how great ceos win with key audiences

World Class Communication: How Great CEOs Win With Key Audiences

Virgil ScudderPresident, Virgil Scudder & Associates

This is the Age of Communication

• 90% of CEO’s time• 75% or more for other executives• 75-100% for PR professionals

Why Focus on CEOs?

• The best CEO communicators provide the best models

• They have the most diverse communication challenges

• Every public appearance for them is high stakes

• Irene Rosenfeld, Chairman and CEO of Kraft Foods, probably said it best.

Irene B. Rosenfeld’s View

• “As the ‘face’ of our company, my words are carefully scrutinized every time I speak, and they often live in perpetuity in cyberspace. But, it’s not only what I say that matters; it’s also how I say it. A hesitation, the wrong tone, or even an unconscious gesture on my part can affect our stock price.”

Perceptions Drive ActionTwo Examples

• 1. (Reuters) “The stock of xxx Corporation fell $2.00 today in the wake of what analysts described as a lackluster presentation by the company… Traders said a relative lack of enthusiasm by (the president and CEO)…had a negative effect on the stock.”

Perceptions Drive ActionTwo Examples

• 2. (Dow Jones News Service) “XXXX Inc. shares rose $2.875 to close at $60.875 following a dinner meeting that one analyst called ‘positive.’ There was no news, (he said). They talked about a couple of things that made me feel good about where they are going but nothing I would ever guess would have pushed the stock up.”

What is Communication?

• Communication is:– Not what you know– Not what you say

What is Communication?

Communication is what your audience takes away

The Ten Essential Skills and Techniques

1. Straight Talk

1. Straight Talk

• All your communication must follow the 4 C’s:– Clear– Concise– Credible– Delivered with Confidence

Can only be accomplished with preparation

How Not to Say It

• On a shareholder earnings call, a New York City banker was asked about a possible merger

• Should have expected the question and had a good answer ready

How Not to Say It

• His response: “Forgetting the business logic and the price, there will be options down the road there. I will answer your question about capable and that we really weren’t capable yet because our army was doing all the other stuff we had to do, particularly the systems conversions. The army will be capable to do other stuff sometime next year, which is reasonable. Doesn’t mean we will.”

What Did He Say?

• My guess: “Not now. The time is not right. Maybe later.”

• Result: An embarrassment for him and the company.

• Worse: Featured, with his picture included, in a New York Times article entitled: “When CEOs are Tangled in their Own Web of Words.”

The Scudder Method

• Think like a print journalist• Turn a mass of information into a good, brief

story

The Scudder Method “Funnel”

The Scudder Method “Pyramid”

The Ten Essential Skills and Techniques

• 1. Straight talk• 2. Authoritative public speaking skills

2. Authoritative Public Speaking Skills

• Good public speakers are invariably considered good executives

• Anybody can be a good public speaker• It takes practice, learning the right techniques,

and observing others• Try to build each talk around three key points• Use short sentences, short words• Illustrate your talks with stories or examples

2. Authoritative Public Speaking Skills

• Nervousness is the greatest barrier to a good speech or interview

• Accept that a small amount of nervousness is normal

• Focus more on your audience than “how am I doing”

• Go into every public appearance fully rehearsed• Break the ice with humor or a question

The Ten Essential Skills and Techniques

1. Straight Talk2. Authoritative Public Speaking Skills3. A leadership presence

3. A Leadership Presence

• What is this presence? It’s appearing in command and under control at all times

• Name two recent U.S. presidents who had it and two who didn’t

• Leadership presence requires a warm smile, a friendly greeting, good posture, good eye contact, a firm handshake, and showing an interest in the other person

The Ten Essential Skills and Techniques

1. Straight Talk2. Authoritative Public Speaking Skills3. A leadership presence4. Listening and Learning

4. Listening and Learning• Listening is a critical, yet often overlooked, aspect of

successful communication• Dr. Bernard Ferrari: “Listening is often the difference between

success and failure, and between a long career and a short one.”

