Listen to communicators talk about their impact on their organizations and you would be forgiven for thinking that executives find their communication teams to be indispensable. Recent research says otherwise. As complexities mount in the worlds of business, media, and politics, less than 20 percent of senior executives are confident their communicators and public affairs professionals are up to the task of navigating the current environment. Neville and Shel outline the research results and discuss ways communicators can reverse this troubling trend.Continue Reading → The post FIR #450: Senior Leaders Doubt Communicators’ Abilities appeared first on FIR Podcast Network.
Listen to communicators talk about their impact on their organizations and you would be forgiven for thinking that executives find their communication teams to be indispensable. Recent research says otherwise. As complexities mount in the worlds of business, media, and politics, less than 20 percent of senior executives are confident their communicators and public affairs professionals are up to the task of navigating the current environment. Neville and Shel outline the research results and discuss ways communicators can reverse this troubling trend.
Links from this episode:
The next monthly, long-form episode of FIR will drop on Monday, February 24.
We host a Communicators Zoom Chat most Thursdays at 1 p.m. ET. To obtain the credentials needed to participate, contact Shel or Neville directly, request them in our Facebook group, or email fircomments@gmail.com.
Special thanks to Jay Moonah for the opening and closing music.
You can find the stories from which Shel’s FIR content is selected at Shel’s Link Blog. Shel has started a metaverse-focused Flipboard magazine. You can catch up with both co-hosts on Neville’s blog and Shel’s blog.
Disclaimer: The opinions expressed in this podcast are Shel’s and Neville’s and do not reflect the views of their employers and/or clients.
Raw transcript:
Hi everyone, and welcome to episode four 50 of four immediate release. I’m Neville Hobson. And I’m Shell Holtz. And there’s a very troubling trend emerging one that might be surprising given all the rhetoric we’ve heard about how communications Star Rose during the CO pandemic four years ago. What we’re seeing today is.
Kind of the opposite of that the declining confidence that CEOs have in their communication leaders and teams. This isn’t just an anecdotal observation. There’s a new study from Weber Shandwick and KRC research that finds that only 17% of senior executives have high confidence in their communications and public affairs functions.
That means more than 80% of executives feel that their comms teams aren’t where they need to be. That’s a striking statistic, and it suggests that many CEOs and senior leaders don’t see their communications teams as ready to handle the complex challenges that [00:01:00] those leaders are facing today. We’ll dive into this research right after we try to sell you something.
So what’s driving this lack of confidence among CEOs in their communicators? One factor is the sheer complexity of the business landscape. The environment today is unpredictable. Geopolitical conflicts, economic uncertainty, social movements, misinformation, campaigns, and other things may get harder than ever for companies to.
Consistent and trusted messaging. At the same time, digital transformation and AI driven automation are changing the way companies engage with employees, customers, and the public. Executives who participated in this study ranked delivering economic value as the highest priority. At 41%, functional value came in second at 24%.
Almost half the number of executives who ranked economic value as most important ethical, societal and emotional values ranked significantly lower each with [00:02:00] less than 15% of executives saying they were top priorities. And that says something. It suggests that many leaders are still viewing communications primarily through a financial lens, how comms supports revenue growth, investor confidence, market performance.
While that’s understandable, it also reveals a gap in how communications is valued as a strategic business function. I. Take stakeholder priorities. For example, the study found that while 79% of executives say it’s very important to consider all stakeholders, there’s a big gap in which stakeholders actually get attention.
Customers and shareholders remain the top priority, but only 45% of executives see employees as key stakeholders in decision making, and just 22% consider the communities where their businesses operate to be essential. That’s a problem I. Employee engagement, company culture and corporate reputation are all directly tied to communication effectiveness.
If leaders don’t see employees as central to [00:03:00] the company’s success, they may also fail to recognize how critical internal communications is in shaping workforce alignment, motivation, and retention. This desk this disconnect extends to what CEOs expect from their communications leaders. The research shows that many CEOs are looking for a T-shaped communicator, someone with broad knowledge across multiple areas, but deep expertise in a specific function.
Sustainability. For example, finance or employee engagement. That makes sense given the complexity of moderate business. But it also suggests that communication professionals need to move beyond traditional PR and corporate messaging to embed themselves deeper into business operations, risk management, and strategy.
