Steve Halsey: [00:00:00] There is another room where some of the organization's most consequential decisions are made. It's the corporate boardroom.
Matt Ragas: The C-suite and the CEO actually has a boss, right? Called that board of directors.
Anne Green: Today we're picking up that thread by asking, I think, another fundamental question, which is who gets to occupy those priceless seats?
Matt Ragas: Two-thirds of those seats are kind of already spoken for.
Steve Halsey: What does a communications leader actually contribute as a director that the board can't obtain from its existing, existing resources?
Matt Ragas: Never even thinking that a board membership was a possibility. And you know what happened then six or nine months later, or a year later?
Their name was then submitted and they were then invited
Anne Green: Welcome to Building Brand Gravity, the podcast [00:01:00] exploring the ideas, issues, and people shaping brands and businesses today. I'm Anne Green.
Steve Halsey: And I'm Steve Halsey. And today we're continuing a conversation, Anne, that you started in a recent episode about what makes boards effective, and taking it, well, into a different but closely related direction
Anne Green: We are.
You know, in my conversation with Deb Enright, she's author of Board to Death, we look beyond governance structures and bylaws and compliance to consider a board for what it really is, which is a human system. And Deb, um, I enjoyed, she made the case that every board seat is a priceless asset, which I certainly agree with.
The people filling those seats and the trust and the candor and the judgment that they bring into the room ultimately determine whether a board accelerates an organization's progress or unfortunately quietly gets in the way. And today we're picking up that thread by asking, I think, another fundamental question, which is who gets to occupy those priceless seats?
Steve Halsey: Well, [00:02:00] and you know, I think more specifically what we're gonna explore today is should more of those seats be occupied by senior communications and corporate affairs leaders? You know, it, it, in our profession, you know, we spent decades talking about and advocating for corporate leaders to earn a seat at the leadership table, probably to the point that a lot of us on this, uh, podcast are kind of tired of hearing about that conversation, but we've made a lot of really real progress.
And today, many chief communications officers and chief corporate affairs officers, which is a role that really seems to be coming on strong, they do serve as close advisors to the CEO, and they're established members of, of the C-suite already. But the C-suite is not the only room where it happens. Above that executive leadership team sits, as you know, Ann, the board of directors, the group ultimately responsible for an organization's governance, the longer term oversight, and even holding the CEO [00:03:00] accountable.
So is the boardroom the next frontier for the communications profession? And just as important, are communications leaders actually prepared to serve there?
Anne Green: I, I think it's a very interesting moment to ask that question. First of all, I've been hearing this conversation had by more very senior comms leaders.
I've been having that conversation with more of them. But also, you know, I've always said boards have to navigate so much across multiple areas of expertise, and they are truly navigating today an extraordinary combination of business transformation and geopolitical uncertainty and polarization and workforce disruption, technological change like AI, among other things.
And I, I think boards are also confronting risks that may not initially appear on a balance sheet, but they can dramatically impact enterprise value. So, and, and we've been hearing this more and more in client engagements, new business, but also just out in the world, Steve, things like reputation stakeholder [00:04:00] trust, culture, employee confidence, just, you know, the, the employees' role in all of this, and really the organization's overall license to operate in its environment.
And I think these are all areas, and we know this to be true, where experienced communication leaders have something truly meaningful to contribute.
Steve Halsey: Yeah, absolutely, Anna, and I think you hit the nail right on the head there. And there's, there's this important tension that's really at the heart of today's conversation.
Communications expertise may be increasingly relevant to the issues that boards face, but that does not necessarily mean that being a highly accomplished communicator is enough to qualify somebody for one of those board seats. So when you think about large public company boards, they continue to be dominated by current and former CEOs, COOs, CFOs, a- and other executives who bring that significant operating and P&L expertise.[00:05:00]
At the same time, as you mentioned, boards are also looking more closely at leaders who have backgrounds in these emerging areas and emerging risk and things like cybersecurity, AI, and technology. So that's creating both an opportunity that I could see and a challenge for communications executives. So we may have a strong case to make as a profession, but we are competing for a very limited number of seats.
Anne Green: Yeah, and those seats, I think research shows they don't open very often. Public company board turnover remains really low. We see that from some clients we've worked with that do research in this space. Now, it's funny, some of the research also says that every board member can think of a few other board members that they don't think should be on the board anymore, so this is a very dicey issue.
But when a position does become available, that person selected needs to offer something the organization can't already access through the leadership team or outside advisors or existing board directors. So- I guess going back to the central theme here, that raises a pointed questions for [00:06:00] communications leaders in our milieu.
If the company already has a chief communications officer and works with strong outside agencies, then what distinctive value do you bring? As a director, I think that could be a fair question.
Steve Halsey: Yeah, I thi- I think that may actually be the question or the defining question because, you know, a board isn't necessarily looking for somebody to advise them on, on the field of communications.
What it's looking for is someone who can contribute really to a full range of enterprise decisions, and, you know, they want, as you've talked about, uh, in your previous episode, that deep judgment, that understanding of big R reputation as an asset, you know, the idea of an impact on stakeholders and trust.
And the communications leaders who successfully reach boards and those that we know who are serving on those boards may be the ones who have really moved beyond being seen as that functional expert, right? They've really demonstrated financial [00:07:00] acumen, business judgment, and the ability to lead organizations through transformation, crisis, M&A or, or other high, high-stakes moments.
So in other words- I think the path to the boardroom may require communicators to be known as business leaders first.
