concerns became a highly apparent issue in, for example, PAS which are used to project the success of medical treatment and the likelihood of patients’ deaths. PAS use information about medical treatments, diagnoses of particular patients, and comparative patterns of common There are multiple ways algorithms can cause stake- therapies. They could neglect, however, individual holders to be concerned. Three types of concern can factors of personality and psyche, such as a patient’s be distinguished in relation to algorithms:2 evidence will to survive, that have been proven critical in concerns, outcome concerns, and opacity concerns. treatment success. As doctors themselves often do not know the information basis and estimation 2 See for an overview: Mittelstadt, B. D., Allo, P., Taddeo, M., Wachter, S., & Floprocedures of proprietary PAS, these systems have ridi, L. (2016). The ethics of algorithms: Mapping the debate. Big Data & Society, 3(2) recently become a topic of strong public concern.

Reputational concerns about algorithms

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ISSUE FOCUS

Second, algorithms pose outcome concerns. Algorithms aren’t perfect. They may produce unfair, biased or factually incorrect results. They have, for instance, been found to discriminate against certain groups of people (as the case with profiling algorithms). Such outcome concerns are apparent in the case of automated content: several news agencies use news robots to produce e.g. financial news. Stock market data are automatically translated into text, which works precisely because they do not need human editors to control them. Any error in these outputs would obviously raise serious issues for related trades and the respective news agency. Three fundamental concerns with algorithms EVIDENCE CONCERNS

OUTCOME CONCERNS

OPACITY CONCERNS

Algorithms may entail inconclusive, inscrutable and/or misguided evidence.

Algorithms may generate unfair, biased, or factually incorrect outcomes.

Complex decisionmaking systems based on algorithms pose fundamental challenges to transparency.

Both evidence and outcome concerns are common but not necessarily linked to complex algorithmic decision-making systems based on algorithms. However, the third set, opacity concerns, are qualitatively different in this regard. They arise in the context of nearly all complex decision-making systems as they remain – at least in part – opaque. And this is not just about companies actively keeping them secret in order to protect their competitive advantage. The fluidity of these systems makes it excessively difficult, and in some cases even impossible, to detect problems and identify causes even if organisations grant access. Why is that the case?

3 Crawford, K. (2016). Can an Algorithm be Agonistic? Ten Scenes from Life in Calculated Pub-lics. Science, Technology & Human Values, 41(1), 77-92. 4 Marr, D. (1982). Vision: A Computational Investigation Into the Human Representation and Pro-cessing of Visual Information, San Francisco: W.H. Freeman & Company. 5 Borgman, C. L. (2015). Big Data, Little Data, No Data: Scholarship in the Networked World. Cambridge/MA: MIT Press.

Understanding algorithmic opacity In light of more complex decision-making systems based on algorithms, calls for transparency are indeed “disappointingly limited” and “doomed to fail”.3 This is not simply because algorithms are the property of corporations who do not want to lose their competitive edge and do not want users to manipulate their algorithms; it is because merely seeing mathematical operations does not make them meaningful or comprehensible. To understand an algorithm means to understand the problem that it helps to solve, not to simply study a mechanism and its hardware: “Trying to understand (an algorithm) by reducing actions to lines of code would be [...] like trying to understand bird flight by studying only feathers”.4 This holds especially true for machine learning algorithms, which are in large part shaped by the training data they use, but also for digital data in general, as “Data have no value or meaning in isolation. All parts of the infrastructure are in flux [...]”.5 Opacity is thus not only a result of technical complexity, but also of the fact that, in practice, these technologies are not simply reducible to their parts. The last one or two decades have brought about new kinds of algorithms, self-learning algorithms, which pose even stronger opacity challenges. Self-learning algorithms are a set of rules defined not by programmers but by algorithmically produced rules of learning. In other words, these are algorithms, which program ever new algorithms. As a result, they can be assessed only experimentally and not logically. That being the case, there are instances where the practicality of algorithmic opacity must be taken for granted. Machine learning systems, different from older rule-based algorithms, are often not conducive to or designed with human understanding in mind. There are a number of reasons for this, chief among them being that corporations

