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Living the MessageThe Management Perspective
Virgil ScudderNIRI Conference
June 11, 2013
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A Basic PremiseCredibility is a company’s most valuable asset.
Too many companies lose it because they talk the talk but don’t walk the walk.
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Compounding the Damage
• Then-CEO Tony Hayward didn’t get the message.
• He went into tough Congressional hearings unprepared.
• The result was disastrous.
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The Result
• BP lost a third of its value.• Hayward lost his job.• BP is starting a long rebuilding process.
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The Key to Successful Communication
ClearConciseCredibleConfident
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What That Means
• Straight talk
• Headline-first responses
• Easily understood language
Communication is not what the speaker knows or says; it’s what the listener takes away.
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Scudder’s Law
Never lie, deceive, mislead nor allow shareholders or the public to be misled.
It will catch up with you.
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Some Examples
TARGET TOYOTA SHELL
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How Not to Build ConfidenceA bank CEO was asked about a possible merger.
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My Translation
• Not now.
• Time is not right.
• Maybe later.
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An Embarrassment and More
• The CEO was featured in a New York Times article including his picture.
• The headline: “When CEOs are Tangled in their own Web of Words.”
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He Was Not Alone• Another CEO boasted that a recent acquisition could produce as
much as $80-million in cost savings.
• But, here’s what he said later when asked for more detail.
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ResultThe stock dropped 8% that day.
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Excessive Exuberance
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Not Walking the Walk A Classic Example
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Walking the Walk
Bill Marriott Jr
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Some Final Thoughts
• Remember the 4 C’s: Clear, concise, credible communication, delivered with confidence.
• They greatly impact a company’s reputation and valuation.
• Don’t talk the talk unless you’re ready to walk the walk.