This is an MIT Sloan Management Review article. A number of factors, both external and internal, are increasingly demanding a strategic approach to corporate communications. Yet, despite regulatory imperatives, organizational complexities, and a growing need for companies to increase their credibility with their constituencies, many companies still take a tactical, short-term approach to communication that is not only nonstrategic but may, in fact, be inconsistent with their corporate strategy or even impede it. The authors conducted more than 50 interviews with CEOs, CFOs, and heads of corporate communications and investor relations at companies that represent the state of the art in corporate communications, companies that have faced and survived major crises, and some that are great corporate communicators but not usually recognized for their efforts. Offers best practice lessons and a framework to enable executives to think carefully about their organization's objectives for each specific communication, determine which constituencies are critical to meeting that objective, and understand what kinds of messages to deliver through which channel.
Sandy Michaels, chief marketing officer of financial services giant Pace Sterling, faces a tough dilemma now that the high-profile golf tournament her company sponsors has been tainted with controversy. The Dover Hill country club, where the prestigious Champions invitational is played, accepts only men as members. This year, a powerful women's organization has decided to make a bigger issue of that exclusivity. Under pressure from the Women's Rights Organization (WRO) to withdraw its support, Pace Sterling must think about the marketing value it gets from the sponsorship and how much that value might be diminished--or heightened--by the controversy. CEO Cal Buckley enlists the help of Michaels and other senior executives in the company to determine just that. Michaels firmly believes that Pace Sterling should stay the course and sponsor the event. Michaels is unwavering--that is, until the day she comes across this newspaper headline: "Tommy Ward Should Boycott Dover Hill." Ward is the undisputed king of the golf world and the odds-on favorite to win the Champions. The WRO is clearly turning up the volume. Should Pace Sterling proceed with its sponsorship? In R0304A and R0304Z, offering advice are Sergio Zyman, former chief marketing officer of Coca-Cola; James E. Murphy, global managing director of marketing and communications at Accenture; Kim Skildum-Reid, co-author of The Sponsor's Toolkit and The Sponsorship Seeker's Toolkit; and Paul A. Argenti, a professor of management and corporate communication at Dartmouth's Tuck School.
Sandy Michaels, chief marketing officer of financial services giant Pace Sterling, faces a tough dilemma now that the high-profile golf tournament her company sponsors has been tainted with controversy. The Dover Hill country club, where the prestigious Champions invitational is played, accepts only men as members. This year, a powerful women's organization has decided to make a bigger issue of that exclusivity. Under pressure from the Women's Rights Organization (WRO) to withdraw its support, Pace Sterling must think about the marketing value it gets from the sponsorship and how much that value might be diminished--or heightened--by the controversy. CEO Cal Buckley enlists the help of Michaels and other senior executives in the company to determine just that. Michaels firmly believes that Pace Sterling should stay the course and sponsor the event. Michaels is unwavering--that is, until the day she comes across this newspaper headline: "Tommy Ward Should Boycott Dover Hill." Ward is the undisputed king of the golf world and the odds-on favorite to win the Champions. The WRO is clearly turning up the volume. Should Pace Sterling proceed with its sponsorship? In R0304A and R0304Z, offering advice are Sergio Zyman, former chief marketing officer of Coca-Cola; James E. Murphy, global managing director of marketing and communications at Accenture; Kim Skildum-Reid, co-author of The Sponsor's Toolkit and The Sponsorship Seeker's Toolkit; and Paul A. Argenti, a professor of management and corporate communication at Dartmouth's Tuck School.
The sheer enormity of last year's terrorist attacks on the World Trade Center and the Pentagon gave new meaning to the term "crisis management." Suddenly, companies near Ground Zero, as well as those more than a thousand miles away, needed a plan. Because the disasters disrupted established channels not only between businesses and customers but between businesses and employees, internal crisis-communications strategies that could be quickly implemented became a key responsibility of top management. Without these strategies, employees' trauma and confusion might have immobilized their firms and set their customers adrift. In this article, executives from a range of industries talk about how their companies, including Morgan Stanley, Oppenheimer Funds, American Airlines, Verizon, the New York Times,Dell, and Starbucks, went about restoring operations and morale. From his interviews with these individuals, author and management professor Paul Argenti was able to distill a number of lessons, each of which, he says, may "serve as guideposts for any company facing a crisis that undermines its employees' composure, confidence, or concentration." His advice to senior executives includes: Maintain high levels of visibility, so that employees are certain of top management's command of the situation and concern; establish contingency communication channels and work sites; strive to keep employees focused on the business itself, because a sense of usefulness enhances morale and good morale enhances usefulness; and ensure that employees have absorbed the firm's values, which will guide them as they cope with the unpredictable. The most forward-thinking leaders realize that managing a crisis-communications program requires the same dedication and resources they give to other dimensions of their business. More important, they realize that their employees always come first.