COMMUNICATION DIRECTOR 1/2019

ISSUE FOCUS

keep them secret for strategic reasons and that we do not (yet) have the socio-technical means to make them comprehensible for human collectives. However, as Kirsten Martin has recently argued, if the argument is “too complicated to explain” would simply suffice, organisations would be incentivised to produce complicated systems precisely to avoid accountability.6

What's next for communicators? The proliferation of algorithms in organisations brings about a new set of concerns with organisational conduct that communications leaders must address. Addressing these concerns effectively demands a basic understanding of the general workings of algorithmised systems and how these come to shape different kinds of reputational concerns that will inevitably emerge around these technologies, posing new challenges to be tackled by communicators. A key reputational concern here is algorithmic opacity and the challenges it poses to communicators regarding the safeguarding of organisational accountability; i.e. how can communicators manage accountability when their organisations introduce more and more systems that are essentially “black boxes”, and perceived as only poorly transparent and “creepy” technology. In the next part of this article, we will discuss elements of communication strategy that help to deal with this new and intricate challenge in the age of algorithmisation.

“The proliferation of algorithms in organisations brings about a new set of concerns with organisational conduct that communications leaders must address..”

Business School) and published in the Journal of Business Ethics (in press). Part two (to be published in issue 02/2019) will discuss strategies for communicators to help their organisations manage the new challenges of algorithmic accountability and reputation. For more details, please contact Alexander Buhmann at alexander.buhmann@bi.no

D R. A L E X A N D E R B U H M A NN

ASSISTANT PROFESSOR BI NORWEGIAN BUSINESS SCHOOL

About the article This article is based on research conducted by the author together with Johannes Paßmann (Siegen University) and Christian Fieseler (BI Norwegian 6 Martin, K. (2018). Ethical Implications and Accountability of Algorithms. Journal of Business Ethics, Online First, pp. 1-16

Dr. Alexander Buhmann is a researcher working at the intersection of communication, new technology, and management. He is currently assistant professor at the Department of Communication and Culture at BI Norwegian Business School, co-director of the BI Centre for Corporate Communication, and research fellow at the USC Annenberg School of Communication and Journalism’s Center on Public Diplomacy.

COMMUNICATION DIRECTOR 1/2019

T HE MAGAZ IN E FOR CORP ORAT E C O M M U N I CAT I O N S A N D PU B LI C R E LAT I O N S

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BOOKS

Communications reader

Race against time China and the United States are ahead of the global competition to dominate artificial intelligence (AI), according to a study by the United Nations World Intel-

B USINES S

What makes Michael run?

lectual Property Organization published late January. In AI Superpowers, Kai-fu Lee illustrates the competitive race between the two superpowers, and explains convincingly why dramatic changes drive by AI will be happening much sooner than many of us expected, with description of which jobs will be affected and how soon, which jobs can be enhanced with AI, and what kind of solutions can be found to some of the most profound changes in human history.

The art of the deal, Hollywood-style, is rich pickings for

Lee’s premise that China will eclipse the United States as the global in-

anyone interested in business. Michael Ovitz’s Creative Art-

ternational commerce superpower is based on a willingness to harness lean

ists Agency (CAA) rewrote the rules of the film industry:

organisational structures that enable quick decisions to capture the advantage

it resolved Hollywood's fatal lack of transition to younger

in the marketplace.

people with fresher ideas by putting talent in the driving

The preference of Chinese entrepreneurs for lean companies able to make

seat with CAA’s USP: complete teams of clients (writers,

quick decisions have won for them the advantage in the marketplace, says Lee.

actors, directors) sold as a package to studios. In the pro-

The weakness of this approach – quick sprints spiralling into misfires – is large-

cess, CAA built star careers, including Steven Spielberg,

ly left to the reader to reflect on.