Anne Green: Yeah. That, that's a great observation. So I think that brings us to today's guest and his new research. So joining us, and joining you in that conversation, Steve, is someone really special to Building Brand Gravity, Dr.
Matt Regus, a professor and director of graduate studies in the College of Communication at DePaul University. And Matt was actually the very first guest we ever welcomed to this podcast, and he has remained a repeat guest and great friend of the show, friend of the pod, and his work consistently explores the intersection of strategic communications, business, and leadership, and that makes him perfectly suited to examine this question.
Steve Halsey: Yep, and, and I can't wait to get into the conversation. He and I, uh, go back a long way, so, uh, it's, it's never a boring [00:08:00] conversation. And for his latest study, which we actually got the first sneak peek of it here on Building Brand Gravity before it's been presented at a conference, uh, published, we get the first shot at it.
He calls it The Board Game: Exploring Corporate Board of Director Readiness Among Senior Communications Leaders. So Matt and his research partner conducted in-depth interviews with 20 senior executives. 16 had served on one or more public company boards, and the group collectively had experience on more than 125 boards of directors or advisors.
85% had at least 25 years of professional experience, so really, really senior set, uh, that was used to put this research together. And this experienced group could speak not only about their experience of wanting a board seat, but what it actually took to obtain one, and how did they contribute once they got there?
Anne Green: Yeah, and the [00:09:00] findings, you know, revealed several important divides. The difference between functional expertise and enterprise leadership is one. Another is the difference between participating in a board readiness program, but then actually being selected. And then another was, um, between believing you're qualified and then articu- um, effectively articulating the value you bring.
And I think the research also pointed to some persistent barriers that you and Matt are gonna talk about. So financial and P&L experience remain critical. Communications is still sometimes perceived as a softer support function, which I don't personally feel is fair, rather than a source of enterprise leadership, but you have to articulate how that leadership is formed.
And then, as with so many opportunities, access often comes down to networks, relationships, and a willingness to advocate for yourself.
Steve Halsey: Well, and one of the things, uh, I found particularly insightful about Matt's research, uh, when he shared it, shared it with us, is that he doesn't really [00:10:00] define public company board service as the only measure of success.
Really identifies basically a broader progression that can include community and nonprofit organizations, family-owned businesses, private companies, PE, VC-backed companies, pre-IPOs. So in other words, there's a lot of cases and a lot of settings that communications leaders may actually have more opportunity to apply their expertise and make a tangible difference.
Anne Green: Yeah, so today, uh, we're gonna explore what separates the communications leaders who aspire to board service from those who actually achieve it. We'll ask whether P&L responsibility is truly essential, and what communications leaders contribute that a CCO or outside agency cannot, and whether reputation risk has become important enough, I think it is growing, to justify more communications expertise on the board.
And importantly, you'll also be looking at the effect of AI and the opportunities presented by private PE-backed companies, as well [00:11:00] as, um, I think this is gonna be really important, I'll be interested to hear what Matt says about this, some of the mistakes executives make when presenting their board value proposition, and then what someone can do over the next 12 months to become genuinely more board-ready.
Steve Halsey: Yeah, I'm excited to get into today's conversation about board service. But I also think it's not just about board service, but how our profession defines leadership and whether communications executives are prepared to contribute wherever the most consequential business decisions are gonna be made.
Anne Green: All right. Well, let's get to it.
Steve Halsey: For decades, communications professionals have talked about earning a seat at the leadership table. Today, more chief communications officers and corporate affairs leaders are operating as trusted advisors to CEOs and members of the C-suite. But there is another room where some of the organization's most consequential decisions are made.
It's the corporate boardroom. [00:12:00] And the question we're going to talk about today is, is that the next frontier of the communications profession? What would communications leaders contribute at the board level? And are we prepared to serve there and to take those seats? So today we're gonna explore those questions with a good friend of Building Brand Gravity, Dr.
Matt Regus. Matt was our first ever guest on the podcast, so he gets kudos for that. He reminded me I still need to send him our new swag, our coffee mug here, which we will get to him. Um, and he's been on several times since. His latest research that we're gonna be talking about today examines the experiences of senior communications leaders who have pursued, but not only pursued, they have obtained corporate board positions.
And he's gonna talk about what their journeys can teach the rest of our profession. Professor Regas, welcome back to Building Brand Gravity.
Matt Ragas: Hey, Steve. It's, uh, it's great to, uh, to be back. Happy, uh, [00:13:00] happy 50th. You've reached middle age now, Building- Exactly ... Gravity. Almost the same age as, almost the same age as me.
It's, uh, it's, uh, it's fun to be back and hang out, Steve.
Steve Halsey: Always, always a good, good conversation, and, uh, hopefully we stay on topic 'cause we could wander and talk for hours. But I guess to get us started on topics, uh, maybe you can tell us a little bit about the, uh, uh, about what led to the study and the communications leadership, and just a little bit about your, your methodology.
And disclaimer, we cannot talk about specific names, but I, I can say based on he did share with me some of the individuals that he talked to, and this is the absolute cream of the crop top of the professor. So maybe you can talk a little bit about what led you to do this research and a little bit about the methodology, and we can roll from there.
Matt Ragas: Yeah, sure thing. So this has been research that's really been, um, a year and a half to two years in the making. And I think, Steve, uh, a lot of our [00:14:00] audience listen- listening, you know, for what? 20 or 30 years now we've talked about how communicators need to have a seat at the proverbial table to the extent where sometimes it almost w- we almost wanna do an eye roll, um, you know, in reaction.
