Greentarget

Special Situations

by

If you’re a business leader, the Great Resignation poses a significant threat to your firm’s wellbeing in 2022. We believe the best way to address that threat is to start treating your talent with the same emphasis you historically place on attracting and serving clients.

As unprecedented numbers of experienced professionals re-evaluate their careers and exit their industries altogether, you’re faced with a significant challenge. How do you attract and retain the employees who will drive your business forward? If you’re in the legal industry, you’re likely aware that associate turnover at the nation’s largest law firms increased to nearly 25% in 2021 – up from 18% in 2019 – an alarming number that likely explains the historic rise in associate salaries, that also is an imminent talent and financial risk to firms in 2022.

We’re seeing similar attrition in other segments of professional and financial services, as well – and this isn’t just a problem for your HR and marketing teams to solve. As a business leader, you’ll need to personally make sure your firm is the kind of place where the most talented people want to spend their time and devote their efforts. In fact, you’d be wise to prioritize this issue ahead of client growth for the foreseeable future.

Here’s how to make your firm an employer of choice amid one of the most competitive and challenging hiring landscapes we’ve ever witnessed.

Define and Communicate Your Firm’s Behaviors

Although often conflated, your organizational values and culture are not one and the same. Values are what you say. Culture is what you do. Behavior is the connective tissue that links your stated values to the boots-on-the-ground reality of what it’s like to work at your firm. When your values inform and influence behavior on a consistent basis, you have a healthy culture that’s worth joining. 

It takes intentional effort to create a values-infused culture. Here are two ways to get started.

1. Talk to your talent 

It sounds simple, but very few professional services organizations communicate with their own people with consistency and intent. If you’re like most professional services organizations, you interview your clients on a regular basis. And that makes sense — you want to know that your relationships are healthy and that your account teams are delivering the value you’ve promised. 

But are you regularly conducting similar interviews with your employees – beyond an annual performance review or other HR-led initiatives? Understanding your culture begins by collecting qualitative insights from across your organization. Imagine what you could learn if you created a safe atmosphere for employees to answer questions like:

  • How would you describe our culture to your family?
  • Does the way we approach our day-to-day work match our values?
  • Do you believe our core values are an accurate reflection of how we behave as an organization?
  • Is this an environment where you feel confident that you can reach your individual goals?
  • Why do you think we exist as an organization?

Of course, these conversations will only be useful if your employees are candid with you. To earn their trust, leaders should demonstrate vulnerability and a genuine desire to listen and show that they’re willing to invest the time to shape and own this process. That’s the best way for it to truly have an impact.  

2. Articulate the Specific Behaviors You Expect at Your Firm

After you obtain a clear understanding of your current culture, spell out the specific behaviors that will create the type of environment you want your firm to embody. Your mission statement should drive your organizational values, and your values should then influence and inform the behaviors you expect.

For example, Greentarget’s mission is to drive smarter conversations for our clients. In pursuit of that mission, we value being authentic, working hard, embracing curiosity that drives creative thinking, embracing the stretch and growing as individuals and as a team. But without specific behaviors that bring those values to life, what we value are just words on a page. To really bring this to life, we identified the concrete actions we need to take to solidify our culture. These include:

  • Drawing on colleagues
  • Asking insightful questions
  • Focusing on the details 
  • Responding with “yes…and”
  • Bringing fresh thinking 
  • Staying informed 
  • Building personal connections
  • Embracing inclusivity 
  • Recharging strategically 
  • Getting uncomfortable 
  • Asking “how can I help?”

Take time to define and communicate the mission, values, and behaviors that will attract the best and brightest talent. Compile persuasive stories about your employees’ achievements and successes. While a competitive salary might be the element that gets a prospective employee’s attention, an authentic, purpose-driven work environment is what will inspire them to stay. Purpose-driven team members seek out and stay with organizations where they feel they have strong relationships, are making an impact and see the opportunities for growth.