Meryl Streep, David Letterman and Bill Murray, and pack-

However, towards the end of the book, Kai-fu Lee takes on a more reflec-

aged films including Jurassic Park, Ghostbusters, Schin-

tive and personal tone: the authors brush with a life-threatening illness skews

dler’s List and Rain Man. By turns inspiring and horri-

the argument to a more positive view, away from the predictable focus on mass

fying, Ovitz's confessional is as much about business as

job losses to one where innate human strengths are harnessed to create op-

creativity, an irresistible primer on how to strong-arm

portunities and coexist with the AI future: “If we believe that life has meaning

partners in meetings, over transatlantic phone calls, and

beyond this material rat race, then AI might be the tool that can help us uncov-

over sushi at Spago Beverley Hills.

er that deeper meaning.”

Who Is Michael Ovitz? by Michael Ovitz, Portfolio

AI Super-Powers: China, Silicon and the New World Order; by Kai-Fu Lee,

September 2018

Houghton Mifflin Harcourt, September 2018

COMMUNICATION DIRECTOR 1/2019

IMPRINT

PO L I TI C S

Inevitability versus eternity

Editor in Chief David Phillips info@communication-director.com Editorial team Rachel Proctor Design Concept Jeferson Brito Andrade

At the heart of The Road to Unfreedom is a diagnosis of two worldviews, the conflict between which, posits Sny-

Layout & Design Veronika Neubauer

der, has shaped today’s world. “The politics of inevitability” (the mistaken optimistic belief in the inevitable pro-

Pre-production Felix Pergande

gress of a political system) and “the politics of eternity” (which sees a nation existing in some kind of historical

Illustrations Chaim Garcia

continuum, besieged by forces from the past that threaten to engulf its present and which leaders must do all they

Photo Editor Jana Legler

can to battle). The politics of eternity requires a mass suspension of verifiable facts, suppressed speech and massive propaganda, and Snyder argues that this exactly explains Russia’s recent policies towards the United States and the European Union – the letter two left stranded in their belief in the inevitable victory of their respective worldviews. With tremendous style, Snyder traces a through line from 1920s “fascist philosopher” Ivan Ilyn, prophet of the politics of eternity, to the US presidential election of 2016. It is a sobering read, leavened by memorable neologisms such as “schizofasicism” (an actual fascists calling their opponents fascists) and “sadopopulist” (“A populist… is someone who proposes policies to increase opportunities for the masses… Trump was something else: a sadopopulist, whose policies were designed to hurt the most vulnerable part of his own electorate.”) The Road to Unfreedom: Russia, Europe, America by Timothy Snyder, Tim Duggan Books 2018

MEDIA

Eulogy for an industry Both a memoir of a trade that comes uncomfortably close to a eulogy, as well as a diagnostic on Where It All Went Wrong; Alan Rusbridger was editor of The Guardian from 1995 to 2015, helming some of the most important examples of investigative journalism in recent decades (Edward Snowden, phone hacking by News International) not to mention high-profile several libel cases (such as Jonathan Aitken's). But it is the rise of the internet and social media that makes up the black hole at the heart of Rusbridger’s book. The blind attempts by newspapers to carve out a space online in the early days if the internet is highly instructive: to the question “To paywall or not to paywall?” the Guardian’s answer was “range before revenue” a decision that led to losses of 80 million pound sterling in the last year of Rusbridger’s rule,

Advertising Helge Schlüter helge.schlueter@quadriga-media.com Website Melanie Kuhles, Simon Mista Publishers Rudolf Hetzel, Marc-Oliver Voigt Subscription 120 euro annually for four editions of the print magazine, access to online archives and receipt of monthly newsletter. Members of the European Association of Communication Directors (EACD) receive a subscription to the magazine as part of their membership. subscribe@communication-director.com Online www.communication-director.com Twitter @codimag Printing PieReg Druckcenter Berlin GmbH, Benzstraße 12, 12277 Berlin Last words “A neurotic is a man who builds a castle in the air. A psychotic is the man who lives in it. A psychiatrist is the man who collects the rent.” American playwright and author Jerome Lawrence

and one where The Times' more successful approach may have been better in the long-term. Rusbridger's first-hand account of the impact of fake news on mainstream media, spreading through social media like a cancer, is less pleasant, though no less compelling, to read. Breaking News: The Remaking of Journalism and Why it Matters Now by Alan Rusbridger, Canongate, September 2018

