The survey, The Rising CCO, compares responses from communications officers in the "world's most admired companies" with those in "contender companies" (generally, most admired companies are the most highly ranked companies in an industry on overall reputation; contender companies are ranked in the industry's bottom half). The 141 survey participants were top corporate communications executives from Fortune 500 companies in the U.S. and Europe.
The survey, which was conducted by global executive search firm Spencer Stuart and global public relations firm Weber Shandwick with KRC Research, examines the changing role of today's CCO.
"In a fast-paced and dynamic business environment, communications officers are increasingly seen as a business partner for the CEO and leadership team in the stewardship of a company's reputation," said George Jamison, corporate communications practice leader at Spencer Stuart. "CCOs are expected to create value and mitigate risks for the corporation by developing innovative strategies to proactively communicate with a company's myriad stakeholders."
The research found that communications executives in the world's most highly regarded companies have more prominent organizational status and longer tenures than their counterparts in contender companies. Additionally, approximately one-third of CCOs from the most admired companies cite corporate reputation as their number one priority for 2008, compared to fewer than one-quarter of CCOs from contender companies (34 vs. 21 percent, respectively). Contender company communications executives said they were spending more time working on product-related issues and crisis communications, while most admired CCOs said they spent more time on corporate social responsibility and building corporate reputation.
"Our research identifies how the corporate communications function can be a critical force in driving a company's reputation in good times and bad," said Dr. Leslie Gaines-Ross, chief reputation strategist at Weber Shandwick and leading corporate and CEO reputation expert. "With the right organizational structure and partnership at the top, the best CCOs can significantly contribute to building shareholder value and corporate reputation."
HOW CCOs IN MOST ADMIRED COMPANIES DIFFER
FROM CCOs IN CONTENDER COMPANIES
CCOs in Most Admired Companies Are MORE Most Admired Contender
Likely than CCOs in Contender Companies to: Companies Companies
Have longer tenures 4 years, 3 years,
10 months 5 months
Have prior PR agency experience 42 % 32 %
Report to CEOs 53 % 33 %
Have no interdepartmental rivals 25 % 9 %
Identify reputation management as top
priority in 2008 34 % 21 %
Report that future CCO success depends
on global expertise 52 % 41 %
CCOs in Most Admired Companies Are LESS
Likely than CCOs in Contender Companies to:
Rate talent shortage as a significant
challenge 35 % 47 %
Give themselves six months or less to
prove their worth when a new CEO arrives 73 % 85 %
Based on Fortune's 2006 Most Admired Survey (March 19, 2007). In general, Most Admired Companies are the most highly ranked companies in an industry on overall reputation. Contender Companies are ranked in the industry's bottom half.
Other key findings are:
-- CCOs' responsibilities will increasingly shift from tactical to
strategic. While CCOs are carving out their role as strategic partners
at the highest levels of business, they view work today as
predominately tactical (58 percent tactical, 42 percent strategic).
This imbalance, as reported by those surveyed, is sure to change as
focus shifts from financial communications, media relations and
internal communications to the broader strategic issues of
environmental/social responsibility and corporate reputation. The tools
used to perform their jobs will expand as well, with blogging/social
media and corporate Web sites becoming increasingly important.
-- CCOs hold prominent positions at the world's largest companies. Nearly
one-half surveyed report directly to the chief executive officer (48
percent) and are visible to their boards (had a median seven
interactions with their board during the past year).
-- CCOs and CMOs are friends and rivals. CCOs' dynamic relationship with
chief marketing officers (CMOs)-often a main rival and ally-reflects
the growing influence of communications in today's marketing mix.
-- Measurement of CCO effectiveness is predominately qualitative. The vast
majority of those surveyed report being measured on qualitative
measures such as "positive" media coverage (75 percent) and CEOs' "gut"
feel (73 percent). They are least likely to be measured by quantitative
metrics such as the number of media mentions (35 percent) and ability
to control costs (32 percent).
