Communications Teams Miss the Memo

The department head planned out the usual communications plan for the year: helping the CEO push a new product, statements around quarterly financial numbers, likely industry awards, announcements of unexpected executive departures, and crisis planning for hypothetical data breach or IT failure situations. He smiled confidently.

So much for that. This year’s media landscape is dotted with AI developments, product recalls, supply chain disruptions, unpredictable stock market shifts, remote work policy changes, and a steady stream of government shifts—any of which can turn public sentiment on a dime and require immediate corporate comment. Sure, that puts pressure on leadership, but most acutely on communications departments. According to a new C-suite report, just 17% of executives say that their corporate communications team are “well-equipped” to navigate volatility. The stakes have never been higher for organizations and CEOs alike, says Richard Marshall, global managing director at the Corporate Affairs Center of Expertise at Korn Ferry. “There are just so many eyes on them.”

For decades, the role of the communications team was predominantly reactive: when good or bad things happened, the communications department responded accordingly, often with a day or two to plan a statement. Today’s communications experts are expected to continue that function through a multitude of channels, while also acting proactively, looking around corners. “They’re expected to play offense, in real time, real fast, while still playing defense,” says Marshall. Their internal positioning has recently shifted as well: their seat at the table is now at the center of the table, says Marshall. Communications leaders need to have game plans and playbooks ready to go for many dozens of scenarios, to be deployed on hyper-condensed time frames, on a wide range of potential issues, for both internal and external audiences.

To be sure, 80% of executives say their communications teams are “somewhat equipped” to keep pace with rapid changes. Experts say this is likely because many communications teams lack staff with experience leading tricky campaigns through negative events, such as recalls or viral customer complaints or activist investor actions. “Many have only seen rainbow, sunshine and butterflies PR,” says Peter McDermott, head of the North America corporate affairs practice at Korn Ferry.

In practice, many communication teams are well-prepared for the sorts of good or bad times that are predictable: good or bad earnings stock numbers, or a mild product launch delay. When commercial success is roaring, day-to-day activities are relatively easy, says McDermott. “It’s not a lot of risk,” he says. But unexpected and complex situations can be brain bending, such as how to react when a new government policy goes against corporate values, and customers on both sides of the political spectrum are upset with an executive’s comments on the matter. These days timing is unusually critical: a press release that appears on the same day as an inauguration or wildfire can telegraph inadvertent meaning. “They need to be very intentional about words and timing, or else they land right in the crosshairs,” says Kim Waller, senior client partner in the organizational strategy practice at Korn Ferry.

As the expectations of stakeholders have increased, so too did the importance of communications leaders and teams to CEOs as trusted advisors. For leaders, having confidence in their communications leaders and teams is critical to navigating an increasingly complex business and social landscape, says Dan Petrossi, a senior client partner in the technology practice at Korn Ferry. “When communications is done right and stakeholders feel listened to, informed and supported, the impact on business can be felt,” he says.

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