COMMUNICATION DIRECTOR 1/2019

Publisher and editorial address Quadriga Media Berlin GmbH Werderscher Markt 13 10117 Berlin Telephone: 030 / 84 85 90 Fax: 030 / 84 85 92 00 info@quadriga-media.com

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Contents 86 The 2018 EACD Forum Corporate activism in an age of radical uncertainty

Left to right: moderator Inge Wallage and panellists Anthony Gooch, Celine Schillinger, Elisa Niemtzow and Phil Riggins. NOVEMBER 11, PARIS

87-88 Events review Recent highlights in the EACD calendar

89 New members We welcome the latest communications professionals to join the EACD

To keep up to date with EACD activities, insights and news, visit www.eacd-online.eu

THE 2018 EACD FORUM

hould an organisation engage

in issue 04/2018 of this magazine.

with social and political issues,

Corporate culture was the heart of Elisa

and how should communica-

presentation: she counselled the audience to

tors enable this dialogue? The

set their company leadership and culture as

EACD Forum 2018 discussed shared respon-

their North Star in terms of setting the ambi-

sibility and the impact of corporate activism

tion and direction for consistent engagement

in a rapidly changing world, with moderator

on social issues. Leveraging collaborations to

Inge Wallage (EACD managing director) and

drive systemic change in one’s industry and

panellists Elisa Niemtzow (managing direc-

recognising employees (more so than external

tor at Business for Social Responsibility), Ce-

interests) as a core constituency in decisions

line Schillinger (founder and CEO, We Need

about when and how to take a stand are key

Social), Phil Riggins (founder, The Brand and

strategic considerations.

Reputation Collective) and Anthony Gooch

How does the individual commu-

(director of communications, public affairs

nicator take the first step to effect change?

and engagement, OECD).

Celine drew on her experience in heading stake-

Why is now the era of corporate pur-

holder engagement initiatives (for example, at

pose? Anthony cited a “fundamental realign-

Sanofi Pasteur where she was head of qual-

ment”: brands no longer dictate the terms,

ity innovation and engagement) to outline

NGOs are no longer the sole consciences, and

her vision of how communicators themselves

there is a “clear demand” from stakeholders

can effect change within their organisation, a

who want to know where companies stand on

vital first step in any corporate activism model.

big questions shaping our society. See his ar-

The audience provided ripe comments,

ticle in this issue for more of his arguments.

reflections and challenges to the status quo,

Phil explored when and when not to

including that the very idea of companies tak-

take a stand, sharing three tips to help in the

ing on socially leading roles in the absence of

decision-making process: know yourself and

governmental leadership, gives too much pow-

know your audience; be consistent (a sales

er to corporates – proving that, although the

spike caused by a socially conscious ad is all

concept may not be entirely new, as Anthony

we all and good, but what happens in sweat-

showed in his keynote, in today’s age of rad-

shops along the supply chain); and building

ical uncertainty, corporate activism is more

a culture of purpose, as detailed in his article

hotly debated than ever.

COMMUNICATION DIRECTOR 1/2019

ASSOCIATION

RECENT HIGHLIGHTS FROM THE EACD CALENDAR

EVENTS REVIEW

15 November, Copenhagen

employee leaves the company. Jos Schut, chief

internet with clever metrics and AI created

Where’s marcoms heading?

HR officer at Randstad, zoomed in on the prac-

reports. Underhood‘s robotic writing system

tical aspects of the employee journey and pre-

is changing the way reports are written in all

sented the latest global Ranstad Employer

kinds of industries and governmental offices.

Branding results.

