In this regard, everyone has their own questioning technique ranging from the more standard "Can you outline your strategy?", to the more extrovert "What keeps you awake at night"and anything in between. However the objective is always the same - to get inside the head of the CEO.
The recently-released results from the PricewaterhouseCoopers survey of 1,000 Global CEOs provide a valuable insight into the thinking of this important group. Notwithstanding concerns over the impact of war, between 71 per cent and 75 per cent - depending on their industry - of CEOs are very or somewhat confident about growth in the next year. Those CEOs from the media sector were even more confident.
It helps that the comparison figures for the first and second quarters of last year are easy to beat. Not only that but the second half of 2003 and 2004 should show dramatic improvement; the consensus is that certain uncertainties will have been resolved. To the extent that ad revenues always run ahead of general economic indicators, media companies are, by definition, first to benefit.
Against that generally optimistic backdrop, there are a range of concerns which the CEOs of major media (including entertainment) companies highlight.
The first is how to cope with the relationship between core and non-core activities. Media companies were some of the most active during the acquisition era, moving into many new areas. This struggle with change is resulting in a refocus on what is perceived as core activities.
This provides a link to the second area of concern. The CEOs are very clear that communicating clearly to financial analysts about the value of the company is about keeping it simple. Keep businesses in silos that analysts understand, with historical multiples analysts can use.
Where media companies try to bridge across multiples they run the risks of being devalued. The message is therefore "keep it simple, by keeping it classic".
The need for clear communication of value is mentioned time and again.
The reason - media CEOs are convinced the companies they run are 'undervalued'.
You may say 'no shock there' but the market sentiment pendulum is now firmly with the classic widget company.
Consistent with the theme of communicating value to investors is the CEO's overall mission to build public trust in the aftermath of the Enron/ WorldCom debacles and the passage of the draconian Sarbanes Oxley Act in the US.
The latter has global implications either directly for all overseas SEC registrants or through the influence it has on local regulators.
The CEO now more than ever, is focusing on effective risk management and clear communication with the investment community and regulators.
I will return to both of these issues in subsequent articles as they present clear opportunities for all in the 'communications' arena.