And keep in mind this isn’t a “one and done” exercise. There’s a reason author and consultant Patrick Lencioni fondly refers to the CEO as the “Chief Reminding Officer.” Great leaders articulate the behaviors they expect, emulate those behaviors themselves and then remind, remind, remind until they’re sick of hearing themselves talk about it. (And even then, they keep going).

Take on New Clients Based on Whether They’re a Good Fit for Your Team

Your internal culture is important. But it’s not the only factor determining whether your employees remain happy and fulfilled at work. Your clients also play a significant role in shaping your team’s day-to-day experience. 

That’s why it’s so important to consider client engagements carefully. No one wants to work with a client who is harsh, demanding and capricious. Difficult clients deplete your employees’ motivation and hinder the creativity necessary to do great work. 

Likewise, you should be careful to take on clients whose values align with your own. For example, if one of your core values is authenticity, don’t take on a client who pushes your team to misrepresent the truth or uses passive-aggressive behavior to bully your team. That only undermines your firm’s stated ideals and communicates the wrong message to your employees. 

Greentarget evaluates new client engagements using a quadrant that plots them based on financial opportunity and cultural alignment. Even if the potential client could bring significant revenue to the firm, we turn down the work if there are signs of low cultural alignment. We’ve assessed what we’ve learned over the years about strong client relationships, and we use this list to assess “fit” using more than our gut instinct.

There is plenty of client work to be had — especially in today’s climate. Be choosy about whom you welcome into the fold. Engage clients who are a pleasure to work with and who will treat your employees with respect. These engagements foster the best collaboration between your team and their clients, which in turn will keep them motivated, engaged and loyal.

A client once told us: “I want to be the account that your team is clamouring to join. The one that people talk about around the lunch table with appreciation. That’s how I know I’ll get your best and most creative work.” What does that type of client look like for your organization?

Prioritize Talent to Realize Greater Success

The only way you’ll meet your growth targets is if you have the talent to support your business objectives. And it will take more than pay and incentives to overcome the challenges brought on by the Great Resignation.

The good news is your culture can become a differentiating factor that attracts and retains the employees you need to drive your organization forward. A leading technology-focused professional services firm with an enviable culture and impressive DE&I track record recently added “Culture” to the head of communications’ title and responsibility. This individual is now focused both internally and externally on continually demonstrating and celebrating the firm’s most important cultural assets, initiatives and successes. This is an excellent example aligning culture and brand. 

You too can prioritize culture and employee experience over client growth, thereby creating the conditions that will ultimately lead to higher levels of success. And rest assured – if you take care of the talent, the revenue will follow.

by

Professional services firms are under more scrutiny than ever when it comes to the clients they represent. Employees are no longer reticent about protesting clients they consider unsavory. We’ve seen other stakeholders and the public actively lobby firms to drop certain clients, as well. 

Think about the way at least three law firms distanced themselves from representing the Trump administration after initially agreeing to help challenge election results. Public and internal pressures forced these firms to reconsider their willingness to be involved.

Controversial scenarios like this can land on the doorstep of any professional services firm.  To protect your firm’s reputation in an era of more aggressive social activism, you can mitigate risk by considering carefully which clients you’re willing to work with.

Professional services firm can do this by applying the logic investors are increasingly using – it’s associated these days with three letters: ESG.

ESG Minimizes Risk and Maximizes Long-term Results

In the financial services realm, investing with a fund manager who touts a strong commitment to environmental, social, and governance (ESG) practices is not just about making a positive social impact. It’s also a way to reduce the likelihood that your investment will lose value while increasing the likelihood of positive returns over time.

Companies with weak ESG performance often find themselves in situations that can lead to a decline in valuation. If a company is cutting corners on safety protocols, harming the environment, or exploiting its workers, there’s a much greater likelihood it’ll eventually be sued, fined, or otherwise penalized, which can negatively impact its stock price. Activision’s shares have tumbled since revelations of sexual misconduct among its employees, a clear failure of governance. So an investor or fund manager may choose to benefit society by putting her money into a company or a fund with stronger ESG standards, sure, but it should also de-risk her investment.  