Marketing communications is in great turmoil:

29 November, Oslo

data, analytics and sales expectations from mar-

New directions in reputation risk management

keting sets great pressure on the classic marcom duties. At the same time, corporate communications are finding their feet in terms digitalization, new media and the ever-increasing pressure on reputation. At this regional event

In partnership with ReputationInc, this re-

by the EACD’s Danish regional group, two ex-

gional event in Oslo discussed the latest fin-

perienced players in the field shared their in-

dings of the EACD research into reputation

sights: Klavs Valskov, chief communications

risk. Dennis Larsen of ReputationInc presen-

officer and partner at Frankly and Tobias Falk-

ted fresh results from the extensive reputa-

encrone, director of strategy at IDNA Group.

tion risk study, covering topics such as: how

Our thanks to them both.

are communicators assessing, preparing for and addressing reputation risk in today’s en-

22 November, Amsterdam

vironment? How should it be addressed at

The employee journey

c-suite and board room level? Avenues for

The customer journey is an important focus area for marketers, However, for communication executives the employee journey is still a

improvement based on best practice lear26 November, Espoo

AI and robotics in communications

new phenomenon. With a fierce war for tal-

nings. Dennis’ presentation was followed by a panel discussion featuring Torund Bryhn (EACD’s regional coordinator for Norway), Cathrine Torp (from Research Council of Norway) and Svein Inge Leirgulen (from Tekna The Norwegian Society of Graduate Technical

ent going on, it is of vital importance for or-

Two guest speakers brought the cutting-edge

ganisations to start thinking about the optimal

to the this EACD event organised by the Finn-

employee journey. More and more, employ-

ish regional group. First to speak was Kia Har-

ees (and not only millennials) choose organi-

ing, vice president global communications and

sations that best fit their identity, values and

sustainability at Tieto Corporation, who spoke

beliefs. Understanding the employee journey

about people-first marketing and communi-

can help you find employees who are passion-

cations enabled by artificial intelligence. Kia

ate and who may become your best ambas-

shared her passion for the digital transforma-

sadors. During this coaching session, Sascha

tion and what new technologies can bring to

Becker (head of strategy at the event’s host,

these functions – as well as to the society as

Held in partnership with the Multinacionales

Proof) spoke about the essence of the employee

whole. She was followed by Sami Kuusela,

por Marca España (Multinationals for Spain)

journey; a journey that starts long before the

co-founder of Undergood, which helps com-

association, this regional event welcomed the

employee solicits and does not end when the

panies and brands become stars of the social

following speakers: José María Palomares,

COMMUNICATION DIRECTOR 1/2019

and Scientific Professionals).

28 January, Madrid

Communications for tourism and investment in Spain

ASSOCIATION

director of communications, Universidad

For your diary

Europea and president of the association Multinacionales por Marca España; Mikkel Larsen, communications and policy officer at the Danish Embassy in Spain; and Marcelo Risi,

21 March, Oslo: The Oslo Debate: Corporate Communication – a Catalyst for Change

director of communications at the World Tourism Organization. Our special thanks to guest moderator Raphael Minder (pictured below), New York Times correspondent for Spain and Portugal. 07 February, Oslo

Unlocking the power of internal communications At this breakfast forum organised by the EACD‘s Norwegian Regional Group, the key speaker was Keith Munkejord (pictured above), a partner at IMG NORD who has worRaphael Minder / Photo: Andrew Testa

ked with some of the largest multinational and national companies in Norway for the last 15 years. Keith drew on his expertise

06 February, Brussels

in leadership and change communication,

Masterclass on association branding

analytics and communication as a tool to

As the Federation of European Accountants, there was a disconnect between what the as-

change behaviours. 06 March, Brussels

Coaching day on insights

sociaiton did for its members and what the

We live in volatile times. Organisations are

association‘s look and feel suggested. In 2016,

bombarded with multiple issues and the cor-

the Associaiton rebranded and became Ac-

porate affairs leader is expected to have all the

countancy Europe. This meant a shift to be

answers. Long gone are the days we could get

transparent, broader, more outward-looking

by with an instinct for news: nowadays, lea-

and to represent people. Changing identity

dership requires us to master multiple data

means more than just a change of logo; pre-

sources and bring clarity of thought to the exe-

viously, the association had been accountants

cutive team. What is a material risk? What

talking to other accountants. Now, it speaks

is just “noise”? What commercial advantages

with everyone. A source of advice for politi-

could we unlock if we can interpret trends and

cians, a sort of think-tank with events and

influence the organisation in a more produc-

publications, an advocate for members, the

tive direction? Hosted by Quiller Consultants,

voice of the accountancy profession, and –

this workshop explored the data sources snd

most importantly – working in the public

explored emerging tools a corporate affairs

interest for the benefit of society as a whole.

leader can call upon. New approaches to as-

In this lunchtime session, insights about the

sessing risk how to make the case for chan-

rebranding were shared.

ge were also explored. Participants also looked at dashboards and how to use them to get senior colleagues to make better decisions.

