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71 PRACTICE MANAGEMENT THOUGHT LEADERSHIP 7 Rules for CEOs to Live By, Whether at a Small Start-Up or Global Corporation By Erin Marshall, Emily Rappleye and Tamara Rosin A s president and CEO of the world's largest independently owned public relations firm, Edelman, Richard Edel- man has come to understand that employees want their CEOs to be trustworthy, confident, ethical, transparent and decent. "What's not in that list? Visionary, deeply ex- citing, rockstar. ey just want someone who will do a good job," he says. Edelman's annual Trust Barometer shows a gaping divide in the trust of executives, especially CEOs, who are now seen as a class, not individuals. e survey shows 70 percent of the U.S. educated elite express trust in business, while only 51 percent of the general population does — a gap of nearly 20 percent. is gap means employees are increasingly skeptical of their leaders, and as a result, less engaged. ey believe their businesses and leaders can and should earn profits while making communities a better place to live at the same time. At a meeting of e Executives' Club of Chi- cago, Mr. Edelman shared several behaviors and traits CEOs must master today to have an ounce of hope in gaining employees' trust. 1. Be a recognizable face. Demands on leaders to stabilize their business and position the organization to succeed were heightened by and since the recession. However, a closed- off leadership style impedes success. When people don't know who their leader is, they tend to fill the void of information with their own perceptions and interpretations of their actions. "It's our hypothesis that there are so many CEOs who have kept their heads down since the recession," says Mr. Edelman. "It's time for CEOs to li their heads and get back out there and lead." More importantly, a CEO's humanistic qualities are lost on employees when he or she is absent. In addition to establishing a strong presence in the organization, the CEO must also clearly communicate the values to which they attribute the highest importance, and those which they expect their employees to emulate. "People aren't going to follow you if they don't know who you are or what your values are," says Mr. Edelman. "You must also share your stories with them. Employees are a critical group in the world of peer-to-peer discussion. If you don't tell your employees what you're doing, you're missing out on the best possible advocates for your case." 2. Understand the magnitude of the value of trust. Of all leadership traits, trust is by far the most essential. While reaching the top spot of an organization requires solid business acumen and a strong ability to lead, these skills do not automatically garner a CEO his or her employees' trust. "Trust in institutions is no longer granted on the basis of hierarchy or title. It has to be earned," says Mr. Edelman. "To earn trust, you have to do something. It must be substantive, tangible and real. It has to be done in the context of your personal values as a leader. It must be expressed by your employees, not just by you and your executive team." Mr. Edelman pointed to Oscar Munoz, pres- ident and CEO of United Airlines, as a prime example. Aer his first month on the job, Mr. Munoz acknowledged that the execution of the airline's strategy when merging with Conti- nental Airlines had been subpar. However, he made it clear that he would do everything possible to support the company's employees to empower them to build better relationships with customers. "at level of self-awareness, personal lead- ership and taking on the responsibility for the change he saw was necessary to succeed has made him iconic among employees and customers," says Mr. Edelman. 3. Recognize the correlation between trust in leaders and employee en- gagement. Leadership connotes influence. However, Edelman's Trust Barometer shows the average employee is far more trusted than a CEO or a government official, creating a separation between authority and influence. It follows that employee engagement is difficult if a CEO is not trusted as a peer. Trust has to be earned by directly engaging employees in peer- to-peer discussion or town hall-like meetings. When employees feel their voice is heard and their opinions matter, they have a stake in the company and are much more likely to be engaged in work. "When you don't talk to your kids, you have a breakdown in the family. It's the same notion that should be considered by executives," Mr. Edelman says. "When you place employees last in the order of who you talk to for substantive information, that's also a complete breakdown in trust. Smart companies are putting employee communications in a strategic advantage category." 4. Lead on public issues. A crucial part of becoming a good leader lies in the difference between gaining name awareness versus pref- erence. It is not enough to be known among employees. To gain trust and influence, CEOs must also be likeable. While this may seem obvious, it can be difficult to establish pref- erence from the top down. According to Mr. Edelman, one of the best ways to do this is to share a bit about yourself and your core values. is goes beyond philanthropy. CEOs must truly champion a cause, rather than simply throw money at it. Mr. Edelman gave the example of Starbucks CEO Howard Schultz, who took up the issue of teen unemployment by launching a campaign to hire 100,000 young Americans. Other notable efforts include Allstate Chairman and CEO omas Wilson, who has been recog- "People aren't going to follow you if they don't know who you are... If you don't tell your employees what you're doing, you're missing out on the best possible advocates for your case."