How is this strategy relevant to who professional services firms take on as clients? Like investors, they should weigh the short-term gains they stand to make against the long-term risks associated with their choices. Is the initial financial windfall of working with a client of questionable or dubious integrity worth a ding to your firm’s reputation?

Socially Responsible Investing is a Way for Investors to Live Out Their Values

There are firms who choose to represent society’s most controversial and polarizing characters as a matter of principle. In the legal industry, for example, firms rightly argue that everyone deserves skilled representation, even those who some may consider unsavory. That’s certainly true, and if the employees and stakeholders of those firms know that is how they make decisions, there’s less risk for those firms. But when a firm purports to hold certain values and then makes decisions that contradict those values, the firm takes on significant reputational risk.

Assuming you’ve taken steps to define your values, applying an ESG investment lens to client selection can help you live them out.

Ethical investing got started in the 1980s when students in the U.S. demanded that their colleges and universities divest from companies that did business with the apartheid government of South Africa. Over the years an investing strategy known as “exclusionary screening” became popular, wherein investment managers would screen certain industries out of their portfolios. Tobacco, firearms, pornography, fossil fuels, etc., were common targets. 

Investors have largely moved from screening out whole industries to selecting best-of-breed companies across all sectors of the economy.  Regardless, protocols aligned with your corporate values can help you make decisions about the types of clients you’re willing to represent or the kinds of projects you’re comfortable taking on. Failing to make decisions in this way can cause backlash among other clients, employees, and even law enforcement.

Google, whose motto remains “Don’t Be Evil,” faced intense blowback when employees discovered its plans to work with the Pentagon on a project using artificial intelligence technology. After workers spoke out, walked out, and even resigned in protest, Google abandoned the project. Executives recently announced they’ll be exploring another contract with the Pentagon — but this time Google took care to explain how this decision fits with its principles.

PR giant Edelman has been assailed recently by employees who decry statements it made praising COP24’s “new level of international consensus that climate change is an existential threat,” calling for “more scrutiny of corporate climate lobbying efforts,” and arguing that many pledges made at the conference “fall short of what is necessary to avert climate disaster,” all the while representing companies that exploit fossil fuels and the trade groups that lobby for them. 

McKinsey advised the pharmaceutical industry for years about how to increase opioid sales at a time when abuse of pain medicine was widespread. Sued by 46 states’ attorneys general for contributing to the opioid epidemic, the firm ultimately apologized for the work and paid a $573 million settlement to resolve investigations into it conduct, though the firm remains beset with fresh lawsuits. To avoid such entanglements in the future, the CEO Kevin Sneader struggled to draw bright-line rules around the kinds of industries from which it would no longer take clients, including defense, intelligence, justice or policing institutions in nondemocratic countries. Consensus among its partners on this has been difficult to achieve, and the divided opinions are said to have contributed to the Sneader’s ouster.

Investing in Funds with a Low ESG Index Can Influence Positive Change, Too

Sometimes, investors with a strong ESG commitment still invest in companies with environmental, social, or governance liability, but make this seemingly contradictory decision to encourage a company to change. For example, they might invest in an oil company to influence management’s decisions around replacing fossil fuels with renewable energy.

This logic might guide you to take on projects or clients that appear to be objectionable on the surface but have the potential to drive reform.

One example of this is impact litigation, which Harvard Law School defines as filing or defending lawsuits focused on changing laws or focused on the rights of a larger group of people than is directly involved in the suit. On the surface, such representations could beg the question, “Why are you doing this work?” But under certain circumstances, a firm may enter unsavory territory not only to earn fees, but also to make the world a more equitable place for more than just its client. Alan Isaacman’s work on behalf of Larry Flynt, published of Hustler in Hustler Magazine v Falwell, a landmark First Amendment decision, is a clear example. Indeed, John Adams’ defense of the reviled British soldiers who fired on colonists at the Boston Massacre in 1770 – rooted in his concern for the rights of the innocent and the rule of law – reveals how this practice has long been a feature of American jurisprudence. 

