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New Opportunities and Challenges for Corporate Affairs & Communications Leaders Context Transformative Times New Opportunities and Challenges for Corporate Affairs & Communications Leaders Context The corporate affairs, external relations and communications function is embedded in the business, albeit still very much those with a strong constantly evolving and needing to do so with ever-increasing speed. media relations profile. Whilst traditional themes of integrity and judgement remain constant, By 2000, the demand had evolved to broader players—those who organisations seek communicators who can cope with a fast-paced not only had the judgement to guide the news agenda and shape environment, manage multiple issues and fully embrace the benefits of the story but who, increasingly, were able to think across different greater collaboration and partnerships, both internally and externally. stakeholders. In 2003, the first requests from clients were coming through for candidates with MBAs. In the early 1990s, the major trend was the development of the communications function as a professional in-house discipline away Since 2009 and the financial crash, there has been a significant from pure public and media relations agency support. Whereas it swing again. Now the demand is for sophisticated hybrids who have the intellectual rigour, leadership capabilities and professional skill had been highly reliant on agencies, staffed predominantly with set to protect and enhance reputation holistically. individuals with journalism training, the demand from CEOs from 1995 onwards turned to individuals who could be Discipline embedded Increased demand Rise of the chief in the business for MBAs reputation officer From agency to in- Increase in Rise of the house discipline stakeholders sophisticated hybrid 2 Today’s communicator—factors and impact There are several factors affecting the changing profile of A New Engagement Paradigm communications and corporate affairs. The converging forces of technology, globalisation and multiplying stakeholder segments require a higher level of communications Data and coordination, integration and coherence than ever before. analytics Messages can no longer be different for different stakeholders. GLOBALISATION New influential stakeholders and informed Multidirectional approach to dialogues TECHNOLOGY TRANSPARENCY Authenticity 24/7 communication GOVERNMENT OVERSIGHT cycle 3 Corporate communications—a profession disrupted Conversations at the CEO and chairman level indicate a far greater Spotlight on leadership emphasis on reputation—both corporate and personal—in the last seven years. The general public has grown increasingly suspicious Digitalisation of corporations, governments and public institutions, and, as a Activism result, there has been an increase in demand for peer-to-peer recognition and communication, bottom-up communication, and Risk management the expectations of consumers and customers for greater transparency and overall two-way engagement. Big data Communications is arguably one of the most disrupted Cyber risk professions—feeling the effects of seismic shifts in the media Having a voice sector (with its increasing commercial challenges), the weight of reputational pressure in the age of activism and being at the SRIs and risk measurement forefront of game-changing trends such as big data and employee empowerment online. Increasing regulation In this environment, what are the attributes companies should Drive for financial results be looking for, and are these skills and competencies represented in today’s leading communicators and corporate Employees as brand ambassadors affairs directors? War fortalent 4 Spotlight on leadership THE CHALLENGE. Leaders (political or corporate) have probably THE OPPORTUNITY. Leaders are, on the whole, modern in their never been held under such scrutiny or potential vilification by the approach, digitally savvy, conscious of their personal brand, nervous public as they are today. We see media slip- ups by CEOs that about their tenure and alert to market threats and the escalation of a significantly impact corporate reputation and brand love. The “bad story.” However, given the complexity of shaping both personal United Airlines’ case massively undermined customer loyalty and and corporate reputations, forming a productive and trusted made a mockery of a “customer obsessed” corporate strategy and relationship with a corporate affairs adviser is now seen asessential. “friendly skies” brand. The advisor who can speak truth to power, can bring insight and Driving an inclusive culture depends significantly on how a CEO perspective, is adept at setting out the risk scenarios and who has expresses his/her vision and sets out his/her expectations on built up a pre-existing powerbase of influencers across a multi- corporate behaviour. The shift to two-way conversation, bottom- stakeholder platform is going to be highly influential and impactful. up influence and a more consultative and engaging strategy where The individual will need to be “heroic” and brave at times but also leaders take people on a journey requires a compelling narrative highly empathetic and intuitive, strong on galvanising action but also that is delivered with an authentic voice. connecting with others. Their approach to solutions should span across pragmatism and innovation. 5 Digitalisation THE CHALLENGE. Digitalisation is empowering end users and FTSE 100 Directors increasing competition for share of voice and share of market. There has been a rapid shift in societal expectations around access to information and transparency—and also a desire for more two-way dialogue and an opportunity to input ideas. Digital platforms, as a means of stakeholder engagement, feature largely in the communications toolbox. Given the disintermediation of news distribution, companies need to be innovating but also get more comfortable with their lack of overt “control” over content. The website is now, more than ever, a channel that significantly influences perceptions of a company, but it must also be consistent with the real-world experience of the brand. Information is now exchanged in “real time” and perceptions flip in an instant. There will be a balance between choosing to “rebut” a point of view versus letting it ride out and see if champions come through for the brand and thenrebalancing. >50% See the rise of social, digital and mobile communications as the biggest change within their function Source: “The Future of Corporate Communications,” Brunswick Group and the EACD, 2015. 6 Digitalisation THE OPPORTUNITY. We have seen significantly increased Employers are constantly seeking ways to engage with their investment in content. Every organisation is looking at better ways of multigenerational employees. Digital internal channels are a key creating content, not only because there is increasing emphasis on means of engagement, learning and development, with managing costs through digitalisation, but also because of the organisations such as Pearson and IBM developing their own recognition that stakeholders expect to see more images. learning academies. The current approach is to be far more proactive, ensuring that an already established set of networks and interrelationships can help build support and understanding. Companies are hiring people from the broadcast industry—keen to capture their skills in “packaging” information into bite-size compelling nuggets of distributablecontent. The skill set behind this is still evolving so quickly that talent tends to come from agencies (with strong project management skills and exposure to multiple clients), as well as journalists who have embraced social media, as they understand the purpose and power of images. 7 Activism THE CHALLENGE. Organisations, by and large, acknowledge that THE OPPORTUNITY. In the last five years, we have seen a significant NGOs, in their position as cause-related champions, can afford to shift in the importance of developing an advocacy approach. From take more risks and are less hampered by corporate paralysis. They Levi’s and H&M, pledging to make more eco- friendly clothing, to are more sophisticated and nimble in building impact campaigns, SurveyMonkey, which donates 50 cents per completion of certain have taken to social media and proactive campaigning more quickly, surveys to a variety of charities, the drive for greater engagement and are able to access and share information with speed. with stakeholders and playing a significant role in finding solutions to global issues is one of the industry’s biggest mandates. Consider Greenpeace’s highly successful campaign against Lego and its relationship with Shell. What might once have been a story in a The rationale is that if you can build good relationships through time regional paper now gains immediate exposure on the global stage. commitment, face-to-face dialogue and data-rich insight and show a Small stakeholders have realised the benefit of pulling together to willingness to listen to another point of view, maybe even change share platforms as well as content. your position, then there is a higher probability that you will be cut a little more slack or be given a greater chance to explain. This The success of a business depends on its relationships with the mitigates reputational risk. external world—regulators, potential customers and staff, activists, and legislators. In a highly volatile world, the need for better There is also more focus on social performance and addressing stakeholder engagement and a more “advocacy” and “partnership” concerns locally,
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