COMMUNICATION DIRECTOR 1/2019

Effective organisational communication is more important than ever before. Communicators and their leadership teams are increasingly learning how to unlock the power of strategic communication in building the organisation of the future. We will explore the role of corporate communication as a catalyst for success. Join your peers and learn from leaders, senior communicators and researchers 27 March, Copenhagen The Present and Future of Internal Communications The world of internal communications is changing - particularly as it heads into massive upheaval in the areas it is meant to support and influence. Why? Because it still has yet to overcome challenges and obstacles that have plagued it for at least two decades. The need for effective internal communications has never been greater, yet the profession still hasn’t positioned itself as capable of meeting that need. The clock is ticking.

4 April, Cologne Brand Leadership Working Group Meeting on brand and user experience Martin Bruening, head of corporate communications at retail giant REWE Group, is confirmed to speak at this EACD Brand Leadership Working Group meeting, under the aegis of the Working Group’s ambassadors, Marc Cloosterman (CEO, VIM Group) and Lars Bolle (vice president, DER Touristik) 22 May, Berlin EACD Kick-off Day for European Communication Summit Workshops, EACD General Assembly and evening networking opens the 2019 European Communication Summit

23-24 May, Berlin European Communication Summit Europe’s largest gathering of senior communications professionals returns for the second time running to Berlin’s Radialsystem IV, on the banks of the river Spree. Confirmed speakers from AirBnB, Microsoft, ING, Gumtree, Société Gémérale, Novartis, Skanska, European Commission and many more

More details at www.eacd-online.eu/events

ASSOCIATION

NEW MEMBERS

WELCOME! The following communicators have recently joined the EACD Patrícia Adegas Communications and Patient Advocacy Head Novartis Farma – Produtos Farmacêuticos S.A. Peter Allen Executive Director of Corporate Affairs Highways England Daniela Badoi PR and Communications Manager Schoenherr Romania Roger Baker Head of Communications and Marketing West Yorkshire Combined Authority & Leeds City Region LEP Maribel Berends-Rodriguez Founder More 2 PR Mathis Bogens Head of Communication Department Archimedes Foundation Tartu Anders Buch Senior Director Content Management Getinge Ward De Grieve Strategic Communications Advisor Belgian Navy Lorraine Dundon Vice President Head of Brand and Corporate Communication TOMRA Sorting Ltd Nick Gabery Adams Vice President Online Communications Alfa Laval Corporate AB Carina Geber-Teir Senior Vice President Communications Cargotec Corporation Shushan Harutyunyan Communications Director Galaxy Concern LLC Jessica Johnson Communication Director FORATOM Peter Klomp Head of Corporate Communications UEFA Marthe Lemmens Senior Communications Advisor EMEA Terumo Europe NV Tony Lockett Communications Manager European Research Council Andrew Lowe Senior Client Partner, Head of Corporate Affairs EMEA Korn Ferry Maria Lozano Berdie Head of the International Press Department ACN INTERNATIONAL Franziska Morroni Communications Manager Nyrstar Sales & Marketing AG Simona Panseri Head of Corporate Communications and Public Affairs for Italy, Spain, Portugal and Greece Google Italy Lukasz Pasterski Communication Manager Fertilizers Europe European Fertilizer Manufacturers Association Maureen Pratt Senior Director, Strategic Business Communications Mars Sasa Pustovrh Senior Manager Clinical QA Strategy and Operations Novartis Business Services GmbH Lorenzo Rigliaco Senior Consultant for Communications: Promotion and PR DACHSER Spedition AG National & European Logistics Hanna Rutanen Communications Manager KONE Corporation Finland Eva Schneider Communications Manager AIM – European Brands Association Anu Sirkiä Communications Director, Internal Communications KONE Corporation Finland Nathalie Soeteman Communication and Change Lead FrieslandCampina Josy Soussan Head of Communications and Public Affairs Funding Circle NL Nigel Thornton Head of Communications (UIS) University of Cambridge Minh Tran Head of Corporate External Communications, EMEA TE Connectivity Ltd. Grete Transtok Estonian PR and Communication Manager Coca Cola HBC Eesti AS Alvine Tremoulet Executive Assistant and Communication Project Lead Pfizer Global Angelo Valente Senior Manager of Communications Blip.pt Camiel van Asch Managing Director Atrea – Workforce Management Systems COMMUNICATION DIRECTOR 1/2019

