By James David Spellman
Rupert Murdoch’s long, imperious reign has left News Corporation without a designated successor but with the likelihood of high-profile, internecine power struggles among family members and shareholder factions to choose a new leader.
Deutsche Bank was locked in a bitter kerfuffle between the supervisory board chairman and the chief executive before announcing in late July a dual-management structure.
While on leave for health reasons, Apple’s chief Steve Jobs dismissed as “hogwash” reports that some board directors had contacted search firms and possible chief executive candidates.
These crises demonstrate the lack of preparation by major companies to have transparent, orderly and visionary succession plans in place.
Apple’s arrogant handling of Mr Jobs’s health issue shows that rumours earn front-page coverage, investor uncertainty escalates, and steely “no comments” from public relations officers only compound the sense of impending doom.
Worldwide, many prominent companies are confronting succession challenges.
Succession planning is tough for any company, particularly those where one person for so long has been the brand, the genius, and the patriarch.
But the consequences of poor or non-existent succession planning include reduced performance, higher turnover of senior management, market share loss to more aggressive and focused competitors, irreparable reputational damage, and scepticism among institutional investors. All of these undermine share valuations, studies show.
Boards with long-term horizons, ongoing monitoring of both their leadership teams and future candidates (internal and external), and well-connected directors whose networks provide good intelligence on CEO recruitment are signs of well-governed companies with promising outlooks for orderly transition, according to one researcher.*
These findings underscore why investors need to include a rigorous review of succession plans as part of their due diligence in assessing whether a company is a good or bad investment opportunity.
Too often, this seems a low priority compared to the headline issues of “say for pay”, “proxy access” and “independent directors”.
When companies post strong profits, complacency and grateful deference reign.
Should disputes arise over succession within a board, it is unlikely they will have dispute resolution policies and practices in place to channel hostilities into solutions rather than fuelling the destructive dissensions.
Chairmen and chief executives dislike succession schemes because history is replete with examples of how “heirs apparent” dilute authority and their off-stage presence fuels paranoia that backroom deals may lead to an expedient dismissal.
Problems in succession planning abound. Poor governance practices generally may mean a rudderless, inept board. Directors may go through the motions, thinking the likelihood of their current leader turning over the reins to be a distant concern.
Boards may be at a loss as to what the company needs in a leader, reverting to the highly personalised traits, skills and vision of the current leader (“we need another Elizabeth”). Merit may succumb to politics, force, personal agendas and corruption.
Succession planning for the top position tends to be pursued independent of a company’s recruitment and human resources policies. Best practice demands that companies cultivate and elevate those from within.
For those boards that do develop a model succession plan, the effort may succumb the way gardens left untended invariably do.
The pace of change necessitates a frequent review of succession plans in concert with a company’s strategic review.
Cash flow analysis may be the critical tool that investors use to guide their choices; much-ignored succession planning should be equally analysed.
Originally published in PR News 11/07/2011
By Professor Larry Parnell, Program Director - Strategic Public Relations
As the learned philosopher (and occasional movie star) Kermit the Frog opined, "It's not easy being green," especially these days. Not only is there the view in certain circles that corporate social responsibility is for tree huggers and has no place in a business and communications strategy, now those who believe we must do something about sustainability must be mindful of a new series of pitfalls. It is enough to make you think twice, for sure.
Many of us are already familiar with the term greenwashing-overstating your sustainability activities and commitments to get credit for being corporately responsible. Countless pundits have criticized Big Oil, Big Tobacco or big business for PR and ad campaigns that tout their environmental responsibility and community activities while they continue to operate in less than responsible ways elsewhere. Clearly, this disconnect is not sustainable-pun intended.
Now we have "greenblushing" and "greenbashing" to contend with, as we try to improve sustainability, bottom-line productivity and enhance corporate reputation.
Greenblushing, reportedly coined by Greg Labar at Dix & Eaton, connotes an aversion to communicating legitimate sustainability activities for fear of being accused of overstating them or, worse, not doing enough. It is a cousin to the old strategy of "let's just do the right thing and get caught in the act" instead of taking credit for our CSR programs.
