I recently read a fascinating Harvard Business Review article that ranked The Best Performing CEOs in the World based on the shareholder value they deliver. The authors analyzed data collected from more than 2,000 public company CEOs to determine which factors increased the likelihood that an executive would rank high. These included being a company insider, taking the helm in troubled times and having an MBA.
Not surprisingly, Apple CEO Steve Jobs topped the list. While Jobs doesn’t hold an MBA, he did deliver an impressive 3,188% industry-adjusted return (34% compounded annually) after he rejoined Apple as CEO in 1997, when the company was underperforming. From that time until the end of September 2009, Apple’s market value increased by $150 billion.
Of course, shareholder value is but one measure of a CEO’s success. Studies have shown a direct correlation between a company’s performance and the engagement levels of its employees. "In good times, employee engagement is the difference between being good and being great, and in bad times, it's the difference between surviving and not," says James K. Harter, Ph.D., Gallup's chief scientist of workplace management and well-being and co-author of 12: The Elements of Great Managing (Gallup, 2006). "In good times and bad, low engagement reduces performance and profit.”
So what can a CEO do from a communications standpoint to positively affect engagement levels?
Be a visionary
The reason Steve Jobs and his contemporaries, like Jack Welch, Warren Buffett and Bill Gates, repeatedly pop up on Most Admired lists is that they are visionaries. And they communicate that vision to employees from the board room to the stock room. Not every CEO can be as dynamic and charismatic as these c-suite elite, but every leader can be a visionary. One of the best ways to be perceived as such is to involve your employees in defining or refining your company’s vision. At a recent Town Hall, my current employer’s new President was asked what his vision for our organization was. His response: “The first order of business for me as your new President is to get around to all of our locations, speak to you and listen to you. I want your ideas for where we should take our business and how we'll get there. From a company perspective, we want to grow, get stronger and earn our place in the hearts of our customers. We're on the right trajectory, but we need to pause, listen to all of you, and plan accordingly.”
Help employees understand where you’re going and how you’ll get there
In The Strategy-Focused Organization (Harvard Business School Press, 2001), Robert Kaplan and David Norton write that only 7% of employees fully understand their company’s business strategies and what’s expected of them in order to help achieve company goals. When I worked as a Senior Publicist at Corus Entertainment early in my career, I was impressed by the culture of transparency CEO John Cassaday fostered. He shared his performance objectives with the entire organization. When he divulged quarterly performance, he not only recognized the contributions of all employees, but provided guidance on what each employee could do in their day to day work lives to help the company meet its goals for the upcoming quarter.
Play to your strengths
I’ve worked with CEOs who can produce a highly engaging memo, blog posting or employee magazine column, but are lacklustre speakers. I’ve also worked with CEOs who are brilliant off-the-cuff speakers, but write like lawyers or accountants, with the undecipherable penmanship of doctors. If you’re a natural in front of crowds, communicate through Town Hall sessions or by attending divisional team meetings – and create a podcast of such sessions to share with the larger employee population. If you’re a dynamic writer, start a blog or post comments and questions on employee intranets and discussion boards. Never stop working on your weak spots – hire a speechwriter or take an improv class if you must – simply reduce the frequency you use these communication methods.
Foster a culture of recognition
Employee reward and recognition programs are most effective when they’re not only endorsed, but modeled, by the c-suite. Many organizations have President’s Awards, but recognition need not be as formalized as that. Make an effort to remember the names of the employees you meet and what they’re working on. This can be a challenge in large organizations, but one CEO I worked with solved that issue by hosting breakfast roundtables with a cross-functional sampling of employees once a month. Those sessions also served as insightful and informal focus groups.
You can also make recognition personal and meaningful by eschewing ‘well done’ emails or communicating praise through an employee’s manager. If you can’t say it in person, take a page out of Corus Entertainment’s John Cassaday handbook and send a handwritten note. There is little more inspiring and motivating for an employee than being recognized from the top directly (I still have a couple of Cassaday’s handwritten cards to me).
It’s easy for CEOs to focus their attention externally on driving customer satisfaction and shareholder value. But often the key to improving those performance indicators is to take a good, long look inward at your people and find ways to actively engage them. As celebrity CEO Jack Welch once famously quipped: “The soft stuff is the hard stuff.”
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