“It takes 20 years to build a reputation and only five minutes to ruin it.” This famous quote from Warren Buffett encapsulates the fragility of a company’s reputation in today’s hyperconnected world. One mishandled crisis, one poorly crafted message, or one employee misstep caught on camera can unravel decades of hard work in an instant.

In our age of rampant misinformation, polarized stakeholders, and a heightened focus on corporate social responsibility, the ability to craft and disseminate strategic messaging has become a make-or-break competency for businesses. Yet, many CEOs overlook the critical value of strategic communication and having a Chief Communications Officer (CCO) at the highest levels of leadership. To navigate today’s complex landscape, a strong CCO is essential, not just for managing crises but also for crafting proactive communication strategies that build trust, enhance brand reputation, and drive business success.

Consider the scenarios unfolding around us. Boeing saw its stock plummet by 25% this year following the MAX 9 planes debacle. Tesla dropped approximately 30% this year due to its ongoing Cybertruck issues and Elon Musk’s increasingly polarizing reputation. These are not isolated events but part of a larger narrative that underscores the criticality of managing reputation.

The challenge of misinformation

AI-fueled misinformation and disinformation are rampant. The fabricated images of Taylor Swift that circulated on X earlier this year exemplify their potential impact, compelling even the White House to advocate for legislative intervention. Scarlett Johansson has called out OpenAI for duplicating her voice for ChatGPT without her approval. Today, the lines between reality and falsification are a blur, with significant implications for bottom lines, organizational outcomes, and civic dialogue. While the potential impacts on politics around the globe capture most of the attention, its potential impact on business can’t be ignored.

Internally, the challenges are equally complex. Our businesses now comprise an unprecedented mix of five generations, each with distinct communication styles, expectations, and workplace needs. This diversity, while a strength, also presents unique communication challenges. And balancing the desires of customers with the sometimes conflicting demands of employees has become increasingly difficult. Just look at Disney’s struggles since 2022. Its stock is down by 45%, and park attendance is down by 15-20% by some estimates, partly due to the company’s response to modern social pressures from employees, conflicting with traditional values and consumer expectations.

The rise of the Chief Communications Officer

Adding to this complexity is the evolving role of chief marketing officers. Once key players at the strategic table and in many cases the communication link to the C-suite, CMOs are now witnessing a dilution of their traditional roles, with some positions being absorbed or even eliminated. This shift, while indicative of changing business paradigms, creates an undeniable opportunity to reiterate the indispensable need for a CCO in every organization. The role needs to not only be a member of every business’s c-suite, but the expertise must also be on every corporate board roster.

In a landscape where reputation can be built or destroyed in a matter of clicks, the role of strategic communications is more vital than ever. The CCO is not just a spokesperson or a crisis manager; they are strategic advisors, guardians of reputation, and architects of messaging that resonates with diverse stakeholders.

The role of CCO is more than managing external perceptions; it is equally about fostering internal culture and understanding. In an era where consumer expectations are changing rapidly, and social media can turn a minor issue into a crisis, having a seasoned communications expert on the executive team is beneficial and a strategic imperative. At a time when stories can be as impactful as numbers, the CCO’s role is integral to managing the intricate balance of market dynamics, public perception, and internal harmony.

Research shows that including communications professionals in c-suite roles and on corporate boards significantly enhances a company’s ability to manage reputation and navigate crises. A recent Korn Ferry survey highlighted that 41% of CCOs now report directly to the CEO, up from 37% in 2015, underscoring their rising importance in strategic decision-making. Companies like IBM and Johnson & Johnson have expanded the remit of their CCOs to include broader strategic responsibilities, demonstrating the value these roles bring to the executive team.

Best practices for CEOs

McKinsey states effective board governance includes comprehensive risk assessments and scenario planning, which are critical in today’s complex business environment. Communications professionals play a crucial role in this process by ensuring transparent and consistent messaging during crises, which helps maintain stakeholder trust and organizational resilience.

The Public Relations Society of America (PRSA) emphasizes the increasing importance of strategic communications in addressing societal issues and navigating misinformation. It now provides a range of free resources and toolkits to help organizations manage these challenges effectively.

Moreover, research highlighted by the Chartered Institute of Personnel and Development (CIPD) shows that a lack of people expertise, including HR and communications professionals, on corporate boards can lead to significant governance gaps. CIPD’s findings suggest that boards with diverse expertise are better equipped to handle complex people-related risks and enhance organizational performance.

CEOs must respond.

• Elevate the CCO role to the C-suite and corporate board, ensuring communications expertise is represented at the highest levels of decision-making.
• Invest in comprehensive communications training for all leadership teams to maintain consistency and clarity in messaging across the organization.
• Leverage AI and data analytics to monitor public sentiment, identify potential reputational risks, and inform communications strategies proactively.
• Foster a culture of open, honest communication within your organization, building employee trust and engagement.
• Develop a robust strategy for engaging customers, investors, media, and other key stakeholders to maintain a positive public image.
• Collaborate with the CCO to develop crisis communications plans and scenario-based response strategies, ensuring your organization is prepared for potential issues.

Elevate strategic communications to its deserved status in your business. CEOs can no longer afford to marginalize the role of CCO in their organizational strategy. You must embrace the power of effective strategic communication to ensure success in an increasingly complex and interconnected business landscape.