tips for championing your ideas

As communicators, how often do we have to fight through situations where we already feel defeated? The good news is that those battles challenge us to grow and demand that we find the grit to make our ideas succeed. BY R IC HA R D G I BBS

reveals what you might need to shore up or supplement, so that your ide lasts the long run.

Try new techniques. In Rocky II, Mickey the boxing train-

er helps Rocky Balboa increase his speed and agility by having him chase a chicken around a

Get someone in your corner.

yard. To see your idea through, you might need to use different muscles, or try new techniques.

Find at least one influential person who is

You might find that you can learn from and

familiar with your thought processes and the

feed off the energy of others who have imple-

work you produce every day – perhaps a men-

mented similar ideas. An idea that colleagues

tor or supervisor. Convince him or her to sup-

might find tenuous at first becomes more con-

port your idea. A good person to have in your

vincing when it’s backed up by case studies

corner will understand what you’re trying to

and quantifiable metrics.

accomplish, provide objective advice, and eval-

yweight boxing championship of the world

between titleholder Deontay Wilder and chal-

defeat – and a meeting between his face and

uate soft spots in your detractors’ arguments that you can use to your advantage as you

Last year, I watched the prize-fight for heav-

lenger Luis Ortiz. The stakes could not have been higher for these two modern-day gladiators. If Wilder won, he might get a once-in-alifetime shot at unifying the heavyweight division titles. If Ortiz prevailed, he would become

move your idea forward.

Weather the storm.

By the seventh round of his fight with Ortiz,

R I C H A RD G I B B S

SENIOR PUBLIC AFFAIRS SPECIALIST FLORIDA POWER & LIGHT COMPANY

the canvas boxing-ring floor – seemed near for Wilder. But it was this brush with possible failure that would be his defining moment as a champion. Wilder dug in, regained his composure and rallied to knock Ortiz out in the 10th

the first Cuban-born heavyweight champion

round. With his comeback, Wilder personified

of the world.

grit. And you can, too.

As a communications professional, sports lover and storyteller, I saw a metaphor

in this engrossing pugilistic theatre: break-

Move the project forward.

through ideas make us champions, and we have to fight for them. Here's how to help make

Detractors will always find different angles

tall and answer the bell, round after round:

criticism.

Your initial idea might need some

fine-tuning. Allow that process to happen. Present your idea, and accept feedback and constructive criticism. Let your doubters know that you appreciate their input and will address their suggestions to strengthen your idea. In boxing parlance, this early phase of the fight is known as your “feeling out” round. Criticism

Richard Gibbs is a senior communication specialist at Florida Power & Light Company, which he joined in 2011. His idea to create a social media “spokescreature” became a linchpin in the community relations strategy to successfully launch Manatee Lagoon – An FPL Eco-Discovery Center. Previously, Richard was senior director of communications at the Everglades Foundation, and before that Public relations and public affair manager at DHL.

from which to punch holes in your idea, even after you have addressed their concerns. Their mission is not to prove your idea wrong, but to validate their own opinions. To move your idea forward you might suggest a pilot project or tie the idea to a special event that helps get it off the ground. Just show that you are unwavering in your resolve to see your idea through to completion. And once your

idea is implemented, showcase its results as soon as possible.

Photo: Dorothy Lee

your ideas come out on top, so you can stand

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