Tough Times Demand Tough Talk
If business (i.e. stock prices, profits) is good, the numbers speak for themselves. Not much a CEO has to say; just point to the numbers and accept the accolades.
But if business is poor, the questions, concerns and fears need to be addressed. This is where CEOs take (and show) leadership…or they update their resume’.
Being 2009, we’ve got plenty of questions for the corner office.
Proper and effective communication skills are vital to maintain employee morale and productivity, assure stockholders, and create a positive public perception.
This was the basis of a July 22 discussion led by executive and government speechwriter Jeff Porro.
Porro made it clear, many CEO’s, especially those hired from within, may lack experience communicating to large groups – and therefore the company at large.
Here are Porro’s Top 9 Communication Efforts CEOs should do in bad times.
1. Make Communication A Priority
As many CEOs – especially in poor times – spend their days managing the company, communications gets talked about, but it’s not always addressed.
When the audience (employees, shareholders, media, clients, partners) don’t hear from the CEO, fear and question sets in; this can create the appearance the company is not dealing with their issues.
2. Communicate to Motivate
Communication is not about volume. It should be used to clearly pass along information to an audience, with the intention of sparking action.
This is important for internal communications. Employees need to be informed and motivated to see their company is worth saving.
3. Take The Initiative
Communicate First. Be Proactive – especially when the numbers are poor.
Even at the hint of bad news, address it. Bad news will not go away; it should be addressed and corrected.
When a CEO takes action (communication), it displays control and leadership – what companies need when attempting a comeback.
4. Be Frank About Problems and Mistakes
This year, how many auto manufacturing CEOs talked about new programs or getting out bankruptcy? Many.
How many of those auto manufacturing CEOs actually discussed the problems in the auto industry? I haven’t heard it from the Big Three.
Porro pointed to John Krafcik, CEO of Hyundai USA.
Krafcik’s keynote address at the 2009 Chicago Auto Show called the past 28 years an “era of greed”. He addressed how auto manufacturers shunned and pushed back against environmental concerns.
Krafcik referred to the industry’s ‘horrible reputation’, saying more Americans would rather visit the dentist than a car dealership.
This is an example of a CEO who ‘got it’.
If a CEO discusses problems and mistakes, stakeholders see a CEO as accountable and willing to change shortcomings and (hopefully) gain credibility.
5. Provide a Clear Step-By-Step Recovery Plan
Candor is one thing, but people need assurance in bad times.
A plan – clearly laid out to the audience – shows vision (supporting the leadership and smart decisions companies demand from their chief executives).
You also must keep communicating the plan; show your audience the progress and steps as the company endures through a difficult economy.
6. Don’t Overpromise
This can be difficult. You can have candor and a vision, but it must be mixed with blunt realism. Optimism can get the better of all of us. If you overpromise – and the results don’t appear – your credibility can be permanently damaged.
7. Communicate in Different Ways to Different Audience
Know your audience, and know their specific needs.
Employees want to be assured the company will survive, along with any plans for layoffs or growth.
Shareholders desire clear profit and loss expectations, timelines and plans for mergers or cutbacks.
The media and other partners question if the company has clear direction from the executive suite and future product plans.
Each group needs to hear different things.
This also means communicating through different methods (employee ‘town hall meetings’, blogs and news releases, interviews.)
8. Let All The Shoes Fall At Once
It may hurt, but it’s best to rip the band-aid off quickly and completely.
Announcing restructuring, layoffs and cutbacks is tough; the news is always devastating.
If you draw out the announcements, you’re showing the company on a downward slide – enduring a series of bad news.
One day. One announcement. You hit Rock Bottom and move forward; unveiling your new plans and direction for the company.
9. Overcommunicate, Especially Internally
Your audience (employees) will always want to be updated; their jobs are their livelyhood.
By providing company-wide information, you stop people from guessing, worrying and speculating.
Employees drive your company. Keep in touch with them and hopefully create a level of trust – both in the CEO and the company as a whole.
Many of these tips create a positive perception of the CEO. In difficult times, a CEO’s strong leadership is necessary. Just as important is having employees, customers and shareholders believe the CEO is a qualified leader with a vision for recovery.
Effective communication creates that belief.
