The document discusses the role of CEOs in strategic communications as a catalyst for company performance and brand value, especially in the context of Chinese corporations. It highlights the challenges faced by these companies in acquiring global brands, navigating public relations, and adapting to a changing communication landscape. The need for authentic messaging and the CEO as a brand ambassador are emphasized as essential for achieving global competitiveness.

1. CEO Strategic Communications as a
Driver of Company Performance
Crocker Coulson, President
CCG
Dec 2011
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2. Largest 100 Global Companies
Fortune Global 100
30
13
11
9
5 6
US Germany Japan France UK China
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3. Most Valuable 100 Global Companies
Top 100 Public Companies by Market Cap
39
11
9
6
4
1
US Germany Japan France UK China
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4. Leading 100 Global Brands
Top 100 Global Brands
49
10
7 6 5
0
US Germany Japan France UK China
Source: Interbrand Global Branding Consultancy, a division of Omnicom
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5. Hidden Dragons, Timid Dragons
In October 2003 the Harvard Business Review predicted the rise of
a new breed of China global brands –
“China’s national champions are using their
advantages as domestic leaders to build global
brands. The country’s dedicated exporters are
attempting to enter foreign markets on the strength
of their economies of scale. “
-- “The Hidden Dragons,” Ming Zeng and Peter J. Williamson
What happened?
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6. China As Global M&A Player?
Mixed track record of success in acquiring brands…
Hits Misses
1.5 …and a modest pace of outbound FDI 1.3
1 0.9
0.462
0.5 0.23 0.19 0.19
0
2005 2006 2007 2008 2009 2010
China FDI into US (Billions USD)
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7. China’s Corporate Brand Contradiction
• China now #2 global economic power,
on the way to #1
• Chinese government’s Go Out Policy
encourages strategic acquisitions to
deploy massive ($3 trillion) forex “In addition to driving market
reserves and build global demand, brands also create
competitiveness value by enhancing the brand
owner’s ability to charge
• China’s corporate giants remain “hidden premium prices for their
dragons” products and services.”
-- Interbrand Best China
• Track record of high profile outbound Brands
acquisitions is miniscule despite rich
landscape of distressed assets
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8. Brand as a Manifestation of Values
A global brand is the result of a consistent set of principles
and actions that infuse the company from the very top
•
Brand Value Corporate Value
Innovation Fosters creativity
Quality Uncompromising excellence
Trustworthy Transparency and integrity
Global Diversity and global perspective
Inside-out-brand Outside-in-brand
Who I think I am What I offer customers
What I want to be What customers think about me
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9. CEO as the Brand Ambassador
Steve Jobs exemplified the power of obsessive,
integrated communications
•
• PT Barnum of the product launch
• Weekly strategy meeting with
marketing and PR team
• Obsessed over every ad campaign
and corporate message (“Think
Different”)
• Cultivated key reporters
• Major magazine covers with every “Innovation distinguishes
key product introduction between a leader and a
follower.”
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10. CEO as Change Agent
When Lou Gerstner brought back IBM from the brink of
bankruptcy he unified all communications around one single
message: e-business
•
• Agenda for deep strategic and organizational change
• Personal and thoughtful employee communications
• Unified vocabulary to talk about IBM across
thousands of global customers
• Set the R&D agenda
“Every senior executive made e-business a part
of his or her presentations and speeches. We
communicated frequently on the subject to our
people so they could understand and then
evangelize.”
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11. What is Public Relations?
Edward Bernays
“Father of Public Relations”
Classic public relations seeks to shape
the news and use third-party expert
opinions to “pull the wires which control
the public mind”
“This is the age of mass production.
In this age, too, there must be a
technique for the mass distribution
of ideas.” • Invented the press release
and product tie-in
“The best defense against
• Nephew of Sigmund Freud
propaganda: more propaganda.” • Taught women to smoke
and made bacon healthy
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12. Modern Discipline of Strategic Communications
The democratization of information driven by technology,
mobility and global linkages has rendered many classic PR
•
techniques obsolete
New Communications Landscape New Communications
Imperatives
• Decentralization of media outlets
• Authenticity
• Widespread skepticism regarding
• Radical transparency
political, corporate and media
authorities • Motivate and align
talent
• Bureaucracy impairs innovation
• Market credibility
• Globally networked, engaged
customers and public opinion • Customer fanaticism
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13. CEO Strategic Communications Toolkit
The best strategic communications synchronizes messages
across industry, employee, public, government and investor
constituencies
• Corporate story • User conferences • Employee letters
• Brand messages • Product launches • Townhall meetings
• Core values • Press conferences • Executive speeches
• Business strategy • Analyst days • Biographies
• Customer briefings • Placed profiles • Corporate website
• Corporate video • Case studies • Social media
Strategy Execution Reputation
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14. Defining Your Corporate Story and Voice
Every company must find the style, profile and communications
mix that is effective, authentic and distinctive.
