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New Ketchum study reveals importance of employees in setting corporate reputation

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A new Ketchum study conducted across 12 countries reveals that people believe employees are critical to leadership and corporate reputation: reducing the focus on just the CEO.

According to the fourth-annual Ketchum Leadership Communication Monitor (KLCM), 41 percent of respondents believe leadership should come mainly from the organization and all its employees, compared with 25 percent that believe leadership should come only from the CEO.

This aligns with three years of KLCM data pointing to the demise of the CEO-as-celebrity leadership style and highlights a greater-than-ever opportunity for “leadership by all” – a collaborative and communicative culture that empowers employees at every level. While the CEO, board and senior management still play a critically important role, the study suggests that employees throughout an organization can and should provide leadership if they are to be fit for the future.


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The Rise of the Title-less Leader

The “Title-less Leader” articulates the rising support for the concept of shared leadership and underscores Ketchum’s findings that leaders no longer reside only at the top of the corporate ladder, nor do they necessarily possess traditional leadership titles.

This emerging preference for leadership by many comes at a time when leaders are under scrutiny. Disillusionment is high; roughly one in four (24 percent) people believe leaders are effective. Global crises, economic uncertainty and changes in business and technology continue at a relentless pace. In the age of social media, leaders are being judged quickly and at times mercilessly.

Perceptions of Leadership More Positive in China

Chinese respondents showed a higher level of belief in their business leaders than elsewhere in the world. Around the world, the greatest belief resides in high-growth economies like China (43 percent), India (54 percent) and Brazil (43 percent). By contrast, respondents in struggling European economies believe far less in the effectiveness of business leaders, with only 11 percent of the French, 18 percent of the Spanish, 21 percent of Britons and 27 percent of Germans giving business leaders top marks.

Because of its higher than average belief in the effectiveness of its business leaders, China still looks mainly to the top level for leadership (74 percent), with 35 percent of Chinese respondents believing that leadership should be provided by the CEO only. Only 26 percent believe that leadership should come from the company overall, compared to 41 percent globally.

The survey also identified the top three traditional attributes that Chinese believe an effective leader should possess: leading by example (66 percent), bringing out the best in others (62 percent), and handling controversial issues or crises calmly and confidently (62 percent). Beyond these, they also feel that it’s important for a great leader to be charismatic (65 percent, much higher than the global average of 49 percent), friendly (63 percent) and intelligent (63 percent). Another interesting finding is that 46 percent of Chinese respondents believe it is very important for a leader to be an extrovert, which is above the global average of 36 percent.

Consumers Vote with Their Wallets

Perceptions of good corporate leadership are important as the survey shows people are making purchasing decisions that punish bad leadership. Furthermore, reactions to perceived bad leadership are more pronounced that reactions to good leadership. Half of global citizens (51 percent) have purchased less or stopped purchasing products altogether because of negative behavior by a company’s leaders, compared with 46 percent who purchased more or for the first time because of positive leadership behaviors. Attitudes in China follow this global trend. Nearly half of Chinese respondents polled (47 percent) have stopped purchasing or purchased less due to poor leadership behavior and 46 percent have started purchasing or purchased more from a company for performing well as a leader. In China, consumer technology and consumer packaged goods are the industries more likely to feel the effects of positive leadership behavior on product sales, whereas the food and beverage and telecommunications industries are more likely to feel the effects of negative leadership behavior.

Open and Transparent Communications Continue to Rule

As with all previous years of KLCM, the research finds open and transparent communication to be absolutely critical to effective leadership. For the fourth year in a row, open and transparent communication is a top-ranking attribute globally (68 percent) and within China (67 percent). Yet, only 24 percent globally and 33 percent in China feel leaders communicate effectively, with a 44-point and 34-point gap between expectation and delivery, respectively.

“It has become apparent over the last few years of this study that effective communication is a necessity for today’s leaders, and that is a sentiment that doesn’t look like it’s going to change any time soon,” said Bruce Shu, managing director, Ketchum Greater China. “China’s more positive perception of its leaders is not an insight we take lightly. The connections between leadership, communications and sales demonstrate that leadership and reputation should be both protected and cultivated.”

He Leads, She Leads

As women are encouraged increasingly to take on positions of leadership in the workplace, the worldwide dialogue on important issues around gender gaps and diversity continues. This year’s study sees a stronger swing of the pendulum toward male leaders compared to 2014, when 54 percent of global consumers saw male leaders as most likely to navigate the world through challenging and rapidly changing times over the next five years. This year, 61 percent see male leaders as more likely than female leaders to do this, a seven-point increase in one year. Similar to last year, China (75 percent) continues to view male leaders as the gender that will lead over the next half decade, 14 points higher than the global average. China represents the highest rate, tied with Singapore, among all countries polled on this topic.

Five Questions for Leading Successfully

Organizations are encouraged to consider these five questions as they evaluate their leadership and communication strategies in the context of today’s fast-changing environment:
1.    Are you focusing the majority of your communication resources across all levels of your organization, as opposed to the few at the top?
2.    Are you leveraging the enormous power of your employees and earned media to authentically show who you are and what you believe in?
3.    Do you have a communications operating system and listening mechanism in place to enable rapid decision-making and responses?
4.    Has your organization established the goodwill needed for your leadership, organization and brand to be well-received in times of crisis?
5.    Is your company leveraging the traits of those leaders seen as best demonstrating these characteristics in order to grow your entire leadership base?

 


For additional survey information and materials click here

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