That’s interesting. In light of the study we reported just a few months ago that found more and more CCOs, chief communication officers are in fact seeing their roles expand beyond communication. Another issue is the rapid rise of AI and automation, [00:04:00] which is reshaping communication workflows, and executives may not be seeing their communication teams leading the charge on these innovations.
If comms leaders aren’t proactively demonstrating how AI and digital transformation can improve corporate storytelling, employee engagement and crisis response, CEOs may assume they’re not adapting fast enough. The study also reveals that in large companies, that’s companies with more than 50,000 employees operating in 20 or more countries, executive confidence and communication teams is even lower.
This suggests that as organizations scale, the ability for communication teams to maintain strategic alignment and influence across global markets becomes much harder. So what should communication professionals be doing to rebuild confidence? First, comms teams need to demonstrate their business value more directly.
That means tying communication outcomes to clear business metrics, whether that’s revenue impact, employee retention, or brand trust. Leaders who speak [00:05:00] the language of business finance risk operational efficiency, we’ll command more credibility in the boardroom. Second, communicators need to play a bigger role in shaping corporate decision making.
The fact that employees and communi communities rank so low as stakeholder priorities suggest that communication leaders need to advocate for a broader view of corporate responsibility. A company’s reputation today is shaped by form, far more than just financial performance. It’s about trust, credibility, and how well an organization engages with its employees, partners, and society at large.
Third communication teams must embrace emerging technologies like AI and automation. If CEOs feel that their comms teams aren’t adapting quickly enough to the modern landscape, that could be another reason for the declining in confidence. Communicators should be at the forefront of leveraging AI for content creation, crisis monitoring, and data-driven audience insights.
And finally, it’s [00:06:00] time for communication teams to prove their ability to navigate uncertainty. Today’s CEOs face unpredictable challenges from regulatory changes and political instability to generative AI disruptions and cybersecurity threats. Communication leaders who can help companies stay ahead of these issues rather than just react to them, will be the ones who earn their seat at the table.
Neville, what did you take away from this report? A lot actually, and you covered most of it. I think your last point is the starting point. I would look on this, and this is reflected in other surveys we’ve commented on, which is agility. It’s being able and willing to go hand in hand to pivot, react, adapt, whatever you might wanna call it, rapidly and confidently.
That means you need to know a lot more than you. Possibly are know about today. And therefore you need to be very proactive to ensure that you do know literally everything possible that is related to what you need to do as a [00:07:00] communicator. That’s probably something many of us are doing now anyway, but if you’re not, you really do need to do that.
It doesn’t surprise me. It’s troubling a lot of this. That headline figure only 17% of senior execs have confidence that their communicators are well prepared to tackle the current volatile environment. And a lot of this relates to the shifts we’ve seen in the last month led in the United States.
By the actions of new President Trump on his second term and the executive orders and all the stuff he has as we see literally almost daily on the TV news. This phenomenal signature on these executive audit documents that he physically signs and weighs ’em at the camera. They’re having repercussions everywhere.
It’s actually quite extraordinary. She, frankly. The Trump effect that is global, that’s taking place every single country is impact or paying attention to wondering what is he going to do next. So this is truly quite extraordinary, I think. So that’s part of the environment. And the tariff wars that are about to [00:08:00] begin by all accounts are definitely gonna have an impact on global business.
We’re already seeing. Effects in the financial markets in stock markets, we’re seeing that in interest rates that are they gonna go up and go down or whatever it might be. And the nervousness that is derived from that, we’re also seeing which is mentioned here a real change in DEI initiatives in organizations.
And in fact, we’re seeing I have to say mostly American companies that are backpedaling like crazy to. Ditch these that’s gonna have a big impact on perceptions. And they we’re not yet seeing exactly what that impact’s gonna be. ’cause it’s only been the last week or so that this is impacting people’s perceptions and opinions and therefore their behaviors perhaps.
But that is part of the landscape. Whether it’s temporary, pardon? That we don’t know. I just was just reading a story literally before we, we got together to record this episode about what Disney. Is decided to do, which is literally pull back completely on [00:09:00] DEI and speculation now about what impacts that can have on their animation studios and therefore perceptions of kids.
