"The culture of an organization is the shadow of the style of its leader."-- Cathy Greenberg-Walt, Andersen Consulting
In the new economy, a corporation's reputation, stock price and ability to retain top talent is increasingly tied to its CEO. The problem is CEOs aren't staying still for
long. What does the short tenure or instability of an organization's highest leader mean for you and your company's reputation? It means an even bigger leadership role for PR.
With a growing number of corporate communications executives reporting directly to the CEO (PRN, Apr. 17), it's become essential for PR not only to serve as the CEO's
counsel, but to recognize the new economy's effect on an organization's hierarchy and reputation. Despite their strong ties to corporate brand image, mostCEOs don't expect to
stay at a company for very long. A recent Challenger & Gray survey of 451 CEOs, revealed that 75% of the chief executives held their posts less than two years.
"CEOs who survive for any length of time are the exception," according to Cathy Greenberg-Walt, managing partner at Andersen Consulting who examined the evolving role of
leadership during the Arthur W. Page Society Spring meeting a few weeks ago in New York. While Greenberg-Walt's discussion focused primarily on the "devolving" role of the CEO,
her insights were equally relevant to the nearly 100 chief public relations officers in attendance.
In part two of this report on the evolution of the chief PR officer as key policy maker and strategic counselor, we focus on how PR executives in a leadership role can learn a
thing or two by watching the mistakes and pitfalls of CEOs.
For example, an Andersen survey of CEOs conducted late last year, found a disturbing lack of confidence by CEOs. Only 21% of respondents felt they were ready to lead a
corporation into the next century. The Internet economy, retention of key talent and unprecedented investor scrutiny could be partly attributed to this unfortunate admission.
Those CEOs who are willing to throw away the "command and control" style for a more equitable non-hierarchical leadership style are coming out ahead, according to the survey.
On the investor front, the stock prices of companies perceived to be "well led" grew 900%, versus 74% for companies perceived to be lacking "good leadership."
The best leaders - be they CEOs, chief PR officers or CFOs - are those who are"nurturing and have empathy," who are technologically savvy, who encourage constructive
challenge, and who share their leadership with others. Moral and ethical character is becoming one of the most coveted traits, according to Greenberg-Walt.
It was sad to hear that (despite some disagreement by CPROs in the audience), "employee loyalty is dead." That was the finding of a recent survey of six new economy and six old
economy companies. "People are loyal to their skills and development of their skills," said Greenberg-Walt. But they're only loyal to the extent that their companies feed those
skills."Xers crave it - understanding what it is that they're a part of and how to make a difference," says John Chambers, e-CEO of CISCO, as quoted by Andersen Consulting.
Which is also to say that hierarchy may be dead, or at least dying. Greenberg-Walt encouraged PR executives to assess reporting relationships at all levels, develop mentoring
programs and understand that it's the information and knowledge of the employee, not the tenure that counts most.
"Tomorrow's leaders will need to be less controlling, more emotionally astute, culturally attuned, and more importantly - willing to share authority and decision-making," notes
the Andersen survey. "Companies realize that they must adapt their cultures to attract and retain the best of both generations, but often do not know how to initiate this change."
The "talent is king" theme was echoed by Polly LaBarre, senior editor of Fast Company, who also presented at the meeting. "A good metric of future growth for your
organization is whether you have a good share of talent out there." Despite Microsoft's recent legal setbacks, it serves as a prime example of a company brimming with talent and a
sense of purpose, she says. A $500 billion market cap (depending on the day) and just 30,000 employees and less than a handful of factories producing its wares, Microsoft
underscores what's become a marketplace mantra: "It's what you know, versus what you own."
(Cathy Greenberg-Walt, 215/241-7400; Polly LaBarre, [email protected])
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Cause for Removal of CEOs
|
|
| Financial Malpractice |
95%
|
| Ethical/Work Malpractice |
94%
|
| Physical/Mental Incapacity |
91%
|
| Ineffective Leadership |
73%
|
| Returns below target for 5 years |
62%
|
| Returns below target for 2 years |
14%
|
| Returns below target for one year |
1%
|
| Source: Survey of 726 directors by Korn/Ferry | |
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Generational Differences in the Workplace
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|
|
Xer
|
Boomer
|
| Approach: | Innovation | Process |
| Environment: | Virtual | Physical |
| Role of Technology: | Strategic | Supportive |
| Competency | Technology | Business Acumen |
| Management Style | Energy to influence | Monitor to Control |
| Leadership Style | Make Your Mark | Fit the Mold |
| Source: Andersen Consulting, 2000 survey | ||
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Traditional CEOs Vs. e-CEOs
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|
|
Traditional
|
e- CEO
|
| Encouraging | Evangelizing |
| Alert | Paranoid |
| Cordial | Brutally honest |
| nfotech-semiliterate | Infotech literate |
| Clearly focused | Intensely focused |
| Fast-moving | Faster |
| Hates ambiguity | Likes ambiguity |
| Suffers from technology | Suffers from bandwidth |
| Confrontation anxiety | Separation anxiety |
| Paragon of judgment | Paragon of judgment |
| Average age: 57 | Average age: 38 |
| Rich | Really rich |
| Source: Fortune magazine, May 1999 | |