More good stuff from The World’s Leading – this time some comment on the results of the sixth annual 2006 PRWeek/Burson-Marsteller CEO Survey.
Among other things, TWL points out that the headline finding is interesting – namely that the majority (62%) of CEOs
“indicate that gut feelings are highly influential in guiding their
business strategies, while only four in 10 cite internal metrics and
financial information.”
This is not only interesting but downright bizarre. TWL examines this in the light of recent discussion about the increasing reporting overhead in PR. But this clearly extends to other areas of business. For example, the Narrative Reporting Provisions of the Companies Bill 2007. Gary Simon from FSN.co.uk has just published a whitepaper on the subject. Even though the OFR never got out of the starting blocks, a Business Review is still a current legal
obligation introduced into the Companies Act 1985 to implement the EU
Accounts Modernisation Directive.
As Gary says: "In the case of a quoted company the Business Review must, to the extent
necessary for an understanding of the development, performance or
position of the company’s business, include –
| (a) | the main trends and factors likely to affect the future development, performance and position of the company’s business; and |
| (b) | information about – |
| (i) | environmental matters (including the impact of the company’s business on the environment), |
| (ii) | the company’s employees, and |
| (iii) | social and community issues,"
Not sure gut instinct will hold much sway in providing answers to any of the above. Also, in the context of PR and marketing, CEOs surely need to take into account the impact of their activity in these areas that are likely to affect the future development, performance and position of the company’s business? |