• What are my company’s core values and aspirations?
• What is distinct about our corporate history, management
philosophy, and people?
• What is our position within our industry? (Established giant,
challenger, iconoclast)
• Do we have a unique view of the future?
• What level of personal exposure am I comfortable with?
At the core, effective communication is always about storytelling
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15. Common Challenges for Chinese CEOs
Chinese management is often hamstrung by ingrained
habits from effectively getting their message across on
a global stage
• Hierarchical management culture
leads to discomfort with debate
• Strengths in low cost, large scale
manufacturing and distribution
“For a vast majority of
• Minimal investment or focus on Chinese companies,
marketing and brand marketing is not even on
• Many industry giants are SOEs their organizational chart."
with strong policy mandates and – Scott Markman, Monogram
opaque decision making Group
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16. PR Perceptions and Realities
Western media and consumers are likely to respond poorly
to a “propaganda approach” to corporate messaging
Perception Reality
Role of Media Media should transmit truth Global media prizes
as company sees it independence and skepticism
News Value Our company is important Media needs an angle and
so media should cover us broader context
Public Relations It’s all about spin It’s all about credibility
Accuracy Bend the facts to suit the Verify the facts since the reporter
story certainly will
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17. China’s Social Media Problem
A “Social Media Revolution” is changing the face of business
with breathtaking speed
• If trends continue the population of
Facebook (approx. 900M) will soon
exceed that of the PRC
• China is cut off from major platforms
shaping global social and consumer
discourse • New Trends in the social media
world:
• Domestic SM platforms (Sina Weibo,
TenCent Weibo) provide viral sources
of truth and opinion that can decimate
corporate reputations “Learn from the masses and
then teach them.”
• China is increasingly “talking to itself”
– Mao Tse-Tung
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18. Case Study: Steady Progress by Global Brands
Haier Lenovo
CEO Lectures at top business schools Harvard Gartner Inc. and IDC announced Lenovo replaces
Business school and Wharton generating Dell to as world's 2nd-largest PC maker on Oct, 13,
international media coverage 2011.
Greenfield Investment: Setting up
Lenovo acquired IBM’s PC division in 2005 and sells
manufacturing facilities in South Carolina
Thinkpad under Lenovo Brand
Office Buildup: Operates its United
States offices in the Haier Building at Lenovo Chief Executive Yang Yuanqing says will keep
1356 Broadway, New York City pursuing acquisitions to boost growth
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19. Case Study: Alipay Dispute Damages Reputation
On May 10, 2011, Yahoo! said that
ownership of “Alipay” transferred
to 100% ownership by a separate
company owned by Alibaba’s CEO,
Jack Ma
In two press
conferences, Alibaba’s Recently,
Jack Ma asserted that Jack Ma
board, including says he is
Yahoo! and Softbank, making a
had been informed of potential bid
and approved of the for Yahoo
transfer
Previously a highly regarded business figure, Jack Ma now viewed as example of
problematic Chinese business ethics and compromised rule of law
How will this impact any future bid for Yahoo!?
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20. Case Study: Huawei Fumbles on Acquisitions
Despite leading technology and distribution profile Huawei has
abandoned two U.S. acquisitions after meeting political resistance
• Huawei seeks to acquire bankrupt U.S.
tech company 3Leaf
• No other viable bidders
• Political firestorm due to alleged ties to
PLA and U.S. sensitivity to pervasive
Chinese cyber attacks
Huawei Profile PR 101 Checklist
• #2 global telecom equipment provider Regular management interviews
• 110,000 employees, 55,000 overseas Comprehensive U.S. website
• 185 billion rmb revenues in 2010 Community involvement
• Claims 100% employee owned Proactive government relations
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21. China at the Crossroads
The Revolution is now: How will you transform as a leader
and as a company?
1) The era of propaganda and classic public relations is over
2) Strategic communications directly impacts brand, public
perception and business success
3) China Inc. faces unique challenges in building global brands
4) CEO must be the principal change agent and brand
ambassador
5) These issues will be pivotal to China’s efforts to build global
champions and achieve balanced economic development
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22. Passion - Accountability - Performance
Thank You
Dec 2011
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