'Cause you've heard that at, we've, we've heard that at conferences. We've, we've, we've read about it. And in many ways now that is happening, right? So we know with the rise of the CCO and now the CCAO, chief corporate affairs officer, uh, at many corporations, we very much now are part of, uh, the C-suite. But one of the things that I kept thinking about is when we keep talking about, you know, the C-suite, the corner office, uh, getting inside the room where it happens, there's really more than one room where that action happens.
And, and as we know, there's also the boardroom And the board of directors, and the C-suite and the CEO actually has a boss, right? [00:15:00] Uh, called that board of directors. And we haven't spent as much time, particularly as academics on the research side, really understanding that intersection of, um, whether we call it strategic communications or comms or public relations in, uh, corporate governance.
And so this is very much, uh, in terms of methodology, this is a, uh, based on in-depth interviews, um, literally with help from, uh, one, a, a, a mutual colleague of ours who got us access to a board level, uh, database and basically gave us a view into who are actually senior comms leaders who are serving on the boards of publicly traded, um, for the most part, US-listed, uh, companies, but we also have non-US in these 20 in-depth interviews.
And what's their journey like? How did they land that first public [00:16:00] company, uh, board seat? What are the knowledge, skills, and competencies that are in demand and helped get them there? What are the, uh, barriers that are restricting more of this, uh, generation of communication leaders, uh, from serving, uh, in, in, in those roles?
Steve Halsey: Yeah. And I, and I think that's one of the things that's really interesting is, you know, it feels like one of those things you need to have those first couple of bellwether professionals to make that leap, and then all of a sudden, it seems like everybody we're talking to is now saying, "Wow, I've been, I've been counseling the C-suite for time.
Hey, I've been asked to present to the board. I've got good perspective. You know, I think as I transition this next point in my career, I should be on that board." And, and I'm hearing that a lot more and more, which is, which is really good. And that leads me to kind of start with, um, I'm gonna kind of roll two questions together for you here.
Kind of the first, what is changing in that relationship [00:17:00] between the senior comms leaders and the corporate boards on what you're seeing? And are you seeing that communicators are increasingly serving boards even if they're not in a formal director role, right? 'Cause they could almost be like these quasi-directors that are involved, that influence, that participate But don't necessarily have a seat.
I mean, let, let's start there and then we'll get into those that have a seat and dissect that in greater detail.
Matt Ragas: You know, if we rewind and go way back, we gotta give a shout-out, I think, to Arthur Page, because he actually was, uh, obviously a senior communication leader, but viewed as a business leader first.
And he served on not just AT&T's board of directors, but some other, uh, very large corporations back in the day. Uh, and so I think, you know, uh, what's old is kinda new again. Um, but that was extremely rare back in that time period. [00:18:00] Then we fast-forward, and what I f- what I found, Steve, I wanna give a shout-out to Betty, uh, Betty Hudson, who, uh, served for 25-plus years on Aflac.
Think Aflac Duck.
Steve Halsey: Aflac. Aflac. I had to say it. I had to do it.
Matt Ragas: Yeah. Exact- exactly. And all
Steve Halsey: our listeners are doing that right now, too.
Matt Ragas: It, it-- Oh, see, now we've, well now we've uncorked who knows what. Uh, but she, uh... We're going back to, like, early '90s, and back then she was head of comms for, uh, NBC, and served for, um...
As she will tell you, now, you know, there's a lot more pressure on board refresh, so a 25-year run on a public board is almost unheard of. But, um, I just wanna shout her out as someone that I learned through this research as being very, um, very, very pioneering. Uh, a second part of your question, I wanna point out to everyone, and you might wanna look up the term, and some of us are gonna be familiar [00:19:00] with board observers.
So there's official members of, uh, boards of directors, but we also see in the world of, um, venture capital and private equity, this is something they actually, uh, prefer in some cases. And then also through these interviews, I also heard about at least one of, one of these senior leaders served as a board observer through, like, an exchange of senior leader at one public company becomes a board observer at, uh, public company number two, and then, then vice versa, as sort of a, a developmental, uh, board governance, uh, program.
So board observers are something to look into. And then, um, as you and I know, and, and, and, uh, uh, some of, some of the listeners will also know that agencies have really ramped up in recent years not just their corporate practice, but trying to become more of an advisory, uh, and get more in that management consulting, [00:20:00] McKinsey-esque, uh, world.
And as you know, there's shops that specialize more in, um, strategic comms advice at a, um, at a board level. Uh, and so we're seeing a lot more, uh, yes, we're seeing growth in, um- our colleagues serving on boards, but we're seeing even more growth on what a lot of times is called boardroom e- engagement or boardroom, uh, advisory work by, uh, those, uh, those senior, uh, uh, comms, uh, leaders in our profession.
Steve Halsey: Yeah, I, I can definitely tell you in the, the industries that we serve that tend to be extremely complex and highly regulate- regulated, um, you know, we, uh, we, like what you said, we are moving very heavily, you know, into that advisory stage where so many of the discussions we're having, a- actually, in fact, one I had earlier didn't have a comms person there because it was with the CEO, the [00:21:00] senior executive, supply chain executive.
So it, so it really is, you know, in that, that consultative, um, kind of role. You know, one thing I forgot to tell our listeners is we're hearing it first. We are getting the first sneak peek of this research, uh, which, uh, Professor Regus will be rolling out in the next few weeks. But this is a, this is a hot breaking news item that you're hearing it first.
And, you know, Professor Regus, one of the things about your research is it gives us the opportunity to really move beyond, like, a professional's aspiration and look at people who have made that journey. So- As you look at this, as you talk to all these, uh, individuals, what was the most surprising difference between the communications leaders who wanted board seats and those who actually earned them?
