Re-writing the CEO job description to ensure reputation protection
The role of the CEO in reputation protection has been headline news as the BP crisis rumbled on and Tony Hayward excelled in the role of pantomime villain. Events of the last three months have made it abundantly clear that crisis management (and more especially crisis communication) is an essential part of being a CEO. But I’d wager that it doesn’t feature in many CEO job descriptions. The most important thing that the CEO can do to prevent a crisis is to set the right culture. When Tony Hayward took over at BP, he stated that his number one priority was to reinforce a safety culture at the company in the light of previous incidents. Recent evidence would seem to indicate that he failed in this regard. When Akio Toyoda made rapid global expansion Toyota’s number one priority, the quality culture that was engrained within the company became diluted. The enormous recall earlier this year was, in part at least, a consequence of this dilution. Crises often occur because people on the front line of a business take short cuts as a means to achieving quicker or more profitable commercial success. They do so not because they are intrinsically unprofessional but because they feel that is what their bosses want them to do. Relentless messages about growth, profit and performance can be misinterpreted and drive good people to do bad things. So, it is the CEO’s responsibility to ensure that essential messages about delivering business success are balanced with clear guidance about the importance of safety, quality and customer service. Another crucial element of culture that helps prevent crises is the idea of “no blame”. Organizations ruled by fear and where the first mistake results in disciplinary action create a culture of cover-up and secrecy. In other words, the perfect breeding ground for a crisis. Avoiding this scenario requires recognition that the most effective crisis management takes place before the crisis has emerged (the old adage of prevention being better than cure holds very true in crisis management). If the CEO instils a culture of openness, short lines of communication and an understanding that blame will only be attached if a person spots a problem but doesn’t alert their manager to it, then incidents and issues can be identified and usually resolved before they become a raging crisis. The CEO bears ultimate responsibility for creating and instilling corporate culture. Their leadership in this area will play a key part in defining the organization’s vulnerability to crisis and therefore the preservation of the organization’s long term value. It may not be in the job description, but it might just be the most important thing the CEO ever does. Author
•Date: 3rd August 2010 • Region: World •Type: Article •Topic: Crisis management |
