VMA Insights: CEOs and what they’re looking for in today’s chief communications officer

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I’ve been doing some late night reading of a rather interesting piece of research. Commissioned by the recruitment firm, the VMA Group, the study reached out to business leaders across Europe to ask a simple question: What do CEOs expect of today’s chief communications officer?

The research looked at a number of key areas, and I’ll outline the key findings below.

  • The Value of Communications
  1. Although the value of communications as a central business operation is implicitly accepted by CEOs, many communications directors still need to make a more convincing ROI case for the impact of their own work.
  2. CEOs are still uncertain that the company’s social media activity is driven by either a strategic purpose or a clear sense of the desired returns.
  3. Reputations are more fragile than ever. CEOs frequently see this as the key value point provided by the communications director.

“We see a corporate communications director as the builder of the brand value proposition, the custodian of the corporate reputation – not in a reactive way but proactively. In order to sell our products and services, increasingly we first have to sell the company. Whether it’s government giving you incentives, or it is customers buying because they trust you. Unless you’ve got a meaningful brand proposition you can’t get off first base.

A strategic communications director understands that and understands that’s their role, and it really ought to have as much value on the balance sheet as other assets of the business because any strategic move will create stress points in the brand proposition that need to be managed.” David Lockwood, CEO, Laird PLC

  • Strategy: Is Communications Trusted
  1. Communications directors are frequently involved in strategy creation; almost always at least with some input.
  2. The Majority of CEOs actively involve the communications director when there is a demonstrably ‘communications-centric’ issue.
  3. Three core strategic viewpoints that communications directors bring to the discussion: how to translate the strategy into content and channels; and the reputational rewards and risks of strategic decisions.
  4. CEOs from multinationals see communications’ input more broadly and progressively – as a vital strategic voice in all business decisions, especially from the perspective of reputation and brand.

“I think it’s obvious that a communications professional needs to be closely linked to the strategy because what they work on – formulating the communications and regulatory environment – is of strategic importance. So communications and public affairs needs not just to be ‘part’ of the company strategy but actually linked to the strategy – wired into the board and well resourced. If it’s an afterthought you might as well save yourself the money and not do it.” Wim Mijs, CEO, European Banking Federation

  • All Change – The New Communications Culture
  1. The digital revolution has brought arguably even more significant changes to the approach and culture of communications than to the core skills of the job.
  2. The ‘message control’ model is over. Key challenge: communications professionals must somehow now find a new way to create alignment among audiences without ever dictating to them.
  3. Authenticity and transparency are the essential tonal cues today – otherwise your communications will be dismissed out of hand.
  4. Audiences expect evidence of a new type of business model – socially responsible, publicly responsive, democratically inclusive.

“We’ve noticed a big and increasing demand for transparency. Our consumers and stakeholders at Arla want to know where their food is coming from. They want transparency in the supply chain. And I would say that the balance between a ‘communications’ approach to stakeholder engagement and a ‘marketing’ approach is shifting in favor of communications. In my business, that’s manifested by an increasing preference for having very honest, authentic, transparent conversations, and moving away from grand claims, mass advertising and so on.” Tomas Pietrangeli, MD, Arla Foods

  • The Challenge of Filtering in an Age of Noise
  1. Discernment and filtering have become core skills – the ability to select from a vast and noisy information flow what is of actual value to the business.
  2. Communications professionals need to rise above the manias and mass panics the online world can create, providing a cool head in a crisis.
  3. A key, proactive part of filtering is to anticipate major disruptive events coming down the pipeline and to have a plan of action for how to deal with them.

“I don’t think anyone’s figured out quite how corporate communications works in a world where social media is on the scene before you are. Trying to control the message is really tough in that environment, of course. But it’s the speed with which other people out there react – with real-time messaging before you’ve even had a chance to get your messages out and establish the facts.” Mark Tanzer, CEO, ABTA

  • The Need for True Leadership
  1. Core technical skills are still important; they must now be supplemented by more core business skills.
  2. CEOs want more than support, counsel or executive ‘translation’ services. Businesses now need true leadership from communications directors.
  3. Proactive endeavour is the critical element – delivering new business growth, rooting out commercial opportunities, driving change internally.

“I find that communications people should be closer to the business. They should be able to understand the company figures properly – to understand the business, but also where it’s heading and what issues it’s going to face. In general, if communications people have sufficient insights in the business, I truly believe they are able to generate more value.” Paul de Krom, CEO, TNO

  • The Future: A Profession in Revolutionary Change

There’s no key findings here (I’ve highlighted the capabilities required by CEOs today in the image at the beginning of the article). However, I do want to pull up one last quote, as it’s particularly apt to the Middle East, where we have an issue with speaking truth to power and instead focusing on political maneuvering inside the organization.

Before that, I’d like to say thank you to the VMA Group for this thought-provoking report, especially the International Association of Business Communicators EMENA board member Willem de Ruijter, for handing the report out to IABC EMENA and pushing this onto the agenda.

