Analysts expect CEOs to communicate with employees

Posted on March 16, 2006 9:43 am by | Internal | Deconstructing Larkin

If you reject all the other research and rationale for CEOs to communicate with employees—especially during times of change and stress—you should pay attention to the recently released “Return on Reputation” survey. Hill & Knowlton released the study, conducted by MORI, revealing how financial analysts view corporate reputation management. As much as you may dislike the amount of power financial analysts wield over organizations, that power is very real. And analysts expect CEOs to communicate with their employees.

Shel Holtz

The authors of the study found it “unsurprising” that analysts need to lead organizational change (an opinion held by 76% of the analysts responding to the survey).

Nonetheless the ability to communicate (66%) and motivate employees (60%) are also important factors which perhaps too many senior executives ignore to their detriment.

Another strong piece of evidence tipping the scales in support of direct leader communication with employees. I wouldn’t want to be the CEO of a company that got a negative analyst recommendation because I was listening to the voices arguing that leader communication with employees is a waste of time.

 

Comments

  • 1.Top o' the mornin' to ya! I'm becoming a big fan of Grant McCracken's blog, and for good reason. Check out his review of Tom Messner's Essay about Advertising's traditional texts. Here's a little taste: "If I may presume to...

  • 2.Well, the topic of CEOs communicating to employee audiences is certainly hot these days. Shel Holtz has not one, but two posts on the topic. Conclusions:- People (analysts) expect CEOs and senior management to lead organizational change through strong communication and efforts to motivate employees. Translation: Employees are not going to buy-in to change unless the people at the top clue them in to what's going on and explain why it is good for the company.- Employees want to know…

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