Make Business Decisions that Align with Your Firm’s Values

Whether you’re more concerned with mitigating risks to your firm’s reputation or using your talent and expertise to effect social change, the business decisions you make are most defensible when they align with what are commonly understood to be your organization’s values. Applying an ESG filter can help your firm make choices that maximize long-term earnings over short-term gain, enter boldly into social reform territory, or screen out clients and projects that don’t fit with your core principles.

It all comes down to who you are and what you want to represent. Define your values. Communicate them to your clients, your employees, and the community at large. And then commit to making decisions with those guidelines in mind.

by

Journalists continue to feel they’re the last and best defense against the spread of fake news. Yet only 14 percent say their own efforts have a significant impact on improving the situation. And they’re skeptical that mitigation efforts such as media literacy campaigns and anti-fake news laws will do anything to turn the tide. 

According to our 2021 Fake News report, 84 percent of the 103 journalists surveyed agreed that the weaponized use of the term “fake news” — i.e., when it’s not being used to describe misinformation and disinformation — is contributing to the delegitimization of traditional media and news sources. Furthermore, 89 percent believe that actual disinformation is as dangerous or more dangerous than no news at all.

As a former reporter, I understand journalists’ cynicism — a sentiment common in newsrooms even in happier times. But I also think journalists are wrong to take such a bleak view. From my vantage point, there are two actions that would reduce fake news’ impact, at least over the long term.

We absolutely should support reform efforts around Section 230 of the Communications Decency Act. And we must simultaneously invest in media literacy education efforts. Here’s why.

Lobby for Section 230 Changes to Hold Big Tech Accountable 

A thriving free press plays a vital role in speaking truth to power and holding people accountable for what they say and do. And that means disinformation and misinformation’s threat to journalistic credibility is a threat to the very fabric of our democracy. 

We asked journalists what, if anything, can be done.

Journalists don’t believe Big Tech’s efforts to police themselves will be effective. There are plenty of instances, including a Facebook insider-turned-whistleblower, to suggest they’re spot on about that. 

But when we asked journalists if the government should move forward with amending Section 230 of the Communications Decency Act and enforce greater regulations on Big Tech, the response was lukewarm. Fewer than half believed reforms were necessary, and 38 percent remained neutral on the subject. Those who definitely did not support reform were more forceful in their responses. One respondent adamantly said, “Free speech shouldn’t be trampled on.”

It’s understandable and commendable that members of the press are protective of the First Amendment. But there are already limits to free speech that act as guardrails for society. And amending Section 230, if done right, can be another smart limit.

Section 230 currently grants broad protections to internet platforms — including social media giants — from liability associated with comments made by their users. But the law was written 25 years ago, long before the advent of the digital-first era and prior to social media’s ubiquity. It doesn’t — how could it? — account for the vast reach disinformation can have in today’s world. And it certainly doesn’t factor in the algorithms and machine learning that propagate fake news while turning a profit for the platform itself.

Given that both sides of the political divide have legitimate concerns about the power of Big Tech and its influence over our society, it seems feasible that lawmakers could reach consensus about reform. Holding social media and Big Tech accountable through greater regulation could be an important first step in stemming the tide of fake news and reducing its harmful impact.

Stay Active in Media Literacy Efforts 

All that said, I can understand cynicism by journalists and, really, most people about the government’s ability to regulate our way toward ending fake news. Gridlock has been a fixture in Washington for a long time to say nothing of how journalism’s very integrity was attacked by the highest office in the land for four straight years.

But it’s surprising that reporters and editors are also so cynical about the potential for education to make a difference. Only 33 percent of respondents felt media literacy efforts have a high or moderate impact on lessening the spread of fake news. One in five said they had no impact at all. 

Journalists should hold out a little more hope about the positive effects of education. This report found that media literacy intervention in the U.S. and India “improved discernment between mainstream and false news headlines” by 26.5 percent. Meanwhile, media literacy efforts are increasing across the nation. In fact, 14 states have taken legislative action aimed at teaching media literacy to K-12 students. Illinois recently became the first state in the nation to mandate all public high schools include media literacy as part of the curriculum. And in Colorado, lawmakers enacted legislation to create an online repository of media literacy resources that teachers can easily access and use.