Matt Ragas: You know what? It's, um, this certainly didn't happen ac- accidentally. They didn't, [00:22:00] um, fall into these roles. They didn't just decide also, Steve, that, "You know what? I'm transitioning out of my, um, operating leadership role, and now I'm moving, you know, in- into this next stage of my career where maybe I'm gonna be more consultant and give back, and I'm gonna do board service."
These are folks that the stories again and again I heard, they've been building towards these moments in many cases for 10, 20 plus years, where they've gained the experience, you know, maybe starting with if they're in-house, right, on different influential committees within their organization and working their way onto an executive, an operating, uh, committee.
And then also doing things like taking the steps of serving on public-private boards, maybe closer to home, nonprofit organizations, NGOs, um, governmental organizations, [00:23:00] and, uh, a lot of interesting learning about serving also on, uh, small businesses and, and, uh, private, uh, private companies, in some case, uh, PE, uh, companies.
So I think that was, um, interesting to see. It's not that they simply said, uh, you know, "I'm signing up for a so-called board readiness program," right? That's, that's, that, that really those exploded in popularity around, uh, COVID. Um, these are folks that were very intentional, um, with the board service they did leading up to it, and the skill set and competencies they gained that broadened them very much beyond, uh, I'm that senior comms leader that you might be able to already get down the hallway as, as your, uh, CCO or your head of comms.
And I actually bring, you know, an enterprise-level, uh, mindset, and I'm very much a [00:24:00] business leader and a counselor
Steve Halsey: So it's not like, uh, not like the NFL that you declare for the draft and, uh, wait and see which round you go in, huh? It's a little- It- ... little, little more of a paced process than that, huh?
Matt Ragas: It's a, it's a, it is definitely, uh, it's definitely a building, um, process. And I, I'm thinking of one, um, one interview, uh, that was very interesting. It was to, to hear someone, um, that, you know, expanded beyond, let's say, the comms function and served as then a chief administrative, uh, uh, officer, which we've seen in a couple cases now.
But their former boss back when they were the number two, and that CCO was then, uh, retiring Really helped coach them and gave them advice and said, "If this is where you're looking to go in the future in terms of board service, you should get your own domain name. You should launch your own website. You should build, uh, you should build an actual board bio and [00:25:00] a board profile."
Um, and really walked them through intentional steps that again, was the groundwork that was laid five and 10 years ago, and now that individual is actually on, um, you know, association-level boards in our field, but then, but then pub- public company boards as well.
Steve Halsey: Well, when I, when I hear you say that, you know, it-- I think that's a really important point that you're making, that candidates are generally not getting recruited for their communications expertise.
It's really that full body of work, right?
Matt Ragas: It's very much, um, you know, that-- And that was feedback also that was, um, that I heard multiple times, is uh, hey, let's be frank. In a, when you think of the composition of a public company board of directors, I would say really as senior comms leaders, if we wanna define ourselves that way, we're competing for maybe one-third of the total slots [00:26:00] available on a board.
Two-thirds of those seats are kind of already spoken for. Uh, it's gonna be, you know, a, a CEO, company founders, current and former, um, CFOs, um, presidents, people, people who have run major P&Ls, been presidents of business units. So that one-third slice that you're competing for, you're going up, as you know then, against other C-level leaders, CIOs, uh, s- you know, CTOs.
Um, I think if we're being honest with ourselves, we'd have to say, yes, we do internal comms or we may own that, but CHROs, human capital, the CHRO has maybe just as much a claim for that one-third slice of seats. And then with the importance of technology in enterprises today, and, and look at the world we're in with AI, um, the CIO, CTO, um, also has a claim as well.
[00:27:00] So, um, it's a, it's a, um, it's a lot of competition for in public company land. The other data point I would give everyone, we've been in a cycle now for 20-plus years. We've seen a, uh, decline in the number of US-listed public companies.
Steve Halsey: Mm. Mm-hmm.
Matt Ragas: Uh, and there's may- The
Steve Halsey: last piece out there, huh?
Matt Ragas: Yeah. I mean, so it's like there's not, there's maybe 3,500 to 4,000, uh, Nasdaq or, or big board-listed, uh, companies.
In comparison, there's like Multiples of that when we look at $100 million revenue public or private enterprises in the US. That might get us to like 20,000 different entities, if that makes sense. And so, um, it's a, it's, it's a-- The numbers are growing, but it's, there's a lot of competition. And then the turnover, the other data point for us to think about, board turnover, even though we talk a [00:28:00] lot about the importance of what's called board refresh, right?
Uh, average retirement ages have been, um, have been loosened when it comes to board service at US companies, and the actual board turnover's maybe only 6% to 8% a year. So you're talking that, you know, that's a very limited number of board seats that come up and open, um, per year. So that's like kind of the, you know, some of the bigger kind of macro picture that you're trying to fit in then as the, uh, that aspirational, uh, board director.
Steve Halsey: So, so I've g- I've got an idea for you. When you, when you publish this article, what if you start it with this line: "May the odds be ever in your favor"? Has that been used anywhere before?
Matt Ragas: I, I, I don't, I don't know if
Steve Halsey: we- Oh, well, I guess that's Hunger Games. So, so you've got- That's a- You know with board games-
Matt Ragas: I mean, I, I- Yeah.