• Ferrari’s 80/20 rule• The best CEOs are always seeking input and asking the right

questions of the right people• Listening makes others feel important• Bosses who listen are rewarded with higher employee morale

The Ten Essential Skills and Techniques

1. Straight Talk2. Authoritative Public Speaking Skills3. A Leadership Presence4. Listening and Learning5. Knowing How to Use PR and Media

5. Knowing How to Use PR and Media

• Where’s the CCO? PR needs a direct line to the decision makers

• Positive media opportunities abound but many executives pass on them

• A favorable news story is many times more credible than the best advertising

• Customers, vendors, and employees all want to see and hear good stories about the organization

Getting the Boss or Client to Buy In

• Leaders are competitive by nature; so position media interviews as opportunities for competitive advantage

• Send a periodic summary of the favorable coverage received by competitors

• Show videos of well-handled interviews and point out what a favorable perception they create for the individual and the organization

• Point out that good media coverage impacts the bottom line

Keys to Interview Success

• Be sure the participant is media trained to be skilled and comfortable with the process

• Do on-camera rehearsals before each interview• Select three key points with proofs or examples

for each• Identify all possible negative questions and

prepare a three-point response for each• Debrief after each interview

Keys to Interview Success

• Never do an interview for the purpose of answering questions

• Take immediate positive control• Satisfy each non-agenda question but then move

quickly to make your points• Be warm and friendly and use the interviewer’s

first name• Don’t worry about saying the wrong thing. We all

do from time-to-time and mistakes are survivable

The Ten Essential Skills and Techniques

6. Speaking Visually

6. Speaking Visually

• People remember pictures better than words• Paint word pictures with stories or examples• Be sure they are relevant to key points, not

just something funny or interesting• Avoid “Marketing speak” and industry jargon • Again, short words, short sentences

The Ten Essential Skills and Techniques

6. Speaking Visually7. Crisis Readiness and Response

7. Crisis Readiness and Response

• Two things are revealed in a crisis– Your preparedness– Your culture

• First minutes and hours are most critical• People remember the handling of the crisis

more than the crisis itself

7. Crisis Readiness and Response

7. Crisis Readiness and Response

• Questions you must answer:– What happened?– How did it happen?– What is the current situation?– Where did your system fail?– What was your initial response?– What is your long-term response?

The Ten Essential Skills and Techniques

6. Speaking Visually7. Crisis Readiness and Response8. Conveying a Vision

8. Conveying a Vision

• A leader is expected to have a plan• Conveying the vision is important to all

constituents and especially important to employees

• Regular progress reports are essential• A clear vision and game plan are critically

important during turnarounds, hostile takeover bids, and many crises

The Ten Essential Skills and Techniques

6. Speaking Visually7. Crisis Readiness and Response8. Conveying a Vision9. Showing Humility

9. Showing Humility

• The humble CEO is the most effective CEO• Not expected to know everything, but must

know the basics and how the pieces fit together• “I don’t know” is a valid answer at all levels of

an organization• Be ready to share credit and accept blame• Be willing to apologize• Apologies show strength, not weakness

The Ten Essential Skills and Techniques

6. Speaking Visually7. Crisis Readiness and Response8. Conveying a Vision9. Showing Humility10.A Quest to Be the Best

10.A Quest to Be the Best

• Do CEOs ever make straight A’s in school?• What they do have is ambition, a strong work

ethic, and a competitive nature• The successful ones have, and clearly

articulate, a vision and a plan to achieve it• They also have a willingness to change course

when necessary• They follow the lesson of the turtle

In Summary

• Success today requires highly developed communication skills

• Great communicators are made, not born• The best CEO communicators are the best

models• Listening, learning, and constant striving to get

better are keys to success

World Class Communication

Winner of 2012 Distinction Award for Business Books by ExecRank

Further Information

• 305-867-1796• virgil@virgilscudder.com