CEO Brands and the Effect on Investor Confidence

Many brands out there attribute their success, or failings for that matter, to the character and social standing of the CEO - or at least the perceived character. CEOs are often not only the decision making heads of the company – they are also the face of the brand.

While this may work well, especially in certain industries or markets, the risk of damage to one’s reputation can be a double-edged sword. If the company lands up in a bad light, naturally the reputation of the CEO will be tarnished – or, heaven forbid, vice versa.

Highlighting the personality of a CEO can be useful with aspirational brands, or a brand whose leader is naturally interesting, and allows investors to get to know and trust them over time.

Social Networking and CEOs

More and more companies are starting to take notice of the potential of Social Media. Cheap and measurable, social media optimisation (SMO) is leading companies big and small to websites such as Facebook, LinkedIn and Slideshare.

These types of platforms make it easier to release information, conduct market or brand research (overtly or subtly), relieve pressure from a traditional call centre and streamline customer relationship management (CRM) – this is especially prevalent in Twitter, which allows for real-time interaction.

@RichardBranson of the Virgin Group on Twitter is a great example of a successful CEO brand.

...but there is one crucial ingredient to the success of commercial SMO - transparency. Whether one’s business is a one-man show or a large multinational, the business won’t enjoy optimal success online without a credible image.

Here are some points to help improve transparency and investor confidence by putting a CEO at the Twitter helm:

• Keep it professional. While a human edge is important, maintain the strictest standards on content.
• Maintain a good balance between followers and the number of people you are following.
• Use #hashtags and popular keywords to be found easier.
• Choose who you follow wisely. Not only do you want to portray a professional and well-connected image, but there’s no denying the potential of Twitter feeds. Don’t follow spammers or try to over-inflate the numbers – rather follow those you’d have a genuine interaction with, or receive knowledge from.
• Depending on the industry, you may wish to follow and interact with competitors, adding value to your own field of expertise.
• Good content to tweet could include links to industry articles, staff activities or exciting internal news (greatly improving transparency) and retweets or snippets of industry conversation and interesting thoughts.

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