I have had fun with the title of this study as, as the board game. Uh, but [00:29:00] yeah, there's a, uh, Hunger Games-esque in terms of, um, public company, uh, board seats. And I think one thing from this research for listeners to think about is a fair amount of these folks have also, and there's a risk reward to this, um, have agreed and have served or are serving on VC, venture capital, or PE, private equity backs, uh, sometimes called, you know, pre-IPO.
Um, and, uh, that's a whole class of companies that, um, you know, are earlier into their journeys or in, you know, a midst of, um, what we would call probably transformations, right? Which is also kind of a se- a, a, a sweet spot for communication leaders, 'cause we obviously help, uh, drive and push ahead, uh, transformations.
So that's a whole other world that I hadn't thought as much about going into this research that I realized, [00:30:00] um- fits the competencies and skill sets and, uh, senior comms leaders are, are getting more involved with.
Steve Halsey: Well, and, and one of the, one of the things I thought was kind of interesting, right? You, you, we, we, we started with the premise of, hey, we want a seat in the C-suite.
Oh, now do we want a seat in the board? And, uh, you and your colleague, uh, Professor Ron Culp, have been very, uh, prolific, you know, i- in really talking about business acumen as kind of a core element that comms leader, um, have to have. And one of the things I thought was interesting, 'cause you were kind enough to share a pre- pre-read version of, of the research with me, is that your participants really describe financial and business acumen as those are non-negotiable table stakes.
I guess my question here is, is direct P&L responsibility truly essential, or are there other credible ways that, that people can demonstrate their mastery of financial acumen? [00:31:00]
Matt Ragas: I think it's safe to say from these interviews, it, it was the top limiting factor that they identified. Um, and I can think of one of the interviews, and it was a, a, a search, a search, uh, leader who does, uh, you know, board searches, and they said, "If you don't get that direct P&L experience, you're not gonna, you're not gonna be in a public company, uh, board."
And multiple of these senior leaders figured out at different times over their career, I can think one of them ended up president of a new business unit, a former CCO. So then, okay, direct P&L experience. Someone else at some point in their journey, uh, also went from comms and transformation officer to then running a business unit, so again, direct P&L.
Um, even though interestingly in their case, I think their strategic advice was then to shut down, uh, [00:32:00] that business unit. But they, they gained that P&L, uh, experience. I think one thing earlier, um I've let some people, you know, I've gotten some sort of cross-checks where I've had some senior leaders take early looks at, uh, this study, and they said, some of them said, "You know what?
Maybe I should have leaned in more to rotational programs for in-house folks," right? So, uh, you'll be, you know, you'll be familiar with companies that might rotate that comms leader and let them gain operating experience in some other, uh, functions and business units. And sometimes that results in more managing or having, having direct impact, um, on a P&L.
And it was interesting to hear about, um, because I think sometimes we pa- we've made a lot of progress, clearly, in our profession, but sometimes we pat ourselves on the back a bit, and we need to be honest [00:33:00] that, you know, in the world of finance a- and accounting, we are still very much defined as a, uh, a staff, uh, uh, function, what sometimes is called a cost center versus, right, the, the business units that are, that are, uh, very much, um, you know, called a profit, uh, center.
Uh, and so that's, that's, that's something you have to figure out how you can, um, expand your... I, I think CCOs, right? The rise of the CCO has a much broader portfolio than that traditional, uh, what we think of with a CCO, and I, I think that's another way to get at making that case of the level of business savvy you have.
The last thing I would say related to this is when you're talking public company boards, you're gonna have-- Those directors need to staff, you know, uh, committees like nom and gov, so nominating and governance, [00:34:00] which our world folks end up on a lot of times, but there's the audit committee. So there's certain committees that because of the rules of the stock exchanges and the SEC, the regulators, there's a financial bias at play, right?
Where you literally on an audit committee need to have recognized financial experts You know? And there's some leeway with that, but that also then makes that P&L experience really important.
Steve Halsey: Yeah. Well, that, that gets important and that gets to kind of the point that you said that, hey, two-thirds of the seat are just inherently off the table because of those.
And that's an interesting point that you made about rotational programs, 'cause I know a lot of comms leaders that get into rotational programs that are more geographic in nature, but it-- that's an interesting point. And, you know, I've also known a lot more marketers over the course of my careers who then naturally transition into the role [00:35:00] of business president much more often than you see maybe comms people, which, which gets me to a point I'm gonna put out here that may be a little bit controversial, right?
So we're talking about what does it take to get on the board, the experience in the board seat. Here's my question A lot of publicly traded companies, they already have their chief communications officer. They already have their, um, investor relations function. They have their trusted agencies. What does a communicator, communications leader actually contribute as a director that the board can't obtain from its existing, existing resources?
And really, how does a role of being a really trusted, valuable advisor really differentiate yourself from the fiduciary role of a director? I mean, that, I mean, that's really kind of putting it right out there on a platter for
Matt Ragas: you. I mean, it, it, uh, it, and it's something that came up in these interviews where, where multiple of these leaders said, that are now serving as [00:36:00] directors, "Hey, any corporation worth its salt has already got a quality CCO, a quality IRO, uh, and team down the hallway or on a different floor.
Why does it need to be, uh, board level?" And then a couple thoughts to that. I guess the responses would be board level has now equated the rise of what's accountants would call intangible assets, reputation, brands, human capital, culture, trust, as actual assets that link to financial performance. So, you know, bigger, broader view, that's a good thing for us in terms-- A- And the multi-stakeholder view, right, the stakeholder capitalism view, um, yeah, there's maybe been a shift back a little bit, but that's still gained a lot of credence in boardrooms.
