Part 2: Insights with Bruce Zanca

Part two of a conversation with WPNT Ltd. Associate Bruce Zanca. Following numerous communications leadership roles at blue chip companies and two tenures in White House administrations, Bruce offers guidance on how to run a successful IPO, and the essential need for effective communication skill in leaders.

Part II:  Financial Communications, Public-to-Private-to-Public and C-Suite Communications Skill

We’ve found that senior leaders often are the bearers of difficult news and are concerned about delivering or being associated with negative information. Any counsel?

My advice is to be honest, forthright, and as humanistic as possible. There is often a tension between legal counsel and the communicators in crafting a message. Lawyers will be typically risk-adverse and will err on the side of caution and will want to write a message crafted to mitigate the possibility of future litigation. This legal strategy often does little to reassure the target audience or give more information about a difficult situation. The lawyers will never want a spokesperson to say “we are sorry,” because in their minds, it evokes blame or guilt. Therefore, I think it’s best to speak in facts and certainty. Tell the audience what you do know and when you knew it. It’s okay to say “our thoughts and prayers are with the victims.” Give the target audience resources to find additional information such as websites, toll-free numbers, etc. 

Never, ever lie. It’s far better to tell the truth and take your lumps. A cover-up is always worse than the actual deed or mistake. Honest, forthright, and contrite communication is the best approach.

You designed and implemented communications for three, different IPOs. What is the key to success?

The most important thing a company can do in getting ready for a roadshow is to make sure that their management team is prepared. Nothing takes the wind out of the sails of a public offering faster than a lackluster performance of a CEO and CFO. An executive with substandard skills should be coached by a professional to help them hone their presentation. You don’t want to be the company that did not fill their IPO book because of an uninspired pitch. 

When a group of potential investors is hearing a company presentation, they’re really making an assessment of the management team. Those investors are asking, “Are these guys credible? Can they deliver on the promise of their presentation? Should I give them my money? What is their track record? Are these guys believable? Can they do what they say they can do?” The investors need to understand the story, the business model and numbers. They want to know about revenue and trajectory. Investors will be concerned with market opportunity, barriers to entry, competition, expenses, projections, etc. The management team must be prepared to answer all of these areas of concern in a cogently crafted, high-energy presentation. The successful management team will exude professionalism, competence, and confidence. 

Long corporate roadshows are a grind. Every meeting has to be high-energy, even if it’s your 10th meeting of the day or the 60th meeting in a five-day roadshow. The presentation deck should be “tight.” Talking points for Q&A should be fully developed and vetted well in advance of the roadshow. Management answers should be anticipated and crafted with forethought. I’ve always said that management answers should be like punching a music track on your mobile device or in your car. The audience asks the question and the answer comes up automatically. The net impression left with the road show audience must equal opportunity, credibility, and confidence.

You also led communications for taking a public company private. Was that easier and/or significantly different?

Generally speaking, I think it is easier to take a company private from an investor relations standpoint. When you’re taking a company private the most important thing is to communicate with your existing investor base in an effective manner so they can be sure the rationale and business case for private ownership is in the best interest of the shareholders. The most expedient method for doing that is to fall back on your communication pillars of the who, what, why, where, and when rubric. 

You also need to consider your messaging to other stakeholders. Customers will want to know how the change in ownership structure will affect their business. They will want to know will their pricing change? Will their point of contact or salesperson change? They will want to know how doing business with the new organization will be different. As soon as the deal becomes known publicly, it’s important to communicate directly with the customer base to answer those questions and placate their concerns.

Another important audience will be your employees. They will want to know what the change will mean to them. Financial considerations like acceleration of stock options, or profit sharing or bonuses will be on their mind. Employees will also want to know if the change will make a working difference in their life. They will probably be concerned that their job is in jeopardy. These questions should be anticipated and answered with direct communications as soon as possible after the deal is announced. Giving employees as much information on the integration process as possible will help to make the transition smoother.

Can you cite any examples of companies/organizations that truly made communications (traditional, digital) a source of differentiation?

I always admired the professional communicators at NASA. They are so skilled at day-to-day public affairs and public relations. They constantly evolve, embracing leading-edge technology to reach their various audiences. Since the Mercury and Apollo programs in the 60s and 70s through the space shuttle missions and now with the international space station, they have been innovative in using public relations to propel the NASA brand. They’re skilled at leveraging earned media techniques for positive news and feature stories. They are also highly-skilled in crisis communications. As a consultant for the White House, I saw this firsthand. I worked closely with NASA public affairs management in planning and producing a memorial service in Houston, Texas for the astronauts who perished when the space Shuttle Columbia Disaster. Even during the most trying times, when they were grieving their fallen colleagues, they fell back on their planning and training to create a memorial service that honored those fallen heroes and help the astronauts family’s and the NASA community to grieve.

I always love first job stories.  Tell us yours.

I had all of the typical jobs you might expect. I mowed lawns and was a paperboy. The first job where I got a paycheck was when I was 15 years old at a local grocery store in suburban Chicago. I started as a bagger and shopping cart shagger. Amazingly, after six months, they gave me the keys to the store and I went there every weekday morning at 5 AM to wash and buff the floors of the store under my own supervision. I had three hours to mop and buff the 19,000 square-foot tiled store. The store manager, a man named Dennis G. was fastidious and demanding. When he came to work at 7:30 AM each morning he would walk the aisles and inspect my work. That job taught me to work quickly, keep high standards, and take pride in my work. One of the great benefits was I was able to get in three hours of work every day before going to school. It allowed me to participate in after school activities like sports and drama. That job taught me about a strong work ethic and that you can always accomplish more than you think you can.

Communication skills are almost universally included in every description of leadership. Can one be a leader or an effective one if they are less than skilled in the communications arena?

I think communications, like any skill, can be taught and learned. That said, truly gifted leaders will have an innate instinct and skill for communication. I’ve always thought that there were two personality archetypes with executives. There are numbers guys and there are stories guys. When you find someone who is skilled in both disciplines, they have the potential to become exceptional leaders. For an executive who is not comfortable as a communicator they can hone their skills with coaching and practice. Skill building in a “low-risk, practice situation is an investment in future success. 

Self-awareness is another important factor in success. Smart leaders surround themselves with people who have ability and skills that they don’t possess themselves. So if a leader is less confident in message development and communications, they are smart to have a trusted advisor to help them plan and make good communications decisions. One of the paramount success factors to good communication and leadership is the ability to listen. Listening carefully to stakeholders such as customers, employees, community members and shareholders is the most important tool an executive can use for success. Arrogance and hubris lead to downfall and failure.