BooksStrategy DocumentsL02/2012CommunicationThe Present and theFuture of CommunicationDirector’s Role in the NewEconomy   ...
Managing           But if one had to single out one reason for the          Figure 1: The five areas of identity / image  ...
Managing           Figure 2: The areas of communication Communication in the Framework of the New Economy: the Present and...
Leading by                                             reputation©2012 Corporate Excellence – Centre for Reputation Leader...
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Communication Director’s Role in the New Economy

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The role of the Corporate Communication Director or Chief Communications Officer is gaining more weight in organisations, combining various strategic functions from managing some key intangibles, such as brand and reputation, to communication
Marketing is not effective and no longer yields expected results, advertising has become trite and ineffective, traditional public relations fail to reach new audiences and digital communities, communication tools used by companies in the past lost a good part of their capacity to generate value and are no longer useful for companies because the rules of the game have changed.
This document was prepared by Corporate Excellence – Centre for Reputation Leadership and contains references, among other sources, to the statements made by Joan Costa, an expert on communication, design, sociology, profesor of the University of Mexico and a member of the Corporate Excellence Board, during the panel discussion titled “Communication Innovations in Business and the Mass Media”, organised at the Faculty of Information Sciences, Complutense University in Madrid, on April 10, 2012, and his book “El Dircom hoy” (Communications Director Today) published by CPC Editor.

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Communication Director’s Role in the New Economy

