A new breed of communication focused CEOs

By James Bennett, Managing Online Editor, Melcrum

I often ask myself how seriously high-profile executives take communications. On one side of the mahogany boardroom table there are those business owners whose complete lack of awareness and communication skills has brought their company to the verge of collapse. Take Gerald Ratner, former chief executive of the now renamed British jewellery company Ratners Group who achieved fame after making a speech in which he jokingly referred to his company’s profits as “c***” and remarked that some of the earrings he then sold were “cheaper than an M&S prawn sandwich but probably wouldn't last as long”. Immediately following his gaff Ratner watched as his business’s value plummeted by £500 million.

Read the latest article on the Internal Comms Hub on how to review your communication capabilities - five of the worst communication offenses and how to avoid them.

Fortunately, however on the opposite side of the table sit those execs that have learned from his and the mistakes of others and that have the foresight and vision to realise that a breakdown in internal communication can lead to disastrous consequences. Stephen Martin, CEO of UK construction company Clugstons and guest speaker at the recent SCM summit in October, for example, knew that he had to take evasive action to stop his business from declining. Employee morale was at rock bottom, management simply weren’t listening and, as a result, contracts were not being won and the money wasn’t coming in. So he put his professional reputation on the line and decided to go undercover and find out what the real issues were, all of which was documented on the recent Channel 4 series the Undercover Boss.

I met another of this new breed of comms savvy execs at the launch of the new Sony Ericsson Xperia X2 business phone last night. A device exclusively available at Vodafone, my friends tell me. And she, along with Martin assured me that communication is “the most important element there is in business”.

“Always being the last to know and not being guided or communicated to when there are huge changes going on can be one of the worst things to happen if you’re an employee,” says Karen Brady, the recently departed managing director of Birmingham City Football Club and now non-executive director of Sport England and the England 2018 World Cup bid, Mothercare and, ironically Channel 4 television. “On some occasions my staff were the last to know at Birmingham City,” she added.

From her early career at advertising agency Saatchi & Saatchi, Brady moved to the London Broadcasting Company (LBC) where she managed an account for publisher and now ex Birmingham City owner David Sullivan, who following encouragement by Brady, spent more than £2m on advertising in just six months. At the age of just 23 Bra then famously spotted an advert for the sale of the football club and persuaded Sullivan to buy it and let her run it. Her business acumen has made her a wealthy woman, however she says it has been her belief in “talking and communicating openly and honestly” that has got her to where she is today.

“It’s very important to always talk with your staff. To manage a team effectively you have to keep an open dialogue, an open means of communication. What you communicate internally should be the same and you communicate externally and I’ve always believed that.”

Her communication mantra as well as her skills will soon be put to the public test in the forthcoming sixth series of the BBC’s Apprentice where she has recently replaced the stern and steadfast Margaret Mountford as one of Sir Alan Sugar’s two chief advisors.

But will the next series of The Apprentice be as “backstabbing” as the last where, in my view, communication often broke down between contestants as they threw barrage upon barrage of insults and personal attacks on one another in order to survive another week on the show and become Sir Alan’s new protégé?

“We’re still filming so I can’t say that much but we are really trying to get across to the contestants that communication between the two sub teams is crucial in learning how to manage and become a good manager,” she says.

I’m sure there are more executives like Brady and Martin out there. Now all I have to do is find them.