“The communications director works in the same room in the building as the secretary of the board – in fact we are all now on one floor, we do not have separate rooms anymore. S/he has full access to everything, no restrictions. S/he is actively involved and is asked to stimulate and to give feedback. Her/his message should be frank when required… and provocative too. S/he needs to be able to tell a senior leader who has worked at KPMG for 25 years that he or she does not possess the correct KPMG vision. That takes a certain character.” Albert Röell, CEO, KPMG NL

For your own copy of the report please reach out to the VMA Group via this link.

 

 

The State of the PR Industry in South Africa – key trends shaping business communications

I had the pleasure of being in Toronto recently, a remarkable place in an even more impressive country. I also had the honor of being in the presence of a couple hundred communicators at the World Public Relations Forum. The topic of the forum, which I’ll write more about in due course, was culture and communications. Being from Dubai and covering the MENA region, there was one particular presentation which caught my eye. The topic was the state of the PR Industry in South Africa – key trends shaping business communications.

Undertaken by Daniel Munslow, Principal Consultant at recruiters VMA Group, with support from the Public Relations Institute of Southern Africa and the International Association of Business Communicators, the research covered a range of issues, from employment trends, recruitment and outsourcing, to skills development and training, key business challenges, digital media and future proofing. Over 386 communicators from 251 organizations took part in the survey, the majority of them from South Africa, but with responses from Ghana, Kenya and Nigeria.

So, what are the learnings?

Challenging Times for Budgets

The communications industry, particularly in South Africa is facing a number of headwinds, including both economic and political pressures. Here are the financial highlights from the executive summary.

• 29% of respondents confirmed their teams had shrunk in the last year;
• 35% of comms budgets have increased, and the exact same amount have decreased their budgets;
• 30% of communicators say their salaries were cut or remained the same year on year;
• Nearly 9% of respondents have started their own consultancies on the back of retrenchments (5% of those surveyed have been retrenched since March 2015);
• Downward pressure on budgets has overtaken skills shortages as the number one concern for communicators. In 2015, 22% said budget was a key challenge for business over the next 12 months, this number has increased to 58%.

What impact will this have on agencies, especially those who are regionally headquartered in Dubai and who have taken a bet on the African market outgrowing the Middle East this year?

There's a great deal of scope for agencies to further their consultancy role with African corporations

There’s a great deal of scope for agencies to further their consultancy role with African corporations

Over three-quarters of in-house communicators outsource 25 percent or less of their communications activities to agencies. While budgetary pressures may limit the demand for agency services in the short term, will Africa follow other regions and embrace outsourcing to communications agencies?

An Increasingly Complex Business Environment

It’s also apparent that African communicators are not only having to deal with financial pressures, but a host of business and organizational issues which are making their jobs much harder.

The top five challenges for African communicators say much about how the industry is changing

The top five challenges for African communicators say much about how the industry is changing

Partly due to the ubiquity of digital, audiences are becoming ever more fragmented. And communicators are also worried about the ability of their leadership to communicate, both internally and externally. There’s a lack of African talent and a need for communicators to skill-up (interestingly, career development is the number one reason people leave their jobs. Remuneration is rated the third reason only). And, as organizations are getting larger, they’re also becoming more complex which is impacting the ability of communicators to engage internally.

There are reasons to be optimistic, particularly when considering the seniority of communicators in South Africa. Forty-five percent of those surveyed responded that they reported into the CEO or MD of their organization.

Nearly half of South African communicators surveyed said they report into the most important executive in their organization

Nearly half of South African communicators surveyed said they report into the most important executive in their organization

A Digital Future

It’s unsurprising that digital is playing a major role in how communicators in South Africa engage with others. Facebook is the most popular channel, followed by Twitter and LinkedIn. Only 17 percent of social media communications is outsourced, with corporations instead preferring in-house resources (for now at least).

These are the most popular social networks among the communicators surveyed in Sub-Saharan Africa

These are the most popular social networks among the communicators surveyed in Sub-Saharan Africa

However, there are still major barriers including a lack of understanding regarding a return on investment, a lack of time and a fear that something inappropriate may be said online.

Barriers to social media in Southern AfricaDespite all the challenges that African communicators face in today’s troubled economic and political environment, there’s a strong belief among those surveyed that the industry will continue to go from strength to strength. Ninety-one percent of respondents strongly agreed or agreed that the influence exerted by the communications function will increase over the next two years.

Additionally, 64 percent of the communications functions surveyed are involved in projects from the get-go, rather than further down the development stage when reputation issues arise.

There’s no doubt that Africa represents an exciting market for the communications industry in the medium to long-term. However, short-term issues will need to be tackled, especially a lack of talent and a skills shortage.

You can download the full VMA Africa Communication Survey 2016 here. For more information on the survey, do reach out to Daniel Munslow at dmunslow@vmagroup.com