Insights arising from a conversation with Jim O’Leary, the US Chief Operating Officer, Corporate Affairs Practice Chair and Global Chair of Impact and ESG at Edelman

 It has become more apparent and more useful in times of crisis (COVID-19, social unrest, supply chain backlogs, war in Ukraine, etc.) that the CCO has an independent and horizontal view across all aspects of the enterprise. This was always the case, but as the enterprise evolves and the business context remains volatile, uncertain, complex, and ambiguous, the CCO will remain counselor to the CEO. Five years ago, roughly one-third of CCOs reported to the CEO. Now, that figure is closer to one-half. Playing the role of counselor to the maximum effect in the next one to two years will ensure that number keeps rising.

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Insights for What’s Ahead

• The role of the chief communications officer (CCO) has elevated because the role of the CEO has changed. Beyond overseeing the running of the business, current expectations position the CEO as the voice of the social, environmental, financial, and even political dimensions of a company’s activities. That voice must address many different stakeholder groups. The role of the CCO has become that of the chief counselor to the CEO as to what should be said, to whom, and how the narrative must remain consistent and value accretive over time. This counsel is more important than ever. 
• Events of the last two to three years have accelerated the evolution of the communications team’s role. The elevation of the function was underway as news, social media, and the employee voice were all being amplified by new platforms and technologies. The string of social, political, economic, and environmental disruptions of recent times has made it even more critical that CEOs address issues, act in line with their corporate purpose, tell the right story, and engage all their stakeholders. The consequences of getting this wrong can be dramatic. The benefits of getting it right will be rewarding. 
• The demands on the communication function have increased; the power has grown, but appropriate resourcing might become challenging as cost pressure builds. The traditional role of the communications team is as demanding as ever—press relations, crisis management, briefings, internal comms, etc.—and new areas have arisen. Communications technology, the leveraging of data, specialism in ESG and government relations, and managing hybrid workforces are prime examples of these new areas of focus. Fifty-seven percent^[1] of CCOs state their primary challenge is to secure the resources for their team to meet this rising demand. Meanwhile, 98 percent^[2] of CEOs are expecting a US recession, and pressure on “support costs” will mount. CCOs must build the case for the resources wisely. 
• There is no silver bullet for evolving the structure of the communications team to manage the balance of demand and economic pressure of cost. CCOs must meet the demand by prioritizing the things that matter most in the mid-term to their company. That prioritization must be tailored to their particular situation and the scenarios they are planning for what lies ahead. At the same time, CCOs must prove the business impact and value added by their work, and also make the case for maintaining if not increasing budgets for their team. 
• Holding on to the newfound power is dependent on shifting perception of corporate communications from a support function to a value creator. The CCO, in the new role of strategic counselor, has a critical part to play in the success of the business. Increasingly, communications can play offense in shaping the long-term strategic narrative, but it also has to be the corporation’s defense when handling short-term issues. The big challenge for CCOs is to resist the drive for cost-cutting to force them back into a defensive posture and maintain and demonstrate their value-creating activities.