This article was originally published on Forbes.com on April 13, 2023
RACHEL KULE, PURSUIT PR
Forbes Councils Member
It seems like there is always a new scandal bringing down high-profile businesses and destroying value for stakeholders who bought in on the vision. Silicon Valley Bank’s recent collapse highlights the need for strong corporate governance and strict adherence to facts in any corporate communications.
The same is true for high-flying founders hustling to fulfill their dreams who may end up exaggerating their financials, making false promises or even being charged with outright fraud. What the arrest of former FTX crypto exchange CEO Sam Bankman-Fried and the sentencing of former Theranos CEO Elizabeth Holmes and former COO Sunny Balwani have demonstrated is that without integrity, even those skilled with persuasion can go down the wrong path.
Crafting a big message through Super Bowl ads or sponsoring sports stadiums is extraordinary, but it isn’t enough to overcome a bad reputation. Fact-based communications and integrity, on the other hand, earn brand equity, helping companies grow, scale and lead.
These cases, while different in the nature of their companies’ collapse, remind me of the use and misuse of persuasion in public relations. The concept of “PR spin” is widely considered to have a negative connotation, but I find that it is often misunderstood and overused. It needs to be redefined, if not discarded altogether.
Public relations is about communicating and fostering a connection between a company or leader and their stakeholders: sharing information from one party to another. External communications, including investor relations, at its core is about articulating what you stand for and why it matters to your audience. It is based on the facts of today and often the aspirations for tomorrow. However, “spin” is not about the sleight of hand to alter reality.
A company’s leadership cannot message themselves out of their current business problems. But they can use persuasive communication to ensure their constituents understand what is happening, why and how it may impact them. Proactive communication instills trust and confidence—even if that means communicating that a situation has arisen and the company has yet to come up with a firm solution. Executives can leverage communications to understand what information stakeholders want to learn. This supports an overall business strategy of transparency with clients and investors. And when more information becomes clear, it can be communicated in an effective manner.
It’s important to note that sensationalized messaging that chases attention will not achieve meaningful engagement. Elevating communication requires truth at the core of whatever is being shared. It also takes into consideration the context of what the audience is dealing with at the moment, including misperceptions and misinformation.
Thought leadership programs are one way to proactively engage with an audience on a regular basis. Information that is useful, relevant and prompts action is helpful at all times, but it becomes especially useful if negative information surfaces.
• Credibility: Identify a spokesperson who can best articulate the company’s message in a way that is inspiring and also accurate and authentic. The ideal person is a C-suite executive who doubles as the chief reputation officer. Additional leaders at multiple levels of the organization may participate to help amplify the message.
• Telling Your Story: A message or a story is a way of communicating that creates clarity, provides context and demonstrates meaningful relevance. Figure out what information is needed to best inform your story.
• Design: The story needs to be architected in a way that is meaningful, relatable and primed for a variety of formats. What works for an investor letter may not resonate through social media channels or media interviews, for example.
These are a few considerations a company can take to harness the power of persuasion.
Communication is a gift. It enables us to relate, learn, grow and connect. Communication can build trust, shift perception, scale businesses and restore, retain and grow corporate reputation and community. I think everyone can use that.
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