CEO Branding

Facts show that the reputation of a company is closely connected with that of its CEO. Indeed, according to studies conducted by PR company Burson­ Marsteller, over 50% of corporate reputation is based on the esteem of the CEO. Whereas strong leaders have invariably put their stamp on their brands, this subject remains one of vital topical interest nowadays.

From the entrepreneur to a manager culture In family or owner­operated companies, where the tradition behind the company is often related to a specific person or individuals, this can be a boon. The former CEO’s reputation can be utilized in the brand story as the example of the Swatch Group clearly demonstrates. Nick Hayek Jr. continues to run the company in his father’s style, thereby upholding 2 the brand value as well as his position as an entrepre­neurial nonconformist and a staunch defender of Switzerland as a watch­manufacturing nation. Yet, for others and for non­owner­operated companies the situation is entirely different, certainly in this era of globalized markets, which is increasingly influencing the talent market and with it the senior management levels in multinational corporations. In earlier times, CEOs functioned as corporate figureheads over decades, thereby putting their stamp on the image the public perceived. Nowadays, the business environment has changed and top management increasingly appears to consist of a continually rotating carousel of senior executives. We have become accustomed to the incessant headlines informing us about management or strategy changes, along with the latest restructuring plans. Insecurity has replaced values that were once considered cast­iron, and affects both employees and consumers alike. Particularly in times of insecurity and interchange­ability, the desire for orientation and authenticity and a hankering after role models is gaining strength within society. Leaders who stand for clearly defined values and unmistakable issues are increasingly becoming significant success factors for companies.

Using PR to forge a bond between brand and CEO The concept of exploiting the CEO to project a specific image to the public is a classic PR task and by no means new. And yet, aligning the brand with the strategic long­term establishment of the CEO to enhance the brand experience only rarely occurs. Occasional award presentations or frequent media presence are not viable indicators as to whether the CEO and the brand are functioning as a synergy. Mere popularity cannot be a guarantee for identifi­cation with a brand­specific topic. The focus of CEO branding is not, as with personality branding, to engender the most prominent and noticeable appearance possible. It is not about creating stars and celebrities. Rather, the intention is to establish the corporate leader as a significant ambassador of the corporate brand. To achieve this, CEO branding draws on the corporate brand values. This demands that the corporate brand personality is sharply defined, together with the values, the style and the issues to which the brand is to be linked. Once this is in place, an alignment with the individual personality of the CEO can be defined. The question here is: through what aspect of their personality can a CEO make a concrete contribution that will promote the brand’s position in a credible manner and ensure that they are perceived as the prime brand ambassador, both internally and externally? It is essential for that endorsement to come across authentically. A quiet achiever cannot be transformed into a credible representative of a young “sexy” fashion brand as was, for example, the case with “Tally Weijl” where the unconventional founder clearly fitted that bill ideally.

Less is more To generate a consistent brand image it is crucial to concentrate on a few, yet relevant and differentiating topics, or even on a single issue. Such sharp focusing, however, is at odds with the current practices of many businesses. Particularly in sponsoring, events appear to be supported at random, often having neither a relationship to the CEO nor to the brand itself. Here, the question must be: which type of platform is most effective for a CEO’s long­term commitment to a brand? Increasingly, sustainable initiatives with a CEO’s in­depth and personal commitment are coming to the fore. Ideally, topics should be identified that the CEO can embrace and engage in enthusiastically. Pure sponsoring or one­off events are losing ground. At Novartis, for example, the CEO, a former top­level athlete, supports an internal healthcare initiative to generate awareness among the company’s employees. Anyone who has a good story to tell will be identified with it, but whose story is it really? If a CEO succeeds in being identified with a core brand topic, he or she will be faced, when moving on to another company, with the challenge: how to hand that topic back to the brand, or how, in their role as a new CEO, to succeed in engaging in another topic in a new company? For a company the question arises: what type of CEO and which story, fits our brand? It is advisable to deal with such issues as early as possible. And to ensure they remain valid for the longer term. Both for the brand and the CEO.

The CEO as role model Companies compete with each other. That com­petition for attention also affects the senior executive ranks: who is able to position their corporate brand successfully and to link it to a specific topic? Moreover, it is equally essential to generate acceptance and orientation of a new strategy internally with the employees. A brand can help to actively promote changes and make them tangible for those involved. Corporate strategy, so often communicated rationally in charts and diagrams, can be brought alive by utilizing the brand as an emotional vehicle, in a story, in the form of a shared component of corporate culture. Hence, CEO branding also plays an important role within a company. The CEO as senior brand ambassador personifies the strategy and, in a best­-case scenario, takes on the function of a role model. In the corridors of Apple’s head offices in California, anecdotes about Steve Jobs are still doing the rounds. Who had contact with him, where and when; experiences that motivated, were visionary, at times challenging, with his unpredictability that stemmed from his contrariness, but were, above all, authentic. These are stories of a boss who genuinely embodied the vision and the strategy of the brand.

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