Further, we have greenbashing, a concept proposed by Shari Shapiro of Obermayer, Rebmann, Maxwell and Hippel, which addresses the tendency of naysayers to associate outrageous costs or unknown dangers to being a socially responsible company. Inevitably, so the theory goes, you will disappoint someone, encounter market-based or operational roadblocks and have to cut back-so why start in the first place?
Like any sound criticism, each of these terms has some grounding in common sense and must be factored in when developing CSR communications strategies.
For example, no serious PR professional would ever suggest their company or client make claims the facts don't support, just to look better to your stakeholders. And while this may still happen in some instances, for most of us, avoiding greenwashing makes sense, to be sure.
Similarly, few of us would advocate the opposite, e.g. hiding your light under a bushel and hoping the outside world will notice you. So greenblushing should also be avoided. The shortcomings of this concept are obvious. Assuming you are doing the right thing, it is unrealistic to expect stakeholders will notice without a little help from you.
Finally, giving in to the prophets of doom is not something that sits well with most serious communicators. In my view, succumbing to greenbashing is similar to the "don't raise expectations you can't meet" argument that has halted many communications initiatives in the past.
If we listened to those advocating the status quo, we would soon find ourselves behind our competitors and disappointing our stakeholders who expect more, not less, when it comes to sustainability.
So, what is a well-intentioned communications professional to do when faced with the CSR challenge?
As is usually the case, the best advice is often the simplest. In formulating a CSR communications strategy for your company or client, consider the following:
• Be authentic and true to your company culture and training as a communications professional.
• Identify viable opportunities to address sustainability in your company or organization-short and long term-and then build well-researched campaigns to leverage them in a strategic way.
• Avoid the one-hit-wonder or drive-by CSR program or activity. Over time, it will likely prove to do more damage than doing nothing at all.
Only by selecting smart, viable programs for your company will you get the reputational benefits you are seeking and avoid succumbing to greenwashing, greenblushing or greenbashing, or any other trap, for that matter.
In the process, you just may prove that being green is not so hard after all. Sorry Kermit. Good luck with your new movie though.
Fellows earn GW master’s degrees while working on Capitol Hill.
Nov. 10, 2011
By Laura Donnelly-Smith
On any given day, Kenton Barber, a defense legislative assistant, might attend a Defense Department meeting, answer inquiries from a military families’ council or brief his boss, Rep. Larry Kissell (D-N.C.), about a defense-related issue.
Mr. Barber, a major in the U.S. Army, has spent the past year working in Rep. Kissell’s office as an Army congressional fellow. The Army Congressional Fellowship program is a three-year, three-part program for mid-career Army officers, senior non-commissioned officers, and Department of the Army civilians that combines academic work, practical experience on Capitol Hill, and a two-year assignment in which fellows use the skills gained in the first two parts of the program.
Since early 2010, George Washington University has partnered with the Army to provide the academic portion of the program. And while every branch of the U.S. military has a fellowship program, the Army is the only service that includes a master’s degree. Fellows earn a master of legislative affairs degree through GW’s Graduate School of Political Management. The 11-course degree focuses on applied politics and is the only degree of its kind in the nation.
“The students in this program are trained to be sophisticated political thinkers,” said Steven Billet, director of the legislative affairs program. More than 100 applicants apply for the 25 available fellow spots each year.
“Through this program, the Army has an increasing number of people with Hill experience. It’s beneficial for the Army and an attractive career option for high-potential officers,” Dr. Billet explained. The program also benefits GW by bringing in highly qualified students for the GSPM legislative affairs master’s program—many of whom remain connected to the university after they complete the program.
One of those people is Colby Jenkins, a major in the Army National Guard and former active duty officer in the Army Special Forces. Mr. Jenkins was enrolled as a student in GW’s legislative affairs program from 2006 to 2007. When he told his superiors in the Army about the skills he was gaining in the program, the Army approached GW about formalizing a partnership so that other officers could have a similar experience. Now, Mr. Jenkins is the director of government affairs at American Business Development Group, and an adjunct instructor in GSPM’s legislative affairs program.
