Setting the Tone at the Top - Communication Tips for CEOs from Ed Maier

CEOs have many responsibilities and one of them is to influence company culture. Company culture affects everything from employee morale to the extent which internal controls are emphasized.  In a post-Enron world in which Sarbanes-Oxley has become ever more important, it is increasingly important for top executives to communicate the importance of internal controls to employees.  So, how can you, a busy CEO/CFO/CIO, mold your company culture in such a way that internal controls (and other important issues) become woven into the fabric of your company's culture? 

Following are a few tips to help chief executives to set the tone from the top:

1. The CEO should prepare and communicate periodic messages to employees

• Explain why the information you are communicating is important
• Send successive messages to praise progress and to highlight specific, positive results

2. Meet with your senior executive team to communicate their responsibilities in influencing culture

• Follow up with senior executives to monitor progress
• Communicate specific objectives and, if possible, talking points regarding the message you want to send to employees

3. Coach senior executives to initiate a similar process throughout their chain of command

• Communicate the importance of the cultural issues you wish to modify
• Explain the reasons it is important for employees to embrace the changes
• Outline consequences of failure to embrace and comply with the cultural changes that you are championing

4. Give employees time to understand and question the changes you propose. 

• Offer them the opportunity to make suggestions about enhancing the changes to culture that you have proposed.
• Acknowledge and reward good ideas

Edward G. Maier is the CEO of the Maier Consulting Group LLC and may be reached at egmaier@ameritech.net  Ed will be BroadPeak's featured speaker at our spring CFO Forum. Stay tuned for more information about date and location for the event. Mr. Maier serves as the CFO and is a director of Millennium Park, Inc.  He is also a former partner at Arthur Andersen.