The value of communications
The value of communications
Chrysler’s moves are signs of trouble
December 16, 2007
The new bosses at Chrysler LLC have made many good decisions so far — hiring Toyota executive Jim Press, signing a cost-cutting labor deal with the UAW and moving to trim slow-selling models.
It’s got a chance to make another wise choice now, but the early signs are not good.
The announcement accompanying last week’s resignation of top Chrysler spokesman Jason Vines and the retirement of his lieutenant Mike Aberlich that Chrysler’s communications department will report to human resources rather than directly to top management spells big trouble. Let’s hope it’s not a sign of the value Chrysler’s owners at Cerberus place on communications.
Communications must have a seat at the grownups’ table, with direct access to Chrysler’s bosses as the company develops and executes its turnaround strategy. Somebody in communications must be able to walk into the CEO’s office and say "There’s a crisis. Here’s what we have to do," and the boss must trust that person enough to listen.
A way to prevent trouble
Done right, communications shapes corporate strategy, influences whether a company has a good or bad reputation and serves as a reality-check for managers who can easily lose touch with how the outside world perceives them.
An effective communications team can steer management away from bad decisions and build long-term plans to help the company succeed.
"You can head off a potential disaster by knowing the press and being in on the planning process," said Ken Levy, a longtime communications executive with Chrysler and General Motors, now a consultant in Manhattan and Italy.
A really good communications executive is less a spokesperson than a consigliere, the trusted counselor the boss listens to in a crisis.
Taking chances in public
The industry’s best current example of strategic communication is GM’s masterful handling of its Chevrolet Volt concept car. The company brought reporters in early to explain the Volt’s potentially revolutionary propulsion system, which combines batteries you can recharge at home with a small engine as an auxiliary generator for long trips.
It’s a risky program, dependent on cutting-edge technology that may not work. Because it’s complicated and the development program could fail, it’s exactly the kind of thing engineers and management would like to do behind closed doors.
GM communications chief Steve Harris, Detroit’s masterful capo di consiglieri, saw the car had potential to radically change how people perceive GM. But only with the proper communication strategy.
So Harris’ team came up with a years-long plan to explain the technology to reporters and provide unprecedented regular updates.
The strategy paid off at the North American International Auto Show this year, when the Volt drew banner headlines.
John Mueller, a retired GM communications executive, worked closely with chairman Rick Wagoner when Wagoner ran GM’s North American operations. One day, he suggested Wagoner do an interview with a journalist from a leading newspaper. Wagoner said that his schedule was full.
Mueller picked up the phone and called Wagoner’s assistant. "Tell him I’ll be right up," he said. As Mueller stepped into Wagoner’s office, the future leader of the world’s largest automaker smiled.
"If you think it’s important, I’ll do it," he said. "Don’t you ever quit challenging me when you believe you’re right."
That’s the approach Chrysler needs to take. Who does the job is less important than that Chrysler’s new bosses recognize the job’s value.