You could project this out in a big way. So 17% of senior execs don’t have comp, or only 17 have confidence that communicators are up to it basically. The other thing I think just to mention was. And maybe this goes hand in hand with DEI, I don’t know, but the the metric talking about how employee communication is way down the priority list on the stakeholder total of who you’re paying attention to, customers, et cetera.
Employees aren’t as high as I would’ve thought they should be. So there, there’s lots here that is concerning the provoke media story. Talks about, in fact, it’s not provoked, it’s the exo story talks about. So it’s some interesting things I think that are worth paying attention to.
Particularly their concluding point about no scenario plan is ever gonna survive contact with the amount of volatility that’s out there. And that [00:10:00] again. Be prepared, be make yourself agile, get to know exactly all these various things that are happening and try and understand what they mean. So you need to be paying attention to that.
So 70% according to S’S interpretation of of Weber Sandwick survey, 70% are anticipating heightened volatility in the year ahead, and very few of them feel prepared. That’s not a good. At all? No, as I said at the top troubling and I think DEI is probably an excellent example to elaborate on a little, because as you look at what has happened in just the three weeks since Trump took office and began his executive assault on DEI, what have we seen?
We’ve seen some. Companies, several companies do what Disney has done and many others, especially those in the tech industry although I saw a statistic the other day that said 65% of companies are not changing [00:11:00] their DEI programs, and of those 22% are actually planning to invest more in 2025.
So they’re defiant. But among the companies that have. Scaled back, they’re starting to see blowback from their customers. Take target for example, the retail giant here in the us. Target said that they were going to scale back their DEI in response to the administration’s mandates and customers revolted.
There has been a sell off of their stock. Their share price has. Taken a precipitous drop. There has been a considerable fall off on sales as customers have called for boycotts of the organization, and they have actually reversed themselves as a result of this. So public pressure brought to bear has created a whiplash at Target. Now, how good are their communicators at reading the marketplace and advising leadership on what [00:12:00] stakeholder audiences are saying and thinking in order to help them with their decision making? I would say based on what I’ve seen from Target, not very well. So I think it’s vital that communicators understand the issues that are roiling out there.
In the media space, in social media, in the business world and be doing environmental scanning. This is a term I learned from IABC research Foundation’s excellence study, years and years ago. What was that like 19 86, 87, around then. But environmental scanning means that you are on top of.
What the trends are and what the thinking is and what the sentiment is around these issues. And essentially you’re doing an every morning intelligence briefing like leaders of countries do so that you can let management know what’s going on. I woke up. Some mornings ago to the news that the Trump [00:13:00] administration was going to impose 25% import on all imported steel and aluminum.
I work in the construction industry. We work with a lot of imported steel. We set prices for the buildings that we’re building based on what the price was of steel at the time that those. Deals were made. If those prices go up 25% the building’s gonna cost more. Are we prepared for that? Do our employees know what’s going on?
If they’ve heard about these tariffs, are they worried about our ability to be profitable? We need to tell people. So the first thing I did is fire off a message to one of the senior executives saying, we need to let employees know where we’re at with this. He thought it was a good idea. This is the kind of thing communicators need to do in order to build that confidence at the leadership levels.
You can’t just be reacting to things and reporting what the leaders say. We need to be counselors who are advising them based on our read of what’s going on out there. Yeah, you’re right. And one other [00:14:00] point related to all of this that struck me as well, was the metric in the report that leaders of larger companies and those operating in more than 20 countries are more likely to report a loss in comms and public affairs confidence.
It got me thinking that much of the examples that we might. Discuss or read about or in the us not outside the US yet. I wonder some of these larger global multinationals, whether they’re American or whatever they might be with operations in other countries, what’s the effect gonna be if the US company, the owner, the kind of parent company rolls back on DEI and that meets with fierce resistance in, in, in some of their subsidiaries or associated companies elsewhere around the world, then what?
What are we gonna do about that? I did read, and I don’t have the details in front of me, so I can’t remember the name of the company. One company has already experienced that with employees in Germany, France, and the UK saying, no, we, we refuse to implement this and this big turmoil going on internally in that organization.
