Despite all of the changes over the past couple of years, namely the economy and the business climate, it’s nice to know that some things have stayed the same—such as the value of proactive communications. This is surely a time for corporate leaders to face their stakeholders with straightforward talk about the challenges we face today, as well as offering up prospects of a better future. With many executives still preferring to stay out of the media spotlight, those who take the lead with communications can expect greater visibility for their companies at a time when customers, employees and investors are searching for new products, jobs and opportunities for capital.
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| Claire Koeneman |
Over the past two years, the economy—and the financial world at the center of it—has undergone significant changes. Bank bailouts. Stimulus packages. Mortgage deferments. And, of course, a new president. So much change, but thus far, so little to show for it. Housing remains stagnant. Consumers are cautious in their spending. Unemployment is stubbornly high. At the same time, the geopolitical climate has resulted in heightened tensions around the globe, creating additional uncertainty.
Despite this, there are signs of hope. It wasn’t that long ago when the main topic of conversation was corporate survival. However, somewhere between reporting the disastrous results of 2009 and first-quarter results of 2010, the talk is starting to shift from defense to offense— from cost-cutting to capturing market share. While companies are still very much focused on generating cash and improving liquidity, investors have begun to look over the valley as they search for new values among the ruins.
Needless to say, for a business trying to survive, the ride has been long and arduous. Two years of low sales. Two years of job cuts. Two years of increasing costs. Two years of declining customers. Two years of overworked, underpaid employees. Taken together, this has been a perfect storm of battering companies trying to keep it together—particularly in the financial services industry—many of which have been treading water just to stay afloat.
From a public relations perspective, there are a few fundamental approaches that have proven successful within the financial world that you can readily execute—approaches that have helped to sustain many companies over the past two years and remain just as effective today. The basic steps to communicate effectively in a world of uncertainty include: 1) Stay out in front; 2) Show your face; 3) Respect your employees; and 4) Build trust with clarity.
STAY OUT IN FRONT
Too often, when things look bad, companies take on a bunker mentality. Management, understandably, retreats to operate in a fix-it mode. However, from a communications standpoint they also hide. They keep quiet. And as such, they miss opportunities. There are always opportunities to generate a public (i.e. newsworthy) conversation in a positive, forward-looking way. For example, is cash flow improving? Put out a press release. Is there a new strategy to announce or noteworthy management changes? Put out a statement.
SHOW YOUR FACE
Enhance your public statements with personal appearances. During difficult times the best thing a CEO can do to instill confidence—and shareholder loyalty—is to show their face. Examples include analyst days, industry conferences and media appearances.
Every public engagement is an opportunity—to drive your positive messaging, to demonstrate your faith in your firm and to ease any concerns. This will not only keep your company in the news (presumably in a positive way) but it will show all your stakeholders that the firm’s leadership is confident about its future.
RESPECT YOUR EMPLOYEES
Even in good times it is necessary to keep employees focused, motivated and productive. In tough times, when their workload increases, their job security decreases and their salaries remain flat, it requires even more communication. Falling stock prices will hurt morale, and negative opinions and speculation from outside sources can only fan the flames. Be open with your employees. Inform them.
BUILD TRUST WITH CLARITY
Nothing can undermine a message more rapidly or more thoroughly than a lack of credibility. Acknowledge your challenges, and admit your missteps. Your honesty and transparency will help build trust, one of the most valuable, yet most elusive commodities in the market today. Clear, credible communications—internal and external—will help a company navigate today’s treacherous waters and will help ensure a more stable, more prosperous future. PRN
CONTACT:
Claire Koeneman is president of MWW Group’s Financial Relations Board. She can be reached at [email protected].