So that is a very good, uh, thing for leaders in our field that are looking at board service. But that alone is, is not enough. I think you're right [00:37:00] on, Steve. And so, uh, you've gotta look at, um, of these 20 folks, some of them not surprisingly to your earlier comment, they were CCOs, but they were CCMOs. So they had comms in the marketing, and they worked on integrated teams.
And I do think that that CCMM- CCMO role opened up opportunities where some of these folks then But got president titles of other business units in the enterprise and expanded themselves out. Some of these folks also built really deep expertise in specific industries. We're talking over 30 plus years, uh, in, let's say, I also observed regulated industries, tricky, complex industries.
And so-
Steve Halsey: Oh, they're my favorite. They are my favorite
Matt Ragas: That's called a GNS bread and butter. Uh, so, um, industries like [00:38:00] healthcare, uh, pharma, um, and really built deep expertise and relationships so they could truly be counselors and, uh, advisors. These folks generally had, had demonstrated deep chops, uh, with high profile, not surprisingly, crises and issues management at a high profile level.
Also, um transformations. We could also think about those as turnarounds. These were folks that have also been through not, you know, of course CEO transitions, but also major M&A, high-profile M&A, high-profile shareholder, uh, activism and proxy contests, right?
Steve Halsey: Yep. And you're get- you're getting exactly to the, to the point I wanted to ask you about is, it, you know, and I've been talking a lot lately in the last couple years of, and I call it the big R reputation, right?
And, and it's that idea that, that [00:39:00] reputation is a business asset, right? It's what walks in the room before you get there as a company. It gives you that freedom to operate, that right to exist. It exudes trust. And I've really found that there's been a lot of acceptance and understanding by both C-suites and the boards I've presented to about thinking about big R reputation as an asset.
And, you know, you're talking about, you know, transformation, changes, societal happenings, geopolitics, AI, all of this. I guess my question is, has reputational risk become sufficiently material that it may justify more dedicated comms and corporate affair expertise on more boards? Because the impact of if you get AI wrong, or if you get geopolitics wrong, or if you get supply chain comms wrong, is really, really significant right now.
Matt Ragas: It's [00:40:00] interesting, um, as you know, business leaders and boards think in terms of opportunity but also risk management, and that's the other R. So the big R of reputation and the R of, of risk and, and, um, and where those meet, and we've made a lot of progress, I think, on that over the last 20 years. Part of that is, as you know, a whole industry of actually measuring, uh, reputation, and a lot of corporations that subscribe to and are actively, uh, tracking those reputational scores.
We haven't talked as much about in this conversation, we also, and yeah, there's controversy around it, and in the US we've seen pullback, but not really Asia and Europe when it comes to, uh, CSR and really ESG, uh, is the concept, environmental, social, and governance, that, um, has also become, uh, [00:41:00] there's all sort of mandatory ESG reporting in lots of different markets now around the world.
And while we've had, um- Pushback domestically here in, in, in, uh, the States. I just continue to watch around the world where there's all sort of mandatory data collection and, um, reporting. And so that also is something that, uh, very much has become CSR, not so much as we know, uh, as a board level issue. ESG, yeah.
In the world of, uh, comms and, and, and IR and, uh, again, um, uh, ESG is really a way to monitor and anticipate, um, and manage, uh, from a finance perspective, risk.
Steve Halsey: Yeah, you know, with all, with all this, uh, conversation about the big Rs, you know, reputation and risk, I kind of feel like maybe, you know, my, my, my approach to new business [00:42:00] now should be like, uh, like a movie pirate, "Hey there, matey, let me talk to you about Rs."
Matt Ragas: When your last name is Dragas, there's maybe been some corny before where I've said, "No, R, starts with R." So yeah, no. I, I'm, I'm with you. I'm with y- I'm with you, Steve.
Steve Halsey: Let's pivot a little bit. I mean, this is a fascinating discussion so far, and one of the things you said earlier is, you know, and, and I, uh, and I, I made the joke about the NFL draft, but I, but I, I think that is a good visual concept to think you don't always need to jump immediately to the major league.
There may be one or two or three that just based on happenstance, career progression, like what you said, additional titles are in, are ready to make that big leap But, you know, there are all types of, of different boards from nonprofit and community to-- But you had said something that was interesting. Um, so my question is, are [00:43:00] private companies, PE-backed business, pre-IPO as you talked about, is that potentially an area that a lot of leaders may be overlooking that they should consider to establish their credentials?
One, they may love it, and it may be a meaningful way to give back, but it could also be a good stepping stone, because having talked to senior comms leaders that I know that are on major boards, it was that first stepping stone and establishing that credibility as a director got them to that next one and that next one, and it, and it kind of developed from there.
Matt Ragas: It's very much a, um-- It's interesting, uh, one of, one of these senior leaders is on a, uh, Fortune 500, uh, board, and so there's probably, um, former, um, agents- agency CEO that I think, I think we both know, um, pretty well. And they talked about how earlier in their career served on a [00:44:00] family-owned business in the beverage industry on, on their board.
Um, and, you know, gaining, gaining that, gaining that, um, experience, one. And then two, the other thing that came up is relationships. So it's a misnomer, I think I learned from this research, to think that you're gonna do a board readiness program and then they're gonna magically place you. Um, there was some examples of that.
I've seen some success stories. But what I learned a lot of it is what's called interlocking board relationships. And so, um, part of this current generation I'm also seeing is helping the group coming up that's on now the public boards and the private boards, helping to say, "Hey, you should know about Matt and Steve, et cetera, and here's some folks."
