The New Rules Of Corporate Communications

The communications challenges companies face these days are growing. Here’s how to keep up.

The New Rules Of Corporate Communications
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To put it bluntly, corporate communications is the spurned stepchild of the C-suite. In many organizations, the function hardly gets the attention it deserves until the moment crisis hits. But undervaluing the importance of powerful communication is a mistake, and it’s costing some companies dearly.


Communication Failures

“Like many other soft skills, [communication] is undervalued in corporations because it’s difficult to measure,” says Dorie Clark, author and adjunct professor of business administration at Duke University’s Fuqua School of Business. The skill “requires a high tolerance of ambiguity, contradiction, and subtlety (i.e., softness),” communications expert Walter G. Montgomery writes on Knowledge@Wharton, and many senior leaders prefer to reserve that kind of thinking for strategy decisions. And it doesn’t help that business schools tend to squeeze corporate communications in among heavy-duty statistics and accounting courses, even though it encompasses everything from media and community relations to internal and investor relations as well.

The truth is that the way an organization communicates can be the difference between success and failure. By now, we’re already familiar with the damage an out-of-place tweet by a CEO can do in the age of social media.

“Managers need exposure to communications, especially now,” Tim Andree, executive chairman of Dentsu Aegis Network, has said. “The communications model changes every six to seven months. There’s media convergence, new technology, and new analytics. It affects how you need to communicate and how people get their information.”

Meeting New Communications Challenges

Fortunately, some companies are taking note and responding accordingly. A pilot program designed by the Public Relations Society of America (PRSA) is now being conducted at five business schools, including Dartmouth’s Tuck School of Business and the Kellogg School of Management at Northwestern, to educate emerging business leaders about reputation management and strategic communications.

According to a recent Korn Ferry survey, the role of the chief communications officer is broadening. “These best-in-class corporate affairs officers shoulder a broadening scope of responsibilities and an increasing mandate to act as high-level strategic advisers to CEOs,” the report’s authors write, “and they frequently serve as members of the senior leadership team.”


While it’s still tough to measure the efficacy of corporate communications, new tools in sentiment analysis, reputation analysis, and brand assessment are adding more rigor to the field. Tools like Biz360 and TweetEffect Social are also helping companies measure how followers engage with their messaging on social media platforms.

Five New Rules Of Corporate Communications

In the meantime, corporate leaders can do their part to improve how their companies communicate. Here are five steps to take.

1. Recruit talented, senior-level communications executives with solid business skills and deep knowledge of the company’s products and processes. According to David Moyer, president of the executive search firm Moyer, Sherwood Associates, Inc., which specializes in corporate communications and PR, the challenges of the role now make it more essential for candidates to hold an MBA.

More broadly, companies need to give communications chiefs the titles, reporting relationships, access, and resources to be effective companywide. And that means investing in senior communications roles for the long-term. Communications professionals like to tout their ability to be quick studies. But it can take years to truly know a company’s business, and a communications person without the right level of industry knowledge won’t get the respect it takes to do an effective job. Being the perpetual new kid on the block is a strategic liability.

2. Learn to trust and understand the communications function. Management can’t get away with listening to its communications leaders with half an ear. Companies “need to learn more about communications and the communications consequences of their actions and not treat it like a foreign language,” urges Moyer. Otherwise, they’ll end up spending too much time mopping up after crises as opposed to preempting them. Not only can that be tremendously expensive, but communication blunders can do real damage to companies’ brands.


3. Let communications leaders advise and educate the C-suite. If corporations need to listen better to their communications leaders, then the reverse is also true. Communications execs need to help other leaders understand why they’re important. “Good communications chiefs recognize that one leg of their job is representing communications to senior management,” says Moyer. “They can point to communication wins in that area with the same pride they do to a media relations victory outside. The CFO or the head of engineering doesn’t need to explain their functions the same way. But the communications person needs to do this.”

4. Eliminate command-and-control communications. “The best companies are transparent, and when they are wrong, they promptly admit it rather than hide behind ‘corporate speak,'” Clark says. Closing ranks can be dangerous in the digital age, but it’s a most common reaction when things go wrong. “Apologize, take responsibility, and do what’s necessary to right the wrong. Companies shouldn’t compound their problems by obfuscating or denying responsibility for problems; that simply drags out the story and ensures it’ll be at the top of news headlines and Twitter feeds for days and weeks to come.”

5. Let employees be ambassadors, Clark advises. Don’t gag them on social media. “Smart, far-sighted companies recognize that if employees are using social media anyway, you might as well tap that power,” she says. “Give them information about the company’s vision, goals, and what it’s doing, and allow them to spread that positive message online. They’ll have far more credibility among their friends and contacts that your official brand page ever could.”

How has your organization handled its communications? Please share your thoughts in the comments section below.


About the author

Wendy Marx is President of Marx Communications, an award-winning boutique B2B Public Relations agency known for turning companies and executives, including start-ups, into thought leaders. Follow her on Twitter @wendymarx and on Google+ @