Mr. Jenkins said his academic coursework at GW provided him with a solid foundation for his experience on the Hill as a fellow and later as a legislative liaison. But beyond the academics, the program also helped him make important connections, he said.
“The program enabled me to meet outstanding professors and form friendships with my student-peers who were also engaged in some aspect of legislative activity,” he said. “Without a doubt, the program helped me gain the tools to be more effective on the Hill and, by extension, a better asset for the Army and the congressional office I worked in.”
Each fellows cohort begins the program with an intensive orientation lasting from May to December. Fellows also begin their master’s degree coursework during the summer semester, and continue taking courses through the end of the next calendar year. Classes are held at night on Capitol Hill, in the Hall of the States building, and Army fellows are mixed in with other students in the legislative affairs master’s program—about two-thirds of whom are Hill staffers. Approximately six months after starting the program, in January, fellows are assigned to one-year stints in congressional offices.
“The partnership with GW is a tremendous benefit to the Army, George Washington University and members of Congress who have fellows in their offices,” said Major General Ben Hodges, the Army’s chief legislative liaison. Mr. Hodges oversees the legislative fellowship program and serves as the Army’s primary liaison to Congress.
“Through this partnership, Army fellows receive the academic training they need to succeed on the Hill, while GW and Congress get a chance to see the tremendous young men and women who make up today’s Army,” he said.
Tim Meadors was part of the first Army Fellows class to participate in the program under the GW partnership. He started his tenure as a fellow shortly after returning from a deployment. “Through this program, we really learn about Congress and the theory behind it,” he said. “And of course it’s always great when you can learn theory and then go actually apply it at the seat of government. I felt very fortunate. The professors are very knowledgeable and if they’re not currently on the Hill, they’ve been on the Hill and know the dynamics.”
Mr. Meadors is currently working in the Office of the Chief Legislative Liaison headquarters at the Pentagon. The assignment is his two-year “utilization tour,” the third portion of the Army Fellowship program. During the utilization tour, the officer immediately puts to use the skills learned in the fellowship program.
In Rep. Kissell’s office, Mr. Barber helps his boss research and understand defense-related issues. In one meeting between the congressman and airline industry representatives, for example, Mr. Barber provided first-hand information from his deployment experience during a discussion about the amount of luggage service members may check without charge on commercial flights.
“When I walk away from a meeting like that, I feel like we’re really looking out for service members,” he said.
Early on a recent Wednesday morning, Dr. Billet, Mr. Meadors and others involved with the Army Fellows program gathered in a room at the Rayburn House Office Building on Capitol Hill to witness Mr. Barber’s promotion from captain to major. Mr. Barber’s fiancée, Julie Schwartz, was on hand, as were his colleagues from Rep. Kissell’s office. Rep. Kissell, who calls Mr. Barber “K.B.,” told the audience that he felt fortunate to have worked with the Army Fellows program.
“This has been an incredible program,” Rep. Kissell said, citing his experiences with Mr. Meadors and another fellow, Camille Mack, who had previously worked in his office. “I never thought we’d be able to get three, but then came K.B. What a great source of information he has been.”
Rep. Kissell said the knowledge he’s gained from working with Army Fellows has been invaluable. “When we got into some tough situations, when how we voted depended on the soldiers on the ground …. K.B. would tell us, ‘This is what they’re going through.’ He didn’t tell us how to vote, but he gave us an honest answer. He works incredibly hard.”
Mr. Barber’s promotion order was read aloud, and then Colonel Al Shoffner, one of Mr. Barber’s mentors and the Army’s liaison to the House of Representatives, re-administered the oath of office that Army officers take.
Mr. Barber will complete his year in Rep. Kissell’s office in December, and in January 2012, he’ll begin his two-year utilization tour. He doesn’t yet know where it will be—he may work in Washington, D.C, or might be assigned to a legislative liaison position in Afghanistan. But no matter where he ends up, he said he feels prepared.
“This has been a blessing and an incredible experience,” he said. “I am very grateful to have been a small part of fostering a strong future for the program.”
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