So [00:15:00] will we see a lot of that? I would suspect we will. In which case, what’s the impact? Project out what the questions are we need to be asking that if we are communicate is what does this mean? To what do we need to do? What do we need to advise? How do we prepare for this? So that you’ve gotta have that in your planning list.
If you are in that position with a company in that situation. You’ve then got larger Italian companies. What about in the in the Arabic speaking world, out in Asia, et cetera how does this impact those? Is this a ripple effect? We’ll see from DEI. ’cause you are seeing. Again, it’s largely in the US according to Axios, they talk about several CEOs are tripping over themselves to appeal to the new Trump administration.
I call that sucking up like big time. Really, it’s embarrassing seeing some of the behaviors by these CEOs, yet pragmatism, I suppose you might call it the effect on the share price if they’re publicly listed. All these things. Are very distasteful, but this is reality. What do you do [00:16:00] about this?
And what about the values you profess, this is a long discussion. We’ve talked about this before. Yeah. You say these things, we stand by this. And I remember that conversation we had in a recent episode. She, and that particularly did a total reversal and said what we said then is not the case anymore.
We don’t believe in that. So where does all that fit into this overall landscape? So the volatile. Picture is very wide. It’s a very large landscape to look at. Yeah. You, I had not heard about this company that had the the uprising from among employees in other, I’ll see if I can dig out the note on it.
Yeah. Good. But I think one of the things and. Ties directly back to the results of this survey is that A CEO sees this happening in their foreign subsidiaries or affiliates, and they say, our internal communicators aren’t doing their job because they didn’t create alignment around this decision.
Yeah. As opposed to counseling the leadership to say, this is how you’re going to [00:17:00] experience a response from our. Subsidiaries in Germany and France and Italy and the like, based on the fact that we have employee profiles that, that cover our geographic regions and we can project based on, it could even be AI analysis of our employee sentiment data from.
Everything that we’ve done in Teams and Slack and email and the other channels that employees are engaging in, we can come right out and say, this isn’t gonna fly. You’re going to have some unhappy people and that’s gonna affect productivity. Let’s rethink this. That’s the kind of counsel that we need to give, not, oh, yes sir, we will communicate that we’re doing this even though we know you’re gonna run into resistance.
The other thing I’m seeing and this is really interesting and I’m seeing this mostly on LinkedIn, is. Experts in DEI who are providing counsel on the difference between legal and illegal DEI as defined in the Trump administration’s executive orders saying that [00:18:00] basically illegal DEI is anything that elevates somebody.
Because of their protected class or background or what have you, which frankly, that’s not D-E-I-D-E-I does not do that. D that, that’s equality, not equity. Equity is creating a level play playing field that gives everybody the same opportunity and that they’re saying is legal. DEI under the definition, who’s.
Reading all of this and going to their leaders and saying, we can continue to offer DEI that is in compliance with what the Trump administration is asking. If we do A, B, and c based on my reading of what the experts are saying, again, this is proactive rather than reactive, and it’s what we need to be doing.
It is. So a lot to pay attention to with this, I think. And the DEI, I guess is the hot one on everyone’s radar because of the rolling back on it as per an executive order. But all the other [00:19:00] elements, indeed looking at what Axios is interpreting from the port, from the from the survey on the share of CEOs who say they plan to expand specific functions, top of the list marketing and brand building or marketing communication and brand building.
And that I think, does reflect what you said at the very start, that the focus is external on this and employee communication is actually second on that list, but there’s quite a big gap between the numbers. And then all the other functions, investor relations, public relations, crisis, et cetera.
But marketing, communication and brand building is number one. So if you’re a marketing communicator, pay close attention to that one. Absolutely. And of course DEI was just an example. Yeah, there, there are tons of issues out there that could be affecting your organization, that could be challenging your leadership.
You need to know what those are, and you need to be monitoring all of those and providing counsel on how stakeholders will react and what the impact of the business will be from the wrong messaging. And that’ll be a 30 for this episode [00:20:00] of four immediate release.
The post FIR #450: Senior Leaders Doubt Communicators’ Abilities appeared first on FIR Podcast Network.