It will take time, but media literacy efforts have the potential to help a new generation engage with media in a more responsible, discerning way. Only when audiences have the knowledge to help identify disinformation and misinformation themselves will they think twice before hitting that “share” button. They might even take time to debunk the bad information they see on social media if they’ve been taught how to do it. 

If Journalists and PR Professionals Don’t Take Up the Fight Against Fake News, Who Will?

We can’t afford to throw up our hands and give into cynicism when it comes to the future of our society. We must lean into opportunities that will make a difference. That means being open if not supportive to reforms to Section 230 of the Communications Decency Act or other ways to leverage regulation so it can catch up with technology, like perhaps taking a different view on antitrust law.

But it also means not waiting for the government to act. We need to do our part to invest in media literacy efforts in our communities. That might mean supporting nonprofits committed to advancing this cause. Or it could involve volunteering to speak in a classroom and work with students first-hand.

In the coming months, Greentarget will be renewing and ramping up our investment in local media literacy education efforts. And we’ll continue to stand with journalists to combat the negative effects of fake news. 

by

To enhance their company’s reputation in a complicated social landscape — and to ensure long-term profitability — elevated CMOs must design smart, authentic ways for executives to communicate about public responsibility.  

“Agua!” That one simple word sent Coca-Cola’s stock plummeting by $5 billion when elite soccer star Cristiano Ronaldo moved two bottles of Coke out of view and asked for water during a press conference. No matter that the soft drink giant was the UEFA European Championship’s sponsor. The meaning of Ronaldo’s gesture was clear: As a health-conscious athlete, I drink water, not Coke. 

And just like that, Coca-Cola experienced the economic impact of dragging their feet. How long have they known that their signature product increases the risk of insulin resistance, obesity, type 2 diabetes, and high blood pressure? And how long have they sidestepped using their power to positively influence health and wellness in a meaningful way?

It’s not an option for companies and their leaders to avoid entering into the fray of complex social challenges anymore. You might not be selling beverages that have the potential to damage people’s health. But your stakeholders still expect you to hold your professional services firm accountable for the ways in which you do impact your community. 

As the C-suite’s new utility players, forward-thinking CMOs will help executive leaders skillfully participate in challenging, important conversations across a spectrum of social concerns. Use the following questions as a starting point to help your CEO enter into — and influence — the dialogues that matter in our world today.

How Do We Communicate Effectively in an Era of Reform?

As the keeper of your company’s narrative and steward of its expressed written mission, you are the best-placed, most-equipped person to serve as the company’s sextant. In this capacity, you’re required to measure the angles between controversial social issues to help your brand navigate uncharted territory.

In The Square and the Tower, Niall Fergusson offers a warning to CEOs who seek to maintain control using outdated, top-down methods. He says, “Hierarchical institutions have been challenged by novel networks, their impact magnified by technology…We should probably expect continued network-driven disruption of hierarchies that cannot reform themselves.”

Reform is hard. So is dismantling age-old expectations and norms associated with positions of power. But we can’t afford to bury our heads in the sand as social issues increasingly become business issues. Nor can we rely on authoritative communication styles of yesteryear. Rather, we must communicate with vulnerability and demonstrate a willingness to listen. If we don’t reform ourselves, we will be left behind.

But in order to help your CEO traverse this new terrain, your organization needs to grapple with a foundational question. What do we stand for? 

What Issues Should Our Professional Services Firm Speak Out About?

The CMO-as-sextant role requires you to articulate how your company’s brand promise plays out in a charged social and political environment. To do it well, you must be truthful and authentic while simultaneously remaining accountable. This is necessary even if — or especially when — your best efforts to do better are met with criticism. 

For example, remember when Dove tried to make bottles that reflected body diversity or when Target introduced transgender lavatories? Some sang these companies’ praises. Others decried them. But despite backlash, both companies boldly sparked conversations that were necessary and valuable — and that were in line with their own stated values.

