Living the Message: a PowerPoint by Virgil Scudder for the National Investor Relations Institute

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Living the MessageThe Management Perspective

Virgil ScudderNIRI Conference

June 11, 2013

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A Basic PremiseCredibility is a company’s most valuable asset.

Too many companies lose it because they talk the talk but don’t walk the walk.

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Compounding the Damage

• Then-CEO Tony Hayward didn’t get the message.

• He went into tough Congressional hearings unprepared.

• The result was disastrous.

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The Result

• BP lost a third of its value.• Hayward lost his job.• BP is starting a long rebuilding process.

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The Key to Successful Communication

ClearConciseCredibleConfident

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What That Means

• Straight talk

• Headline-first responses

• Easily understood language

Communication is not what the speaker knows or says; it’s what the listener takes away.

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Scudder’s Law

Never lie, deceive, mislead nor allow shareholders or the public to be misled.

It will catch up with you.

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Some Examples

TARGET TOYOTA SHELL

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How Not to Build ConfidenceA bank CEO was asked about a possible merger.

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My Translation

• Not now.

• Time is not right.

• Maybe later.

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An Embarrassment and More

• The CEO was featured in a New York Times article including his picture.

• The headline: “When CEOs are Tangled in their own Web of Words.”

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He Was Not Alone• Another CEO boasted that a recent acquisition could produce as

much as $80-million in cost savings.

• But, here’s what he said later when asked for more detail.

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ResultThe stock dropped 8% that day.

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Excessive Exuberance

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Not Walking the Walk A Classic Example

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Walking the Walk

Bill Marriott Jr

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Some Final Thoughts

• Remember the 4 C’s: Clear, concise, credible communication, delivered with confidence.

• They greatly impact a company’s reputation and valuation.

• Don’t talk the talk unless you’re ready to walk the walk.

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virgil@virgilscudder.com305-867-1796

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