  1. 1. BooksStrategy DocumentsL02/2012CommunicationThe Present and theFuture of CommunicationDirector’s Role in the NewEconomy The role of the Corporate Communication Director or Chief Communications Officer is gaining more weight in organisations, combining various strategic functions from managing some key intangibles, such as brand and reputation, to communication. Marketing is not effective and no longer yields Such is the approach chosen by Joan Costa, an expected results, advertising has become trite expert on communication, design and sociology, and ineffective, traditional public relations fail and a University professor. An approach that views to reach new audiences and digital communities, organisational values and their manifestations communication tools used by companies in the in the form of attitudes, behaviour and actions as past lost a good part of their capacity to generate the basis and substance of differentiation produced value and are no longer useful for companies by the brand and recognition associated with the because the rules of the game have changed. reputation of a company. Many of the strivings, hopes and expectations that How we have arrived here the society used to pin on political and religious The role of the Corporate Communication Director institutions, are now associated with businesses. has gone through many changes since the 80-90s, That’s why a good CCO (Chief Communications when in some countries, including Spain, this Officer) needs to find out what society wants from function assumed the important task of developing his or her organisation and provide a quick and integration and global vision of all issues faced by effective response to these expectations by internal companies. and external alignment of the organisation.This document was prepared by Corporate Excellence – Centre for Reputation Leadership and contains references, among other sources,to the statements made by Joan Costa, an expert on communication, design, sociology, profesor of the University of Mexico and amember of the Corporate Excellence Board, during the panel discussion titled “Communication Innovations in Business and the MassMedia”, organised at the Faculty of Information Sciences, Complutense University in Madrid, on April 10, 2012, and his book “ElDircom hoy” (Communications Director Today) published by CPC Editor.
  2. 2. Managing But if one had to single out one reason for the Figure 1: The five areas of identity / image Communication in clear rise of the role of Communication Director in the Framework of the New Economy: organisations, it has to be the impressive growth of the Present and telecommunications, IT and exponential increase of the Future of information flows brought about by these changes. Area of the Area of Communication Director’s Role This resulted in the decline of the idea of division word visual sign of workflows, separation of processes and dissipation of relations. Technologies and economics have been developing hand in hand since the 70s, leading to the decline of industrialism and a mechanist vision Area of Area of of the company and the society. environment behavior The death of taylorism and its best student, fordism, was a fertile ground for the holistic view of the Area of the ​​ company “for” the society – as opposed to the view objects of the company “versus” the society – as predicted by the experts on industrial organisation on the 80s, such as Jens Rasmussen from Denmark, who Source. Costa, Joan (2012): El DirCom hoy. suggested the idea of organisation as a living system, or business strategist from North America Richard In their turn, these spheres correspond to three areas “If one had to E. Freeman, the author of the stakeholders theory. that jointly describe the new action ground of the single out one Communications Director of today, although still CCO: reason for the not in all organisations, is someone in charge of top executive tasks of the company, a decision-making 1. The area of institutional communication: clear rise of member of the Managing Committee, responsible related to the top management and general view of the company. the role of not only for communication, but also for the business in general, whose mission is to align one 2. The area of organisational communication:Communication with the other in order to create more value for the related to HR and internal culture. 3. The area of market communication: Director in company, that then will be shared with the society. related to commercial activities as well asorganisations, it From periphery to the centre of interaction with the market and clients. has to be the the decision-making process In this context Joan Costa quotes the famous This trend is confirmed by the growing role of the growth of new CCO at the time of developing strategic global saying of Pascal “I cannot understand the whole without understanding its parts, and I cannot technology, vision of the firm, that would integrate external understand the parts without understanding the stakeholders of the company and cut across the IT and whole organisation, against the background of whole” to emphasise the need for this function to be polivalent and polifunctional, able to exponential managing and promoting intangible assets and understand and align the entire organisation, overcoming limitations of the function that used increase of to come down solely to information relations and at the same time acting not only in the area of business, but integrating it in the society. information relations with the mass media. flows” Responsibilities such as reputation, corporate 12 new principles to guide brands, CSR, business ethics, organisational culture, the activity of the CCO business vision, sponsorship and patronage clearly go As it has been mentioned above, the new focus far beyond the traditional functions and shift CCO of the Communications Director’s role in general towards a new concept where tactic and short-term is determined by the changes in the organisations activities are carried out by his or her team, leaving and the impact of technology on business him or her the responsibility and time to focus on transformation. However, to be more specific, the activities associated with long-term value. focus is due to a set of new principles that drive corporate activities, 12 in total: Therefore, Communications Director operates in five different spheres, from the ones traditionally 1. The return to a strong corporate structure associated with this function to the new ones as opposed to divisional structure. that emerged recently, passing through the whole 2. Greater emphasis on talent and knowledge universe of communication: as opposed to mechanistic approach. 3. The need to involve the employees 1. Sphere of the words rather than use them as resources. 2 Sphere of the symbols 4. The importance of interpersonal relations 3. Sphere of the objects as opposed to centralisation. 4. Sphere of the environments 5. The importance of uniform organisational 5. Sphere of the behaviours culture as opposed to fragmentation. Books 2
  3. 3. Managing Figure 2: The areas of communication Communication in the Framework of the New Economy: the Present and Presidency the Future of Institutional Communications Communication Corporate Relations Director’s Role Corporate Image Corporate Development DirCom Organizational Communications Corporate Culture Internal Communication Human Marketing Resources Marketing Communications Advertising Trade promotion Branding Communication Direction Source. Costa, Joan (2012): El DirCom hoy 6. The culture of service and attention to ever are the true basis for financial achievements of individuals as opposed to industrialism. a company, regardless of its sector or activity. 7. Commitment to total quality rather than to product quality. Conclusion: companies want to be“Companies 8. The rise of intangible assets and their value brands, products turn into services. want to be as opposed to emphasis on tangible assets. 9. Construction of the public image The new concept of corporate communication brands, and rather than its projection. management has to be viewed in the current business context and the relationship that exists now between products 10. uilding institutional reputation rather B than emphasising business reputation. companies and the society. Instead of fighting, turn into 11. he role of ethics in behaviour of companies T companies now cooperate with the society, markets and persons when it comes to creating value. services. as opposed to short-term vision. 12. mplications of social responsibility I The paradigm shift implies a more holistic and This is the as opposed to egoism. integrated role of the CCO due to the fact that result of These principles were shaped by the society communication is no longer a one-way street, it has become interactive. Another reason is thethe mindset and economy of information, and in their turn appearance of new action principles that makeshift, where are bringing about the society and economy of reputation thanks to the current levels of companies reinvent the function and consider it from a strategic and global perspective. the stratgic transparency, requirements and control – a direct becomes consequence of the factor analysed before, the explosion of information. They are therefore a Companies want to be brands, and products turn into services - this is the new reality and scenario more reflection of the new economy. And in this new that we are facing today. This is the result of the important economy, communication management is looking for its new role and place in the organisations. mindset shift, where the strategic becomes more important than the tactic, the whole more important than the than the partial, the personal more important than tactic” The importance of this role is determined by the drive of companies to recover their social role in the artificial, the creative more important than the imitation, the close more important than the far, addition to the economic function and to develop the human more important than the mechanic. a long-term view in addition to the usual concern about survival and success in the short run. This trend leads to the rise of the communication function, which apart from establishing relations of the organisation with its environment, including its internal stakeholders, will turn this relationship into the main source of value, connect the organisation with its reality and expectations and based on that will develop a new meaning of being a company. Thus the main function of the Communication Director or the CCO is not only to make these principles compatible with economic requirements – turnover, margin, profit and dividends – but also to demonstrate that these principles today more than Books 3
  4. 4. Leading by reputation©2012 Corporate Excellence – Centre for Reputation LeadershipBusiness foundation created by large companies to professionalize the management of intangible assets and contribute to the developmentof strong brands, with good reputation and able to compete in the global market. Its mission is to be the driver which leads and consolidatesthe professional management of reputation as a strategic resource that guides and creates value for companies throughout the world.Legal NoticeThis document is property of the Corporate Excellence – Centre for Reputation Leadership and has as its objective to share businessknowledge about Brand, Reputation, Communication and Public Affairs Management.Corporate Excellence – Centre for Reputation Leadership is the owner of all the intellectual property rights of the images, texts, designsand any other content or elements of this product and has the necessary permission for its use, and therefore, its copy, distribution, publicrelease or transformation is prohibited, without express authorization from the owner.

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