In the professional services landscape, many firms are making a concerted effort to include Environmental, Social, and Governance (ESG) reporting in their mantle of accountability. Lawyers, accountants, investors, and engineers measure ESG to answer to stakeholders and governments. But the thoughtful CMO should be thinking about how executives can communicate ESG-related issues to all audiences. 

Furthermore, CMOs can and should measure audience sentiment and response to these efforts. In this way, CMOs can connect the dots for executives and show how speaking out on societal issues can impact brand reputation.

ESG is just one example. You may be focused on going beyond the performative in how your firm responds to issues of racial injustice. Or you might want to combat misinformation and speak out against fake news. Whatever the issue, it all comes down to this. What are your firm’s values? What issues matter to you? And in what way do you hope to leave your corner of your industry better than you found it?

Is it Time to Communicate a Broader View of Profitability?

Part of charting a course toward a different, reformed future is opening an authentic conversation about what it means to be profitable. That’s because stakeholders now demand that the pursuit of profit be tempered by a concern for doing what’s right. It’s not enough to make money. Organizations also need to consider the planet, marginalized groups, future generations, and society as a whole. 

Weigh what it might mean for your CEO and your firm to embrace a more holistic view of profitability. How would that allow you to communicate a meaningful brand promise to your stakeholders and audience? What stories can you tell about the ways your firm is integrating business needs with social needs? And how might this evolved approach to financial governance actually lead to greater loyalty and commitment from stakeholders, employees, and clients?   

Revenue is important. But if we want to create a more just, healthy, and sustainable world, it just might begin by expanding our definition of profitability.

CMOs Must Continue to Equip Executives to Communicate About Social Concerns

If your CEO doesn’t take a stand on an issue or concern that resonates with your market, somebody else will. And if that ‘somebody’ happens to have the power and influence of Cristiano Ronaldo in the Digital Age, watch out. 

Your stakeholders expect vulnerability, authenticity, accountability, and a willingness to listen. So in order to augment your organization’s reputation and remain profitable in this new era, you need to prepare your CEO to engage in challenging conversations. All of that starts by asking the right questions.

If you’d like some help directing conversations that matter at your firm, connect with us. We’d love to hear from you.

by

If you’re a baseball fan – almost regardless of which team you root for – New York Mets infielder Javier Báez is among the players you enjoy watching most. That’s largely because, since 2014, Báez has done things that almost no one else does, like this absurd play in Pittsburgh in May.

But Báez recently saw how being the center of attention can backfire – and demonstrated the tricky path public figures and organizations on the whole must walk these days. On one side is an increased emphasis on authenticity. On the other is the very real possibility that in speaking publicly, and from the heart, feet will occasionally end up in mouths.

What happened with Báez and the Mets provides good lessons for leaders of professional services organizations. In addition to illustrating the challenges around authenticity – especially in the age of social media – it showed the danger of overreacting and why building up a reservoir of goodwill has never been more important.

The Foot in the Mouth

On July 30, the struggling Chicago Cubs traded Báez – a team legend who played a key role in its  historic 2016 championship – to the playoff-hopeful Mets. For a variety of reasons, the Mets played poorly in August and, for fans, Báez’s positives weren’t outweighing his negatives, prompting boos Báez rarely heard in Chicago. Mets fans hadn’t seen enough of Báez’s flair on defense or as a baserunner – or his bat’s ability to carry a team for weeks – to look past five strikeouts in a game against the Marlins.

After the boos started, Báez and other Mets began celebrating big hits by pointing their thumbs down. When asked after a game to explain the gesture, Báez put his foot in his mouth. It’s worth reading his comments in full, but Báez basically said that he and other Mets, after performing well, wanted to let fans know how it felt to be booed.

What happened next was anything but subdued – and was also fairly predictable. The Mets owner and team president came out against Báez’s comments. The New York tabloids did what New York tabloids do. And Báez apologized a couple days later, sounding somewhat convincing and saying that he wasn’t booing the fans — but that his gesture was almost a subdued “How do you like me, now?” after their previous criticism.

