Elevating the Value of Corporate Communications

November 6, 2024 | By Steve Astle and John Onoda

Reading Time: 3 minutes

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Corporate communications is fundamentally a strategic function. If, in any given organization, this isn’t widely recognized, it’s incumbent on the CCO to act.

In theory and in practice, communication is inseparable from an organization’s strategy. Communication is both an extension of and critical to the execution of the strategic plan. All information must be properly communicated. Employees, customers, investors, suppliers, regulators, elected officials and other stakeholders must understand what’s changing, why it’s changing and what’s expected of them for the strategy to pay off.

But strategy is dynamic, not static. As it’s executed and reformulated, communication provides valuable input — leveraging relationships with stakeholders to understand and monitor their perceptions of company products, services, policies and behaviors. This, in turn, allows the early detection of flaws or weaknesses in corporate strategy, and enables the effective prioritization of steps to seize opportunities and mitigate risks.

It stands to reason, then, that when businesses struggle to execute strategy, the communications function may not be fully leveraged. Product launches, executive appointments and department re-orgs all must be approached with the same focus on business objectives as more high-stakes initiatives like acquisitions or cost reductions. If not, communication is viewed as tactical — something to take on only after important decisions have been made.

 

"In theory and in practice, communication is inseparable from an organization’s strategy."

 

Of course, poor communication does not cause every corporate challenge. When there’s a material threat to a business — regardless of the cause — the head of communications is brought in to shed light on the anticipated responses of stakeholders and to manage interactions with them in order to minimize the damage.

In these situations, it’s essential for CCOs to advocate consistently and unapologetically for actions that support business objectives. Here, we mean actions in the broad sense — not just communications actions like drafting town hall talking points or deciding whether to issue a press release, but also legal, financial or operational actions. Only after those have been resolved is it time to develop communications messages and tactics.

Over time, CCOs who operate in this way grow in influence and accumulate political capital — an asset that they spend wisely in support of business and professional success.

Admittedly, this is easier said than done. It’s often the case that communications leaders and their peers have different understandings of strategic objectives or the degree to which they must be acted upon. Friction can also arise around the severity of risk when a strategy is or isn’t followed. Especially when earnings, stock prices and executive compensation are involved, strategy may be given only lip service. This is when communicators need to speak up.

Given these challenges, communicators must work constantly to develop and refine their business acumen, knowledge of the competitive environment and consulting skills. These are essential in C-suites and boardrooms, especially when stakes are high.

Few CCOs reach this “black belt” level of effectiveness without having the benefit of thought leaders — coaches, mentors or seasoned agency leaders — who should be called upon whenever communications is pushed aside on matters of strategy. Membership in the Arthur Page Society, Page-Up or Forum-Group can also provide valuable avenues for professional guidance.

Garnering respect for communications as a strategic function can feel like a lonely undertaking inside a large organization. Knowing that there are hundreds if not thousands of others making the same effort around the world may help stiffen one’s spine or provide the motivation for just one more difficult conversation. Knowing and talking with people in similar situations is even more helpful in fighting the good fight.