Moving the “Authentic Enterprise” Forward:
An Interview with Tom Nicholson

Last year the Arthur W. Page Society prepared a white paper titled The Authentic Enterprise that outlined the current environment for public relations and discussed the role of chief communication officers. Perspectives recently interviewed Tom Nicholson, executive director of the Page Society, about the research behind the white paper, its implications for public relations, and some of the reactions to the report. Here, Nicholson shares insights on what's next for The Authentic Enterprise, as well as his thoughts on what it takes for a corporation to become an “authentic enterprise.”

Perspectives: Before preparing The Authentic Enterprise, Page surveyed CEOs and asked for their thoughts about the role of chief communication officers. Was there anything in the survey findings that surprised you or particularly stood out?

Tom Nicholson: One of the most encouraging things was that so many CEOs thought about the importance of communications and linked it to the success of the enterprise. Communications is the one function that cuts across the entire enterprise and some view it as the glue that holds the various parts of a company together, keeps them focused on common objectives, and creates a culture for success. The best corporate communication officers understand this and capitalize on the opportunity to work in every area of the company, providing the CEO with valuable feedback on attitudes, opinions, successes and problems.

Partnering with the CEO to view the corporation very broadly presents tremendous opportunities for communication officers. This is really nothing new; however, there continues to be a significant gap between those who do this really well and those who accept a lesser role. It is tempting to say that the success of the CCO is almost wholly dependent on the CEO's view of communication. There is certainly truth to that. But it is also true that some CCOs do a much better job of creating and communicating a vision, providing the tools for improved execution, and creating a culture where success can flourish.

Perspectives: How do you (or the Page Society) view the role of the CCO when it comes to establishing and maintaining public trust for his or her company?

Nicholson: This really is the overriding job of the chief communication officer. Arthur Page (the legendary corporate public relations practitioner for whom the Page Society is named) once said, “All business in a democratic society begins with public permission and exists by public approval.” Maintaining public trust is a real challenge when you see surveys that rate businesses and CEOs near the bottom.

The media is full of stories focused on the negative aspects of business, the scandals, the pay inequity, the damage to the environment, greed, and on and on. When asked about business in general, the public view is not very positive. However, there is hope that when asked about “my employer,” the view is more positive. I think that's because people know more about their employer than they know about other businesses. Their experience is that their employer provides them with a good paycheck, solid benefits, useful goods and services, and the people they work with are generally upstanding, honest individuals. Meanwhile, the only thing most of us know about other companies is what we read in the media, and in that area, corporations as a whole have not done a very good job of communicating.

My personal view is that corporations have done more to eliminate poverty, build economies and create opportunity than any government or charity. After all, the best way to eliminate poverty is to build an economy, which companies help do. And because of controls, regulations and market pressures, corporations probably do a better job of being honest, ethical and transparent than a lot of other institutions in our society. Yet, the general public does not share this view of corporations.

Perspectives: It's interesting that you say companies haven't done a good job of communicating. Why is that? And how can they get better?

Nicholson: Companies often don't communicate well because there is a love-hate relationship with the media. And, while I think that has been improving in the last few years, it's still a very cautious atmosphere. There is a real belief that the media likes to build you up and then knock you down. The image of a corporation as a good citizen often is seen as too self-congratulatory, so corporations tend to err on the side of caution. They believe that by not engaging the media they will be able to fly under the radar screen and avoid negative scrutiny. But then they also miss the opportunity to be seen in a positive light. The key is to build enough trust initially so that the company has a bank account of trust to allow it to weather the storm when it comes. To do that, companies have to find a way to communicate their best stories, position themselves as part of the solution to major national and international concerns, and educate their employees and the general public on all of the benefits they provide to society.

Perspectives: How do you see the Page Principles fitting into the changing role of the CCO and how he or she does the job?

Nicholson: The first Page Principle is “Tell the Truth” followed by “Prove it with Action.” More than ever the proliferation of bloggers, the empowerment of stakeholder groups and the incredible speed of communication make it absolutely critical that companies adhere to high standards, become more transparent – though I recognize that doesn't mean sharing everything – and develop meaningful relationships with critics as well as customers, employees, suppliers and investors. Rather than being on the defensive, companies that are proactive and interactive perform much better. Actions truly do speak louder than words, so the role of the chief communication officer in influencing corporate policy, advocating on behalf of key constituencies, and anticipating how corporate decisions will affect the relationship with those constituencies has never been more important.

“Listen to the customer” is another Page Principle that is easy to say but difficult to do well. How, for example, should airlines respond to increased consumer dissatisfaction? There are tremendous profit pressures on the airlines at the same time there is growing frustration with the levels of service. It's easy to say “We listen to the customer,” but it's very difficult to turn that into meaningful and profitable change.

“Manage for tomorrow” and “Conduct public relations as if the whole company depends on it” are two principles that speak to the ability of the organization to see around corners, anticipate trends, recognize changing public opinion and to do something that will position the company for success.

The sixth Page Principle is “Realize that a company's true character is expressed by its people.” The Authentic Enterprise spoke to the need of chief communication officers to identify and activate values in the company. For instance, when you think about Johnson & Johnson, there is a feeling that the employees are committed to doing the right thing. Retailers and consumer product companies know that the image and reputation of their company is largely in the hands of the front-line employees who interact directly with customers every day. The challenge for the chief communication officer is to define and activate a set of core values that can be clear enough and specific enough to have meaning while at the same time broad enough to be adapted to every employee's job. And then, of course, how do you effectively communicate and reinforce that with a diverse and ever-changing workforce?

The last Page Principle is “Remain calm, patient and good humored.” No matter how stressed situations can become, it never helps to lose your cool. Like all of the Page Principles, this one is easy to say and not so easy to do consistently.

Perspectives: During a speech to the Page Society, Miles White, the chairman and chief executive officer of Abbott, wrote a response to The Authentic Enterprise. What other reaction has the Page Society received to the white paper?

Nicholson: The reaction has been very encouraging. We recently spent two days at an academic symposium at the Tuck School at Dartmouth taking a deeper look at the work, challenging the assumptions and conclusions, and discussing the implications of the paper. One of the questions that came up there was “Is The Authentic Enterprise simply the preacher preaching to the choir?” Corporate communicators already understand the challenges that we face. To make any substantive changes in how the rest of a corporation sees the communications role, communications needs to talk more to other functions, such as finance and human resources, to help them learn how we can contribute. Another question was “How can schools prepare communicators to be ready for the changes in communication?” To have an authentic enterprise, you have to have authentic people. That's a tough task for universities. It's hard to teach people to have the courage of their convictions and to stand by them.

While the discussion was very lively, at the end of the two days I think we all came away believing that this paper can be the basis for a very healthy and thoughtful global dialogue on the role of the chief communication officer. When that occurs, I suspect we will also generate additional work that may take a deeper look at each of the major trends and how we can help prepare our companies to thrive.

Miles White was very complimentary of the work, but he also challenged us to take a look at how we deal with hostile audiences whose purpose in life is to tear down the company and raise funds for their particular cause. That's one side of the relationship curve with satisfied customers, investors and partners at the other end of the curve. Managing across that diversity of audiences is enough to keep both CEOs and CCOs awake at night.

Perspectives: In hindsight, is there anything that you or the Page Society as a whole think could be added to the original white paper?

Nicholson: The Authentic Enterprise is the beginning of a global dialogue. It is provocative, thoughtful, and designed to provide the opportunity for each of us to step back from the frantic day-to-day doing of our jobs to think more broadly about how we can each contribute more to the success of the enterprise we represent. I hope there is much more to be added and much more to be said.