But one of the ways that you build those relationships, it's, it's just like that country club effect that also kinda limits our a- you know, would limit access. [00:45:00] By serving on those private boards, those nonprofit boards, the public-private boards, that's when people get to know you and see you in action and maybe see you then in a different light, in a different way.
And then, um, I saw these examples through the research. That's then they told the story of a CEO or a head of a nom and gov committee sees you in action in another setting and then says, "You know what? I should be thinking about then, uh, how about, how about Steve?" Uh- Yeah ... you know.
Steve Halsey: I like that idea.
Matt Ragas: For that opportunity, right?
Steve Halsey: Yep. Yep. No, I like that. For any of our listeners out there that have, uh, somebody looking for board members, the get to know Matt and Steve is a really, really good, uh, value proposition that I'd like to put out there.
Matt Ragas: Well, there
Steve Halsey: you- So-
Matt Ragas: There you go, Steve. That's, uh, I think you know with me that I, I tend to be a connector, and I always joke that I ha- I provide the unpaid, [00:46:00] uh, connection and advisory service, only, only half joking, for different folks in our profession.
Steve Halsey: Well, that's, that's, that's, that's what I appreciate about you as an educator and the, and the circles you run in, in ... Hey, so question, 'cause I, 'cause I know you, and I know you're gonna present this paper, and it's gonna find its way into a book. Yeah. And the book is gonna have a worksheet. It is gonna have really practical things that I should do.
So, so if we're giving our listeners a preview of what the, what the, what the Professor Rigas worksheet is, I don't want you to give all the secrets, 'cause we still want them to buy the books. But what should a board bio look like, and, and how does somebody, like, articulate that value proposition as being a board member, and how is that different than a CV?
Matt Ragas: Yeah. So the, uh ... It's really, it's really interesting. And yeah, you could plug this stuff into your favorite AI chatbot to get a, to get a definition and comparison of, um, [00:47:00] I'm gonna say the classic kinda comms bio versus the board bio. And the board bio is looking at how did you actually tangibly contribute over your career to creating strategic business value?
And you really need to figure out, have it framed, how are you demonstrating you have a true enterprise level, uh, mindset? And I would say then reach out to folks One thing I love about our business is, uh, we're pretty, uh, we're competitive, but we, we do help each other. Um, and so reach out to those folks that you see that are on those public company boards and ask for their board bios, right?
And, and spend some time, uh, with them. That gets into another, uh, uh, tangible thing that you need to be doing. You can't be waiting around that you created that board bio, you did that board readiness program, you got that [00:48:00] credential, you talk to your favorite, uh, comm search buddies and think that they're gonna magically get you on boards.
I heard so many examples of, of folks that sat next to someone on a plane, reconnected with a college buddy that is now a CEO, um, literally talked to neighbors, you know, in their building. Let pretty much everyone know that you are interested in, uh, and doing-- not just interested in doing board service.
And that was really, uh, it was so interesting. There were some other examples of some, um, agency leaders or CCOs where they had, Steve, like a, a, a CEO or a chair of a company, like a company founder reach out to them. And, you know, they said take those lunches, take those coffees within reason, and some of us I think are a bit better than that at others [00:49:00] with that two-way street, and it's not just we need things.
And they said they approached it really more as an advisor and counselor to that CEO or that chair, never even thinking that a board membership was a possibility. And you know what happened then six or nine months later or a year later? Their name was then submitted, and they were then invited, in some of these cases, some of these folks on public company boards, that, that was, that was their origin story, right?
Where they actually... That CEO and that chair was essentially testing them out and seeing, you know, are they advisor, counselor that looks at things macro and board-level enterprise mindset, and was then thinking about them in a different way and what they, what value they could contribute at a board level
Steve Halsey: So one of the chapters in your book is going to be, 'cause you've already talked about it, you know, start, start early, right?[00:50:00]
So think like five years early, start looking at the competency, tho- those type of things. But I, but I, but I predict one of your chapters, and this isn't in his paper by the way, I just, uh, he's a good friend. I just, I, I'm anticipating you're gonna have a chapter in there which you're gonna call something like the 12-month board readiness plan.
So if one of our listeners genuinely wants to become more board ready, what should that person do over the next 12 months assuming, you know, they've, they've been working on this five-year plan. They're ready, um, not necessarily to transition, but they're ready to step into a board. They pick up your book, Board Games: May the Odds Ever Be in Your Favor.
Um, what, what i- what is, what does that board-ready plan look like for them?
Matt Ragas: Part of it is, um, having the willingness and the drive and the motivation in making the space [00:51:00] in work life to lean into these opportunities and start to truly gain the experience. 'Cause like I said, it's a progression. It's also not a one-way, um, some of these senior leaders said shouldn't necessarily view as the end game and the brash, you know, whatever, brass ring, gold ring, the public company board.
Uh, right? That you can in some ways potentially create more value on a private company or an NGA- NGO or an association, uh, level board. And so my, my biggest piece of advice is, is, is, um, you know, when those opportunities present themselves or you, or the door cracks open Actually serve, actually, actually, uh, do it.
And, you know, one way is by simply giving back to our profession. There's, as, as you and I know, whether it's, um, the different cen- I- Institute for Public Relations, the, the, [00:52:00] the Plank Center, the Page Center, uh, the Pa- the Page Society, the PRSA Foundation, La Grant Foundation, right? We can, we can go on and on.
There's different ways where, um, that's, that's governance experience. That's not at, you know, the fiduciary level of a corporate board, which also comes with its own responsibility and risk to you. That's a whole other conversation, right? Uh, uh, personally. But, um, make time for those things. Like, if this is something that you think you're interested in and you wanna do in later stages of your, uh, career, then you gotta start building and gaining, um, that organizational, you know, I like that term better than corporate governance, uh, but organizational governance.