But the damage, at least at that moment, was done. Pundits speculated that Báez had cemented his future as an ex-Met and hurt his chances generally in free agency this offseason. “It’s impossible to think of another prospective free agent making a bigger public relations mistake,” longtime baseball writer Buster Olney said.

How to Try to Avoid Flubs – and Prepare for Them

For professional services organizations, the first lesson from Báez’s verbal misstep is that being authentic doesn’t mean throwing caution to the wind. Báez and most athletes likely go through media training, but they’re also constantly bombarded with questions. Individuals who work for professional services organizations have fewer opportunities to make these mistakes and therefore less of an excuse for making them.

Preparing for interactions with reporters is crucial because of how quickly the wrong thing said in today’s 24/7 media climate can wreck a reputation, or do damage to an institution. But preparation should go beyond one-off prep sessions. If organizations have their houses in order from a communications and public relations standpoint – and have invested in developing a solid reputation that builds up a reservoir of goodwill – that’s the best way to be authentic without taking on too much risk.

This may be a long-term process, but it can provide a sort of communications resiliency – broad shoulders that allow an organization to take a PR hit every now and then. The Mets didn’t have such a reservoir in the lead up to Báez’s comments. Their previous GM was fired after a sexting scandal, the team’s owner publicly calls out underperforming players and there was even the highly implausible explanation for a team dustup about whether an animal in Citi Field was a rat or a raccoon.

When Flubs Happen

Like sports teams, professional services organizations are comprised of individuals who might say the wrong thing to a reporter, post something they shouldn’t on social media or simply do something in life that draws the wrong kind of attention. But it’s important that organizations don’t overreact in the heat of these moments.

Whether the Mets did that here is debatable – some might say quick action was needed – but at least one well-known baseball blogger called out Mets executives for their comments. “I get that the fans are the meal ticket, but the fans don’t fan without the players,” the blogger, Brett Taylor, said. “Praising the fans for booing the team ain’t exactly the best way to get on the players’ good side when you need them most.”

Perhaps the Mets could have figured that into their thinking, along with the realization that the glare of the modern spotlight is bright but especially fleeting. It certainly was when it came to Báez’s comments.

The day he apologized, Báez would go on to be key in sparking a huge come-from-behind win, including a big hit and baserunning straight out of his best days in Chicago. In an amusing footnote, a top Mets executive joined the Mets ground crew following the come-from-behind win in searching for an earring Báez lost around home plate while he was celebrating the big win with his teammates to the cheers of thousands.

The Mets’ struggles resumed after the win, and they’re now all but out of postseason contention. But Báez certainly isn’t to blame, with a strong performance that quieted the boos. His apology before the Mets’ come-from-behind win came on September 1, and he has a .380 batting average this month and (for more statistically inclined fans) a 1.118 OPS. It’s hard to see Báez getting blamed for the team’s shortcomings, with even the New York tabloids coming around in recent days.

That same tabloid pointed its finger at someone else as far as blame goes – controversial team owner Steve Cohen. One wonders how a smarter PR strategy might have avoided many of the Mets’ problems this season.

by

Count the headlines earned by Amazon, Berkshire Hathaway, and Merck when they announced their CEO succession plans – turnover at the most senior levels gets attention. It may be one of the few “all eyes on you” moments a firm can count on.

As such, these moments present valuable opportunities for a firm to articulate strategy and communicate a fresh vision for the future. However, recent research has found that most organizations are unprepared for the opportunities –and challenges –that a turnover will bring. 

In a new report we worked with History Factory to develop, 90% of the 160 c-suite respondents surveyed agreed with the statement, “in today’s unpredictable environment, succession planning is more important than ever.” Yet the report also showed that less than half of corporations have taken the time to develop a succession plan. This is particularly remarkable considering that CEO changeover reached 20-year highs in 2019 — and after a brief pandemic-induced pause, now continues to rise. 

