There are valuable lessons to be learned from the public communication strategies of two high-profile Australian CEOs during challenging times for their companies.
The cases of Optus and Woolworths highlight the critical importance of preparedness, strategic communication, and stakeholder management for CEOs and ambitious professionals in stakeholder engagement roles. In an era where public perception can significantly impact a company’s reputation and bottom line, mastering these skills is not just advisable but essential for modern corporate leaders. And your professional brand can also be severely affected if you’re unable to handle the pressure of being in the public eye.
Case Studies of What Not to Do
Optus and the Outage Ordeal: Optus CEO Kelly Bayer Rosmarin faced intense scrutiny following a major service outage in November 2023 that disrupted millions of customers earlier this year. Despite issuing an apology, her response was criticized for appearing ad hoc and lacking detailed information, underlining the importance of strategic communication in crisis management. The company’s initial public response was considered inadequate. Instead of an early, clear statement about the problem and its resolution, the response was seen as reactive and lacking in detailed information. She later resigned from her role.
Woolworths and the Pricing Pushback: This week, Woolworths CEO Brad Banducci faced scrutiny over allegations of price gouging as grocery prices rose. This was a sensitive issue, especially during a period of financial strain for many consumers. His inability to deal with the heated exchange with the journalist highlighted the challenge for Banducci, which was to balance stakeholder interests – customers, employees, suppliers, and shareholders – in a way that seemed fair and justified, especially in the public eye. He has now also resigned.
How CEOs Can Effectively Handle Public Scrutiny and Crisis Management
CEOs, particularly those leading high-profile companies, are often in the public eye and can face intense scrutiny, especially during crises or contentious situations. Here are strategies CEOs can employ to better prepare for questioning and to mitigate risks associated with public speaking and media interactions.
Having been a CEO myself, albeit from a small organization, I know that sometimes we postpone or overlook all of the advice I am giving below. I have been there and done that, too. Until the day we regret not having done our comms homework. As someone who had the privilege of working with the best lobbyists, public relations, and crisis management firms in the country, I can safely say that no amount of talent can help a CEO who is out of touch and underprepared.
- Be Prepared and Informed: CEOs should be well-versed in all aspects of their business and ready to address potential issues. Regular briefings and staying updated with current affairs and industry trends are essential.
- Effective Communication Training: Regular crisis communication and media handling training can equip CEOs with the skills to convey messages clearly and confidently under pressure.
- Develop Clear Messaging: Before public interactions, it’s crucial to develop key messages that are concise, consistent, and aligned with the company’s values and communication strategy.
- Practice and Rehearse: Regular practice sessions, including role-playing different interview scenarios, can help anticipate tough questions and formulate effective responses.
- Build a Strong Advisory Team: A skilled communications team can provide invaluable insights, help formulate responses, and offer post-event feedback.
- Transparency and Authenticity: Transparency in communication and authentic engagement with the audience can build trust and credibility.
- Understanding the Audience: Tailoring messages to address the concerns of different stakeholders is crucial for effective communication.
- Build Media Relationships: Developing a positive relationship with the media can lead to more balanced reporting and provide more control over how statements are portrayed.
For CEOs and stakeholder engagement professionals who face intense scrutiny, applying these strategies can help manage their public communications more effectively. Being well-prepared, staying composed, and communicating clearly and empathetically are crucial skills for any leader facing the public, especially during challenging times.
Please comment below: What is your experience? Any tips and advice to add? Contrary views?
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I am tagging some of my favorite thought leaders so they can read this post and offer their views. (Please contact me via DM if you prefer that I untag you.) Cassandra Goodman Div Pillay Michelle Redfern Gary Ryan Russell Ayles Janet Sernack ICF PCC EMCC Master Practitioner 🌏 May Samali, MPP, CPCC, PCC Dr. Marianne Roux Emily Forrest Julia Cookson Thang Ngo