You gotta start, um, building that experience. So, so lean in, lean into it and, and start taking on more of this. And you know what? It'll benefit you, uh, and your own career and your own development, [00:53:00] but jeez, you'll also be helping our profession. Uh, and, and, um, um, you know, having served on and serving on, uh, different, uh, boards and committees in our profession, boy, it's, it's, uh, it's really rewarding, one.
And two, um, you also help build, um, friendships and relationships, and some parts, listeners, like, like Matt and Steve, actually, if you wanna go way, way back, buddy, to, to Page Up, right? Um, you know, it was really, um- You know, look, look, look at it, look at us now, uh, have- having this conversation. And I'm so grateful that Paige helped bring us together.
Steve Halsey: Yep. No, those are, those are good things. And, and, uh, you know, one of the things, again, since this is a sneak peek of the work, uh, I talked with Professor Regas, and he said if people wanna learn more, uh, about the study and that, to reach out to him directly. He's also being very, very coy to the last question I ask, 'cause I [00:54:00] know his book is gonna have a checklist, like, assess gaps in your financial, operational, and governance experience, and seek P&L responsibility beyond the traditional comms function, and pursue meaningful nonprofit experience, uh, find opportunities to increase your thought leadership, to find the kind of organizations where
Anyway, it will be a fabulous read that I
Matt Ragas: can't- It'll build, build ... You know me too well that
Steve Halsey: I- I can't wait, wait to see
Matt Ragas: it ... I try to be a real pracademic, as you well know. Um, and, you know, serve as a bridge and, and, uh, you're almost helping me, Steve, with a, with a checklist there.
Steve Halsey: Well, there, there you go.
It's, it's free, it's ... See, you gave from your side to really talk about, you know, from an educational and academic perspective, what you're seeing out there. I'm just sharing as a consultant and advisor some things to think about. So final question for you, friend. After completing this research, are you more optimistic [00:55:00] that communications leaders will earn greater presence in the boardroom or not?
Matt Ragas: Oh, you know what? I, I think it, it, it, uh, almost certainly, right? I, I don't need CalSTRS or Polymarket. If we were, if we were doing a prediction market on will the level of, um, senior comms leaders grow on boards over the next decade, almost certainly. And I think we're gonna see, though, even more growth with, which will be certainly future research for me to focus on, is gonna be boardroom engagement and access, right?
And so, um, there's gonna be, and needs to be for us to maximize our impact, whether we're agency leaders or in-house. Uh, and that's also pa- what came out of these interviews, and will be a follow-up, uh, study. Um, how to, um, you know, get on a boardroom agenda, how to, uh, build relationships and, [00:56:00] uh, lean into and get invited to that board dinner and that board luncheon and that, uh, investor day.
Uh, but no, this is, uh, we should feel very, um, positive of, um, you know, uh, we, we, we're very much now Got into that one room, we've got the seat at the table, and we're working to keep that seat at the table. We can't take it for granted. And now, to me, this is that next frontier of board service and boardroom, uh, engagement and access.
Steve Halsey: This is very, uh, very important research. And, and again, in, in all seriousness, hats off into really, uh, being one of the first that I'm aware of to really start delving into this topic as it relates to communicators and, and boards. And it's, it's a very important both challenge and opportunity for those at the most senior level of our, our profession.
You know, and communications expertise, as we've talked about, it may help someone stand out, but by itself, [00:57:00] it doesn't necessarily make you board-ready. And, and really that opportunity is to think about how you can combine that unique viewpoint and skill set around stakeholders and reputational risk and all of those things, which are important because so many of our senior leaders, they are actively on a day-to-day basis counseling their clients through really tough things that aren't just reputational, they are business level issues.
And if they can combine that with demonstrated financial literacy, business judgment, uh, enterprise expertise, demonstrating that ability to have a vision and help govern the organization, that could really open up some, some really amazing things.
Matt Ragas: I wanna really thank, thank you, Steve, for kind of, um You know, provi- providing, you know, an opportunity to, to talk about this research and, and I really wanna give a big thank you to the 20 senior leaders that made time in their schedule.
Steve Halsey: 100%.
Matt Ragas: Some of these were [00:58:00] folks, you know, that I already knew, and then there's other people that know who they are in the background that helped me with gaining access to some of these folks. And that's what I mean, because this was then, I think you're gonna find in this paper, it's pretty prac- it's pretty practical, and I think impactful.
And these 20 folks are really paying it forward, uh, by telling their stories and sharing, in many ways, kind of a playbook for better playing, uh, the board game.
Steve Halsey: Mm-hmm. Well, Professor Regas, thank you again for being a friend of the pod and returning again to our Building Brand Gravity and, and for really helping us understand what it takes to enter that next room where it happens at the board level.
And I wanna thank everyone listening. If you enjoyed today's conversation, please make sure to follow Building Brand Gravity. As I said before, please feel free to reach out to Professor Regas. He's happy to talk to you and share more about his research. Look for his [00:59:00] book. That will be coming to a bookstore sometime in the next couple years.
We'll, when that comes out, we'll have you back, and we'll transition the conversation a little bit more. Um, and please feel free to share this episode with a colleague who may be thinking about that next stage in, in their journey. So Professor Regas, thanks again for joining us on Building Brand Gravity.
Matt Ragas: Thanks so much, Steve. It was, uh, totally my pleasure.