Greentarget has helped many clients manage leadership transitions at the c-level. Given these experiences and the market research we conducted with History Factory, we recommend that leaders consider the following when facing turnover in the c-suite.

1.  Tell a Compelling Institutional Narrative

An executive transition is one of the few occasions where your firm will garner earned media attention and public interest, whether you’re actively seeking it out or not. What’s more, the passing of the baton gives you a rare strategic opportunity to refresh your firm’s market position, either by affirming your unique value proposition, previewing a strong new direction, or underscoring your commitment to serving clients and stakeholders.

Keep in mind, though, that most people view CEO transitions with some level of suspicion. For example, a company’s stock price almost always takes a hit when a new CEO is announced. This happens even when a company rolls out thoughtful transition communications. “What’s really going on over there?” is bound to cross the minds of more than a few stakeholders. 

Your audience will want to know the why behind a high-profile change. So seize this moment by telling them a compelling story you want them to remember. Share your outgoing leader’s accomplishments. Lay out the meaningful strides your company made during her tenure. Then paint a picture of what your firm is capable based on this strong foundation.

2. Capture the Intellectual Capital of Your Outgoing CEO

Recent research published by Harvard Business Review quantifies a startling truth: the amount of market value wiped out by badly managed CEO and C-suite transitions in the S&P 1500 is close to $1 trillion a year.  That’s trillion with a T. Among the primary reasons for this, the researchers argue, is the loss of the outgoing CEO’s intellectual capital. 

Don’t let a veritable wealth of information walk out the door with your departing leader. You need to thoughtfully gather that institutional memory so it can be transferred to your incoming CEO.  

Your incoming leader needs to demonstrate an awareness of:

  • Company timelines and achievements
  • Market position and competitive analysis
  • Industry challenges and trends
  • Past and current strategic priorities
  • Organizational ethos and values
  • High-profile client accounts, past and present
  • Employee culture, including talent-related strengths and opportunities 

History Factory’s report offers thoughtful guidance and examples on how to draw institutional memory out of your departing CEO and use it to prepare the new leader. Reflect this transfer of institutional memory in your communications plan to convey stability and momentum. Your audience and stakeholders need to be confident your organization won’t take a step backward as a result of the transition. They need to know your incoming leader is sufficiently aware of the past to be ready for the challenges that lie ahead.

3. Communicate the Value Your Incoming CEO Brings (But Don’t Rush to Herald a New Vision)

Introducing your incoming CEO can be tricky. You want that person to lead, but you also want your employees and clients to confidently follow. While you may be eager to signal a new direction, vision, and momentum, resist the urge to move too quickly. After all, CEOs who introduce a bold new direction right away run the risk of alienating employees, clients, and stakeholders in the process. It’s more important for the new leader to affirm your firm’s organizational culture and demonstrate genuine excitement about becoming part of it.

Rather than introducing the specific priorities your CEO will tackle, focus on communicating the value your new executive brings to the table. (For example, are you one of the increasing number of companies appointing its first woman or person of color as CEO?) Share why they are best suited to lead the organization into the future, and give them adequate time to formulate their compelling new vision. 

Are you promoting a leader from within? Tell the story of that person’s journey at your firm. How has your outgoing CEO offered valuable mentorship and leadership along the way? In what ways will the new leader build on and enhance the strategic direction your firm has taken to this point?

Only after your new CEO has had a chance to get the lay of the land should you really hand over the microphone. It’s time to broadcast his vision for the future while continuing to value the good work you’ve already accomplished.

A Positive CEO Transition Requires Thoughtful Succession Planning

To navigate the challenging dynamics of an executive transition, you need a solid and thoughtful communication plan. This is your firm’s newsworthy moment. Make the most of it by telling a compelling institutional story, capturing and transferring your outgoing CEO’s intellectual capital, and introducing your incoming CEO’s vision thoughtfully. 

You don’t have to go it alone. We’ve been down this road before. We’re well-positioned to help your organization seize the strategic opportunity an executive transition offers.

Want to talk it through? Just reach out — we’d love to hear from you.

Close
Close