A strong correlation has been observed between a company’s corporate communications and the company’s ranking on Fortune magazine’s ‘World’s Most Admired Companies’ list. The professional background, communications priorities, and inter-organizational relationships of the corporate communications head are also indicators of the ability of a corporate communications department to make a positive impact on a company’s reputation. These are some of the results of a survey ‘The Rising CCO (Chief Communications Officer)’ of 141 corporate communications executives from Fortune 500 companies in the US and Europe, conducted by global PR firm Weber Shandwick, executive search firm Spencer Stuart, and KRC Research.

The research also found that communications executives in the world’s most highly regarded companies have more prominent organizational status and longer tenures than their counterparts in contender companies. Additionally, approximately one-third of CCOs from the most admired companies cite corporate reputation as their number one priority for 2008, compared to fewer than one-quarter of CCOs from contender companies (34 vs. 21 percent, respectively). Contender company communications executives said they were spending more time working on product-related issues and crisis communications, while most admired CCOs said they spent more time on corporate social responsibility and building corporate reputation.

Based on Fortune’s 2006 Most Admired Survey (March 19, 2007). In general, Most Admired Companies are the most highly ranked companies in an industry on overall reputation. Contender Companies are ranked in the industry’s bottom half.

Other key findings are:

1. CCOs’ responsibilities will increasingly shift from tactical to strategic. While CCOs are carving out their role as strategic partners at the highest levels of business, they view work today as predominately tactical (58 percent tactical, 42 percent strategic). This imbalance, as reported by those surveyed, is sure to change as focus shifts from financial communications, media relations and internal communications to the broader strategic issues of environmental/social responsibility and corporate reputation. The tools used to perform their jobs will expand as well, with blogging/social media and corporate Web sites becoming increasingly important.

2. CCOs hold prominent positions at the world’s largest companies. Nearly one-half surveyed report directly to the chief executive officer (48 percent) and are visible to their boards (had a median seven interactions with their board during the past year).

3. CCOs and CMOs are friends and rivals. CCOs’ dynamic relationship with chief marketing officers (CMOs)–often a main rival and ally–reflects the growing influence of communications in today’s marketing mix.

4. Measurement of CCO effectiveness is predominately qualitative. The vast majority of those surveyed report being measured on qualitative measures such as “positive” media coverage (75 percent) and CEOs’ “gut” feel (73 percent). They are least likely to be measured by quantitative metrics such as the number of media mentions (35 percent) and ability to control costs (32 percent).